Quiz 1

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Quiz 1

• 8 questions, 2.5 points each, 10 minutes
• When you are done with your quiz, please hand it
  in to me
• No talking/discussion until all quizzes are
  submitted
• No referring to the text book or other materials
  after you have turned in your quiz until all
  quizzes are submitted
• Please circle the right answer option
• Please dont forget to put your names and IDs on
  the quiz

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Question 5 on Quiz

• A typical consumer would most likely use ___ in
  choosing toothpaste, a pencil or a soft drink.
• Routine problem solving
• Limited problem solving
• Extended problem solving
• Simulated problem solving
• Integrated problem solving

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Reminder

• First experiment this week.

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Information search

• Second stage of decision making process
• Motivated activation of knowledge stored in
  memory (internal search) or acquisition of
  information from the environment (external
  search)
• If internal search provides sufficient
  information, then external search is unnecessary

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Information Sources Internal

• Memory
• Important for routine, habitual purchases
• Examples
• We may buy the same brand of toothpaste
  repeatedly
• We recognize certain brands of cereal each time
  we visit the store
• Recall and recognition of brands is therefore
  important

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Information Sources External
Personal Sources
Commercial Sources

• Family, friends, neighbors
• Very credible source of
• information

Public Sources

• Advertising, salespeople
• Receives most information from these sources

Experiential Sources

• Mass Media
• Consumer-rating groups

• Handling the product
• Examining the product
• Using the product

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College decision process Information search

• Internal sources

• External sources

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Information Search Marketing strategy

• We try to understand information search so we can
  provide information about our product to
  consumers when they are looking for it
• Many companies have web pages because they
  realize that consumers are increasingly turning
  to the web for information about goods and
  services

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Alternative evaluation Consideration/evoked set

• Subset of available products that is evaluated
  when making a choice
• Inclusion in set
• Internal (memory)
• External

Available Products
Recognized
Recalled
Considered
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College decision process Consideration set

• What was the size of your consideration set for
  colleges?

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Alternative evaluation
Product Attributes Identify key attributes --
quality, price, features, etc.
Attribute Importance Which attributes matter most
to me?
Product (Brand) Beliefs How do products (brands)
stack up on specific attributes?
Project Total Satisfaction Based on what Im
looking for, how satisfied would I be with each
product (brand)?
Evaluation Procedures Choose a product (brand)
based on one or more attributes.
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College Decision Process Alternative Evaluation

• List the colleges that were included in your
  consideration set
• List the features of colleges that were important
  to you
• Allocate 100 points across those features to
  indicate which attributes are more important to
  you than others
• For each attribute, allocate 100 points across
  the colleges to indicate how that college
  performs on that feature
• Multiply importance weights times scores to get
  brand rating

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Alternative evaluation

• We study this stage to understand the basis by
  which consumers make brand choices
• The outcome of this analysis helps us in
  developing our product strategy especially
  which attributes to emphasize in the product

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Purchase decision

• Purchase Intention
• Desire to buy the most preferred brand/product

• Purchase Decision
• Choice of the store/brand/product/quantity/timing

• Intent to purchase does not always result in an
  actual purchase
• College decision process

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Post purchase

• Consumers Expectations of
• Product Performance

• Consumers Perceptions of
• Product Performance

Satisfied Customer ?
Dissatisfied Customer ?
Cognitive Dissonance Regret
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Cognitive dissonance

• Feeling of post purchase tension/anxiety
• Did I make the right choice?
• Higher for close alternatives
• Focus on positives of the alternative given up
• To resolve dissonance
• Make claims that faithfully represent product
  performance.
• Place advertisements showing satisfied brand
  owners.
• Contact buyers via letter or phone call
  congratulating them on being a new brand owner.
• Post purchase communications result in fewer
  product returns

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Purchase and Post Purchase

• Purchase behaviors helps us in distribution and
  promotion strategy
• Lays potato chips are bought in the supermarket
  only 50 of the time. Rest of the time, they are
  bought in sandwich shops, vending machines and
  convenience stores
• Companies offer coupons on weekends when many
  consumers undertake their weekly grocery shopping
• Product use helps in product positioning

18
Purchase and Post Purchase

• Post-purchase processes helps us in after-sales
  strategy
• Product disposal is also important in order to
  understand issues/concerns/opportunities
• Cars/ Furniture

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Involvement

• The effort that consumers put into decisions
  depends on their level of involvement with the
  decision
• Involvement is a function of
• Monetary outlay
• Personal Risk
• Social Risk
• Involvement impacts information search and
  alternative evaluation
• Types of problem solving
• Routine
• Limited
• Extended

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Involvement and marketing strategy

• Low involvement products
• Maintain quality
• Ensure availability
• Link brand attributes with high involvement
  issues

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• How involved are consumers in the orange juice
  purchase decision process?
• What implications does this have for Tropicana's
  marketing strategy?

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Influences on consumer behavior
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Situational influences

• Purchase task
• Physical surroundings
• Social surroundings
• Temporal effects
• Antecedent states