Marketing 3010 Study Guide Chapter 5 PDF

Marketing 3010 Study Guide: Chapter 5 The economic-buyer theory assumes that consumers are economic buyers, which are people who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money. Discretionary income is what is left of income afte...

Marketing 3010 Study Guide: Chapter 5 The economic-buyer theory assumes that consumers are economic buyers, which are people who know all the facts and logically compare choices to get the greatest satisfaction from spending their time and money. Discretionary income is what is left of income after paying taxes and paying for necessities. Home alarms that protect people from burglaries appeal to consumers' safety needs. These needs are concerned with protection and well-being. Online dating sites are firms that are most likely to attempt to attract customers by making an appeal to social needs. Motivation, perception, learning, attitude, trust, and lifestyle are some of the psychological variables that affect consumer buying. Physiological needs are concerned with biological needs like food, liquid, rest, and sex. Independence is a psychological need. Social needs are concerned with love, friendship, status, and esteem---things that involve a person's interaction with others. Safety needs are concerned with protection and physical well-being (perhaps involving health, financial security, medicine, and exercise). Selective perception is the way we screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs. Selective exposure is when our eyes and minds seek out and notice only information that interests us. Selective retention is a process where we remember only what we want to remember. Reinforcement strengthens the relationship between the cue and the response. Consumer learning may result from things that marketers do. Depending on the cues (products, signs, ads, and other stimuli in the environment) an individual chooses some specific response to satisfy a drive. Cues can be in the form of products, signs, ads, and other stimuli in the environment. An attitude is a person's point of view toward something. Attitudes are usually thought of as involving liking or disliking. A belief is a person's opinion about something, but it does not necessarily involve any liking or disliking. Psychographics, or lifestyle analysis, is the analysis of a person's day-to-day pattern of living as expressed in that person's activities, interests, and opinions. Recreation is an example of interests.  A reference group is the people to whom an individual looks when forming attitudes about a particular topic. Teen purchases are heavily influenced by reference groups. An opinion leader is a person who influences others. Some marketing mixes aim especially at opinion leaders, since their opinions affect others and they have many product-related discussions with "followers." The Internet has helped some opinion leaders get more followers and therefore more influence. Social influences like the consumer's family, social class, and reference groups influence the consumer decision process. Empty nesters are people whose children are grown and who are now able to spend their money in other ways. This tends to be a high-income period. In most countries---including the United States---there is some general relationship between income level and social class. But people with the same income level may be in different social classes; so income by itself is usually not a good measure of social class. In the United States, simple approaches for measuring social class groupings are based on a person's occupation, education, and type and location of housing. Reference groups most often influence purchases that others can observe. A reference group is the people to whom an individual looks when forming attitudes about a particular topic. *Reference group* refers to the people to whom an individual looks when forming attitudes about a particular topic. Reference group influence is stronger for products that others can observe. Social media amplifies the voices of opinion leaders. Think about the impact of a traveler posting a long, detailed, positive review at Hotels.com, or of a movie fan telling Facebook friends how much they disliked a new movie. Culture is the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people. When the need is urgent, customers will be less inclined to evaluate a range of options---and place more emphasis on speed and convenience. Time influences a purchase situation. The consumer decision process begins when a consumer becomes aware of an unmet need. Extensive problem solving is when a consumer puts much effort into deciding how to satisfy a need, as is likely for a completely new purchase or to satisfy an important need. Problem-solving involves the following steps: information search, identifying alternatives, setting criteria, and evaluating alternatives. Limited problem solving is used by consumers when some effort is required in deciding the best way to satisfy a need. Limited problem solving is typical when the consumer has some previous experience with a product but isn't quite sure which choice to make at the moment. Routinized response is typical when a consumer has considerable experience in how to meet a specific need and requires no new information---for example, purchase of a fast-food restaurant meal. Routinized response is typical when a consumer has considerable experience in how to meet a specific need and requires no new information. Routinized response also may occur when a buyer trusts a company, brand, or a friend's recommendation. Because trust lowers the risk of making the wrong choice, less effort is required from the buyer. Routinized response behavior is typical for low-involvement purchases---that is, purchases that have little importance or relevance for the customer. After making a purchase, buyers often have second thoughts and wonder if they made the right choice. The resulting tension is called dissonance---a feeling of uncertainty about whether the correct decision was made. In the evaluation step of the adoption process, a consumer begins to give the product a mental trial, applying it to his or her personal situation. In the trial step of the adoption process, the consumer may buy the product to experiment with it in use.