Module 4

MKT 351

Mere Exposure

Individuals develop a preference for certain products or brands simply because they are familiar with them. Frequent exposure can lead to increased liking and can influence purchasing decisions.

Purchase Involvment

Level of concern for the purchase process, triggered by the need to consider a particular purchase, temporary state influenced by the interaction of individual, product, and situational characteristics

Decision Making

Need recognition, search for information, evaluation of alternatives, choice/purchase decision, post purchase evaluation … Feedback

Nominal decision making

Low involvement, no alternative evaluation, minimal information search, no postpurchase evaluation

limited decision making

Moderate involvement, some alternative evaluation, information search, and post purchase evaluation.

Extended decision making

High involvement, extensive information search, thorough evaluation of alternatives, and significant post-purchase evaluation. (relative external search)

Habitual Decision Making

also nominal, do not seek information at all, related to brand loyalty and repeat purchases

Do decision making processes always led to consumer choice or purchases

No, decision-making processes do not always lead to consumer choice or purchases due to factors like indecision, external influences, or changing preferences.

Rational Decision-Making perspective

refers to a structured or systematic process of making choices based on logical reasoning, evaluation of alternatives, and expected outcomes.

experimental decision-making perspective

Focuses on hedonic value or variety seeking behavior. Consumers seek new products as a response to boredom or to satisfy a perceived need for change. Based on the effect, or feeling attached to a product or behavior.

Behavioral Influence decision making perspective

Mainly influenced by the physical environment, store layouts, design, point of purchase displays

Problem recognition

disparity between their current and desired state, the gap must be substantial Ac

active problem

one consumer is aware of or will become aware that a problem exists and is motivated to find a solution.

inactive problem

which the consumer is not aware of and must be convince they have the problem, and the brand can fix it

Five primary sources of information available to consumers

1. A memory of past searches, personal experiences, and low- involvement learning.

2. Personal sources, such as friends, family, and others.

3. Independent sources, such as magazines, consumer groups, social media influencers, and government agencies.

4.  Marketing sources, such as sales personnel, company websites and social media, and advertising.

5. Experiential sources, such as inspection or product trial.

Inept set

avoided alternatives, which a consumer considers unacceptable or unworthy based on prior experience or negative perceptions.

Inert set

neutral alternatives in awareness set that you have no feelings or are indifferent to

Three ways to use consistent messaging

1. Use the same value proposition

2. Use similar calls to action

3. Use the same design elements

affective choices

tend to be more holistic brand not defined by rational evaluation, focusing instead on the emotional connection to the brand.

two types of attributes

perceptual which is visually apparent and recognizable (size, shape, color, etc.) and underlying which is not readily apparent can only be learn through experiences

Conjunctive Rule

establishes minimum required performance for each evaluative criterion. Eliminate the choice that falls under the cut-off

1- poor, 5- good

minimum req- 3 for different performances like price

disjunctive rule

The option selected surpasses a relatively high cut-off point on at least one attribute, needs to reach the score of ten

need at least one to reach the best performance on a single attribute

Only focusing on ONE attribute

Lexicographic rule

Choose the option that scores the highest on the more important attributes

Rate which attribute is more important, gas mileage is the most important. Choose honda.

Only focusing on one criteria

compensatory decision making rule

The brand that rates the highest on the sum of the consumer’s judgements of the relevant evaluative criteria.

Weight each attribute.

You are accounting into all of the factors will be chosen.

service product

paying for other persons efforts and work

Differences between goods and services

intangibility, heterogeneity (individual and unique), simultaneously production and consumption, perishability (cant bring home)

Derived Services

the function of physical goods, becomes a part of the service. ie a razor or gaming council

service environments

Ambient conditions (noise music oder)

Space function (layout equipment)

Signs/symbols

facilitator

Servicescapes can make it easier or more difficult for customers to accomplish their goals. Improve the service experience.

socializer

 help customers and employees understand their expected roles

differentiator

unique/aesthetically pleasing design, more functional features than competitors, that sets a product apart in the market.

Showrooming effect

the phenomenon of consumers visiting a B&M store, examine the products, but then buying online to obtain lower prices.

Webrooming Effect

is a shopping trend where customers research products online and then buy them in a physical store.

Percived Risk

Social cost, financial cost, time, effort, physical cost

Post Purchase dissonance

occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made and is a function of the following:

The degree of commitment or irrevocability of the decision

The importance of the decision to the consumer

The difficulty of choosing among the alternatives

The individual’s tendency to experience anxiety

Brand Laziness

Low involvement and low processing effort: a natural inertia toward a brand based on familiarity and convenience

Problem solving

High involvement and processing effort ; deliberated effort to collect info and carefully evaluate a variety of brands

Variety Seeking

Choosing new alternatives over more familiar/recently purchased ones

Brand Loyalty

intrinsic commitment to a brand based on specific benefits and values offered, self-concept enhanced

problem recognition

when consumers recognize a disparity between their current state and their desired state

Active Problem

A problem that a consumer is currently aware of and is actively seeking to resolve through purchases or other means.

Inactive Problem

A problem that consumers are not currently aware of, which may influence their decisions once recognized.

Churn

refers to turnover in a firms customer base.

Base of 100 customers, 20 leave each year and 20 new ones become customers. You have a churn rate of 20%

Consumption guilt

when negative emotions or guilt feelings are aroused by the use of a product or a service

Net promoter score

an indirect word of mouth measure of true attitudinal loyalty.

It gauges customer satisfaction and their likelihood to recommend a product or service to others.

(promoters, passively satisfied, detractors)

NPS = (% promoters - % detractors)

omni-channel shoppers

Consumers who engage with a brand across multiple channels, such as online and offline, to make purchases.

switching cost

The costs that a consumer incurs as a result of changing brands or suppliers. Switching costs can include time, money, and effort involved in making the transition.

use innovativeness

a consumer using a product in a new way

relationship marketing

an attempt to devlop an ongoing expanding exchange relationship within a firms customers’.

Three types of decision making

nominal, limited, and extended

evoked set

alternatives given consideration to

Awareness set

Evoked, inert and inept

Maintenance Strategy

The brand is purchased habitually by the target market, the marketers strategy is to maintain that behavior.

This strategy focuses on reinforcing customer loyalty and ensuring consistent repurchase patterns to sustain market presence.

Disrupt Strategy

challenge and alter existing consumer behaviors and preferences, aiming to capture market share from competitors by introducing innovative solutions or products.

Preference strategy

aims to create a strong brand preference among consumers, differentiating the product from competitors through unique benefits or emotional connections.

What are the three types of consumer choices

affective choice, attitude-based choice, and attribute-based choice.

attitude-based choice

consumers evaluate options based on their overall feelings or attitudes towards a brand, rather than specific attributes or features.

attribute based choice

consumers assess options based on specific product attributes or features, comparing them to make a decision.

affective choice

consumers make decisions based on their emotional responses or feelings about the options available, often prioritizing personal sentiments over logical analysis.

surrogate indicator

used to stand for or indicate another attribute

that consumers may use when they lack direct information about a product's quality or performance.

Expectancy Disconfirmation Theory

consumers form expectations about a product's performance and that satisfaction results from the comparison between their expectations and the actual performance.

Creating Committed customer is increasing the focus of marketing strategy

Total buyers, satisfied buyers, to repeat purchasers, to committed customers. Costs more to obtain newer customers, satisfaction = profit

evaluative criteria

comparison of brands on one or more attributes

includes the various dimensions, features, or benefits a consumer looks for in response to a specific problem