Assesses and differentiates different cultures and found that people differ based on where they fall on 6 different dimensions
One of Hofstede's six dimensions of culture. How much the less powerful members of institutions and organizations expect and accept that power is distributed unequally. Hierarchy of people (ex: military)
Individualism vs. Collectivism
One of Hofstede's six dimensions of culture. The degree to which individuals are integrated into groups. Do you care more about the individual (yourself) or the group (org or family). Does the culture emphasize and reward individual initiative, or are cooperation with and conformity to a group more highly valued? U.S. closer to individualism, Asian cultures closer to collectivism
Masculinity vs. Femininity
One of Hofstede's six dimensions of culture. Quantity of Life vs. Quality of Life.
Culture emphasizes and rewards individual initiative. Cares more about the individual (yourself)
Culture emphasizes cooperation and conformity to a group. Values the group (organization or family)
Assertive, competitive, power, ambition
Relationships, modesty, caring
One of Hofstede's six dimensions of culture. How much members of a society tolerate uncertainty or ambiguity. Ex: If a meeting starts at 10:30; high uncertainty avoidance is showing up to the meeting at 10:15
One of Hofstede's six dimensions of culture. Care about the future; care about saving, rewards, adaptation
One of Hofstede's six dimensions of culture. Care about past and present; respect tradition, steadiness; social obligations
Indulgence vs. Restraint
One of Hofstede's six dimensions of culture. How much a society allows relatively free gratification of basic and natural human desires related to enjoying life and having fun
Hedonistic behaviors; Pursuit of self-gratification and pleasure
Strict social norms.
Monochronic Time Perspective
Believing that a person does one thing at a time, and a strong orientation toward the present and the short-term future. Concentrate on the job; Take deadlines and schedules seriously; Are committed to the job or task; Emphasize promptness; Are accustomed to short-term relationships
Polychronic Time Perspective
View simultaneous involvement in many activities as natural. People and relationships take priority over schedules, and activities occur at their own pace rather than according to a predetermined timetable. Do many things at once; Are highly distractible and subject to interruptions; consider deadlines and schedules secondary; Are committed to people and relationships; base promptness on the relationship; prefer long-term relationships
Relationships as non-verbal Communication
How quickly and easily do cultures form relationships and make friends? Americans tend to form relationships and friendships quickly and easily. Chinese relationships are much more complex and take longer to form (Called Guanxi)
Chinese concept that describes Chinese relationships. Literally translated as personal connections/relationships on which an individual can draw to secure resources or advantages when doing business as well as in the course of social life. Main characteristics are 1) notion of continuing a reciprocal relationship over an indefinite period of time 2) favors are banked 3) extends beyond the relationship between two parties to include other parties within the social network (it can be transferred) 4) the relationship network is built among individuals not organizations 5) Status matters-relationships with a senior will extend to his subordinates but not vice versa 6) the social relationship is prior to and a prerequisite to the business relationship
Totality of the individual's thoughts and feelings one has towards oneself. Individual's perception of and feelings toward himself. Divided into four basic parts: Actual self-concept, Ideal self-concept, Private self-concept, and Social self-concept.
Fundamental connectedness of human beings. These people tend to be obedient, sociocentric (tending to regard one's own social group as superior to others or socially oriented), holistic, connected and relation oriented. Emphasizes family, cultural, professional, and social relationships. These individuals define themselves in terms of social roles, family relationships, and commonalities with other members of their groups. Women across cultures tend to have more of this type of self-concept than do men.
Based on the predominant Western cultural belief that individuals are inherently separate. These individuals tend to be individualistic, egocentric, autonomous, self-reliant, and self-contained. Emphasizes personal goals, characteristics, achievements, and desires. They define themselves in terms of what they have done, what they have, and their personal characteristics.
Possessions and the Extended self
Consists of the self plus possessions. People tend to define themselves in part by their possessions (ex: tattoos, souvenirs, meaningful photographs, pets, etc.). Some possessions are not just a manifestation of a person's self-concept; they are an integral part of that person's self-identity. To some extent, people are what they possess. These possessions have meaning to the individual beyond their market value.
an experience that surpasses the usual level of intensity, richness, and meaningfulness and produces feelings of joy and self-fulfillment
Mere ownership effect
also known as the endowment effect. The tendency of an owner to evaluate an object more favorably than a non-owner. People tend to value an object more after acquiring it than before, and they continue to place value on it the longer it is owned
The Nature of Lifestyle
When comparing the relationships between lifestyle and self-concept a study found that: Independents were more likely to seek adventure and excitement through travel, sports and entertainment; to be opinion leaders; and prefer magazines over TV. Interdependents were more likely to engage in home and domestic-related activities and entertainment, and were more likely to engage in social activities revolving around family and community. There are two general lifestyle schemes: The VALS System and the PRIZM System
Basically how a person lives. It is how one enacts his or her self-concept. It influences all aspects of one's consumer behavior. It is determined by the person's past experiences, innate characteristics, and current situation. It drives your purchase decisions, which in turn, reinforce your lifestyle. Shaped through social interaction as the person has evolved through the life cycle. How we live: activities, interests, likes/dislikes, attitudes, consumption, expectations, and feelings.
Demographics, subculture, social class, motives, personality, emotions, values, household life cycle, culture, and past experiences
Lifestyle Impact on behavior
Purchases: How, When, Where, What, With whom. Consumption: Where, With whom, How, When, What
Measurement of Lifestyle
Studies usually involve learning individual's: attitudes, values, activities and interests, demographics, media patterns, and usage rates. These are all psychographics.
Attempts to develop quantitative measures of lifestyle.
Study of psychographics. evaluative statements about other people, places, ideas, products, and so forth
Study of psychographics. Widely held beliefs about what is acceptable or desirable.
Activities and Interests
Study of psychographics. nonoccupational behaviors to which consumers devote time and effort, such as hobbies, sports, public service, and church
Study of psychographics. Age, education, income, occupation, family structure, ethnic background, gender, and geographic location
Study of psychographics. The specific media the consumers utilize
Study of psychographics. measurements of consumption within a specified product category; often consumers are categorized as heavy, medium, or light users or as nonusers
The VALS System
Provides a systematic classification of U.S. adults into eight distinct consumer segments. Based on enduring psychological characteristics that correlate with purchase patterns. First dimension is primary motivation, determines goals and behaviors. Secondary dimension is resources, or a person's ability to pursue their dominant self-orientation.
One of three primary motivations in the VALS System. These consumers are guided by their beliefs and principles rather than by feelings or desire for social approval. They purchase functionality and reliability.
One of three primary motivations in the VALS System. These consumers strive for a clear social position and are strongly influenced by the actions, approval, and opinions of others. They purchase status symbols.
One of three primary motivations in the VALS System. These consumers strive to express their individuality though their choices. They purchase experiences
Segment in the VALS System. Successful, sophisticated, active, take-charge people, with high self-esteem and abundant resources. Motivated by a blend of ideas, achievement, and self-expression. Image is important, not as evidence of status or power but as an expression of their taste, independence, and character. They often see brands and products as extensions of their personalities. Most receptive to new products, ideas, and technologies.
Segment in the VALS System. Ideals motivated. Mature, satisfied, comfortable, reflective people who value oreder, knowledge, and responsibility. Most are well educated, and are in or recently retired from professional occupations. Well informed about world and national events and are alert to opportunities to broaden their knowledge. Have a more moderate respect for status quo but are open-minded about new ideas and social change. Tend to base their decisions on strongly held principles and consequently appear calm and self-assured. Content with career, family, and station in life. They plan their purchases carefully and are particularly cautious concerning big-ticket items; they look for functionality, value, and durability in products.
Segment in the VALS System. Ideals motivated. Conservative, conventional people with concrete beliefs based on traditional, established codes: family, church, community, and the nation. Many express moral codes that are deeply rooted and literally interpreted. As consumers they are conservative, predictable, and highly loyal. Favor American products and established brands, and are averse to change and new technology.
Segment in the VALS System. Achievement motivated. Successful career- and work-oriented people who like to, and generally do, feel in control of their lives. They value consensus, predictability, and stability over risk, intimacy, and self-discovery. Deeply committed to work and family. They live conventional lives, tend to be politically conservative, and respect authority and the status quo. Image is important; they favor established, prestige products and services that demonstrate success to their peers. Convenience and time-saving products and services are favorable.
Segment in the VALS System. Achievement motivated. Conscious and trendy. They have limited education and tend to have narrow interests. Money defines success for them, but they usually don't have enough of it. They favor stylish products that emulate the purchases of people with greater material wealth. They have less self-confidence, and often feel as though life has given them a raw deal
Segment in the VALS System. Self-expression motivated. Young, vital, enthusiastic, impulsive, and rebellious. They seek variety and excitement, savoring the new, the offbeat, and the risky. Enthusiastic about new possibilities but are equally quick to cool. Politically uncommitted, uninformed, and highly ambivalent about what they believe. Combine an abstract disdain for conformity with an outsider's awe for others' wealth, prestige, and power. Avid consumers and spend much of their income on clothing, fast food, music, movies, and videos and technology.
Segment in the VALS System. Self-expression motivated. Practical people who have constructive skills and value self-sufficiency. They live within a traditional context of family, practical work, and physical recreation and have little interest in what lies outside the context. Politically conservative, suspicious of new ideas, respectful of government authority and organized labor, but resentful of government intrusion on individual rights. They are unimpressed by material possessions other than those with practical or functional purpose
Segment in the VALS System. Their lives are constricted. They live simply on limited incomes but are relatively satisfied. Frequently elderly and concerned with their health, they are not active in the marketplace. They buy familiar, trusted products. Chief concerns are for security and safety and for being with family. They are cautious consumers who look for low prices.
The PRIZM System
a set of geo-demographic segments for the United States, developed by Claritas Inc. It was a widely used customer segmentation system for marketing in the United States in the 1990s and continues to be used today.
People with similar cultural backgrounds, means and perspectives naturally gravitate toward one another. They choose to live amongst their peers in neighborhoods offering affordable advantages and compatible lifestyles. Once settled in, people naturally emulate their neighbors. They exhibit shared patterns of consumer behavior toward products, services, media, and promotions. The geographic regions can range from large to small. Use census data as well as Nielson ratings and other information to classify Americans from states down to households. YAWYL= "You Are Where You Live"
Social groupings determined by population density, relates to where people live and is strongly related to the lifestyles people lead. Divided into four major social groups: Urban, Suburban, Second City, and Town and Country
Major cities with high population density
Moderately dense areas surrounding metropolitan area
Smaller, less densely populated cities or satellites to major cities
Town and Country
Low-density towns and rural communities
Life Stage Group
based on age and the presence of children. Divided into three major groups: Younger Years, Family Life, and Mature Years
Singles and couples under 45 years of age with no children
Middle ages (25-54) families with children
Singles and couples over 45 years of age
The Usage Situation
When are you actually going to use the product? A marketers understanding of this allows them to communicate how their products create consumer satisfaction in each relevant usage situation.
Expanded Usage situation
Strategies that companies use to expand consumers knowledge when it comes to all of the various things that their products can be used for. The goal is to get customers more attuned to various usage situations available in which to accessorize and then create bags to fit the situation (ex:Billy Mays Arm and Hammer commercial)
Key situational characteristic. Include decor, sounds, aromas, lighting, weather, how the merchandise is laid out, etc.
The sum of all physical features of a retail environment. Influences consumer judgements of the quality of the store and the store's image.
The process managers use to manipulate the physical retail environment to create specific mood responses in customers
What atmosphere is referred to as when describing a service business such as a hospital, bank, or restaurant. As you shift from Utilitarian (functional/practical) to Hedonic (pleasure driven), service scape becomes more important. (ex: dry cleaner versus a Starbucks)
Component of physical surrounding. Certain colors and color characteristics create feelings of excitement and arousal that are related to attention. Bright colors are more arousing than dull. Warm colors, such as reds and yellows, are more arousing than cool colors, such as blues and greys. Red is often seen as stimulating which leads to impulse buying. Blue is seen as satisfying. For the dominant interior color, cool colors (ex:blue) should probably be used since they increase sales and customer satisfaction. Attention-getting, warm colors can be used effectively as an accent color in areas where the retailer wants to attract attention and drive impulse purchases. Cool colors appear to be capable of reducing wait time perceptions by including feelings of relaxation.
Component of physical surrounding. Odors can affect consumer shopping. Scented environments produce a greater intent to revisit the store, higher purchase intention for some items, and a reduced sense of time spent shopping. Scent preferences are highly individualized; a pleasant scent to one individual may be repulsive to another.
Component of physical surrounding. This can influence consumers' moods, which influences a variety of consumer behaviors. Proper fitting music can increases shopping time, word-of-mouth, and spending amount.
Component of physical surrounding. Consumers generally dislike crowds, but shop at the same times. Retailers must balance the expense of a large store versus dissatisfied customers.
Key situational characteristic. Other individuals present in the particular situation. People's actions are frequently influenced by those around them.
A negative emotion influenced by both the product and the situation. Certain products are more embarrassing than others and embarrassment is driven by the presence of others in the purchase or usage situation. Marketers get around this by offering delivery of the product, place product in inconspicuous locations in the store, or try advertisements that show the purchase of a potentially embarrassing product in which no awkwardness or embarrassment occurs.
Key situational characteristic. Deal with the effect of time on consumer behavior. The amount of time available for the purchase has a substantial impact on the consumer decision process. Limited purchase time often limits search. Internet shopping is growing rapidly as a result of the time pressures felt by consumers
Key situational characteristic. The reason consumption is occuring. Purchases for self-use versus gift giving. Both the general task definition (gift giving) and the specific task definition (the specific occasion for the gift giving ex: wedding, birthday) influence purchase behavior, as does the relationship between the giver and the recipient
Key situational characteristic. Features of the individual person that are not lasting characteristics, such as momentary moods or conditions.
Type of antecedent state. Transient feeling states that are generally not tied to a specific event or object. Tend to be less intense than emotions and may operate without the individual's awareness. Influence decision processes, the purchase and consumption of various products, and perceptions of service.
Type of antecedent state. Reflect temporary states of being. For example: being tired, being ill, having extra money, being broke.
A socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning. Important to marketers because they often involve prescribed consumption behaviors. Ex: weddings, a private toast or prayer on a special occasion, national and global holidays, "Black Friday"
Types of information sought
A consumer decision requires information on the following: 1) The appropriate evaluative criteria for the solution of a problem 2) The existence of various alternative solutions 3) The performance level or characteristic of each alternative solution on each evaluative criterion
Type of information sought. Engaging in internal and/or external search to determine the features or characteristics required to meet your needs. "Which features do I want?"
Appropriate Alternatives/Various Alternatives
Type of information sought. Possible alternatives such as different brands or different stores. "Which alternatives are available?"
Those brands or products one is aware of
Evoked set (consideration set)
Those brands or products one will evaluate for the solution of a particular consumer problem. Varies depending on the usage situation. Brands or products that you will consider.
Brands that are actively disliked or avoided by the consumer. The brand that you found completely unworthy of further consideration
Brands you were aware but were basically indifferent toward. No further consideration.
Gather information about each brand on each pertinent evaluative criterion. Characteristics of potential solutions.
Nature of Information Search
Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes.
Search of long-term memory to determine if a satisfactory solution is known.
If a resolution is not reached through internal search, then the search process is focused on relevant external information.
Type of decision-making. Done to acquire information for possible later use and because the process itself is pleasurable. You might find the search pleasurable and want to use the information for later use
Nominal Decision Making
Type of decision-making. Consumer uses only previously stored information to solve a problem. In response to a problem, a consumer recalls a single, satisfactory solution (brand or store), no further information search or evaluation may occur. "It worked before, it'll work again."
Limited Decision Making
Type of decision-making. You notice a new product at the store because of the attracting power of a point-of-purchase display. You recall unresolved problems that its attributes would resolve so you buy it. Involves mainly internal information.
Extended Decision Making
Type of decision-making. You notice a new product at the store because of the attracting power of a point-of-purchase display. You recall unresolved problems that its attributes would resolve. Instead of purchasing that product right then, you go to another store to look for a lower price for that product or some sort of alternative. The relative importance of external information search tends to increase.
One of the five primary sources of information. Past searches, personal experiences, and low-involvement learning
One of the five primary sources of information. Friends, family, and others
One of the five primary sources of information. Magazines, consumer groups, and government agencies
One of the five primary sources of information. Sales personnel, websites, and advertising
One of the five primary sources of information. Inspection or product trial.
Information search on the Internet
Fast, efficient, unprecedented access to information and highly beneficial. However, information overload can occur.
Rational Choice Theory
All things being equal, we choose to maximize utility. Given an option we will choose the option that benefits us the most. Task is to identify or discover the one optimal choice for the decision confronting the decision maker.
Consumers have a limited capacity for processing information. Consumers often have goals that are different from, or in addition to, selecting the optimal alternative.
The evaluation of products is generally focused on the way they will make the user feel as they are used. The evaluation itself is often based exclusively or primarily on the immediate emotional response to the product or service. Tend to be more holistic in nature. "How do I feel about it?"
Underlie behaviors that are intrinsically rewarding to the individual involved (ex: reading a book for the pleasure of reading a book)
Activate behaviors designed to achieve a second goal (ex: reading a book for the appearance of reading a book to friends)
Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands. More time-consuming and takes more effort.
involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice.
Various dimensions, features, or benefits a consumer looks for in response to a specific problem.
Measurement of Evaluative criteria
Before a marketing manager or public policy decision maker can develop a sound strategy to affect consumer decisions, he or she must determine: 1) Which evaluative criteria are used by the consumer 2) How the consumer perceives the various alternatives on each criterion 3) The relative importance of each criterion
Method of determining which evaluative criteria are used. Asking consumers what criteria they use in a particular purchase, or in a focus group setting
Method of determining which evaluative criteria are used. Assume consumers will not or cannot state their evaluative criteria
Indirect method which allows the respondent to indicate the criteria someone else might use. The "someone else" will likely be a projection of the respondent
Indirect technique that generally involves having the consumer look at possible pairs of brands and indicate which pair is most similar, which is second most similar, and so forth until all pairs are ranked. These similarity judgements are processed via computer to derive a perceptual map of the brands
Measuring consumers' judgements of brand performance on specific evaluation criteria
Rank ordering scales, semantic differential scales, and Likert scales. Semantic differential scale is probably the most widely used technique. None of these techniques are very effective at measuring emotional responses to products or brands.
Popular indirect method where the consumer is presented with a set of products or product descriptions in which the evaluation criteria vary. Ex: Consumer is presented with the desciption of 24 different notebook computers that vary on four criteria.
An attribute used to stand for or indicate another attribute. Ex: Indicators of quality are- price, advertising intensity, warranties, brand, country-of-origin, packaging
Rank Ordering Scales
Ex: rank four brands from 1-4 with 1 being the highest and 4 being the lowest
Semantic Differential Scales
Ex: Rate the Honda Accord on the following attributes: Fast_ _ _ _ _Slow
Ex: Mugshots has the best food in town:
Strongly Agree__ Agree__ Neither Agree nor disagree__ Disagree__ Strongly Disagree__
Constant Sum Scales
Ex: What weights do you put on each of these soft drink attributes? (values must add up to 100): Price( ) Taste( ) Status( ) Calories( )
Conjunctive Decision Rule
Establishes minimum required performance for each evaluative criterion and selects the first or all brands that meet or exceed these minimum standards.
Disjunctive Decision Rule
Establishes a minimum required performance for each important attribute (often a high level). All brands that meet or exceed the performance level for any key attribute are acceptable
Requires the consumer to rank the evaluative criteria in terms of their importance and to establish a cutoff point for each criterion. Then (in order of attribute importance) brands are eliminated if they fail to meet or exceed the cutoff
Lexicographic Decision Rule
Requires the consumer to rank the criteria in order of importance. The consumer then selects the brand that performs the best on the most important attribute. If two or more brands tie, they are evaluated on the second most important attribute. This continues through the attribute until one brand outperforms the others.
Compensatory Decision Rule
States that the brand that rates highest on the sum of the consumer's judgements of the the relevant evaluative criteria will be chosen. Good performance on one evaluative criteria can compensate for poor performance on other evaluative criteria. Don't rule anything out
Consumers often have goals that are different from, or in addition to, selecting the optimal alternative. We try to minimize the cognitive effort required for a decision. (ex: the chocolate experiment- the power of freebies). The "Marshmallow Test"
people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies suggest that losses are twice as powerful, psychologically, as gains
Sunk Cost Dilemma
Retrospective (past) costs that have already been incurred and cannot be recovered (ex: paying to see a movie and it's a terrible movie)
Everything is relative. We tend to overweight certainty, however, we also tend to overweight low percentages.
Research suggests that products and services can be categorized into three groups based on their purchase characteristics relative to Internet shopping: 1) replenishment goods 2) researched items 3)convenience items
Kind of product consumers buy on the Internet. moderate cost, high-frequency purchases. Items that are relatively expensive and easy to ship will be most successful. Ex: health care items such as vitamins, beauty aids, and gourmet foods
Kind of product consumers buy on the Internet. High-information, big-ticket, planned purchases. Internet sales will be led by items with low style content and those for which "touch" is not important. Ex: leisure travel, computer hardware, and consumer electronics
Kind of product consumers buy on the Internet. Low-risk discretionary items. Internet sales will be most successful for those where huge selection and deep discounts are important and easy shipping is available. Ex: books, CDs, flowers, and event tickets
Advantages of online shopping
Good selection, convenience, price, unique merchandise, having product delivered, no time to go to the store, don't have to wait in line, easy to find things, don't have to deal with crowds, don't have to deal with poor customer service, saves time, don't have to deal with parking or traffic, for people who don't like shopping
Disadvantages of online shopping
Credit card security concern, lack of "touch", don't have credit/debit card, delivery costs, don't want to wait for delivery, bad online buying experiences, don't always know exactly what you're getting (ex:patch on the side of a shirt that was not shown online)
For many people, in-store shopping is perceived as neither fun nor an efficient use of time. However, retailers are trying to improve in-store experiences with store-based retailing activities and technologies. Lifestyle centers are emerging to generate excitement and adapt to the changing shopping habits of consumers. Brand stores are emerging as major sales volume outlets as well as promotional devices for brands. Other approaches are being tried, including kiosks, ministores, and stores within stores.
Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located in the checkout area or other locations where the purchase decision is made.
Price Reductions and Promotional Deals
Generally accompanied by the use of some point-of-purchase materials. Affect decision making and choice. There is a sharp increase in sales when the price is first reduced, followed by a return to near-normal sales over time or after the price reduction ends. High-quality brands tend to benefit more when prices are reduced, and they suffer less when prices are raised.
Current brand users may buy ahead of their anticipated needs. Often leads to increased consumption of the brand, since it is readily available
The store being temporarily out of a particular brand. Results in consumer purchasing a substitute, forgoing purchase entirely, negative word-of-mouth about store, and negative attitude towards store.
Refers to the reduction in satisfaction the consumer believes a replacement size, brand, or product will provide.
Refers to the mental, physical, time, and financial costs of purchasing a substitute product or brand
The reduction in satisfaction associated with forgoing or reducing consumption of the product
A price with which other prices are compared.
External reference price
A price presented by a marketer for the consumer to use to compare with the current price
Internal reference price
A price or price range that a consumer retrieves from memory to compare with a price in the market
discarded electrical or electronic devices. Exploding demand and short product life spans for high-tech gadgets such as cell phones, personal computers, and various other personal electronics devices is causing concern for e-waste
All else equal, consumers generally select the closest and biggest store.
a given consumer's or target market's perception of all the attributes associated with a retail outlet. "Bricks and Mortar" image versus online image
Retail gravitation model
Used to calculate the level of store attraction based on store size and distance from the customer
sale of additional items to customers who came to purchase an advertised item
When a consumer has doubts or anxiety regarding the wisdom of a purchase made. Occurs because making a relatively permanent commitment to a chosen alternative requires one to give up the attractive features of the unchosen alternatives. Nominal and most limited decision making will not produce postpurchase dissonance
Functions of postpurchase dissonance
1) the degree of commitment or irrevocability of the decision- the easier it is to alter the decision, the less likely the consumer is to experience dissonance 2) The importance of the decision to the consumer- the more important the decision, the more likely dissonance will result
3) The difficulty of choosing among the alternatives- the more difficult it is to select from among the alternatives, the more likely the experience and magnitude of dissonance.
4) The individual's tendency to experience anxiety- Some individuals have higher tendency to experience anxiety than others do.
when guilty feelings are aroused by the product/service use. Marketers need to focus on validating the consumption for "high guilt" products
A particular alternative such as a product, brand, or retail outlet is selected because it is thought to be a better overall choice than other alternatives considered in the purchase process. Can be influenced by the purchase process itself, postpurchase dissonance, product use, and product/package disposition.
relates to the physical functioning of the product
Relates to aesthetic or image-enhancement performance
the emotional response that owning or using the product or outlet provides
A dissatisfied consumer can decide not to take any action, in which they decide to live with the unsatisfactory situation. Even if no external action is taken, however, the consumer is likely to have a less favorable attitude toward the store or brand. Consumers who take action generally pursue on or more of five alternatives. Best case scenario=the consumer complains to the firm and no one else; avoids negative word-of-mouth. Many times, however, consumers will take actions such as switching brands or engaging in negative WOM.
Service failure recovery
When a dissatisfied consumer complains to the company and no one else, and the company is able to appropriately satisfy the consumer's issues or exceed the customer's expectation in the help received from the company. If this occurs, customers are more often more satisfied than those who didn't experience a failure in the first place
Consumers who continue to buy the same brand though they do not have an emotional atatchment to it.
Costs of finding, evaluating, and adopting another solution
Involves commitment to the brand- it is a biased behavioral response expressed over time. Most common for symbolic products like beer and automobiles
Customer has an emotional attachment to the brand of firm. The customer likes the brand in a manner somewhat similar to friendship.
Turnonver in a firm's customer base. Reducing this is a major objective of many firms today. It typically costs more to obtain a new customer than to retain an existing one, and new customers generally are not as profitable as long-term customers.
Decision Making Unit (DMUs)
Individuals within an organization who participate in making a given purchase decision. They function as buying centers when they consist of individuals from various areas (ex: accounting, engineering, marketing)
The buying process is influenced by the importance of the purchase and the complexity and difficulty of the choice. Simple, low-risk, routine decisions are generally made by an individual or even an automated process without extensive effort. Complex decisions have major organizational implications.
This situation occurs when the purchase is of minor importance and is not complex
This strategy is used when the purchase is moderately important to the firm or the choice is more complex (ex: choosing between comcast or at&t)
This approach attends to occur when the buying decision is very important and the choice is quite complex
Step in the organizational decision process. Triggers could be conflicts between field sales agents and sales assistants, ongoing customer service problems identified by field sales agents or customers themselves and passed on to the sales manager. The head of the department is more likely to recognize a problem or need to purchase. Often occur without much involvement of purchasing personnel.
Step in the organizational decision process. Can be both formal and informal. Site visits to evaluate a potential vendor, laboratory tests of a new product or prototype, and investigation of possible product specifications are part of formal information search. Informal information search can occur during discussions with sales representatives, while attending trade shows, or when reading industry-specific journals.
Evaluation and Selection
Step in the organizational decision process. Two-stage decision process. First you must make the buyer's approved vendor list (perhaps using the conjuctive decision rule). Second you use another decision rule to pare the list down to the superior choice (perhaps using the disjunctive, lexicographic, compensatory, or elimination-by-aspects rule)
Purchase and Decision Implementation
Step in the organizational decision process. Once the decision to buy from a particular organization has been made, the method of purchase must be determined. For a seller, this means how and when they will get paid. Purchases may not be made until delivery, and others may involve progress payments. For firms working on a construction of a building or highway, or something that will take several years, payment timing is critical.
Terms and Conditions
payments, warranties, delivery dates, and so forth--are both complex and critical in business-to-business markets
Usage and Postpurchase Evaluation
Typically more formal for organizational purposes than are household evaluations of purchases. A major component is the service the seller provides during and after the sale.
Organization's type of lifestyle and their distinct ways of operating. Organizations vary dramatically in how they make decisions and how they approach problems involving risk, innovation, and change. It reflects and shapes a firm's needs and desires, which influences how they make decisions.
Refers to the organizational culture of a business firm
Like individuals, firms must go through exposure, attention and interpretation of messages when looking for a buyer or supplier
Organizations learn what works versus what doesn't through their perceptions/experiences
Motives and Emotions
Organizational decisions tend to be less emotional than most consumer decisions, but riskier
Involve organizational characteristics such as size, location, and industry category. Similar to demographics an involve characteristics of the composition of the organization such as age, gender, education and income distribution of employees.
Innovative organizations that derive a great deal of their success from leading change. Often, their adoption of a new technology is emulated by other firms. Similar to innovators and early adopters in individual consumer segments.
Reference group infrastructure
Refers to the flow of purchase influence within an industry
Children's Advertising Review Unit (CARU)
Special unit created by this body to review advertising aimed at children
National Advertising Division of the Council of Better Business Bureaus
Primary self-regulatory body of the American advertising industry
Regulations and Marketing to Children
Aimed at children focuses primarily on product safety, advertising and promotions, and privacy protection. Two major issues relating to comprehension- 1) Do children understand the selling intent of commercials 2) Can children understand the words and phrases in commercials
Internet Marketing and children
Children are major users of the internet, and marketers use the internet to communicate with kids. Two major concerns: 1) Invading children's privacy 2) Exploitation of children through manipulative sales techniques (ex: adver-games)
Children's Online Privacy Protection Act (COPPA) 1998
Allowed the FTC to implement specific rules to address advertising to children.
Concerns with marketing to adults
1) accuracy of information provided- is the information correct? Is it FDA approved? 2) adequacy of information provided- is there enough information provided? 3) Cumulative impact of society's values- stereotypes, sex, materialism
Advertising run by a firm to cause consumers to unlearn inacurate information they acquired as a result of the firm's earlier advertising