MARK 3321 1st Edition Lecture 5 Outline of Last Lecture I Rewards of Global Marketing II Benefits and Negatives of Trade and Globalization III External Environment Facing Global Markets a Culture b Political structure c Natural resources d Economic and technological development e Demographic makeup IV Entering the Global Marketplace a Export b Licensing c Contract Manufacturing d Joint venture e Direct investment V Global Marketing Standardization a Global marketing standardization b Multi domestic strategy VI Global Marketing Mix a Product Promotion b Place Distribution VII Pricing Outline of Current Lecture I Consumer Behavior II Consumer Decision Making Process III Factors determining Level of Consumer Involvement IV Marketing Implications of Consumer Involvement Current Lecture CH 6 Consumer Decision Making Consumer behavior o Processes a consumer uses to make purchase decisions as well as to use and dispose of purchases goods or services These 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 Also includes factors that influence purchase decisions and the product use Consumer decision making process o Step 1 Need recognition o Step 2 Information search Internal info search External info search o o Non marketing controlled o Marketing controlled Group of brands resulting from an info search from which a buyer can choose Step 3 Evaluation of alternatives Analyze product attributes Use cutoff criteria Rank attributes by importance o Seek info in outside environment Evoked set consideration set o Recall info in memory Compensatory decision making example Step 4 Purchase Transaction terms are arranged ownership title is transferred the product is paid for and the consumer takes possession of the product from the seller The consumer purchase can be derailed due to Preferred brand may be out of stock New in store info may reopen the evaluation process Financing terms may render a purchase infeasible Unexpected situations may lead to postponement of the purchase Step 5 Post purchase behavior Cognitive dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions Consumers reduce dissonance by o Seeking info that reinforces positive ideas about the purchase o Avoiding info that contradicts the purchase decision o Revoking the original decision by returning the product Factors determining the level of consumer involvement o Previous experience o o Generally increases involvement Perceived risk of negative consequences o Generally decreases customer involvement Interest Increases involvement Social visibility Marketing implications of involvement o High involvement purchases o Extensive and informative promotion to target market Low involvement purchases In store promotion eye catching package design and good displays