Understanding Consumers, Defining Segments And Targeting Flashcards
What are e five stages of consumer buying process?
- Need recognition
- Information search
- evaluation of alternatives
- Purchase decision
- post purchase behavior
What are the Limitations with the five stages of consumer purchase process?
- often irrational and unpredictable
- does not always follow theses stages I’m sequence
- can jump from need to purchase if there is strong brand loyalty
The amount of time, effort and expense dedicated to the search for information depends on what three factors?
- The degree of risk involved in the purchase
- The amount of experience the consumer has with the product category
- The actual cost of he search in terms of time and Money
What is the evoked set in the context of information search?
The evoked set is the narrowed down set of alternatives that the customer is considering
What happens during the evaluation of alternatives?
- consumers translate the needs into wants for specific products or brands
- evaluate products as bundles of attributes that vary in ability to satisfy needs
- marketers have to ensure that their product is in the evoked set of potential alternatives by reminding consumers of company + offerings.
What happens during the purchase stage of the buying process?
- intention to purchase and act of buying are distinct concepts
- marketers issue here is product availability and possession utility
What happens during post purchase evaluation stage?
- outcome of buying process is linked to long-term customer relationships
- consumers will experience one of four outcomes:
1. Delight
2. Satisfaction
3. Dissatisfaction
4. Cognitive dissonance
What factors can affect the consumer buying process?
- The complexity of the purchase and decision making process
- Individual factors (age, life cycle, occupation, interests. Attitudes, opinions)
- Situational factors (physical and spatial influences, social and interpersonal , time)
- Social influences: culture, subculture, social class, family, reference groups etc.
What does routine response behavior signify?
- low involvement
- frequently Purchased
- inexpensive
- little risk
- little information needed
What does extensive problem solving signify?
- high involvement
- infrequently purchased
- expensive
- high risk
- much information desired
When is cognitive dissonance more likely to occur?
- value of the purchase increases
- opportunity costs are rejected
- alternatives are high
- purchase decision is emotionally involving
What are them division level of influences?
- Motivation: what drives us
- Perception: how we select, organize, and interpret stimuli related to our five senses
- Learning: how we process information based on perception and experience
- Attitudes and beliefs: what we think
What does mass marketing involve?
- no segmentation what so ever as it aims at the whole market for a particular product
- assumes all customers in the market have similar needs and wants that can be satisfied with a single marketing program
- works best when needs are homogenous
- itionadvantageous for production efficiency and lower costs
- risky due to competition offering more specialized products
What does differentiated marketing involve? What 2 approaches?
- dividing the total market into customer groups with relatively common or homogenous needs and developing s strategy based on this
1. multi-segment approach: attracting buyers in more than one segment by offering a variety of products
2. Market concentration approach: focusing on a single market segment and attempting to gain maximum share in that segment
What does niche marketing involve?
- focus marketing efforts on one small, well-defined market segment or niche that has a unique specific set of needs
- less likely to attract competitors, however greater risk exposure
