Consumer Behavior basic slides fall 2012_

Consumer Behavior basic slides fall 2012_ - CONSUMER...

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CONSUMER BEHAVIOR AND PROMOTION MANAGEMENT To be an effective marketer, you must have a thorough understanding of your target consumers. What are their needs? How do they make their purchase decisions?
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CONSUMER BEHAVIOR AND PROMOTION MANAGEMENT Promotion management focuses on providing product information to potential consumers. The goal is to persuade consumers that your company’s products are a good solution for their needs.
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Consumer Behavior and Promotion Management: Outline Involvement and perceived risk Complex decision making Habitual decision making Classification of goods
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CLASSIFICATION OF GOODS CONVENIENCE SHOPPING SPECIALTY LOW HIGH HIGH INVOL. INVOL. INVOL. HABIT COMPLEX HABIT (PRACTICAL) DECISIONS (RISK) INERTIA NON-BRAND BRAND LOYAL LOYAL
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Involvement : The first step to understanding consumer behavior A consumer does not behave in the same manner for all consumption decisions. Why? A consumer’s level of involvement varies with different consumption decisions.
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INVOLVEMENT AND PERCEIVED RISK A consumer’s level of involvement varies with different purchase decisions. Involvement usually increases as perceived risk increases. What is the relationship between involvement and purchase price?
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5 TYPES OF PERCEIVED RISK Functional risk Physical risk Financial risk Social risk Psychological risk Note: Sometimes marketers will attempt to heighten perceived risk, often through fear appeals.
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COMPLEX DECISION MAKING Typical consumer decision making approach when: Involvement is high No habit or brand loyalty is present
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Five step process: 1) Problem recognition 2) Information processing 3) Brand evaluation 4) Purchase 5) Post-purchase evaluation
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STEP 1: PROBLEM RECOGNITION Consumers recognize that they have needs that could be satisfied with the purchase of a product or service. Complex decision making often involves new types of needs that consumers have not experienced before or needs that have not arisen in the recent past. Thus, perceived risk is greater.
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Why do consumers gather information before they buy a high involvement product or service?
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  • Spring '12
  • Vijiay
  • Marketing, Consumers, POSTPURCHASE Consumers

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