Chapter 6 Guided Notes
Chapter 6 Guided Notes MKT1211K
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This 8 page Class Notes was uploaded by Lia Pearson on Tuesday September 22, 2015. The Class Notes belongs to MKT1211K at Jamestown Business College taught by Mrs. Halftown in Summer 2015. Since its upload, it has received 57 views. For similar materials see PRINCIPLES OF MARKETING in Marketing at Jamestown Business College.
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Date Created: 09/22/15
Chapter 6 Guided Notes Think about the last expensive product that you purchased Le a laptop iPhone tablet sporting equipment etc Explain the purchase to me in steps using the consumer buying process Need recognition The consumer decision process begins when consumers recognize they have an unsatis ed need and they would like to go from their actual needy state to a different desired state The greater the discrepancy between these two states the greater the need recognition will be Information search After a consumer recognizes a need for something they seek out information on various options out there that satisfy their needs Consumers do this through both internal and external searches for information Alternative evaluation After the consumer has done the research on which products are available to suit their need they evaluate all of the options available to them and choose which one of the options is best suited to ful ll their wants and needs Purchase After evaluation of the alternatives and deciding on which one best suits their needs the consumer is ready to purchase that particular product or service The customer then purchases the product or service in order to ful ll their need Post purchase After a customer purchases and item it is valuable information for the company to know if the product or service that was purchased ful lled the needs of the customer or not Step 1 Need Recognition Functional Needs Functional needs pertain to the performance of a product or service Psychological Needs Psychological needs pertain to the personal grati cation that consumers associate with a product or service How can getting a college education ful ll a functional need and a psychological need Getting a college education can allow a person to get a highpaying job which serves as something that many people need in order to be successful and it is also something that people want in life therefore getting a college education can ful ll both a functional need as well as a psychological need Step 2 Information Search The second step after a consumer recognizes a need is to search for the information about the various options that exist Internal search for information An internal search for information is when the buyer examines his or her own memory and knowledge about the product or service gathered through past experiences External search for information In an external search for information the buyer seeks information outside of his or her personal knowledge base to help make the buying decision After freshman year Veronica wants to decide on a major What internal and external sources of information will she use in help her in making a decision Veronica may remember the major her older sister chose and how happy and successful she is now internal and also ask her guidance counselor for any advice on an appropriate major for her external Factors that affect information search The Perceived Bene ts versus Perceived Costs of Search Is it worth the time and effort to search for information about a product or service That is the question consumers ask about before researching a product or service time is of value to consumers The Locus of Control People who have an internal locus ofcontro believe they have some control over the outcomes of their actions and in turn they engage in more search activities With an external locus ofcontrol consumers believe that fate or other external factors control all of the possible outcomes Actual or Perceived Risk There are ve types of risk 1 Performance risk involves the perceived danger inherent in a poorly performing product or service 2 Financial risk the risk associated with a monetary outlay and includes the initial cost of the purchase as well as the costs of using the item or service 3 Social risk includes fears that consumers suffer when they worry others might not regard their purchases positively 4 Physiological risk also known as safety risk is the risk that involves what might happen if a product does not perform as expected 5 Psychological risk risk associated with the way people will feel if the product or service does not convey the correct image that the consumer was expchng Step 3 Alternative Evaluation Using automobiles as an example explain the differences between universal retrieval and evoked sets and identify the one that is most important to marketers Universal Set Universal sets include all possible choices for a product category Retrieval Set Brands or stores that can be readily brought to memory that may in uence purchasing decisions Evoked Set Compromises the alternative brands or stores that the consumers state they would consider when making a purchase decision sometimes due to good lick or loyalty in the family to a speci c brand Step 4 Purchase Conversion rate How well a retailer turns interest in a product into the sale of that speci c product Step 5 Post Purchase Customer Satisfaction Setting unrealistically high consumer expectations can lead to dissatis ed customers Marketers can take several steps to ensure postpurchase satisfaction such as Building realistic expectations Demonstrating correct product use Standing behind the company39s products Encouraging customer feedback PWF 5 Making contact with the customers after the purchase thanking them for the support Post Purchase Cognitive dissonance An internal con ict that arises from an inconsistency between two beliefs and behaviors An example of this would be buyer39s remorse Customer Loyalty In the post purchase stage of the decision making process if customers are happy with the product they may become a loyal customer Loyalty is attempted through CRM programs Customer Relationship Management Undesirable Consumer Behavior Assume you are the manager of a resort property that is close to the mountains to several recreational sites and to a few luxury restaurants and stores How would you manage customer expectations to enhance post purchase satisfaction Be speci c I would research the surrounding businesses in the area paying speci c attention to the variety and quality of the services that they offer After I have determined the variety and quality I would do my best to exceed those factors in my own resort Some examples of going beyond would be offering customer discounts At a convenience store Brian bought a bag of chips he had never tried before Driving down the road Brian opened the bag took a bite and realized he had purchased pork rinds by mistake Being a vegetarian Brian tossed the chips away Brian felt very little buyer39s remorse and soon forgot about the experience Why Brian did not feel buyer39s remorse from that purchase because it was inexpensive and it was a simple mistake on his part Buyer39s remorse is felt when the consumer spends a lot of money on something and is not pleased with the results they thought they would get Factors that affect the consumer decision process Psychological Factors Motives needs or wants that is strong enough to cause the person to seek satisfaction Attitude a persons enduring evaluation of his or her feelings about the behavioral tendencies toward an object or idea Perception the process by which we select organize and interpret information to form a meaningful picture of the world Learning refers to a change in a person39s thought process or behavior that arises from experience and takes place throughout the consumer decision process Lifestyle refers to the way consumers spend their time and money to live Social Factors Family many purchase decisions are made about products or services that the whole family will use or will consume Reference Groups one or more persons whom an individual uses as a basis for comparison regarding beliefs feelings and behaviors Culture shared meanings beliefs morals values and customs of a group of people Situational Factors factors speci c to the situation override psychological and social issues Purchase Situation customers may be predisposed to purchase certain products or services because of some underlying psychological trait or social factor Shopping Situation customers might be ready to purchase a product or service but he completely derailed by the shopping atmosphere once they arrive Temporal State our state of mind and how it effects the purchasing decisions we make L06 Describe how involvement in uences the consumer decision process Extended Problem Solving the process that consumers go through when making a purchase 5 STEPS Limited Problem Solving Occurs during a purchase decision that calls for at most a moderate amount of effort as well as a moderate amount of time Impulse Buying a buying decision made by customers on the spot when they see something they want Habitual Decision Making describes a purchase decision process in which consumers engage in little conscious effort Using examples describe the difference between impulse buying and habitual decision making An example of an impulse buy would be buying a pack of gum while waiting in the checkout line An example of a habitual decision would be purchasing a home after researching the neighborhood schools etc impulse buying does not require much deep thought while a habitual decision does require some deep thinking as well as some research