MKTG 409Exam 2 Study Guide: Lectures 10-17Lecture 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 incomeLecture 11Guest 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 English-speaking 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 toursLecture 12Chapter 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 productLecture 13Chapter 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 restto 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 needsLecture 14Consumer Trends- Cocooning: buyers shielding themselves from the harsh realities of the outside worldand 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 foodsLecture 15Chapter 7 continued- Social influences on decision making: roles, *family influences*, reference group (membership, aspirational, dissociative), opinion leader, social classo 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 risko 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