Mkt 3010 1st Edition Lecture 5 Outline of Last Lecture Demographic: General cohorts, Income, Education, Gender, EthnicitySocial trends: The green movement, privacy concerns, Time-poor society, Fair labor/wages, Price sensitivity/thrift, health and wellness concerns Technological advancesEconomic situation: affects buying and spendingPolitical/regulatory environment: components and implicationsCh. 6Consumer behaviorLow and high problem solving: low and highOutline of Current Lecture Step 1: Need recognition: Stimuli, needsStep 2: Info search: Internal, External, Factors affecting info searchStep 3: Evaluation of Alternatives: Attribute sets, evaluative criteriaStep 4: Purchase decision and consumption: choice and valueStep 5: Post-purchase behavior: customer satisfaction, buyer’s remorse, customer loyalty, and negative word of mouthFactors influencing the customer decision process: psychological factorsCurrent LectureChapter 6: Consumer Behavior: NeedsStep 1: Need Recognition- Stimulio Internal- I realized that I need a product o External- Someone told me I need it and now I need it- Needso Funtional- looking at performance of producto Psychological- feeling good from a productStep 2: Information Search- Internal: examining memory, personal experiences- External: ask opinion of others, “I have this need, what do you recommend”- Factors affecting Information Search: o Weigh own perceived benefits vs. the cost of searchThese 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.o Locus of control: Internal- believe we control own destiny External: believe that fate and destiny control destiny ** the more we believe internally, the more the person will searcho Actual or perceived risk- what happens if the product doesn’t perform well—howwilling is the person to search to get a better product. Also if the product costs more, people are more willing to take time to decide and look into the product. And psychological risk plays a factor- fashion trends. Physiological risk- is there harm that can come from the productStep 3: Evaluation of Alternatives- Attribute setso Universal sets: all options availableo Retrieval sets: What is actually available to us Evoked: products that we do like Inert: Brands that consumers are aware of but don’t like or dislike Inept: Actively dislike- Evaluative Criteriao Determinant attributes: characteristics that are most important to the consumer when trying to make a purchase.o Decision heuristics: mental shortcuts that we use to help decide what to buy—price, brand, packagingStep 4: Purchase Decision and Consumption- Choice made: chose how where and when you are purchasing the product decided- Value: have you maximized your value?Step 5: Post-purchase Behavior- Customer Satisfaction: what were expectations and perceived performance—if both are met or beat, happy customer, if not, we have people who are not happy- Post-Purchase Cognitive Dissonance (buyers remorse)- customer not happy that they bought the product—seen most in expensive products, infrequent purchases, and products with high risk- Customer loyalty: marketers are trying to get the customer to buy from them again- Negative word of mouth: talking about a negative experience of a productFactors Influencing the Consumer Decision Process- Psychological factors o Motives: ****(hierarchy of needs pyramid)o Attitudes: enduring evaluations that we use on products Cognitive- what we believe to be true about certain brands Affective- positive or negative towards a products Behavioral- actions that we take based on the previous two factorso Perception: how we process, interpret and organize information in our minds—add filters based on what we believe to be