MKTG 360 1nd Edition Lecture 7 Outline of Last Lecture 1. The marketing information system2. Four sources of data in MIS3. MDSS4. Comparing MIS to MDSS5. Data Mining6. Seven steps in marketing research7. Establishing cause and effect8. Factors needed to prove cause and effect 9. True experiments vs quasi-experiments10. Illustrating confounds in quasi-experiments11. Research questions, hypotheses, theories, and models12. An example (failed service recoveries)Outline of Current Lecture 1. Consumer behavior2. Steps in consumer decision-making3. Internal influences on CDMCurrent Lecture1. Consumer behaviora. American Marketing Association:i. The dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives. b. Solomon, Marshall, & Stuart (our book): i. The process involved when individuals or groups select, purchase, use, and dispose of goods, services, ideas or experiences to satisfy their needs and desires2. Steps in consumer decision-makinga. Problem recognitioni. Recognizing a difference between current and desired or ideal stateThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ii. Can be driven by internal (hunger, goals) or external (friends, life stage, advertisements) factorsb. Information searchi. Searching for appropriate information to make a reasonable decisionii. Internal sources (memory based on past experience)iii. External sources1. Nonmarketing-controlled2. Marketing-controllediv. Search enlarges when perceived risk & interest are high, and confidence, knowledge, experience lowc. Evaluate alternativesi. Info search à “evoked (consideration) set” ii. Evaluation criteria1. Dimensions used by consumers to compare competing products/servicesiii. Good marketers know the impact of different evaluation criteriad. Product choicei. Reducing alternatives1. Key attribute (AC) or cutoff (40 mpg)?ii. Heuristics = rules of thumb that facilitate quick decision making (expensive is good)iii. Brand loyalty also importantiv. Intentions don’t always lead to choice1. Attitude of others & unseen situational factorse. Post purchase behavior i. Post-purchase evaluation1. Satisfaction based on expectationsa. Larger gap, less satisfaction2. Reduce post-decisional regret (cog. dissonance)ii. Other post-purchase behaviors1. Repeat purchase2. Good vs. bad word of mouth3. Internal influences on CDMa. Perceptioni. Attend to, organize, interpret informationii. Attention – degree to which mental-processing activity devoted to a stimulusiii. Subliminal advertising controversy1. Priming outside awareness can à percep/behiv. Interpretation – assigning meaning based on past associations or assumptions (schemas)b. Motivationi. Internal state driving us to satisfy needs by activating goal-oriented behaviorii. Maslow’s Hierarchy of Needs1. Physiological2. Safety3. Belongingness4. Achievement/Status5. Self-actualizationiii. Knowing what level motiv. person useful in MKTGc. Learningi. Change in beh due to exp or acquired infoii. Behavioral Learning1. Classical Conditioning (Pavlov)…2. Operant Conditioning (Skinner)3. Stimulus generalization (brand extension)iii. Cognitive Learning1. Direct or indirect (observational, Bandura)d. Attitudesi. Evaluation of a person, object, issueii. Composed of affect, cognition, behavioriii. Theory of planned behavior1. Attitudes don’t always lead to behaviore. Personalityi. Collection of traits that pre-disposes a person to react to a certain situation in a certain wayii. Some Relevant Traits 1. Soc., SensSeek, Self-Monitoring, Need for Cog.iii. Self-concept1. Self-image: beliefs, observ., feelings about selfiv. Brand personalities1. Sincere, excitement, competent, sophisticated, ruggedf. Age, family life cycleg. Occupationh. Lifestylei. Pattern of living that à how people spend time, $, energy, reflects values,tastes, preferencesii. Psychographics – use psych., soc., anthro. factors to create margket segmentsiii. AIO - commonly grouped based on activities (A), interests (I) and opinions(O)i. Social classi. Rank in society based on value assigned to family background, education, occupation, incomeii. Status symbols help definej. Group membershipi. Reference groups1. Actual/imaginary group that à a person’s evaluations, aspirations, behaviork. Opinion leadersl. Gender rolesm. Culturei. Values, beliefs, customs, tastes valued by