consumerbtopic2

consumerbtopic2 - Consumer Behavior Topic 2 Economic...

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Consumer Behavior – Topic 2 Economic Models: Consumer Behavior Models; Need Recognition, Search, Pre-purchase Alternative Evaluation, Purchase, Consumption, Outcomes You personal involvement in the product, service or candidate will impact how you buy, order or vote. We speak of low and high involvement. This is a function of just how much searching you are willing to do. Low involvement products would include such things as sugar or salt vs. high involvement such as cars or computers. And the price of the item does not indicate the level of involvement by the consumer. Some very inexpensive items become high involvement (i.e., clothes, gifts). Factors that may lead to why people do not buy 1. marketing factors: Let me remind you of the 4-Ps of marketing – the marketing factors: product, price, promotion, and place. Perhaps the product is poorly priced and thus is too high for the product category or the product is just not a good product. 2. cultural factors: a classic study was done immediately following World War II for Nescafe, an instant coffee. During the war when many products were rationed, such as coffee, Nescafe was a very popular product. However when the war ended, the product lost much share in the market. A taste test revealed that the flavor was competitive with regular coffee. Why then did people consider instant coffee as inferior? Haire devised a study in which two identical shopping lists were presented to shoppers with only one difference – One of the lists had regular coffee while the other had instant Nescafe. Then the subjects were asked to describe the shopper based on the list. The shopper whose list included Nescafe was described as a “lazy housekeeper”. Thus Haire determined that this was a cultural problem and his advice to the manufacturer was to stress taste. Today the public has not problem with instant (in fact quick preparation is considered a positive attribute!) 3. social factors: what will other people think – what will the neighbors think – this has to do with social risks. Clothes fall into this factor. Thus in marketing certain products associated with social risks, it is helpful to have someone famous wear them. The classic example is Gloria Vanderbilt whose jeans set off a revolution. Prior to G. Vanderbilt, jeans were considered work clothes and prohibited from most restaurants, schools, theaters etc. Vanderbilt, whose ancestor was indeed the robber baron of the same name, was a minor model and clothing designer. She designed a skin right woman’s jean and marketed them as evening, date, dress-up wear. This was in the early 1970s. Today jeans are accepted pretty much anywhere and the price point range from Wrangler through the top designers. 4.
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This note was uploaded on 04/03/2012 for the course ECON 322 taught by Professor Francisco during the Fall '07 term at Rutgers.

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consumerbtopic2 - Consumer Behavior Topic 2 Economic...

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