Need Recognition difference between consumer s ideal state and actual state BMGT350 Exam 2 Study Guide Consumer Behavior Customer purchase decisions Customer behavior Buyer Decision Process stock outs buyer dissatisfaction marketing induced technological advances Action is triggered by consumer motives Maslow s Hierarchy of Needs 1 physiological e g hunger safety e g shelter 2 3 social belonging e g acceptance 4 esteem e g self worth 5 self actualization e g I am OK Psychoanalytic Theory Sigmund Freud Subconscious Motivators 1 Id completely unconscious and is the source of psychic energy derived from instinctual needs and drives 2 Ego serves as the organized conscious mediator between the person and reality especially by functioning both in the perception of and adaptation to reality 3 Super Ego partly conscious represents internalization of parental conscience and the rules of society and functions to reward and punish through a system of moral attitudes conscience and a sense of guilt Information Search Internal Search External Search 1 Group e g personal referrals 2 Marketing e g displays ads Perception reception selection interpretation of stimulus information 3 Public e g Consumer Reports 4 Experiential e g fruit Consumer Schemas Drive Perception 1 Selective attention 2 Selective interpretation 3 Selective retention Option Consideration Marketer s Goal move your brand into the buyer s evoked set Evaluation Criteria product attributes that are compared multi attribute idea Attitude evaluation of an object attitudes are assumed to be predictive of future behavior Decision Rules how buyers combine information to reach a purchase decision Theory of Reasoned Action o Behavioral Intention BI BiEi 1 Compensatory 2 Non compensatory 3 Heuristics involving or serving as an aid to learning discovery or problem solving by experimental and especially trial and error methods Purchase Decision Buyers are thought to develop purchase intentions PI o PI surrogate for choice actual purchase o PI is not always an ideal predictor Post Purchase Evaluation Buyers compare perceived performance against existing expectations Cognitive Dissonance buyer s remorse resolved by seeking out confirming evidence Buyer Behavior Model Routine Response Buying on habit o e g captain crunch Low involvement having little if any product category knowledge having some product category knowledge Frequently purchased Inexpensive Little risk Little information needed Limited Problem Solving o e g shoes Hybrid processing Midrange of continuum Extended Problem Solving o e g HigherFi Ultimate High involvement Infrequently purchased Expensive High risk Much information needed Consumer Involvement Previous experience Interest Perceived risk of negative consequences o e g Financial social psychological Buying Situation Social Visibility External Factors Culture complexity of learned meanings shared by members of a society Subculture subset of society set apart from the mainstream Social Class societal group who shares similar activities interests and opinions Reference Group set of opinion leaders influence judgments actions o e g DINKs o e g VALS o e g friends VALS Values Attitudes Lifestyles system for organizing consumers Innovators formerly Actualizers Thinkers formerly Fulfillers Believers Achievers Strivers Experiencers Makers Survivors formerly Strugglers Contactual Group Wannabees hold membership have face to face contact primary accept group norms Disclaimant Group SGA hold membership have face to face contact secondary reject group norms Aspiriational Group Varsity Basketball Squad don t hold membership lack face to face contact secondary want to join Avoidance Group Rejects don t hold membership lack face to face contact secondary reject group norms Global Marketing Stress the value of global marketing Describe potential global concerns Identify entry modes marketing mixes 21st Century Trends Global Village Idea o faster communication o rapid transportation o instant financial flows Upsurge of Global Firms Taking the Plunge vs Risks De globalization Pressures Overachieving Goals Global By Design o Levi o Coke o GE o Ford Global By Accident o Dotcoms Global Checklist 1 Scan the global marketing environment 2 Decide whether to go abroad 3 Select market s to enter 4 Determine how to enter market s 5 Create the marketing program 6 Build the marketing organization International Trade Trade System o Tariff o Quota o GATT WTO Political Legal Political System o Prevalent attitudes o Government bureaucracy o Political stability Monetary Regulations Countertrade o Barter o Compensation o Counter purchase European Union Economic Community Free Trade Zone o est EU in 1992 rumblings circa 1951 o impetus to rebuild war torn Europe o currently consists of 27 member states o working languages English French German o motto Unity in diversity The Power of One Single Market o Free trade of goods services among members o One competition law antitrust merger control o Removal of internal border controls o Freedom of citizen to work anywhere in EU o Free movement of capital o Alignment of govt regs corp law TM registrations o Single currency euro Membership 2nd Wave 1973 Denmark Ireland UK 3rd Wave 1981 Greece 4th Wave 1986 Portugal Spain 5th Wave 1990 East and West Germany unite 6th Wave 1995 Austria Finland Sweden Slovenia 8th Wave 2007 Romania Bulgaria 1st Wave 1952 Belgium France West Germany Italy Luxemburg Netherlands 7th Wave 2004 Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Why the EU Matters Land Mass Population GDP trillions Going Global Proactive Reasons o EU 1 67 million sq mi vs USA 3 8 million sq mi vs China 3 7 million sq mi o EU 500 million vs USA 308 million vs China 1 35 billion o EU 15 247 vs USA 14 441 vs China 7 926 Foreign markets yield higher profits Domestic market is saturated Enlarge consumer base economies of scale Avoid relying on single market Reactive Reasons Counterattack Get rid of excess inventory Invitation from foreign government Selection Criteria Demographics Geographics o e g size growth rate o e g topography Economic factors o e g GDP per capita Technological factors o e g education Sociocultural factors o e g linguistics National goals o e g infrastructure Modes of Entry Indirect Export least risky simple Direct Export License Joint Venture Direct Ownership max control greatest profit Marketing Mix Issues Straight product extension Product adaptation Product
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