MRKT 3190 Summer Exam 3 Budden

Depending on the situation, we may be willing to spend more (or less) for a product or service

• If you need it now, you may be willing to spend more

• If not, you may wait for price to drop and shop around

Depending on the situation, marketers may charge more or less for a product/service

• Condos on the beach will be more expensive around 4th of July than in the middle of November

Time pressure

Willing to pay more if needed now

Time of year

Will pay more for condo on the beach during the summer

Cycles

Following trends/what’s dying

• (Coca-Cola may charge more for drinks that are more popular and discount drinks that aren’t as popular)

Acquisitional shopping

Looking for a specific item

Epistemic shopping

Gathering info on a product

• (car shopping, want to know all the info)

Experiential shopping

Shopping for fun/the experience

Implusive shopping

Not thinking about it, spur of the moment

• Dr. Budden with his peanut M&M’s

• retail therapy

Unplanned shopping

Something happened and need a product (can be expensive)

• Tire blow out

Outshopping

Shopping in another city

• seek excitement, selection, experience

• 70% of Hammond’s residents outshop

Zig Ziglar’s “Attitude Makes All the Difference” Video

• healthiest human emotion is gratitude

• woman was so negative about everything regarding her job

• she just needed to change her attitude/mindset

Admiral McRaven’s “10 ways to change the world”

• Make your bed everyday

• Find someone to help you paddle

• Measure a person by their heart

• Get over being a sugar cookie

• Don’t be afraid of circuses

• Slide down head first

• Don’t back down from sharks

• Start singing in the mud

• Don’t ever ring the bell

Decision Making Process

Need Recognition → Search for Info → Evaluation of Alternatives → Purchase (Choice) → Post-Purchase Evaluation

Routine Decision

Happens often, doesn’t require much thought

Limited Decision

Narrowed options

Extensive Decision

Needs more thought (ex. buying a house)

Factors that affect DMP

• Demographics

• Psychographics

• Situational factors: (ex. senior in college vs. freshman)

• Life cycle stage

• Motivation

Study about married couples living together vs. people in relationships living together

NOT THE SAME

• people in relationships are more territorial, knows who owns what

• married couples have joint accounts, share things

Many subcultures expend energy maintaining identities

• Catholics tend to marry Catholics

Bangledesh Tabacco Study

People believed the doctor

Deethinization

Some products cross cultural lines

• bagels started off a Jewish

Finland

97% of population is blonde hair/blue eyes

Other names for Consumer Misbehavior

Aberrant behavior

Illicit behavior

Dysfunctional behavior

Deviant behavior

Retail borrowing

• wearing a dress with tags and then returning it after use

• buy a calculator for taxes and then return it after use

True

T/F: Just because something is immoral, doesn’t mean it is illegal

Moral equality

Beliefs about an act’s fairness

Contractualism

Violation of written or unwritten laws

Relativism

The social acceptability of an act

Deontoogical evaluation

Keep your word. Do as you say

• “Is it right? Am I supposed to do this? Did I say I would?”

Kant’s categorical imperative

Act in a way that would be considered a universal law (choose right answer every time)

Teleologicial evaluation

Focuses on the consequences of the action (good or bad and for whom)

Motivations for Misbehavior

• unfulfilled aspirations

• thrill seeking

• lack of moral constraints

• differential association

• pathological association

• provocative situational factors

• opportunism

Alcoholism

• 12 million alcholics in the US spend over $197 million dollars a day on alcohol

• 23 times more likely to get addicted to gambling

Gambling addicts

• Over 80% of american adults gamble on a yearly basis

• 3-5% of gamblers struggle with addiction

• As many a 750,000 people ages 14-21 have a gambling addition

Shoplifting

• Over 10 million people have been caught shoplifting in 5 years

• more than $100 billion stolen last year

• young people are influenced by emotions and friends

• older people influenced by moral beliefs

• California struggles really bad

Kleptomania

Strong complusion to steal

Other misbehaviors

• computer mediated

• computer attacks

• consumer fraud

• abusive consumer behavior

• illegitimate complaining

• product misuse

• aggressive driving/rage

• drunk/distracted driving

• sexting

Madoff consumer fraud scheme

Stole billions of dollars in Ponzi scheme

• Stanford is another example

Abusive consumer behavior examples

• Man was rude to Chick-Fil-A worker and filmed it

• Taco Bell marketing manager attacked uber driver

Illegitimate complaining examples

• Woman sued McDonald’s for her coffee being too hot and burning her

• Woman ran over child on bicycle and sued the child’s family because of the damage to her car

Consumer Bill of Rights

John Kennedy

• Right to safety (recalls, etc.)

• Right to be informed (labels, ingredients, etc.)

• Right to choose

• Right to redress/be heard

Marketing Concept

Everyone should work together to satisfy customers and achieve their objectives

Implication of marketing concept

Get to know your customers and their wants, should satisfy customers

• should show your product provides value

True

T/F: Everyone unhappy customers tells approximately 16 people their experience

4 P’s and complaints

• Product: Does it need anything to work? (batteries)

• Place: limited availbilty, raise prices (beanie babies)

• Price: Stating regular price is really sales price

• Promotion: Bait and switch

Societal marketing concept

Marketing concept but make it good for society as a whole

• considers actions on people/stakeholders

• goes beyond law (Coors)

• ethical and ethical employees

• hold people and companies accountable

Coors

First beer company to recycle cans

Federal Trade Commission

Can issue cease and desist ordes, and fine comapnies for false/deceptive practices an unfair business practices

Listerene FTC incident

Said their product prevents colds, someone reported to FTC, was served C&D, and had to run ads saying thier product DOESN’T prevent colds

Detroit Auto Dealers FTC incident

Got together to set hours, someone complained it reduced choice, FTC made them set their own hours

North Caroline Dental Examiners FTC incident

FTC said you don’t have to be a licensed professional to whiten teeth

Stealth Marketing

Consumers don’t know they’re being marketed to

• car placements in movies

• computers in the Big Bang Theory (Alienware)

• Keeping up with the Jones movie

Strict liability

Injury occured becuase the product was faulty

Negligence

Must show the company knew something was wrong and did nothing (slip and fall suits)

Compensatory damages

Intended to cover the costs incurred due to an injury

• Judge Judy

Punitive damages

Intended to punish a company for its actions

Jim Rohn “10 things you must improve everyday to get what you want”

1. Learning the Power of Purpose

2. Self-confidence

3. Enthusiasm

4. Expertise

5. Preparation

6. Self-reliance

7. Image

8. Character

9. Self-discipline

10. Extraordinary performance

Gambling Addiction News

• Steve started at 15

• Lost a ton of money, morals, relationships, etc.

• Arizona made gambling legal

• Places offered support for gambling addicts

Seattle’s Fentanyl Problem

• Largest city in Washingston, became hub for narcotic distribution

• 2023, King County overdoses rose 47%

• 4.8 million lethal doses were removed that same year

Corona marketing ritual

Started with a bartender wanting to start a trend and it stuck

Blue Moon w/ orange slice ritual

Eliminates frothy head

Guinness beer

“Good things come to those who wait”

Takes 119 seconds per pint