Marketing Chapter 4 Notes PDF

lOMoARcPSD|24121749 Marketing Chapter 4 Notes Principles Of Marketing (Auburn University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Mackenzie Fitts ([email protected]) lOMoARcPSD|24121749 Chapter 4: Customer Behavior Customer Experience...

lOMoARcPSD|24121749 Marketing Chapter 4 Notes Principles Of Marketing (Auburn University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Mackenzie Fitts ([email protected]) lOMoARcPSD|24121749 Chapter 4: Customer Behavior Customer Experience vs. Purchase Marketing has evolved from making a single sale to building relationships with customers Customer Experience vs. Purchase Customers make decisions: - Will be more careful with higher risk products (different from person to person) Primary influences: - Customers buy products that fit their personality and lifestyle How can marketing influence thoughts etc:? - Trying to understand how customers respond to different marketing activities McKinsey & company Video.. 4.1 Steps in the General Model of Customer Experience General model includes 5 steps and can be applied to any exchange whether its complex or as simple as getting your morning coffee. 1. 2. 3. 4. 5. Need Recognition Information Search Evaluation of Alternatives Purchase/Choice Post-Purchase Evaluation and Behavior Need Recognition - Externally prompted Internally driven Need recognition key point: o Prompts customers to seek ways to satisfy the needs, which triggers the next step Information Search 2 basic questions: 1. What information is needed? 2. Where will the customer get the needed information? Search options: - Internal Search - External Search Downloaded by Mackenzie Fitts ([email protected]) lOMoARcPSD|24121749 o Personal Sources – most credible, those who have a personal relationship with you o Third-party information – external information from sources w/o a personal tie but also w/o brand affiliation o Company-sponsored information- least credible source of information, comes from the company that is trying to sell you the product Evaluation of Alternatives - Perceived value drives customer’s decisions Customers often use heuristics or rules of thumb to make decisions easier o Choosing a brand you know o Picking a middle option o Choose the option with the most positive reviews o Used when decision is not high-risk Purchase/Choice Basic purchase issues include: - Where to buy the preferred option? - How to pay for it? When to buy it? Any of these elements can impact the overall perceived value of an option Most purchases occur at a store, however there has been a large increase in the number of purchases taking place online Post Purchase Evaluation and Behavior Evaluation - Satisfaction – is a comparison of performance to expectation - Dissatisfaction Satisfaction evaluation is twofold - Did you satisfy the initial need? Longer-term impact on perceived value Cognitive Dissonance The satisfaction evaluation can trigger additional outcomes Feedback Companies use customer satisfaction surveys to assess customer perceptions Word of mouth when custgomers tell others about their experience Routine purchases have some steps internalized Steps not always in order The duration of the experience can vary Always different experience Downloaded by Mackenzie Fitts ([email protected]) lOMoARcPSD|24121749 4.2 Influences on Customer Experience Basic Influences 1. Individual differences 2. Social influences 3. Contextual influences Individual Differences - Demographic traits, personality, and perceptual differences Personality individual character: thoughts, feelings, behaviors - Self image Perception processes Selective attention – you choose what info to pay attention to Selective interpretation – interpreting info in the way that matches your beliefs Selective Retention – only remember selective info Social Influences - Other people that are important to an exchange Reference groups serve as a standard against which you measure yourself Aspirant groups we wither want to be apart of or act like we are Opinion Leaders those you influence others when they are purchasing Social Class Economic dimension includes income, wealth Cultural dimension: education level, occupation, hobbies Contextual Influences - Are situational o Include type of decision context, time, motivation, expertise and physical environment Decision contexts: - Routine decisions – require no effort on customers part - internalized - Extensive problem solving – purchase decision perceived to be important, high risk - Limited problem solving – customer will engage in some conscious external info search but likely use heuristics to make the decision 4.3 Individual Consumer vs. Business Buying B2B vs. B2C Decider – the person who has the final decision Influencers – members of the buying center who have expertise Purchaser – buys and pays for the purchase Downloaded by Mackenzie Fitts ([email protected]) lOMoARcPSD|24121749 User – the person who uses the product Gatekeeper – either allows or denies access to the rest of the buying center Buyer center: group that makes a purchase decision for a business Downloaded by Mackenzie Fitts ([email protected])