UCF MAR 3023 EXAM 2 VERIFIED GUIDE

UCF MAR 3023 EXAM 2 VERIFIED GUIDE Consumer decision process - - 1. Need recognition 2. Information search 3. Alternative evaluation 4. Purchase and consumption 5. Post purchase Need recognition - -the first stage of the buyer decision process, in which the consumer recognizes a problem or need. Functional needs - -pertain to the performance of a product or service Psychological needs - -pertain to the personal gratification consumers associate with a product or service Search for information - --after a consumer recognizes a need, is to search for information about the various options that exist to satisfy that need. - the length and intensity of the search are based on the degree of perceived risk associated with purchasing the product or service. Regardless of the required search level, there are 2 key types of information search: internal and external. Internal search - -an information search in which buyers search their memories for information about products that might solve their problem External search - -an information search in which buyers seek information from sources other than their memories Perceived benefits - -the positive outcomes a person believes will result from the action Perceived costs - --degree to which there are "negative" outcomes of participation (loss of time, energy, and opportunities) Evaluation of alternatives - -analyze product attributes, use cutoff criteria, rank attributes by importance Universal set - -includes all possible choices for a product category Retrieval set - -those brands or stores that the consumer can readily bring forth from memory UCF UCF Evoked set - -a group of brands resulting from an information search from which a buyer can choose Purchase and consumption - -increase conversion rate -reduce real or virtual abandoned carts -merchandise in stock -reduce the actual wait time Post purchase - --the final step of the consumer decision process -marketers are particularly interested in post purchase behavior because it entails actual rather than potential customers. Customer satisfaction - -1. Develop realistic expectations 2. Demonstrate correct product use 3. Stand behind the product or service 4. Encourage customer feedback 5. Periodically make contact with customers and thank them for their support Post purchase cognitive dissonance - -more likely for products that are. -expensive, -infrequently purchased, -do not work as intended, -associated with high levels of risk Firms attempt to reduce dissonance by reinforcing the decision: - --return policies -thank you letters -congratulation letters -tags on garments Post purchase customer loyalty - -marketers attempt to solidify a loyal relationship. Firms use analytics software and customer relationship management (crm) programs to acquire and retain loyal customers. Undesirable consumer behavior - --although firms want satisfied, loyal customers, sometimes they fail to attain them. -passive consumers are those who don't repeat purchase or recommend the product to others. More serious and potentially damaging, however, is negative consumer behavior, like negative word of mouth and rumors. Factors influencing consumer decision process - -1. Marketing mix 2. Psychological factors 3. Social factors 4. Situational factors UCF UCF Marketing mix - -product, price, place, promotion Psychological factors - -perception, motivation, learning, beliefs and attitudes Social factors - -family, reference groups, culture Situational factors - -purchase situation, shopping situation, temporal state High involvement - -greater attention, deeper processing, develops strong attitudes and purchase intentions Low involvement - -less attention, peripheral processing, generates weak attitudes and increased use of cues Extended problem solving - -a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk Limited problem solving - -occurs during a purchase decision that calls for, at most, a moderate amount of effort and time The four different types of B2b markets - -manufactures, resellers, institutions, government Manufactures - -buy raw materials, components, and parts that allow them to make and market their own goods and ancillary services Resellers - -buy finished products or services with the intention to resell them to businesses and consumers Institution - -hospitals, educational, religious corporations Government - -u.s. Spends 4 trillion annually. The b2b buying process - -1. Need recognition 2. Product specification 3. Rfp process 4. Proposal analysis and supplier selection 5. Order specification 6. Vendor/performance assessment using metrics Need recognition - -can be generated internally or externally Product specification - -after recognizing the need and considering alternative solutions, create a list of potential specifications. UCF Used by suppliers/vendors to develop proposals. Rfp process - -vendors invited to bid on supplying req. Components Order specification - -the buyer places the order with the vendor that includes details such as product description, price, delivery dates, and penalties for noncompliance Vendor performance assessment using metrics - -firms analyze their vendors performance so they can make decisions about their future purchases Buying center roles - -1. Initiator 2. Influencer 3. Decider 4. Buyer 5. User 6. Gatekeeper Buying culture - -democratic, consultative, consensus, autocratic Buying situations - -new buy, modified rebuy, straight rebuy Straight rebuy - -office paper Modified rebuy - -new pc's New buy - -ipads Economic analysis using metrics - -1. General economic environment 2. Market size and population growth 3. Real income Analyzing infrastructure and technology - -transportation, communication, distribution channel, commerce Analyzing government actions - -tariff, quota, exchange control, trade agreement Tariffs - -taxes on imported goods Quotas - -limitations on the amount of specific products that may be imported from certain countries during a given time period Analyzing sociocultural factors - -power distance, uncertainty avoidance, individualism, masculinity, time orientation, indulgence Exporting - -least amount of risk and control UCF UCF Direct investment - -all risk and all control Global entry strategies (in order least to most riskiest) - -1. Exporting 2. Franchising 3. Strategic alliance 4. Joint venture 5. Direct investment Joint venture example - -kellogg's Strategic alliance example - -disney Exporting example - -boeing Direct investment example - -walmart Franchising example - -mcdonald's