MARK 3321 1st Edition Lecture 5 Outline of Last Lecture I. Rewards of Global MarketingII. Benefits and Negatives of Trade and GlobalizationIII. External Environment Facing Global Marketsa. Cultureb. Political structurec. Natural resourcesd. Economic and technological developmente. Demographic makeupIV. Entering the Global Marketplacea. Exportb. Licensingc. Contract Manufacturingd. Joint venturee. Direct investmentV. Global Marketing Standardizationa. Global marketing standardizationb. Multi-domestic strategyVI. Global Marketing Mixa. Product/Promotionb. Place (Distribution)VII. Pricing Outline of Current Lecture I. Consumer BehaviorII. Consumer Decision-Making ProcessIII. Factors determining Level of Consumer InvolvementIV. Marketing Implications of Consumer InvolvementCurrent LectureCH 6 – Consumer Decision Making- Consumer behavioro Processes a consumer uses to make purchase decisions, as well as, to use and dispose of purchases goods or servicesThese 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 processo Step 1. Need recognitiono Step 2. Information search Internal info search- Recall info in memory External info search- Seek info in outside environmento Non-marketing controlledo Marketing controlled Evoked set (consideration set) - Group of brands, resulting from an info search, from which a buyer can chooseo Step 3. Evaluation of alternatives Analyze product attributes Use cutoff criteria Rank attributes by importance- Compensatory decision making exampleo 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 purchaseo 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 purchaseo Avoiding info that contradicts the purchase decisiono Revoking the original decision by returning the product- Factors determining the level of consumer involvemento Previous experience Generally decreases customer involvemento Interest Generally increases involvemento Perceived risk of negative consequences Increases involvemento Social visibility- Marketing implications of involvemento High involvement purchases Extensive and informative promotion to target marketo Low involvement purchases In-store promotion, eye-catching package design, and good