MKTG 424 CHP 4

what are the stages of consumers’ buying process?

problem recognition (perceiving a need), information search (seeking value), alternative evaluation (assessing value), purchase decision (buying value), postpurchase behavior

what is utilitarian needs and hedonic needs?

U: satisfied when purchases accomplish a specific task

H: satisfied when purchases accomplish a need for entertainment, emotional, & recreational experience

how can retailers satisfy consumers hedonic needs?

stimulation, satisfy needs for power and status, adventure

what is cross shopping?

comparing, evaluating or considering multiple competing brands, models, products, or stores before making a final purchase

what factors affect the amount of information search conducted by consumers?

product characteristics (complexity, cost), customer characteristics (past experience, perceived risk, time pressure), market characteristics (# of alternative brands)

what is internal information source & external information source?

internal = memory, external = advertising (seller), word of mouth (consumer), consumer reports (third party)

what is a multiattribute attribute model?

customer see a retailer, product, or service as a collection of attributes or characteristics → predict a customers evaluation of a retailer, product, or service based on (performance on relevant attributes + important of those attributes to the customer)

how to calculate the total weighted score?

what is consideration set?

set of alternatives the customer consider seriously when making a selection

how is customer satisfaction determined?

how well a store or product meets or exceeds customer expectations

what are the three types of buying decisions? examples for each.

extended problem solving, limited problem solving, habitual decision making

what are financial risks, physical risks, and social risks associated with purchases? examples of each

financial - purchasing expensive products or services (homes)

physical - purchases that will affect consumer health & safety (medical)

social - consumers will believe products will affect how other view them (designer)

if a retailer offers products or services with high perceived risk, what strategies can it use to reduce the perceived risk and help customers make purchase decisions more quickly?

offer more information, in person format to build trust, testing product

what is impulse buying?

one common type of limited problem solving

in the real world, what strategies can a retail business use to encourage impulse buying in physical stores?

last chance rack, adding small things to the front of the store, store layout, if you buy this you get this for free

in the real world, what strategies can a retail business use to encourage impulse buying online?

free shipping, someone else is viewing this item, 1 item left