Steps in the Buying Process PDF

Steps in the Buying Process: Problem Recognition, Information Search, Evaluation of Alternatives, Purchase Decision, and Re-evaluation Problem Recognition: Consumers may recognize outdated or insufficient smartphones. They seek information from various sources like online reviews, tech blogs, a...

Steps in the Buying Process: Problem Recognition, Information Search, Evaluation of Alternatives, Purchase Decision, and Re-evaluation Problem Recognition: Consumers may recognize outdated or insufficient smartphones. They seek information from various sources like online reviews, tech blogs, and retail stores. They evaluate various smartphone models based on features like camera quality, battery life, and price. They make a list of pros and cons or use comparison websites to weigh the benefits and drawbacks of different options. Information Search: Buyers consider factors like sales, warranty deals, and store reputation before making a purchase. They evaluate the phone's functionality, customer service, and overall experience. Positive experiences can lead to continued purchases and recommendations. Negative experiences can change brand perception. value-added services are extra offerings beyond the basic product or service. - They make products more attractive and improve customer satisfaction. - Businesses use them to differentiate in competitive markets. - Features enhancing customer experience include: - Personalized support - Loyalty programs - Tailored product options - Easy delivery choices - Extra services strengthen customer relationships. - Enhance brand loyalty. - Create a unique market presence. - **Primary Data Types**: Surveys, Interviews, Focus Groups, Observations, Experiments. - **Surveys**: - Method: Online, Phone, Face-to-Face. - Purpose: Assess interest, understand preferences, determine spending willingness. - Business use: New product launches. - **Interviews**: - Method: One-on-one or small group discussions. - Purpose: Gain deep consumer insights. - Example: Tech companies interviewing users for app feedback. - **Focus Groups**:  - Method: Group discussions in a structured setting. - Purpose: Learn consumer feelings and interactions. - Example: Clothing stores evaluating new collections. - **Observations**: - Method: Watching behaviors without interaction. - Purpose: Understand product interaction and preferences. - Example: Observing shopper behavior in stores for marketing insights. - **Experiments**: - Method: Controlled testing of variables. - Purpose: Study effects of changes on consumer actions. - Example: Software companies conducting A/B tests on pricing options. Competitive Advantage DefinitionQualities or situations that enable a company to outperform rivals.Can originate from various areas such as: Pricing Product variety Brand image Customer support Benefits Increases sales, profits, and market presence. Strengthens position in the market. Acts as a barrier against new competitors. Types of Competitive Advantage Cost Leadership Being the lowest-cost producer in the market. Allows for lower pricing while maintaining profits. Example: Walmart utilizes large-scale operations and efficient supply chain management. Differentiation Offering unique products or services perceived as higher quality. Example: Apple, recognized for innovative technology and premium design Focus Strategy Targeting a specific market niche and addressing its unique needs Example: Ferrari, specializing in high-end luxury sports cars for a niche market. Consumer Socialization: The process by which individuals, particularly children and teens, learn consumer behaviors and preferences. Influences include family, friends, media, and cultural groups. Example: A child may prefer a certain cereal brand because they see a parent consistently buying it, building comfort and trust with that brand. Social Media's Role: Platforms like Instagram and TikTok expose young people to brand influences through friends and influencers, shaping brand perceptions and choices. Brand Loyalty: The tendency for consumers to repeatedly choose a specific brand over others. Driven by positive past experiences, emotional connections, or the status associated with the brand. Example: Apple maintains high consumer loyalty by offering quality products and cultivating a brand image that resonates with its audience. Definition of Crown Corporations: Government-owned businesses created by federal or provincial governments. Operate across various economic sectors to achieve public goals while remaining financially independent. Aim to provide essential services, address market gaps, and support regional development. Mission focused on the public’s needs, operating differently from private businesses. Purpose and Role: Take on projects that may be less appealing to private investors due to low profits or higher risks. Play key roles in sectors like energy, transportation, and telecommunications to ensure essential services are available widely, even in less profitable areas. Help build infrastructure and guarantee public access to critical services, such as public transport, electricity, and media broadcasting. Examples of Provincial Crown Corporations: OCS (Ontario Cannabis Store): Regulates and distributes cannabis in Ontario. LCBO (Liquor Control Board of Ontario): Manages the sale of alcoholic beverages in Ontario. OLG (Ontario Lottery and Gaming Corporation): Runs lotteries and gaming services, generating revenue for public services. OAC (Ontario Agricultural College): Develops educational resources and shares health care and cultural information for Ontario's communities. APR (Annual Percentage Rate) Regulation:Each Canadian province and territory has unique regulations on how interest rates, like APRs, are displayed, rather than having a single nationwide standard. *Ontario Cannabis Store (OSC) Examples of federal corporations EI-Employment Insurance CDIC - Canada Deposit Insurance Corporation  CMHC Canada Mortgage and Housing Corporation, APR - Annual Percentage Rate - The Bank Act and the Financial Consumer Agency of Canada (FCAC) are laws that help keep an eye on banks and other financial companies to make sure they treat customers fairly and protect their rights. OAC - "Ontario Agricultural College - The government is giving rules and money to help open access projects. They are making policies that allow provinces to share data while still protecting people's privacy and rights. These actions are really important for creating a fair system that helps all Canadians, no matter where they live or how much money they have. - Gift Card Expiry Dates Consumer Protection Act: Most retail gift cards in Canada cannot have expiration dates, so their value remains valid indefinitely. Exceptions: ○ Gift cards for specific services (e.g., spa treatments) may expire if unused within a certain time. ○ Charity-based gift cards may also have expiration limits. Exchanges and Refunds at Stores Policies on exchanges and refunds vary by store, so consumers should check individual store policies before purchasing. Harmonized Sales Tax (HST) HST combines a 5% federal tax and an 8% provincial tax, displayed as a single 13% tax on invoices. Applied to many goods and services, though exemptions exist (e.g., basic groceries, prescription drugs). Cost of Passport Renewal 5-year passport renewal: approx. CAD 120. 10-year passport renewal: approx. CAD 160. Cost of a License Sticker  Ontario no longer charges for vehicle license stickers as of 2022. Cooling-Off Period A set period allowing consumers to reconsider certain contract commitments. ○ Example: Gyms in Ontario must inform members of cooling-off rights at sign-up. Government Revenue Usage Healthcare: Hospitals, clinics, public health programs. Education: Funding for schools, colleges, and universities. Transportation: Roads, public transit, and infrastructure. Social Support: Programs for low-income families, child welfare, and disability services. Community and Safety: Police, emergency services, environmental projects. Benefits of Competition for Consumers Encourages new businesses, creating jobs and stimulating economic growth. Provides a wide selection of products, allowing variety in price, style, and quality. Motivates businesses to improve quality and keep prices reasonable. Top of Mind Awareness (TOMA) Refers to the first brand that comes to mind in a product category, indicating strong brand recognition. ○ Example: Coca-Cola in soft drinks; "Google it" for search engines. ○ Achieved through branding, frequent ads, and consumer engagement. Direct vs. Indirect Competition Direct Competition: Competing brands selling similar products to the same audience. ○ Example: Domino's vs. Papa John's, McDonald’s vs. Burger King. Indirect Competition: Different products/services competing for the same consumer spending. ○ Example: Choosing between a pizza from Domino’s and a burger from Burger King, or between dining out and spending on clothing or entertainment. Quantitative vs. Qualitative Research Questions Quantitative Research: Focuses on numerical data and statistical analysis to identify trends. ○ Examples: "What percentage of consumers drink flavored water weekly?" or "How much are people willing to pay for organic snacks?" Qualitative Research: Explores motivations, behaviors, and experiences in-depth. ○ Examples: "How does social media affect relationships?" or "What influences your product choices?" The Asterisk (*) in Advertisements Purpose: Directs consumers to footnotes for clarifying information, such as terms or limitations on offers. Potential Issues: If not clearly visible, it may obscure key details, leading consumers to feel misled about the terms of the offer. Traditional Economy Definition: Economic decisions are based on customs, traditions, and cultural practices passed down through generations. Characteristics: Relies on community-oriented production and bartering, often without currency. Example: Some First Nations communities in Canada use traditional fishing and hunting practices, which uphold cultural heritage and sustainable resource use. Market Economy Definition: Operates on principles of supply and demand with minimal government intervention. Characteristics: Businesses and consumers independently make decisions based on market conditions, fostering competition and innovation. Example: Canada’s tech industry in cities like Toronto and Vancouver thrives in a market economy, where competition leads to growth and technological advancements based on consumer demand. Command Economy Definition: An economy where the government exerts high control over resources and makes major economic decisions. Characteristics: Prioritizes societal needs over profit, with central planning directing production and distribution. Example: Canada’s public healthcare system has command-like features, as government funding and regulations ensure universal access to health services, emphasizing public welfare. Mixed Economy Definition: Combines elements of both market and command economies, balancing private enterprise with government regulation. Characteristics: Private businesses operate freely alongside government intervention in essential sectors. Example: Canada’s economy reflects a mixed model, with a thriving market sector along with significant government involvement in healthcare, education, and infrastructure. OSC- The Ontario Cannabis Store Oversees cannabis supply chain to ensure public health and safety. - Enforces strict quality standards to reduce risks like product contamination. - Promotes responsible marketing and offers educational resources for informed consumer choices. **Employment Insurance (EI)** - Provides financial support to unemployed Canadians covering living expenses while job searching.- -Plays a crucial role in Canada's social safety system. - Helps maintain economic stability by allowing continued consumer spending during tough times. **Canada Deposit Insurance Corporation (CDIC)** - Protects depositors by insuring eligible deposits at member financial institutions - Provides peace of mind to Canadians regarding the safety of their deposits up to a certain limit in case of financial institution failure. LCBO stands for Liquor Control Board of Ontario. Responsible for overseeing and managing the sale and distribution of alcoholic drinks in Ontario. Operates a large network of stores offering a variety of wines, spirits, and beers from local and international sources. Promotes responsible drinking through educational efforts about the dangers of excessive drinking. Implements programs aimed at different community groups to foster responsible consumption.  Generates significant income for the provincial government, contributing billions annually from taxes and profits. Revenue supports essential public services such as healthcare and education, benefiting the community as a whole. OLG (Ontario Lottery and Gaming Corporation) aims to establish a controlled environment for various gambling services, including lottery, casino, and online gaming. The organization emphasizes transparency and integrity to ensure fair and responsible gaming practices. The provincial government generates revenue from OLG, which contributes significantly to public services such as healthcare, education, and community projects. OLG is committed to responsible gaming by offering resources for individuals with gambling issues. The corporation conducts awareness campaigns and collaborates with local organizations to foster a safer gaming environment and encourage responsible gambling behavior. **APR (Annual Percentage Rate)** - Standardized measure for comparing loan options. - Ensures clarity in the lending process. - Includes interest rate plus additional fees/costs. - Provides a comprehensive view of total borrowing costs. **Ontario Agricultural College (OAC)** - Aims to prepare future leaders and researchers in agriculture. - Focuses on equipping students with necessary knowledge and skills.  - Offers undergraduate and graduate programs. - Engages in research addressing food security, sustainable farming, and agricultural technology.