Exam 2 Study Guide Chap 6 12 Consumer Decision Making Process cultural social individual and physiological factors affect all steps need recognition information search evaluation of alternatives purchase post purchase behavior Need Recognition result of an imbalance btwn actual and desired states recognition of unfulfilled wants when current product isn t performing properly when consumer is running out of a product when another product seems superior to the one currently used Information Search international information search recall info in memory external information search seek info in outside environment nonmarketing controlled marketing controlled need less info less risk more knowledge more product experience low level of interest confidence in decision need more info more risk less knowledge less product experience high level of interest lack of confidence Evoked set group of brands resulting from an information search from which a buyer can choose Evaluation of Alternatives and Purchase analyze product attributes use cut off criteria rank attributes by importance Cognitive Dissonance inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions Post Purchase Behavior consumers can reduce dissonance by seeking info that reinforces positive about the purchase avoid info that contradicts the purchase decision revoking the original decision by returning the product marketing can minimize through effective communication follow up guarantees warranties 5 factors influencing decisions 1 Level of involvement 2 Length of time to make decision 3 Cost of good or service 4 Degree of information search 5 Number o alternative considered Routine response behavior little involvement in selection process frequently purchase low cost goods Limited decision making low levels of involvement low to moderate cost goods evaluation of a few alternative brands short to moderate time to decide Extensive decision making high levels of involvement high cost goods evaluation of many brands long time to decide may experience cognitive dissonance Factors determining level of consumer involvement previous experience interest perceive risks of negative consequences situation social visibility Factors Influencing Buying Decisions cultural factors social factors individual factors physiological factors Components of Culture values language myths customs rituals laws material artifacts pervasive functional learned dynamic Value enduring belief that a specific mode of conduct is personally or social preferable to another mode of conduct Social class group of people in a society who are considered nearly equal measurements occupation income education wealth other variables Social influences reference groups opinion leaders family members Opinion leaders and individual who influences the opinion of others reference group indirect direct indirect aspirational nonaspirational direct primary secondary Family purchase process roles in the family initiators influencers decision makers purchasers consumers Individual influences gender age personality Physiological influences Physiological motivation learning beliefs attitudes perception selective exposure selective distortion selective retention exposure consumer notices certain stimuli and ignores others distortion consumer changes or distorts info that conflicts with feelings or beliefs retention consumer remembers only that info that supports personal beliefs marketing implications of perception important attributes price brand names quality and reliability threshold level of perception product response motivation Maslow s Hierarchy of Needs method of classifying human needs and motivations into 5 categories in ascending order of importance self actualization needs self development self realization esteem needs self esteem recognition status social needs sense of belonging love safety needs security protection physiological needs hunger thirst Types of Learning experiential an experiences changes behavior conceptual not learned through direct experience beliefs organized pattern of knowledge that individual holds as true about his her world Attitude a learned tendency to respond toward a given object What is business marketing marketing of goods and services to individuals and organizations for purposes other than personal consumption Key Intended Use business products used to manufacture other products become part of another product aid the normal operations of an organization are acquired for resale without change in form Measuring online success stickiness measure of a Web Site s effectiveness calculated by multiplying the frequency of visits x duration of a visit x of pages views during each visit Evolution of E Business Initiatives revenue generation aggressive disintermediation s initiatives basic marketing communication strategies Old Strategies New Initiatives reduce costs build channel partnerships and trust customer focused technology and systems brand building and development integrate online and traditional media Relationship Marketing loyal customers are more profitable than price sensitive customers with little brand loyalty long term relationships build competitive advantage Strategic Alliance licensing or distribution agreements joint ventures research and development Keiretsu relationships are highly integrated companies sit on each other s boards maintain dedicated trade efforts joint development finance and marketing Major Categories of Business Customers B 2 B producers OEMs Resellers wholesalers and retailers governments federal municipal local institutions schools churches civic clubs nonbusiness organizations hospitals unions foundations colleges fraternal groups NAICS north American industry classification system a detailed numbering system developed by US Canada Mexico to classify North American business establishments by their mean production process provides a common industry classification system sectors subsectors industry groups and U S industry number valuable tools for marketers in analyzing segmenting and targeting markets data can be useful to determine number size and geographic dispersion of firms market potential market shares estimates sales forecasts new customer identification Business vs Consumer Markets Characteristic Business Market Demand Volume of Customers Location Distribution Nature of Buy Buy Influence Negotiations Reciprocity Leasing Promotion