MBA 706-M. Kim-Summer AP1 '23 questions and answers
3 views 0 purchase
Course
MBA 706
Institution
MBA 706
MBA 706-M. Kim-Summer AP1 '23
questions and answers
Segmentation & Target Marketing~consider markets as individuals, institutions,
or group of ppl. have similar needs that can be met by specific offering
~aim to identify specific customer needs & design marketing programs to satisfy
need...
MBA 706-M. Kim-Summer AP1 '23
questions and answers
Segmentation & Target Marketing✔✔~consider markets as individuals, institutions,
or group of ppl. have similar needs that can be met by specific offering
~aim to identify specific customer needs & design marketing programs to satisfy
needs
~firms must comprehensively understand current & potential customers, motivations,
behaviors, needs, wants
~segmentation allows marketers to more precisely define and understand customer
needs, & gives them ability to tailor products to suit those needs. marketers are
unable to fully understand all customers needs/wants
Buyer Behavior in Consumer Markets✔✔-irrational & unpredictable
-5 stages
Diff b/w want & need from consumer buying process' perspective✔✔-Need: when
customer's existing level of satisfaction & desired level of satisfaction are not same
(based on internal & external stimuli)
-Want: consumer's desire for specific product that will satisfy need
-Demand: when consumers ability & willingness to purchase product backs up the
want for product
External Stimuli✔✔advertising, window shopping, interacting with salespeople
Internal Stimuli✔✔hunger, thirst, fatigue
Buying process begins when...✔✔consumers recognize they have an "unmet need"
Relationship b/w Need & Want✔✔people argue they NEED a car when "real need" is
transportation. need for car is a "want"
Difference b/w Want & Demand✔✔customers "want" luxury care, but only few are
able & willing to buy one(EX: demand)
Consumer Buying Process: Evaluation of Alternatives✔✔-consumers eval products
as bundles of attributes: each has diff level of importance. priority of choice criteria
can change during the process
-important considerations: products must be in the evoked set. consumers choice
criteria must be understood
-marketing programs must be designed to change priority of choice criteria, and
change consumers opinions about product/brand image.
-at this stage, consumer translates need into want
Consumer Buying Process: Purchase Decision✔✔-after consumer evaluates each
alternative in the evoked set, they form an intention to purchase a product/brand
-purchase intention & actual act of buying are distinct concepts
-unforeseen circumstances can interfere w/consumer's decision to buy product
,Marketers overcome unforeseen circumstances by:✔✔-reducing risk of purchase:
warranties, guarantees
-making purchase easy
-finding creative solutions to unexpected problems
Issues in purchase decision stage✔✔-product availability: related to distribution
component of marketing program, CONVENIENCE.
Goal: to put product within consumer's reach where they are
-possession utility: easy for customers to find product; ease of taking possession of
the product.
EX: layaway or financing, delivery, installation, proper packaging, prompt shipment
(newspapers, pizza)
4 Outcomes that Consumers Experience in Post-Purchase stage (how are they
diff?)✔✔1. delight
2. satisfaction
3. dissatisfaction
4. cognitive dissonance(post-purchase doubt)
3. dissatisfaction✔✔product's performance "falls" short of buyer's expectations
4. cognitive dissonance (post-purchase doubt)✔✔buyer is "unsure" of product's
performance relative to their "expectations"
high likelihood of experiencing dissatisfaction or cognitive dissonance when:✔✔-
dollar value of purchase increases
-opportunity costs of rejected alternatives are high
-purchase decision is emotionally involving
firms can manage responses (dissatisfaction or cognitive dissonance) by:✔✔-
offering liberal return policies
-providing extensive post-sale support
-reinforcing the wisdom of consumer's purchase decision
Issues in the buying process✔✔1. consumers dont always follow stages in the
sequence & can be swayed by brand loyalty (also impulse purchases)
2. making parallel decisions: what to buy and where to buy?
3. bias towards a merchant limits purchasing powers
The Buying Process✔✔-describes possible range of activities that may occur in
consumers making purchase decisions
, Need Recognition✔✔-1st stage of buyer decision process where consumer
recognizes need
-based on internal & external stimuli
Characteristics of Information Search in CONSUMER Buying Process✔✔marketing
activities can stimulate desire for info:
~~~passive info search
~~~active info search
sources of info:
~~~internal sources
~~~external sources
amount of time, effort, & expense dedicated to info search depends on:
~~~degree of risk
~~~amount of expertise w/product category
~~~actual cost of search (time & money)
Characteristics of Information Search in Consumer Buying Process
PASSIVE INFORMATION SEARCH✔✔consumer becomes more attentive &
receptive to info
EX: noticing car ads
Characteristics of Information Search in Consumer Buying Process
ACTIVE INFORMATION SEARCH✔✔consumer purposely seeks additional info
EX: browsing internet, ask friends, visit car dealership
Characteristics of Information Search in Consumer Buying Process
INTERNAL SOURCES✔✔personal experiences & memories
-1st type of info consumers search for.
EX: word-of-mouth, advice from friends, family, coworkers. (getting advice can be
personal experience, can be stored as a memory)
Characteristics of Information Search in Consumer Buying Process
EXTERNAL SOURCES✔✔advertising, websites, packaging, display, salespeople
-most numerous; consumers trust EXTERNAL sources less than internal & personal
sources b/c consumers perceive the ext sources are initially designed to sell &
promote product instead of provide info about product
Characteristics of Information Search in Consumer Buying Process
DEGREE OF RISK✔✔consumers are naturally risk averse and use info search to
reduce risk & increase odds of making right decision
EX: financial (paying reasonable price for a house), social (buying socially
acceptable products), emotional (lead to negative emotions if product is diff from
expectation), personal (choosing right drug or surgeon) risks
Characteristics of Information Search in Consumer Buying Process
AMOUNT OF EXPERTISE WITH PRODUCT CATEGORY✔✔if youre a first-time
buyer, youre more likely to engage in extensive info search to reduce risk & narrow
product choices
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller WorkAce. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
