MKTG 409 Exam 2 Study Guide Lectures 10 17 Lecture 10 Regional vice president of HEB and Mi Tienda in Houston one size does not fit all HEB tailors the products it carries to the demographics of the area Mostly talked about how the Hispanic population liked fresh things meat veggies bread so they implemented that with Mi Tienda also borrowed ideas from Ranch Market Positioning of different types of stores low middle or high income in the corresponding areas of income Lecture 11 Guest Lecturer David Mebane Owner of Fat Tire Bikes and Segways as well as Spoons Founded the two companies Began working in France in college and realized that there was a market for Englishspeaking tours in other countries esp big cities Went on study abroad with Dr Gresham Was told over and over that bike tours of Paris was a stupid idea but finally found someone to help finance his idea He was in a unique position to start the company open market spoke English had worked in France Advice to students make yourself stand out to employers Finally started Segway tours as well as bike tours Lecture 12 Chapter 7 Buyer Behavior Consumers are not always rational purchases can be made emotionally Buying out of habit is easiest for consumers they won t change if they are happy with a brand product Why We Buy video people shop in beta mode or autopilot supermarket experiment did not notice things out of place altered consciousness how things that people buy influence perception of themselves like the spoiled brat Coco and her mother buying designer clothes Reference group anyone whose opinion is considered when a consumer is buying a product Lecture 13 Chapter 7 continued Consumer Buying Decision Process problem recognition a difference between desired state and an actual condition information search internal or external evaluation of alternatives includes a decision set and evaluative criteria to employ when choosing purchase actually buying a product post purchase evaluation can include buyer s remorse or cognitive dissonance Consideration set a group of brands within a particular product category that the buyer views as alternatives for possible purchase Cognitive dissonance a buyer s doubts shortly after a purchase about whether the decision was the right one buyer s remorse often occurs after a high involvement or expensive purchase Perception selecting organizing and interpreting information to produce meaning Perception Process selective exposure selective distortion selective retention we pay attention to and store information that fits with our beliefs and ignore or distort the rest to make it fit with those beliefs Situational influences on decision making result from circumstances time and location that affect the buying process includes physical surroundings social surroundings time perspective reason for purchase and buyer s momentary mood and condition Psychological influences on decision making operate on buyers internally but are acted on by outside forces includes perception motives learning attitudes personality and self concept and lifestyles Maslow s Hierarchy of Needs in ascending order physiological needs safety needs social needs esteem needs self actualization needs Lecture 14 Consumer Trends Cocooning buyers shielding themselves from the harsh realities of the outside world and retreating into safe and cozy homelike environments ex Netflix Fantasy Adventures escape through consumption ex Victoria s Secret Small Indulgences buyers reward themselves with quick hit gratification through affordable luxuries ex Godiva chocolate or flowers Egonomics make the consumer feel important customized individualized products and services ex a tailored product macro market at micro level Cashing Out stressed out buyers searching for fulfillment in a simple way of living money isn t all that matters ex country suburban living Down Aging consumers seek symbols of carefree youth to counterbalance the intensity of their adult lives ex plastic surgery or Disney products Staying Alive consumers embrace not only the concept of a longer life but a better overall quality of life ex acupuncture or alternative healthcare methods Vigilante Consumer frustrated angry consumers manipulating the marketplace through pressure protest and politics ex someone asking why is this new and improved It looks the same 99 Lives consumers are forced to assume multiple roles to cope with time pressures consumers wearing different hats and living in real time ex drive through meals eaten on the go Save Our Society consumers respond to marketers who exhibit a social conscience attuned to ethics environment and education America lags behind Europe which upsets us but we aren t so upset about it that we are willing to pay more to fix it ex eating green organic foods Lecture 15 Chapter 7 continued Social influences on decision making roles family influences reference group membership aspirational dissociative opinion leader social class o Family influences the wife mother usually is in charge of buying decisions if it is not hardware or guy items children choose restaurants men choose hardware lawncare etc For some items furniture house car both spouses can make decision syncratic or whole family can decide ex vacations which is autonomic Involvement o Enduring involvement ongoing and long term involvement with a product or product category usually low involvement ex shampoo o Situational involvement temporary or dynamic involvement resulting from a particular set of circumstances usually high involvement ex wedding ring o Low involvement products that tend to be less expensive and have less associated social risk o High involvement products that are visible to others and or are expensive Problem solving strategies routinized response buying familiar products from habit limited problem solving occasional buying products or unfamiliar brand in familiar category extended problem solving unfamiliar expensive or infrequently bought products and impulse buying Attitudes an individual s enduring evaluation of feelings about and behavioral tendencies toward an object or idea can be positive or negative three components cognitive affective and behavioral Dr Gresham says behavioral doesn t go in this category and there are only two components Demographics influence buyer behavior but are not an absolute indicator of buying tendencies Culture the accumulation of values knowledge beliefs customs objects and concepts that a society uses to cope