Week 4 - Chapter 5A.pdf

Introduction to marketing Rachelle Sampson Week 4 Consumer decision making Class agenda ▶ Consumer behaviour review ▶ Breakout groups on information search ▶ Important information about next week’s midterm ▶ Info on gr...

Introduction to marketing Rachelle Sampson Week 4 Consumer decision making Class agenda ▶ Consumer behaviour review ▶ Breakout groups on information search ▶ Important information about next week’s midterm ▶ Info on group projects 2 Why do we need to understand consumer behavior? ▶ To develop an effective marketing mix ▶ Consumer preferences are continually changing You have your products you’ll be selling and I am a Vancouver retailer selling electric bicycles Understanding consumer behaviour ▶ How might you learn about consumer behavior with regards to transportation? ▶ How about specific behavior with regards to buying bicycles? Consumer decision-making process IN CLASS ASSIGNEMNT page 5 Step 1: Need Recognition Internal vs. external stimuli: Evoking your senses NEED: desire something we do not possess but want WANT: a particular product or service that will satisfy a need Step 1: Recognize the need ▶ What internal stimuli might make your customer begin to think they need your product? ▶ What external stimuli might make your customer begin to think they need your product? Step 2: Information Search Internal information search vs. external information search Nonmarketing – controlled information source Consumer Choice Marketing Controlled Information Source General starts with attributes of the product Often a very biased source – ignores the faults COMES DOWN TO CONFIDENCE Step 2: Information search In breakout groups: What would be part of a consumer’s internal information search Where would they go for their external information search? Which parts of this could your marketing team controlled? page 7 Evoked set of information Step 3 and 4: Evaluation of alternatives and purchase Decision time! Information is gathered both stored an external information What alternatives need to be considered? Quality? Price? Reputation (brands)? What are the other factors to consider? Used vs New? Single attribute vs several Step 3 and 4: Evaluation of alternatives and purchase ▶ In breakout groups: ▶ What alternatives would a consumer look at when deciding whether to buy your product? How would they evaluate them? Step 5: Post-purchase behaviour How do we eliminate the doubt our consumer may have from their decision? Confirm the decision through communication post- purchase Provide materials for product use and ask for feedback Promote benefits to remind them of “why” they chose your product. Step 5: Post-purchase behaviour How would you provide decision confirmation support for your consumer? What kinds of cognitive dissonance can result after the purchase (buyer’s remorse)? Type of Consumer Buying Decisions 3 categories of consumer buying decisions: Routine response: frequently purchased, generally low cost goods Limited decision making: moderate amount of time to gather info and deliberate Extensive decision making: used when purchasing unfamiliar, expensive or an infrequently purchased item Things to consider.... What factors need to be considered in the level of involvement of a product? Pervious experience Interest Perceived risk of negative consequences Situation Social visibility What are the marketing Implications of involvement? high involvement (extensive and informative) low involvement (eye-catching and easily recognizable) Consumer decision-making process IN CLASS ASSIGNEMNT PRESENTATION Team 1: Hoka Team 2: Stanley Team 3: D&C Fragrance Team 4: Brew Dr kombucha About the mid-term Covers Chapter 1-5 The midterm will be held in A216 on June 6th (not the regular room) You do it in Brightspace, so be sure you can login to our course site. You have 90 minutes only to complete the entire mid-term. 5 sections: Part 1 is a case study. Answers to those questions are worth 40% of the exam. All other sections have multiple choice questions each worth 1 pt (60% of exam). I will be there in case you have any issues. I will not explain any of the questions so don’t ask. Cheating will not be tolerated. Cheaters will be caught and reported. Team contracts due June 4 ▶eachUse the template in Brightspace. Only one member of group has to upload the completed contract.