M300 1st Edition Lecture 7 Outline of Current Lecture I. What is Consumer Behavior?II. Consumer Purchase Decision ProcessIII. InvolvementIV. Step 2. Information SearchV. Step 3. Alternative Evaluation: Assessing ValueVI. Evoked Set ExerciseVII. Step 4. Purchase Decision: Buying ValueVIII. Step 5. Post Purchase BehaviorCurrent Lecture I. What is Consumer Behavior?a. The process of individuals or groups selecting, purchasing, using, and disposing of goods, services, ideas, or experiences, to satisfy needs and desires. II. Consumer Purchase Decision Processa. Buyers pass through different stages when making choices about to buy.b. 1. Problem recognitioni. Perceiving a needc. 2. Information searchi. Seeking valued. 3. Alternative evaluationi. Assessing valueThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.e. 4. Purchase decisioni. Buying valuef. 5. Post-purchase behaviori. Value in consumption or use.g. Consumers travel through the 5 steps rapidly when:i. Low cost, have a lot of experience purchasing it, complexity of decision making I slow, risk is lowh. Consumers travel through the 5 steps slowly when:i. Complexity of decision making is high, high risk, it’s a new decisionIII. Involvementa. Extended Problem Solvingi. Ex. College, house, carsb. Limited Problem Solvingi. Ex. Cell phone, clothing, wedding dressc. Routine Decision Makingi. Toothpaste, getting gas, coffeeIV. Step 2. Information Searcha. Consumers gather info from Memory, Media, Recommendationsb. Example: Time and effort spent on extended problem solving for a new car = Greatc. Example: You are engaged in routine problem solving for facial tissue. Time and effort spent = smallV. Step 3. Alternative Evaluation: Assessing Valuea. Evoked set: small group of products being evaluated. The evoked set is smaller than total #b. Retrieved set: Those brands that are stored in memory that you can recallc. Universal set: All brands available to purchase.VI. Evoked Set Exercisea. How does an evoked set help customers? i. Simplifies worldii. Faster decision making (categorization helps)_b. How does an evoked set help marketers?i. Better understand your competitive setii. Make better decisionVII. Step 4. Purchase Decision: Buying Valuea. What strategies can firms use to make it easy for customers to purchase?i. Bulk – lark sizes (storage)ii. Accessibility – Internetiii. Reminder e-mailsiv. PromotionsVIII. Step 5. Post Purchase Behaviora. What strategies can firms use to make unhappy customers happy?i. Listenii. Solve problemiii. Free stuffiv.
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