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45 Cards in this Set
- Front
- Back
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Consumer Decision Process |
Need Recognition Information Search Alternative Evaluation Purchase Post Purchase |
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Step 1 - Need Recognition |
Functional Need - what does it do? Psychological needs - how does it make me feel? Standing in society? what do others think? most products satisfy both needs balance the needs in marketing |
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Step 2 - Search for Information |
Internal Search - buyer examines own memory and knowledge about product through past experiences external search - buyer seeks information outside personal knowledge base |
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Step 2 - Search for information Actual or perceived risk |
performance risk - what if it fails to perform financial risk - cost involved in use and purchase social risk - rear that others may not regard purchase positively physiological risk - safety risk psychological risk - what if product does not convey the right image |
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Step 3 - Evaluation of Alternatives |
universal set - all possible choices for the product retrieval set - which choices are readily brought forth from memory evoked set - alternatives that the consumer states they would consider when making a purchase |
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evaluative criteria |
salient attributes about a product often used by consumers to help base their evaluations |
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determinant attributes |
product features that are important to the buyer on which competing brands may differ - something special that helps differentiate one brand from another |
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consumer decision rules |
set of criteria that help consumers to quickly and efficiently select from among several alternatives |
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compensatory decision rule |
there is a trade-off here such that good characteristics can compensate for bad ones |
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noncompensatory decision rule |
customer chooses a product on the basis of one characteristic |
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decision heuristics |
mental shortcuts that simplify the decision-making process for consumers ex. price or brand |
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Step 4 - Purchase and consumption |
after evaluating alternatives, consumers are ready to buy conversion rate - determine how well purchase intentions are converted into actual purchases |
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Step 5 - Post Purchase |
Want customers to become loyal, purchase again, and spread positive word-of-mouth Cognitive dissonance - internal conflict that arises after purchase (buyers remorse) Expensive products (high risk) |
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Undesirable customer behaviors |
passive consumers Negative consumer behaviors |
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Factors influencing the consumer decision process |
Marketing mix elements Psychological (motives, attitudes, perception, learning, lifestyle) social factors - groups and culture situational factors social issues - purchase situation |
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involvement |
consumer's degree of interest in or concern about product |
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Extended problem solving |
common when dealing with high risk purchases |
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Limited Problem solving |
Moderate amount of effort and time impulse buying habitual decision making |
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B2B marketing |
business markets to another organization which is not the ultimate consumer *distinction between B2B and B2C is the ultimate user is of the product and not the product itself |
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B2B and B2C marketing are related |
Derived demand - the demand for B2B sales is often derived from B2C sales in the same supply chain |
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B2B Marketing |
typically more complex involve multiple members on both buying and selling side who is involved - manufacturers, resellers, institutions, governments |
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Manufacturers or producers of goods |
buy raw materials, components, and parts, tat they use to manufacture their own goods, which they sell to others |
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Resellers |
Marketing intermediaries that resell manufactured products without significantly altering their form |
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B2B buying process |
information search and alternative evaluation stages are more formal and structured in B2B involves groups instead of individuals |
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B2B Buying Process Steps |
Need Recognition Product Specification RFP Process Proposal analysis and supplier selection Order Specification Vendor/Performance assessment using metrics |
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Stage 1 - Need Recognition |
The buying organization recognizes an unfulfilled ned through either their internal or external sources |
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Stage 2 - product specification |
The organization then needs to come up with potential specifications that vendors can use to develop proposals to fulfill that need |
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Stage 3 - RFP Process |
Request for Proposals invites alternative vendors to bid on supplying their required components or specifications |
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Stage 4 - Proposal Analysis, vendor negotiation, and selection |
Evaluate all the proposals received narrow down to a few suppliers |
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Stage 5 - Order Specification |
The order is placed with the selected vendor Fills the order |
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Stage 6 - Vendor Performance Assessment using Metrics |
After the purchase firms analyze the vendor's performance |
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The Buying Center |
Influencer Decider Buyer User Gatekeeper Initiator |
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Initiator |
Person who first suggests buying the product |
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Influencer |
Person whose views influence other members of the buying center in making the final decision |
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Decider |
The Person who ultimately decides whether to buy, what to buy, how or where to buy |
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Buyer |
The person who handles the paperwork of the actual purchase |
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User |
The person who consumes or uses the product |
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Gatekeeper |
The person who controls information or access, or both, to decision makers and influencers |
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Organization culture |
values, traditions, and customs |
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Autocratic |
Even though there may be multiple participants, one person makes the decision alone |
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Democratic |
The majority rules |
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Consultative |
These are buying centers which use one person to make a decision but solicit input from others before doing so |
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Consensus |
All members of a team must reach a collective agreement that they can support a given purchase |
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White Papers |
provides valuable information serve to educate customers |
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Types of Buying situations |
New Buys - first time Modified Rebuy - similar product in the past but changes some specifications Straight Rebuy - same product |
