AEM Take NOTE - WEEK 3 I. Consumer Buying Decision Process...

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WEEK 3 I. Consumer Buying Decision Process a.Purchase decision- who? When? i. Hagar, a men’s clothing company, discovered that 89% of its clothes was purchased by women. Devoted advertising towards women ii. Automobile companies discovered that consumers really don’t really like the purchasing process (going to car dealer and negotiating), so they buy ones they are comfortable/familiar with. Buyers who already purchased a model are much less price resistant to a new model iii. Satisfied- tell 3 others, dissatisfied- tell 9 others II. Value of a customer- a. Kimberly Clarke- loyal customers buy 6.7 boxes/yr=$995 in life b. 5% improvement in customer retention inc profit 70-80% III. Influences on buying decision process: a. Psychological- needs, motives, attitudes (values and beliefs) i. Perception- Marketing task is to reduce perceived risk thru samples, warranties, info etc ii. May change attitudes (hard to do), add new attributes, change perceived importance of attribute b. socio-cultural- family, social class, subcultures, values and opinion leaders (ol- 10% of ppl) i. WOM- friends, family, acquaintances passing on info about products, services that they have used to other ppl ii. Buzz Agent- selects a campaign (product/service), uses it, forms and opinion and spreads the word by filing a report online (viral marketing) iii. Buzzmarketing- ethics? Just to get free stuff or really interested in friend’s opinions? Is WOM marketing “clutter” in private conversations within regular social networks c. situation-surroundings, marketing mix (yours and competitors) IV. Hierarchy of needs- assess people’s motives and the nature of their needs a. Bottom to top-> physiological (food, water, sex, oxygen), safety (freedom from hard, belonging, love), social (friendship, belonging, love), personal (status, prestige), and self-actualization V. Marketing Research approach (graphic in textbook)- a. define the problem, b.develop the research plan, c. collect relevant info (primary and secondary data), WEEK 4 I. Tesco Company- largest food retailer in the UK, successful bc is an expert in market research, but growth is slowing a. New growth objective: “to build the perfect store for the american consumer in the 21 st century” b. Plans to address a different niche in the US- plans to simplify the lifestyles for those who want fresher food c. Result: emphasizing convenience, and freshness, smaller stores, innovative retailing is rewarded (food catered to specific ethnicities, addressing consumer values, operate using renewable energy and stock local produce) II. Experimental method – test marketing, simulated testing- trying to test the III. Forecasting- by using judgments of the decision maker, surveys, jury opinions/experts (Delphi technique- good accuracy, easy to understand, cost
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effective, captures management’s judgment to predict changes, captures
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This note was uploaded on 03/30/2008 for the course AEM 2400 taught by Professor Mclaughlin,e. during the Fall '07 term at Cornell University (Engineering School).

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AEM Take NOTE - WEEK 3 I. Consumer Buying Decision Process...

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