BUSML 3250 EXAM 2 2025

BUSML 3250 EXAM 2 2025 Cropping - -"credible opinions" actively seeking out information and postponing a purchase decision until all options have been evaluated. Consumer behavior - -the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions Purchase decision process - -the stages a buyer passes through in making choices about which products or services to buy. Five stages: 1) problem recognition 2) information search 3) alternative evaluation 4) purchase decision 5) post purchase behavior Problem recognition (stage 1) - -perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. Information search (stage 2) - -searching for information on the product, can be done through internal or external searches. Internal search - -scanning your memory for previous experiences with brands or products External search - -needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low. 3 primary sources of external information: 1) personal sources, i.e. Relatives or friends 2) public sources, i.e. Consumer reports, government agencies, tv consumer programs 3) marketer-dominated sources, i.e. Information from sellers including advertising, company websites, salespeople, point-of-purchase displays in stores Alternative evaluation (stage 3) - -the alternative evaluation stage clarifies the problem for the consumer by (1) suggesting criteria to use for the purchase, (2) yielding brand names that might meet the criteria, and (3) developing consumer value perceptions. Evaluative criteria - -both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands BUSML 3250 BUSML 3250 Consideration set - -a group of brands that a consumer considers acceptable from among all the brands in the product class of which he or she is aware. Cognitive dissonance - -feeling of post-purchase psychological tension or anxiety. To alleviate it, consumers often try to applaud themselves for making the right choice. Involvement - -the personal, social, and economic significance of the purchase to the consumer 3 characteristics of high-involvement purchases - -1) expensive 2) can have serious personal consequences 3) could reflect on ones social image Extended problem solving - -in extended problem solving, each of the five stages of the consumer purchase decision process is used and considerable time and effort are devoted to the search for external information and the identification and evaluation of alternatives. Several brands are in the consideration set, and these are evaluated on many attributes. Extended problem solving exists in high-involvement purchase situations for items such as automobiles and audio systems. Limited problem solving - -in limited problem solving, consumers typically seek some information or rely on a friend to help them evaluate alternatives. Several brands might be evaluated using a moderate number of attributes. Routine problem solving - -for products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. Situational influences that affect purchase decisions - -five situational influences have an affect on the purchase decision process: 1) the purchase task (reason for engaging in the purchase decision) 2) social surroundings (other people present when purchase is made) 3) physical surroundings (decor, music, crowding in retail store) 4) temporal effects (time of day, amount of time available) 5) antedecedent states (consumer's mood or amount of cash on hand) Consumer touchpoints - -a marketer's product, service, or brand points of contact with a consumer from start to finish in the purchase decision process. Consumer journey map - -a visual representation of all the touchpoints for a consumer who comes into contact with a company's products, services, or brands before, during, and after a purchase. Motivation - -the energizing force that stimulates behavior to satisfy a need Five need classes - -physiological, social, safety, personal, self-actualization BUSML 3250 BUSML 3250 Personality - -a person's consistent behaviors or responses to recurring situations Key traits - -enduring characteristics within a person or in his or her relationships with others Self-concept - -the way people see themselves and the way they believe others see them. Ideal self concept describes how people would like to see themselves, while actual self concept refers to how people actually see themselves. Perception - -the process by which people select, organize, and interpret information to form a meaningful picture of the world Selective perception - -the human brain attempts to organize and interpret information through the filtering of exposure, comprehension, and retention Selective comprehension - -involves interpreting information so that it is consistent with your attitudes and beliefs Selective retention - -consumers do not remember all the information they see, read, or hear, even minutes after exposure to it Subliminal perception - -seeing or hearing messages without being aware of them Perceived risk - -the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences Strategies companies implement to reduce perceived risk - -obtaining seals of approval, securing endorsements from famous people, providing free trials of the product, giving extensive usage instructions, providing warranties and guarantees Learning - -behaviors that result from repeated experience and reasoning Behavioral learning - -the process of developing automatic responses to a situation built up through repeated exposure to it Drive - -a need that moves an individual to action Cue - -a stimulus or symbol perceived by consumers (ex. Billboard) Response - -the action taken by a consumer to satisfy the drive Reinforcement - -reward BUSML 3250 BUSML 3250 Stimulus generalization - -occurs when a response elicited by one stimulus (cue) is generalized to another stimulus (tylenol pm & tylenol cold & flu) Stimulus discrimination - -a person's ability to perceive differences in stimuli Cognitive learning - -involves making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting your own accordingly Brand loyalty - -a favorable attitude toward and consistent purchase of a single brand over time Attitude - -a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way Beliefs - -a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people Marketer's 3 approaches to attitude change about brands/products - -1. Changing beliefs about the extent to which a brand has certain attributes (hellman's marketing high omega 3 content) 2. Changing the perceived importance of attributes (pepsi stamping freshness dates on cans, afterwards customers thought it was important) 3. Adding new attributes to the product (colgate adds new ingredient to toothpaste and markets it, becomes even bigger) Opinion leaders - -individuals who exert direct or indirect social influence over others. Considered to be knowledgeable about or users of particular products, and services, so their opinion influences other people's choices. Influencer marketing - -the practice of focusing on the identification and recruitment of influencers to advocate products, services, and brands rather than focusing exclusively on prospective buyers. Word of mouth - -the influencing of people during conversations. The most powerful and authentic information source for consumers because it typically involves friends viewed as trustworthy. Buzz - -popularity created by consumer word of mouth Reference groups - -people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. BUSML 3250 BUSML 3250 They affect consumer purchases because they influence the information, attitudes, and aspiration levels that help set a consumer's standards. Usually influence the purchase of luxury products over necessities. Associative group - -one to which a person actually belongs, including fraternities and sororities and alumni associations Brand community - -a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use Aspiration group - -one that a person wishes to be a member of or wishes to be identified with Dissociative group - -one that a person wishes to maintain a distance from because of differences in values or behaviors Social class - -the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. A person's occupation, source of income, and education determine social class 3 sources of family influence on consumer behavior - -consumer socialization, passage through the family life cycle, decision making within the family or household Consumer socialization - -the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers Family life cycle - -the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors Traditional family - -married couple with children younger than 18 years (just 20% of u.s. Households) 5 roles of family members in the purchase process - -1) information gatherer 2) influencer 3) decision maker 4) purchaser 5) user Subcultures - -subgroups within the larger, or national, culture with unique values, ideas, and attitudes Business-to-business marketing - -the marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products and services that they can produce and market to others BUSML 3250 BUSML 3250 Organizational buyers - -manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale Organizational buyers are divided into three markets: - -1. Industrial 2. Reseller 3. Government Industrial firms - -reprocess a product or service they buy before selling it again to the next buyer Resellers - -wholesalers and retailers that buy physical products and resell them again without any reprocessing Government units - -federal, state, and local agencies that buy goods and services for the constituents they serve North american industry classification system (naics) - -provides common industry definitions for firms in u.s., canada, and mexico. Groups economic activity to permit studies of market share, demand for products and services, import competition in domestic markets, and similar studies. Derived demand - -the demand for industrial products and services is driven by demand for consumer products and services. Ex: pulp and paper products is derived from demand for newspaper Organizational buying criteria - -the objective attributes of the supplier's products and services and the capabilities of the supplier itself Criteria examples: price, ability to meet quality specifications, ability to meet delivery schedules, etc. Supplier development - -involves the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers Reciprocity - -an industrial buying practice in which two organizations agree to purchase each other's products and services Supply partnership - -exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer Ex: harley davidson and their seat supplier for their motorcycles BUSML 3250 BUSML 3250 Organizational buying behavior - -the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers Buying center - -all the individuals and units that play a role in the purchase decision making process in an organization. They share common goals, risks, and knowledge important to a purchase decision. Buying committee - -highly formalize