BMGT350_exam2

BMGT350_exam2 - BMGT350 EXAM2 Text Notes Chapter 5 Consumer...

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BMGT350 EXAM2 / Text Notes Chapter 5. Consumer Decision Making 1. The Importance of Understanding Consumer Behavior * Consumer Behavior : Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use 2. The Consumer Decision-Making Process (1) Need Recognition : Result of an imbalance between actual and desired states - It is triggered when a consumer is exposed to either and internal or an external stimulus. * Internal stimuli : are occurrences you experience, such as hunger or thirst * External stimuli : are influences from an outside source such as someone’s recommendation of a new restaurant, the design of a package, or an advertisement on television or radio. - WANT: exists when someone has an unfulfilled need and has determined that a particular good or service will satisfy it. e.g.,) cell phone in the jeans pocket in the washing machine: NEED to buy a replacement and may WANT one with Bluetooth capabilities - 2 Common ways in which unfulfilled wants occur 1) A current product isn’t performing properly and when the consumer is about to run our of something that is generally kept on hand 2) When they become aware of a product that seems superior to the one currently used (2) Information Search - Internal Information Search : The process of recalling past information stored in the memory - External Information Search : The process of seeking information in the outside environment 1) Nonmarketing-controlled information source : Not associated with advertising or promotion (Personal sources: family, friends. .ect) 2) Marketing-controlled information: Originates with marketers promoting the product - include mass-media advertising, sales promotion, salespeople, product labels and packaging, and internet * Factors influence External information search - Perceived risk: Increase of perceived risk enlarge consumer’s information search - Confidence in decision-making : lack of confidence people continues an information search - Product experience : Positive product experience limits their search - Amount of interest of a customer in a product: more interests encourage more information search * Evoked set (Consideration set ): A group of brands, resulting from an information search, from which a buyer can choose (Buyer evaluate the alternatives from this set) (3) Evaluation of Alternatives and Purchase * Ways to begin narrow the number of choices in the evoked set 1) Pick a product attribute and then exclude all products in the set that don’t have that attribute 2) Use cutoffs: either minimum or maximum levels of an attribute than an alternative must pass to be considered (4 wheel drive vehicle above $25,000) 3) Rank the attributes under consideration * Marketer’s goal : Which attributes have the most influence on a consumer’s evaluation of products (4) Purchase (5) Postpurchase Behavior : How well expectations are met determines whether the consumer is satisfied or not with the
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BMGT350_exam2 - BMGT350 EXAM2 Text Notes Chapter 5 Consumer...

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