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13 Cards in this Set

  • Front
  • Back
What causes a need to be recognized?
1. A need is recognized when we evaluate the difference between our actual state and our desired state.

2. The actual state is the current state of benefits the consumer enjoys from products or services used or possessed.

3. The desired state is the state of benefits that the consumer wishes to enjoy from products or services used or possessed.

4. The greater the perceived distance between these two, the more clearly the consumer recognizes a potential need.
Is there anything marketers can do to facilitate the recognition of specific needs?
I. Information provided by marketers may trigger problem recognition, leading the consumer to reevaluate his or her actual and desired states.

1. Price information can be extremely influential.

a. A consumer who has decided that $39.95 is too expensive for a health magazine subscription may decide that it is just the medicine to help her with eating/exercising right when she sees a special offer for $19.95.

2. Promotional activities such as advertising, coupons, free offers, sweepstakes, product demonstrations, and rebates are ways that marketers seek to influence problem recognition.

3. Product or service developments, like the announcement of a breakthrough in technology or ease of use of a product can influence problem recognition.

4. Place actions, where a product that was not available can now be ordered on the web, through a catalog, or at one of the stores in town, also can trigger need recognition.
Differentiate between internal and external search
I. At different stages in the consumer decision process, we engage in different types of information search. Information search can be internal or external, or it can be a combination of both.
1. Internal search involves no sources other than the consumer’s own memory, knowledge, and experience.

2. In external search, information can be gathered from an almost unlimited variety of sources outside the individual.
What are the various types of external search available to consumers?
1. Information can come from personal sources such as friends, experts, or salespeople

2. or from impersonal sources such as advertising, in-store displays, or trade reports.
Is there more than one reason a consumer might engage in search behavior?
I. There are a few reasons why a consumer might engage in search behavior and they correlate with four different types of information searches.

1. Pre-Purchase Search: Searching before making purchase decisions

a. Directed information search:
To gather information that will help solve a specific problem.

b. Browsing:
Searching with no immediate attempt to buy. (enjoyment)
oWindow-shopping, thumbing through catalogs, surfing the web

2. Accidental Search:
Occurs when a consumer is not looking for anything in particular and is drawn to a product simply because of such occurrences as coming across an attractive store display or observing a friend use a product.

3. Ongoing Search:
consumers observe and stay current with what is happening in the marketplace and are continually open to new information.
a. Building of Knowledge Base

4. Post-Purchase Search:
A consumer has already made a purchase decision and continues to gather information about his or her choice and/or other options in the marketplace.

a. Reassurance
b. To get rid of Cognitive Dissonance
What factors impact a consumer’s search behavior?
1. Product influences
a. Homogeneity of Brands/Offerings
b. Costs: Higher = More Search
- Financial, Time, Decision Delay, Physical, Psychological, Information Overload
c. Stability of Product Categories: More Innovation/Change = More Search
d. Services: More Search
e. Specialty, Shopping, Convenience Goods

2. Retail Determinants
a. Greater Distance Between Competitors: Less Search
b. Similarity Among Retailers: Less Search

3. Beliefs & Attitudes
a. Favorable Attitude Toward Shopping: More Search
b. Satisfaction with Prior Choices
c. Perceived Benefits & Costs of Search

4. Consumer Determinants
a. Knowledge
- Reliance on Internal Search
- Facilitation of More Effective Search
b. Risk (Involvement)
- High: More Search
- Low: Trial May be Search
- Functional (performance), Financial, Psychological, Social, Physiological, Time, Linked-Decision (if I buy this…then…)
c. Locus of Control
- Internal: More Search
- External: Why Bother?

5. Situational influences
a. Availability and Quantity of Information
b. Format of Information
c. Time Pressures/Costs
d. Decision Delay Costs
e. Financial Costs
f. Physical Costs (Tired?)
g. Psychological Costs (Mental Stress/Anxiety)
h. Information Overload Costs

6. Demographic Determinants
a. Older: Less Search
b. Experience
c. Brand Loyalty
d. Higher Income = Less Search
e. Higher Level of Education: More Search
Why do people shop...what are some of their motivations...other than strictly utilitarian purchase
1. People shop to buy benefits, not goods and services.
a. They shop to find and compare product and service offerings that will deliver the benefits they are seeking.
b. Benefits can be tangible or intangible.
c. The broader view of goods and services as a sum of their benefits is known as the Total Product Concept.

2. Beyond the desire to acquire goods and services, consumers display a range of personal, social, and hedonic motives for shopping, each influencing shopping choices.
• Do consumers consume a product in only one way...or are there a variety of consumptive choices made by consumers?
1. Consumption is the possession and/or use of goods and services and the benefits they deliver.

2. Given different situations, we buy and use different products.

3. The consumption situation is the physical and social context in which we actually use goods and services purchased.

a. The social context is the presence of others when consumption occurs.
Your behavior may change when you are at different shopping places.

b. The physical context is the time and place of consumption.
•If you were at a ballpark and you buy a hotdog, but you normally don’t buy hotdogs. This is an atypical situation that leads to an atypical purchase.

c. Different cultures also influence different consumption sets.
For example, in Islamic nations, the type of clothing style to be worn by women is prescribed by the culture, and stores carry only those styles considered appropriate.
What is the difference between sacred and profane consumption?
1. Sacred Consumption that occurs during out-of-the-ordinary situations.
a. Significant, powerful, extraordinary relative to self

2. Profane Consumption is consumption of goods or services that is part of everyday life.
a. Ordinary, lacking in ability to induce ecstatic, self-transcending extraordinary experiences.
Discuss the various behaviors a consumer might exhibit given post-purchase dissatisfaction?
I. Negative post-purchase behavior takes several forms, each of which can erode brand and outlet loyalty and diminish customer satisfaction.

1. Some negative behaviors are passive, such as the lack of repeat purchases or recommendations to other consumers.

2. Some behaviors are active, which are of more interest to marketers because they are potentially damaging to the reputation and future sales of the product.

3. Recovery expectations are expectations tied to customer beliefs about the level of “reparation” that is appropriate after a failure.

4. Negative word-of-mouth
a. Consumers express their dissatisfaction with a purchase to others - passive

5. Rumor
a. An insidious form of negative communication about products and services that is untrue, and is spread to others.

6. Complaint behavior
a. Public Action: dissatisfied customer seeks a remedy for the problem at the purchase location or from the manufacturer.
oSeek redress from firm
oComplain to business or private or government agency
oTake legal action to obtain redress

b. No action

c. Private Action: Dissatisfied customer action with no attempt to obtain redress.
oWarn family, friends, others
oBoycott Store
oDecide to Stop buying from manufacturer
What is cognitive dissonance?
1. It is the state of mind that occurs before the consumer determines whether a product or service is satisfactory.
a. As the consumer makes a commitment to the purchase or selection of the product, there is a feeling of uncertainty about whether the right choice is being made.
What causes cognitive dissonance?
1. Importance of Purchase Decision
a. High-involvement, high-risk: much more likely to result in cognitive dissonance than low,low.

2. Customer Tendency toward Anxiety
a. Anxious: more

3. Clarity of final purchase choice
a. More difficult the purchase choice, very similar options – more dissonance

4. Finality of the purchase decision
a. More irrevocable the decision, the longer we have to live with the product
How does a firm go about decreasing a customer’s cognitive dissonance?
I. The best way to reduce purchase-associated cognitive dissonance is for marketers to match their products as much as possible with the appropriate target consumers.

1. The set of benefits delivered best fits the set of benefits sought by the customer.

2. Matching the educational, product or service experience, financial, time, and other resources of the buyer is also critical.

3. The product itself, its packaging, and promotional communications should all be developed with this objective in mind.

4. Return policies, warranties, in-store demos, and post-purchase installation and service all serve to increase the consumer’s level of comfort.

5. Answering questions and providing information in face-to-face selling situations.