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 behaviorNeed 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 usedInformation 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; confidencein 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 chooseEvaluation 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 opinionsPost 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, warranties5 factors influencing decisions1. Level of involvement2. Length of time to make decision3. Cost of good or service4. Degree of information search5. Number o alternative consideredRoutine response behavior-little involvement in selection process-frequently purchase low cost goodsLimited decision making-low levels of involvement-low to moderate cost goods-evaluation of a few alternative brands-short to moderate time to decideExtensive decision making-high levels of involvement-high cost goods-evaluation of many brands-long time to decide-may experience cognitive dissonanceFactors determining level of consumer involvement-previous experience-interest-perceive risks of negative consequences-situation-social visibilityFactors Influencing Buying Decisions-cultural factors-social factors-individual factors-physiological factorsComponents 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, consumersIndividual 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 worldAttitude: a learned tendency to respond toward a given objectWhat is business marketing?-marketing of goods and services to individuals and organizations for purposes other than personal consumptionKey: 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 formMeasuring 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 visitEvolution 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 mediaRelationship 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 marketingMajor 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 groupsNAICS-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 identificationBusiness vs. Consumer MarketsCharacteristic Business Market