134A Final- Ch 16 & Ch 17 & Ch 18 & Ch 19
|Affective choice:|| Choices are often based primarily on the immediate emotional response to the product or service.|
Ex: "How do I feel about the product during and after the consumption?"
|Attitude-based choice:|| "What is the overall impression about the product?"|
These are not mutually exclusive and combinations may be used in a single decision.
|Attribute-based choice:|| "What attributes does the product have?"|
These are not mutually exclusive and combinations may be used in a single decision.
|Evaluative Criteria:|| are the various dimensions, features, or benefits a consumer looks for in response to a specific problem.|
It can differ in 1.) type, 2.) number, and 3.) importance.
Ex: consumers look for various criteria, such as price, speed, memory, weight, customer service etc. when looking for a new computer.
|Type:||varies from tangible factors (e.g., cost and performance features) to intangible factors (e.g., style, taste, prestige, feelings generated, brand image).|
|Number:||e.g., "the product must not cost more than $100 (limit)," "any price between $85 and $99 is acceptable (ranges)."|
|Importance:||varies from the most important to the least important.|
|Non-comparative rating scale:|| (requires the consumer to evaluate an object or an attribute of the object without directly comparing it to another object)|
Ex: "How do you like the taste of Diet Pepsi?"
|Comparative rating scale:|| (provides a direct comparison point: a named competitor, your favorite brand, the ideal brand)|
Ex: "How do you like the taste of Diet Pepsi compared with Diet Coke?"
|Semantic Differential Scale:|| (requires the consumer to rate an item on a number of scales bounded at each end by one of two bipolar adjectives)|
Ex: "Rate the Honda Accord on the following attributes."
|Likert Scale:|| (asks consumers to indicate their degree of agreement or disagreement with each of a series of statements related to the attitude object)|
Ex: "Macy's is one of the most attractive stores in town." Or "The service at Macy's is not satisfactory."
|Surrogate indicator:|| is an attribute used to stand for or indicate another attribute.|
Consumers often use price, advertising intensity, warranties, brand, and country of origin as surrogate indicators of quality
|The conjunctive decision rule:|| 1.) establishes minimum required performance standards for each evaluative criterion and 2.) selects the first or all brands that meet or exceed these minimum standards.|
Any brand of computer falling below any of these minimum standards (cutoff points) would be eliminated from further consideration.
|The disjunctive decision rule:|| establishes a minimum level of performance for each important attribute (often a fairly high level). |
All brands that meet or exceed the performance level for any
key attribute are considered acceptable.
|The elimination-by-aspects decision rule:|| requires the consumer 1.) to rank the evaluative criteria in terms of their importance and 2.) to establish a cutoff point for each criterion.|
All brands are first considered on the most important criterion. Those that do not meet or exceed the cutoff point are dropped from consideration.
|The lexicographic decision rule:||requires the consumer 1.) to rank the criteria in order of importance, then to 2.) select the brand that performs best on the most important attribute. |
If two or more brands tie on this attribute, they are evaluated on the second most important attribute. This continues through the attributes until one brand outperforms the others.
|multi-channel shoppers||who use in-home options such as the Internet and catalogs in combination with retail stores.|
|Retailer (store) brands:||The key success of store brands is high quality at a reasonable price. Emphasizing quality over price is particularly beneficial if the brand carries the store's name or the brand will become associated with the store.|
|Retail advertising:||Expenditures of Individuals Drawn to a Store by an Advertised Item|
|Outlet location and size:||Location and size of an outlet play important roles in consumers' store choice for both online and offline.|
|spillover sales.||Sales of additional items to customers who came to purchase an advertised item are referred to as|
|Impulse purchases:||Purchases that occur when a consumer sees a candy bar in the store and purchases it with little or no deliberation as a result of a sudden, powerful urge to have it.|
|Reference price:|| 1.) external reference price|
2.) internal reference price
Marketers use phrases such as "now only," "compare at," or "special" to enhance the perceived value of a sale
|external reference price:||a price presented by a marketer for the consumer to use to compare with the current price (e.g., "Regularly $9.95, now only $6.95," hence $9.95 is the reference price).|
|internal reference price:||a price or price range that a consumer retrieves from memory to compare with a price in the market.|
|Stockout:||The store being temporarily out of a particular brand, obviously affect a consumer's purchase decision.|
|Substitution costs:||Refer to the reduction in satisfaction the consumer believes a replacement size, brand, or product will provide.|
|Transaction costs:||Refer to the mental, physical, time, and financial costs of purchasing a substitute product or brand.|
|Opportunity costs:||Are the reduction in satisfaction associated with forgoing or reducing consumption of the product.|
|Post-purchase dissonance:||is consumers' experiences of doubts or anxiety about the wisdom of the purchase.|
|Instrumental performance:||Relates to the physical functioning of the product.|
|Symbolic performance:||Relates to aesthetic or image-enhancement performance.|
|Affective performance:||Is the emotional response that owning or using the product or outlet provides.|
|Core service failure:||Mistakes, billing errors, and service catastrophes that harm the customer.|
|Service encounter failures:||Service employees were uncaring, impolite, unresponsive, or acknowledged.|
|Pricing:||High prices, price increases, unfair pricing practices, and deceptive pricing.|
|Inconvenience:||Inconvenient location, hours of operation, waiting time for service or appointments.|
|Responses to service failures:||Reluctant responses, failure to respond, and negative responses (it's your fault).|
|Attraction by competitors:||More personable, more reliable, higher quality, and better value.|
|Ethical problems:||Dishonest behavior, intimidating behavior, unsafe or unhealthy practices, or conflicts of interest.|
|Involuntary switching:||Service provider or customer moves, or a third-party payer such as an insurance company requires a change.|
|Churn:||is a term used to refer to turnover in a firm's customer base.|
Ex: If a firm has a base of 100 customers and 20 leave each year and 20 new ones become customers, it has a churn rate of 20 percent. 100 customers 20 customers 20 customers
Many companies today try to reduce this because it costs more to obtain a new customer than to retain an existing one.
|What is the relationship between customer satisfaction, repeat purchases, and committed customers?||Customer lifetime value is the total profit (or loss) estimated to result from an ongoing business relationship with a customer over the customer's lifetime.|
|Relationship marketing:||Is an attempt to develop an ongoing, expanding exchange relationship with a firm's customers|
|5 key elements to Relationship marketing:||Developing a core service or product around which to build a customer relationship|
Customizing the relationship to the individual customer
Augmenting the core service or product with extra benefits
Pricing in a manner to encourage loyalty
Marketing to employees so that they will perform well for customers
|What are loyalty programs? What do most of them actually do?||Marketers make substantial efforts to focus on customer loyalty programs to increase repeated sales and to build relationships with their customers.|
|Organizational values||define the acceptable standards which govern the behavior of individuals within the organization. Without such values, individuals will pursue behaviors that are in line with their own individual value systems, which may lead to behaviors that the organization doesn't wish to encourage.|
|Firmographics:||Involved both organization characteristics- for example, size, activities, objectives, location, and industry category- and characteristics of the composition of the organization - for example, gender, age, education, and income distribution of employees.|
|Decision-making units (DMUs):||are the individuals (representing functional areas and management) within an organization who participate in making a given purchase decision.|
|How can a seller organization influence perceptions of a buyer organization?||You have to have a great product but you also have to make the consumer like you as a salesperson.|
|Straight rebuy:||This situation occurs when the purchase is of minor importance and is not complex.|
|Modified rebuy:||This strategy is used when the purchase is moderately important to the firm of the choice is more complex.|
|New task:||This approach tends to occur when the buying decision is very important and the choice is quite complex.|
|In what way does the Internet play a role in the organizational decision process?||Lead generation, information provision, efficient and automated order fulfillment.|