INDIVIDUAL DECISION MAKING. The Purchasing Process Why do we buy anything?. Purchases are made in response to a problem Consumers are therefore problem solvers Most research has viewed consumer as a rational decision maker trying to maximize utility of purchases.
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Why do we buy anything?
You’ve had your car now for 7 years and it’s in need of constant repair. What decision process do you go through in purchasing a new one?
Your toaster is now toast. What process do you go through in purchasing a new one?
Your at the gas station paying for your gas when you have an uncontrollable urge to buy a chocolate bar. How do you decide which one to buy?
Brand Loyalty: consistently buy the same things
Store Loyalty: consistently shop at same store
Stages in Consumer Decision Making
EVALUATION OF ALTERNATIVES
How do you recognize a need for a product?
In this case it was need recognition – something was lacking
Once You’ve recognized you have a problem what motivates you to resolve the problem?
What is primary demand?
The total demand for all brands in a product category.
When breaking open a new product category your first job is to create primary demand
FOR WHAT ARE WE SEARCHING?
Do consumers always search rationally?
People feel the pain of a loss more strongly than the pleasure of an equal gain.
How do consumers narrow down the alternatives and choose one?
New brands will be accepted into the evoked set but not brands which have been rejected.
HP OfficeJet G85 All-in-one scanner/copier/fax/printer
Products are categorized in levels
Porsche Mercedes Cadillac
Which is more prestigious?
The real education problem of companies introducing new products in generating primary demand is to get customers to properly categorize the product.
What are some dimensions, or characteristics, that you might use to assess business schools?
On each of these dimensions, where would you position relative to one another
U of Toronto, U of Calgary, U of L, Mount Royal College
Mount Royal College has decided to reposition itself as a premier business school.
What do you suggest they do to achieve this?
When comparing products or services what criteria do you use?
How can Marketers influence what attributes are important
1. Behavioural/social - purchases tailored to specific occasions
2. Situational self image - who am I right now, feelings, role, ethnicity
3. Purchasing situation
What are some of the advantages of E-commerce?
What are some of the Disadvantages
UNDER PROMISE AND OVER DELIVER