BMGT451 Exam 1 study guide Consumer behavior the study of individuals groups or organizations and the processes they use to select secure use dispose of products services experiences or ideas to satisfy needs the impacts that these processes have on the consumer society Overview of the Consumer Decision making process Problem recognition the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process 2 approaches to causing problem recognition Generic problem recognition discrepancy that a variety of brands w in a product category can reduce Selective problem recognition discrepancy that only one brand can solve Information search starts internally then moves to external sources Differences between expensive and in expensive purchases Outside options After affects Weight of price decision Amount of search of alternatives of attributes Amount of time it takes to make the actual decision to buy Purchase involvement Level of concern or interest in making purchase Depends on o Importance more important more involvement o Level of risk monetary functional physical social psychological Purchase involvement and product involvement are distinct and may be inversely related Low purchase involvement Habitual decision involves no decision per se Usually exhibited with low cost frequently purchased products No extensive information search or evaluation Nominal Decision Making Post purchase may not involve product Often a response to environmental evaluation cues 2 types o Brand loyal an emotional attachment to a brand o Repeat purchase Limited Decision Making Internal and limited external search Few alternatives Some degree of purchase involvement Some motivation to search for information Some motivation to evaluate each alternative rigorously Simple decision rules heuristics to choose among alternatives Extended Decision Making High purchase involvement Outcomes are perceived to carry a fair degree of risk Consumers tries to collect as much information as possible Each product alternative is carefully evaluated Extensive internal and external information search Followed by complex evaluation of multiple alternatives significant post purchase evaluation Social Marketing the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole Customer value the difference between all the benefits derived from a total product and all the costs of acquiring those benefits Providing superior customer value requires the organization to do a better job anticipating and reacting to customer needs than the competition does Product position an image of the product or brand in the consumer s mind relative to competing products and brands Injurious consumption occurs when individuals or groups make consumption decisions that have negative consequences for their long run well being Need Recognition and Motivation Aka Problem recognition Need is triggered state of tension consumer attempts to reduce eliminate tension the bigger the gap the more tension so the more likely you are to fill that void How do marketers influence need recognition Provide products and services that allow consumers to reduce this tension Get consumers to perceive a need o Move perceived desired state up o Move perceived actual state down Motivation an unobservable inner force that drives behavior Need vs motivation Early theories focused on instinct and biological needs Current theories focus on reason and thought Maslow s hierarchy of need is based on 4 premises 1 All humans acquire a similar set of motives through genetic endowment social 2 Some motives are more basic or critical than others 3 The more basic motives must be satisfied to a minimum level before other interaction motives are activated 4 As the basic motives become satisfied more advanced motive come into play Maslow s hierarchy of needs Louis Vuitton ad their target marketing ad is the people that already have the money to fulfill the needs below self actualization its about the journey Goal Theory Goal a personal desired endpoint Goals differ in abstraction Goals differ in time perspective o To get an A in this class vs to get an MBA Performance feedback is critical Intrinsic vs Extrinsic Motivation Intrinsic motivation behavior performed based on expectancy of enjoyment pleasure or learning ex I do X because I want to Extrinsic motivation behavior performed based on the expectancy of an outside reward ex I do X to get Y Extrinsic motivation reward programs o Designed to increase purchasing behavior via motivation o Increased extrinsic motivation but reduces intrinsic motivation o Consumers will consider what the reward is Effort needed to get reward How do we measure motivation Manifest motives ones that are known freely admitted Latent motives either are unknown to the consumer or the consumer was reluctant to admit them Projective techniques used to provide info on latent motives Depth interviews Laddering ask consumer why they purchased X keep asking why until deeper motive emerges Word association sentence completion Describe brand personality Describe ideal or actual self Other techniques o Ethnography lady in the shower olay soft soap o Neuroscience use brain wave Involvement a motivational state caused by a consumer perception that a product brand or advertisement is relevant or interesting 3 key types of motivation conflict Approach Approach conflict choosing between 2 attractive alternatives o Recently got a lot of cash decide between Hawaii a mountain bike Approach avoidance motivational conflict a consumer facing a purpose choice with both positive and negative consequences o Want a tan but don t want to risk skin damage Avoidance Avoidance motivational conflict a choice involving only undesirable o Washing machine breaks they don t want to buy new one repair it or go outcomes with out it Marketing Strategies based on Regulatory Focus Prevention focused Promotion focused motives are related to consumers hopes aspirations to consumers sense of duties obligations broad set of motives is most salient when more prominent Regulatory focus theory revolve around a desire for growth and development revolve around a desire for safety security and are related consumer will react differently depending on which Are there any ethical issues with regards to marketers helping consumers identify needs Pfizer ad