CLEP Principles of Marketing Study Notes

Consumer may form an attitude about a product and

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Consumer may form an attitude about a product, and evaluate its features after purchasing it, rather than before. High level of involvement are products associated w/ personally important, relatively expensive , or have high risks associated with making a bad decision. Associated with non-routine purchases which for one reason or another are important enough to warrant time and energy spent making a careful purchasing decision. Qualitative Research - any kind of research that produces findings not arrived at by means of statistical procedures or other means of quantification. An example of qualitative research is asking a group of people what their feelings were about a new product. The information collected from respondents takes the form of verbal descriptions or direct observations, in contrast to quantitative research, where the information collected is converted into numbers. Cognitive dissonance - doubts that occur because the buyer questions whether the right decision was made in purchasing the product. Occurs shortly after the purchase of an expensive product. The buyer continues to evaluate alternatives after making the purchase, and remains uncertain and less than fully satisfied about his decision. One of the major categories of influences which affect the consumer buying decision process are psychological forces, and include perception, motives, ability and knowledge, attitudes, and personality. 5 major psychological forces which affect consumer buying decisions . These psychological factors operate internally, but are often affected by social forces. 1. Social factors - includes family influences, reference groups, social classes, and culture. Our roles in society, our relationships, and society and culture affect our buying decisions. For example, upper-class Americans often prefer luxury cars such as Mercedes Benz to symbolize their status and income 2. Information forces , which include advertisers, product rating services, etc.. Affect consumers buying decisions by providing them with relevant views on products. Informational forces often tie in with social and psychological forces. Industrial Products - Products sold to organizational customers. Industrial products are sold to business customers, as opposed to consumer products sold to consumers. Consumer goods are usually purchased for final consumption, whereas industrial products are purchased for resale or further production. One of the big differences between organizational markets and consumer markets is in the demand for products. Organizational markets are based on derived demand, where the demand for materials is based on the anticipated demand by consumers for the finished products. This is known as derived demand. The demand for industrial products results from the demand for consumer products. For example, a company that produces transistor radios buys the electronic parts to build the radios to sell to consumers. If sales for the radios drop, the manufacturer in turn cuts back on orders for parts .
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