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Principles of Marketing Chapter 6 Unit 3
Terms in this set (50)
Limited Decision Making
The type of decision making that requires a moderate amount of time for gathering information and deliberation about an unfamiliar brand in a family or product category.
Lower Levels of Involvement
Limited decision making is associated with this, but higher than routine decisions.
Lower Levels of Involvement in Limited Decision Making Because
Consumers do expend moderate effort in searching for information or in considering various alternatives.
If the consumer's usual brand of whitening toothpaste is sold out, through limited decision making
The consumer will be forced to choose another brand. They'll evaluate several other brands based on active ingredients, promotional claims, and the consumer's prior experience.
Most complex type of consumer decision making
Extensive Decision Making
Extensive Decision Making
Used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information.
Consumers involved in extensive decision making want to make the right decision
So they want to know as much as they can about the product category and available brands.
Most cognitive dissonance happens
When buying high involvement products.
Buyers use several criteria for evaluating their options
With extensive decision making, and spend much time seeking information
Type of decision making isn't constant, and may extend
If a routinely purchased product no longer satisfies, consumers may use limited or extensive decision making to switch to another brand.
People who use extensive decision making at first may
Decide on future purchases to use limited or routine decision making.
Owners of a new puppy may go through many different chew toys
But when they realize that their dog prefers a bone to a ball, future purchases no longer require extensive evaluation and will become routine.
Five Factors Determining Level of Involvement
Previous Experience, Interest, Perceived Risk of Negative Consequences, Situation, Social Visibility.
Perceived Risk of Negative Consequences (Five Factors Determining Level of Involvement)
These can include financial risk, social risk, and psychological risk.
Financial Risk (Perceived Risk of Negative Consequences)
Exposure to loss of wealth/purchasing power.
Because high risk is associated with high-priced purchases
Consumers tend to become extremely involved with there is a perceived financial risk.
Social Risks (Perceived Risk of Negative Consequences)
Happen when they buy products that can affect people's social opinions about them.
Examples of Social Risks
Driving an old, beat up car, or wearing unstylish clothes, can affect people's social opinions of them.
Psychological Risk (Perceived Risk of Negative Consequences)
When consumers feel that making the wrong decision might cause some concern or anxiety.
Example of Psychological Risk
Some consumers feel guilty about eating foods that are not healthy, so they'll chose fat-free frozen yogurt over ice cream.
Situation Example (Five Factors Determining Level of Involvement)
Instead of buying low-priced brands of liquor or wine, when the boss visits, they may decide to make a high-involvement decision and buy more prestigious brands.
Jewelry, Cars and Furniture
Social Risk Products Include these, which are very socially visible.
Social Risk (Perceived Risk of Negative Consequences)
Products that pertain to this make a statement about the purchaser and therefore, carry this.
Marketing Management Responsibilities with High-Involvement Purchases
Promotion to the target market should be extensive and informative.
For high involvement products, a good ad gives consumers
The information they need for making the purchase decision, as well as specifying the benefits and unique advantages of owning the product.
Consumers may not recognize their wants
Until they are in the store for low-involvement product purchases.
Marketing Managers Responsibilities with Low-Involvement Products
In-store promotion, package design, coupons and other deals
Package design for a low-involvement product
Should be eye catching and easily recognized on the shelf.
In store displays stimulate
Sales of low-involvement products by explaining the purpose of a product and prompt recognition of want.
Coups, cents-off deals, and two for one offers
Are all price tactics that effectively promote low-involvement items.
Example of linking a product to a higher-involvement issue
In response to consumer concerns about childhood obesity, food manufacturers that advertise to children have pledged to devote much of their marketing to the promotion of healthy dietary choices and lifestyles.
Factors that have an effect from the time a consumer perceives a stimulus through postpurchase behavior
Underlying cultural, social, individual, and psychological factors.
Cultural factors include
Culture and values, subculture, and social class and all exert a broad influence over consumer decision making.
Social factors sum up
The social interactions between a consumer and influential groups of people.
Influential groups of people include
Reference groups, opinion leaders, and family members.
Individual Factors Include
Gender, age, family life-cycle stage, personality, self-concept, and lifestyle.
Individual Factors are unique
To each individual and play a major role in the type of products and services consumers want.
Psychological Factors Determine
How consumers perceive and interact with their environments and influence the ultimate decisions they make.
Psychological Factors Include
Perception, Motivation, Learning, Beliefs, and attitudes.
Cultural Factors exert the broadest
And deepest influence of all the factors that affect consumer decision making.
The essential character of a society that distinguishes it from other societal groups.
Culture Includes the set up
Values, norms, attitudes, artifacts, products and other meaningful behavior that is transmitted from one generation to the next.
Culture gives order to society
By establishing common expectations.
Growth of technology and culture
In today's day and age, this has accelerated the rate of cultural change.
Television has changed
Entertainment patterns and family communication, and has heightened public awareness of political and other news events.
Automation has increased
The amount of leisure time we have and, in some ways, has changed the traditional work ethic.
Research showed that African American women don't like to eat cereal with others around
So a print ad shows a woman eating cereal alone with the caption "Take a breather. This moment is yours. Just you and your bowl of Honey Bunches of Oats."
Consumers with similar value systems
Tend to react alike to prices and other marketing-related inducements.
Values correspond to consumption patterns. For example
Americans place a high value on convenience and this created lucrative markets for breakfast bars, energy bars, and nutrition bars consumers can eat on the go.
The enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.
THIS SET IS OFTEN IN FOLDERS WITH...
Principles of Marketing, Chapter 6, Unit…
Principles of Marketing Chapter 6 Unit 1
Principles of Marketing Chapter 6 Unit 2
Principles of Marketing, Chapter 6, Unit 5
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