B Involvement Theory active high involvement VS passive low involvement A Economic Man Theory rational decision making Test 2 Notes Consumer Decision Making Process 1 Problem Recognition 2 Search 3 Alternative Evaluation 4 Choice Purchase 5 Use Evaluation Objective criteria Utility maximize Perfect information 3 Decision Making Types i Routine decision making ii Limited problem solving iii Extensive problem solving 3 Different Types of Budget i Promotional budget ii Advertising budget iii Distribution Budget 2 Different Types of Distribution Intensive distribution i ii Selective distribution C Social Theory Macro Level Social Influences i Exist in the abstract forever present large o Culture national character sub cultures ethnic age geographic Social Class hierarchal ordering occupation type source of income house type dwelling areas o Influences communication values lifestyles customs media habits shopping products Micro Level Social Influences i Interpersonal face to face small o Reference groups frame of reference for our consumer behavior Informational Influences a b Normative Influences peer pressure c Identification Influences identifying behaviors with a product example I am a Ford man o Opinion Leaders most influential people look to for advice product expert charismatic a 2 Step Flow of Communication i Marketer will target an opinion leader ii Opinion leaders will then reach society o Role Models not in abstract a Family Household i Purchaser ii User Initiator iii iv Decider Marketing Information System M I S 1 Internal Accounting analyzing transactional data a What do they buy How much do they pay When did they buy it who were they demographically geographically b Helps you target markets 2 Marketing Intelligence environmentally scanning 3 Marketing Research studies of specific problems related to marketing a Problem is an unanswered questions related to marketing b Even the best marketing research may not give you the right answer Types of Research into greater focus 1 Exploratory Research is preliminary research that brings your problem a Ex how do your customers rate the quality of service b Find out what quality means to customers 2 Descriptive Research describes an existing state of nature a Surveys rating quality of service 3 Experimental Research trying to find cause and affect relationships a Does raising the price have an affect on service 4 Predictive Research trying to predict some future event forecasting sales volume to know how many units to produce a Ex Survey of buyer intensions Primary and Secondary Information Sources o Primary first hand you d gather yourself Primary Sources Qualitative Quantitative Methods o Secondary start here first already exists research studies second hand already gathered Secondary Sources internal records business publications trade professional associations government agencies census bureau Qualitative vs Quantitative Methods o Quantitative numbers stats use structured close ended questions Quantitative Methods experimental research descriptive research and predictive research o Qualitative ideas suggestions in depth reactions motivations Qualitative Methods 1 Focus Groups a 5 12 people b Moderator c 1 2 hours d Video taped e Open ended questions 2 In depth Interviews Individual in depth interviews a b Trained psychologists c More personal topics 3 Projective Techniques a Latent Motives i Not conscious of wont admit to can t articulate ii Ex teddy bear is scared of the thunderstorm Little girl projected her fear of the storm onto her bear Ex Word Association Tests product category brand themes Ex Cartoon Frustration Tests fill in the bubble for what you think the character is saying Ex Story Completion Test given a story but subject must complete it Instant coffee gave perception of the women being lazy i Are conscious of can articulate will admit b Manifest Motives 4 Observation Techniques to a Hybrid both qualitative and quantitative b Observing subjects not questioning them to see how they act naturally i Cameras scanners physical trace evidence analysis physiological measurements mystery shopper c Humanistic Inquiry 5 Consumer Panels longitudinal studies a More quantitative method large representative samples of consumers who record their behavior over time typically thousands 6 Surveys a Quantitative method i Mail email phone personal interview shopping mall intercepts self administered surveys 7 Quantitative Research a Validity the instrument measures what its supposed to measure b Reliability consistency in results with repeated administrations of the instrument c Representativeness take result from sample and generalize New Product Development 1 Idea generation brainstorm competition b Long process 2 Screening evaluation a Sources customers employees channel members govt agencies 3 Concept Testing a Take the ideas that have been generated an screen them Evaluate all ideas and see if any are worth pursuing b Get Top Management Involvement make sure they re committed c Try to determine a strategic fit make sure it fits the company d Establish screening criteria based on that criteria evaluate ideas a Not a finished product drawing or sketch model not tangible ex Car companies make clay models of new car design ideas b Test for adoption and diffusion i Adoption awareness interest trial adoption individual ii Diffusion this is society as a whole accepting new product idea iii Adoption and Diffusion Determinants 1 Relative advantage superiors to the old way of doing something Complexity more complex will take longer to diffuse 2 3 Compatibility with lifestyles values behavior patterns 4 Trial ability can it be tried on a risk free basis 5 Cost monetary costs what is an acceptable price range for the product Sales forecasting a Show history how much will it cost to produce What is the market 4 Business Analysis demand for this b Break Even Analysis i Total Fixed Costs Contribution Per Unit 1 CPU Average Selling price Average Variable Cost 5 Development limited production To understand cost no longer an idea testing a finished product a b Alpha Testing Function Durability Safety c Beta Testing Consumer Tested i Behind the scenes ii Develop marketing mix 6 Test Marketing a Do pilot testing in select cities optional stage b Cons i Cost time competitive exposure c Pros i Sales forecasting marketing mix experimentation target market analysis consumer purchase patterns competitive reactions cannibalizing effects consumer