specific topic to other group members Five steps involved in the Consumer Buying Decision Process - 1. Problem recognition 2. information search 3. Evaluation of alternatives 4. purchase 5. Postpurchase evaluation
Step 1: problem recognition - - occurs when a buyer becomes aware of a difference between a desired state and an actual condition: recognition can be rapid or slow, people may not recognize a problem or need until marketers point it out - marketers use sales personnel, advertising, and packaging to help trigger recognition of such needs or problems Step 2: Information search - - internal search - external search internal search - an information search in which buyers search their memories for information about products that might solve their problem External search - An information search in which buyers seek information from sources other than their memories Step 3: evaluation of alternatives - - consideration set - evaluative criteria Step 4: purchase - - consumer chooses to buy the product or brand yielded by the evaluation of alternatives - buyers choose the seller as well as the product Step 5: postpurchase evaluation - - cognitive dissonance - arises from purchase of expensive, high-involvement product lacking desirable features of competing brands - buyer may attempt to return the product or justify the purchase - lessened by salespeople contacting recent customers regarding the purchase Four types of consumer decision making - 1. routinized 2. limited 3. extended 4. impulse buying Routinized response behavior - A consumer problem-solving process used when buying frequently purchased, low-cost items that require very little search-and-decision effort (routine purchases, habit, like gum or water)
Limited decision making - A consumer problem-solving process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category (discovering new brands) Extended decision making - a consumer problem-solving process employed when purchasing unfamiliar, expensive, or infrequently bought products (Ex: purchasing car or house) impulse buying - An unplanned buying behavior resulting from a powerful urge to buy something immediately Sociocultural forces - - cultural and social differences influenced by beliefs and values regarding: family, religion, education, health, recreation - difficult to transfer marketing symbols, trademarks, logos, and products to international markets economic forces - - currency valuation is an important economic factor in the global business environment - floating exchange rate allows currencies to fluctuate, or float, according to the foreign exchange market - Gross domestic product Gross domestic product - the market value of a nation's total output of goods and services for a given period; an overall measure of economic standing political, legal and regulatory - 1) tariff 2) quota 3) free trade 4) balance of trade import tariff - A duty levied by a nation on goods bought outside its borders and brought into the country
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- Spring '08
- Marketing, producer