MKT 3401 Exam 2 P 185 stopped on ch 10 10 14 2014 1 Need recognition result of an imbalance between actual and desired states Want recognition of an unfulfilled need and a product that will satisfy it Stimulus any unit of input affecting one or more of the five senses sight smell tastecae touch or hearing 2 Internal information search the process of recalling past information stored in the memory This stored information stems largely from previous experience with a product External information search the process of seeking information in the outside environment Nonmarketing controlled and marketing controlled Nonmarketing controlled information source source that is not associated with advertising or promotion source that originates with marketers promoting the product information search from which a buyer can choose Marketing controlled information source Evoked set consideration set a product information a group of brands resulting from an a product information 3 Evaluation of Alternatives and Purchase Exposure to certain cues in your everyday environment can affect decision criteria and purchase Consumer reviews are influence by existing reviews o To Buy or Not To Buy o Consumers must decide Whether to buy When to buy What to buy product type and brand Where to buy type of retailer specific retailer online vs in store How to pay Postpurchase Behavior Cognitive dissonance inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions o Consumers may seek new info that reinforces positive ideas about the purchase avoid information that contradicts their decision or revoke the original decision by returning the product Consumer buying decisions fall under 3 categories o Routine response behavior Frequently purchased low cost goods Stick with one brand Buy first and evaluate later o limited decision making lower levels of involvement higher than routine evaluate several brands o extensive decision making high involvement know as much as they can about the product category and available brands buying a home or car o Involvement the amount of time and effort a buyer invests in the search evaluation and decision processes of consumer behavior Factors Determining the Level of Consumer Involvement Interest Previous experience Perceived risk of negative consequences Financial risk Social risks Psychological risks Social visibility Not All Involvement is the Same Product Involvement o A product category has high personal relevance Situational Involvement o The circumstances of a purchase may temporarily transform a low involvement decision into a high involvement one Shopping Involvement Enduring Involvement Emotional Involvement o The personal relevance of the process of shopping o An ongoing interest in some product or activity o How emotional a consumer gets during some specific consumption activity High involvement product purchases should be promoted extensively and informatively Low involvement product purchases should be promoted in store eye catching package designs that are easily recognized on the shelf Cultural Factors Culture the set of values norms attitudes and other meaningful symbols that shape human behavior and the artifacts or products of that behavior as they are transmitted from one generation to the next Pervasive Functional Learned Dynamic Value the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct Subculture a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group Social class a group of people in a society who are considered nearly equal in status or community esteem who regularly socialize among themselves both formally and informally and who share behavioral norms Indicates which medium to use for advertising Helps marketers determine where to best distribute their products Social Factors Reference groups all of the formal and informal groups in society that influence an individual s purchasing behavior Aspirational reference group join does not want to associate Nonaspirational reference group Opinion leader a group that someone would like to a group with which an individual an individual who influence the opinions of others o First to try new products and services out of pure curiosity Individual factors lifestyle Gender age and life cycle stage personality self concept and Psychological Factors Perception the process by which people select organize and interpret stimuli into a meaningful and coherent picture Selective exposure the process whereby a consumer notices certain stimuli and ignores others Selective distortion a process whereby a consumer changes or distorts information that conflict Selective retention a process whereby a consumer remembers only that information that supports his or her personal beliefs 10 14 2014 Business marketing industrial marketing the marketing of goods and services to individuals and organizations for purposes other than personal consumption Business to business electronic commerce the use of the Internet to facilitate the exchange of goods services and information between organizations Stickiness website s effectiveness Frequency x Duration x Site Reach Relationship Marketing and Strategic Alliance Loyal customers are also more profitable than those who are price sensitive and perceive little or no difference among brands or suppliers Building long term relationships with customers offers companies a way to build competitive advantage that is hard for competitors to copy Strategic alliances can take the form of licensing or distribution agreements joint ventures research and development consortia and partnerships Kieretsu a network of interlocking corporate affiliates Executives may sit on the boards of their customers or their Often engage in joint product development finance and marketing suppliers activity Business market consists of 4 major categories Producers o Original equipment manufacturers OEMs individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers Resellers Governments o Includes retail and wholesale businesses o Federal state and local buying units Institutions o Schools hospitals colleges and universities churches labor unions fraternal organizations civic clubs foundations and other so called nonbusiness organizations North