Chapter #4 Flashcards
Utilitarian Needs
Consumer is satisfied when purchase accomplishes a task.
Hedonic Needs
Consumer is satisfied when purchase accomplishes a type of pleasure/emotional experience/fun time.
- Stimulation
- Power/Status
- Adventure/Thrill
Conflicting Needs
Forced to make a tradeoff because your utilitarian and hedonic needs conflict.
Example: Your need for adventure interferes with your budget as well as your utilitarian need to get a job.
Cross Shopping
-You buy groceries dirt cheap in order to buy high end clothing.
Multi-Attribute Model
What he showed us in class on Excel that an accountant would do. Assesses which attributes are most important and assigns them a number of importance and a weight into the overall score. This is vital criteria to customer. Examples of attributes: assortment, customer service, price, information, convenience, etc.
Information Search Cost Benefit Analysis
The amount of information you find in your search depends on the value from searching vs the cost of searching.
3 Factors that affect amount of information search
1-Product Characteristics (how complex is it or what’s the cost)
2-Customer Characteristics (their past experiences, the risk they perceive, time pressures on the decision)
3-Market Characteristics (price of others or # of alternatives)
Internal Information
Past experiences or memory.
External Information
Articles read about it Advertising WOM Internet Social Media
Extended Problem Solving
Like buying a car, a bigger purchase. Takes high financial and social risk (if you buy the unpopular car)
Limited Problem Solving
Like buying clothing, still takes some decision making skills. Some prior buying experience is had.
Habitual Decision Making
Like buying milk or eggs or could even be the same brand of running shoes. You have store brand loyalty or you are just looking for something cheap/easy that fulfills that need.
Impulse Buying
An unplanned purchase and a prominent influential point-of-purchase (POP) spot is held. Think of the gum at the cash register or tic tacs.
(4) Criteria for the Eval of Market Segments
AIRS
Actionable: retailer should know what to DO to satisfy need for customer in their segment
Identifiable: retailer can determine and IDENTIFY which customers are in that segment
Reachable: retailer can target promotions and other marketing mix to REACH customers in the segment
Substantial: market segment is large enough/buying power is significant to bring in lots of profits (people will buy it)
