Label and define the two types of buyers
1. Consumer Markets People - Personal use Retail 2. Business Markets Firms Institutions Governments Non-Profit Organizations
Consumer Decision Making Process consists of 5 steps. What are they?
- Problem recognition
- Information Search
- Evaluation of alternatives
- Product Choice
- Post-Purchase evaluation
More details on problem recognition
The needs GAP
Difference between the buyers
1. Perceived desired state
2. Perceived current state
More details on Information Search
- Analyze the overall situation
- Reviews memory
- Surveys the equipment
- See what’s out there
- Search for something to provide a solution
More information on evaluation of alternatives
- Time to narrow down options
- compare pros and cons
- Review important characteristics
- Evaluation criteria - will differ from person to person
More information on product choice
- Decision making and commitment
- Use of heuristics
- Brand loyalty
More information on post purchase evaluation
- Review of the choice made
- Satisfaction/dissatisfaction
- Cognitive dissonance
- Cognitive dissonance refers to a situation involving conflicting attitudes, beliefs or behaviors. This produces a feeling of mental discomfort leading to an alteration in one of the attitudes, beliefs or behaviors to reduce the discomfort and restore balance.
Internal influences include
Perception motivation learning attitudes age lifestyle
External influences
Situational
Physical
Time
Social Cultural Subculture Social Class Gender Roles
Perception
How people select, organize and interpret infromation
Exposure
refistering a stimulus through sensory receptors
Attention
The act of mentally processing information
Motivation
drive to satisfy needs being goal oriented
Attitudes
how one response to a stimulus based on evaluations
Personality and Influences
- Age
- Lifestyle
- Environment
- Social
- Gender Roles
Define involvement
The relative importance of perceived consequences of the purchase to customer
Define perceived risk
The belief that choice of a product has potentially negative consequences, whether financial, physical, and or social
Define consumer behaviour
The process involved when individuals or groups select, purchase, use and dispose of goods, services, ideas, or experiences, to satisfy their needs and desires
Define problem recognition
The process that occurs whenever the consumer sees a significant difference between his current stat of affairs and some desired or ideal state; this recognition initiates the decision-making process
Define Information search
The process whereby a consumer searches for appropriate information to make a reasonable decision
Define search marketing
Marketing strategies that involve the use of internet search engines
Define Search Engine Optimization (SEO)
A systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business
Define Search Engine Marketing (SEM)
Search marketing strategy in which marketers pay for ads or better positioning
Define behavioral targeting
The marketing practice by which marketers deliver advertisements for products a consumer is looking for by watching what the consumer does online
