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This activity/assignment will help students understand all three phases of the purchase process

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This activity/assignment will help students understand all three phases of the purchase process.

Activity: Describe the process in which you bought your laptop or any other similar item. Explain the reasons for buying the laptop or item, how you identified the features you required, how you gathered information regarding product features and prices, why you chose a particular brand, and how you made the purchase (online or at a store).

Comment on you level of satisfaction with your laptop or item.

The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 - 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to marketing management. The textbook should also be utilized. Do not insert excess line spacing. APA formatting and citation should be used.

Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Customer Behavior © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 2 Marketing Framework © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 3 Discussion Question #1 • Describe the process you used when you decided which college to attend. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 4 The Science of Consumer Behavior • There are known, reliable patterns that comprise consumer behavior, including: • The phases consumers go through when making a purchase • The different kinds of purchases that consumers make • How consumers sense and perceive, become motivated, form attitudes, and make decisions • The cultural differences that influence consumers © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 5 The Purchase Process © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 6 Pre-Purchase Phase • Customers recognize a need/desire • Some are heavily marketer influenced; some are not • e.g., Having trendy clothes vs. needing to eat • Customers search and evaluate products that address their need • e.g., Conduct online search, ask friends, etc. • Customers create a consideration set • All brands considered as candidates for purchase © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 7 Discussion Questions #2 1. What need/desire drove you to consider “purchasing” college? 2. How did you search for information? 3. Which colleges were in your consideration set? 4. What criteria did you utilize to form this set? © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 8 Purchase Phase • Customers narrow the consideration set • Customer may delay the purchase • Customer may decide not to purchase • Customers decide on retail channel © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 9 Post-Purchase Phase • Customers assess the purchase and the purchase process • Customers determine satisfaction • Did the customer get what he expected? • Customers’ level of satisfaction leads to • Repeat purchases • Negative or positive word of mouth • Product returns, etc. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 10 Discussion Questions #3 1. Are you satisfied with your college decision? Why or why not? 2. Could your level of satisfaction affect the college? If so, how? © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 11 Who Utilizes the Purchase Process? • Business-to-Consumer (B2C) and Business-to-Business (B2B) both utilize the buying process • The amount of time spent on a stage depends upon what is being bought • A business customer is an agent buying something on behalf of an organization • e.g., Administrative assistants, operations department, etc. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 12 Three Types of Consumer Purchases (slide 1 of 2) • Convenience purchases • Low involvement; standard, frequently consumed goods or impulse purchase • Consumers don’t spend much time thinking or planning the purchase • Shopping purchases • Medium involvement; not as frequently purchased • Consumers spend time and effort prior to purchase © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 13 Three Types of Consumer Purchases (slide 2 of 2) • Specialty purchases • High involvement; occasional purchases, often more expensive, require more thought • Customers put much effort into the purchase © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 14 Types of Business Purchases • Straight rebuy • Low involvement; purchase what was purchased last time with little or no thought • Modified rebuy • Medium involvement; something about the purchase is altered requiring some thought • New buy • High involvement; purchase something that hasn’t been purchased before requiring much thought and planning © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 15 Types of Purchases © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 16 Low-Involvement Purchases • Low-involvement purchases • Have more price sensitivity • Use price discounts • Generally don’t generate word of mouth • Are usually distributed intensively • Marketers should focus on how to capture consumers’ attention © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 17 High-Involvement Purchases • High-involvement purchases • Have less price sensitivity • Use brand communities and events • May generate word of mouth • Are usually distributed selectively • Marketers should focus on providing consumers with information © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 18 Anatomy of a Grocery Store • Layout of a grocery store encourages purchases • Group similar products • Group complementary products • Place common purchases far from the entrance • Group products to form consideration sets • Place high-profit and impulse-purchase items at end of aisles and checkout lanes © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 19 Sensation and Perception (slide 1 of 5) • Utilize senses to convey information • Consumers have selective attention; they block out what is not relevant • Visual: colors can convey • Product characteristics (white for freshness for toothpaste) • Brand identity (Tiffany’s aqua blue) • Meaning (affected by culture) © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 20 Sensation and Perception (slide 2 of 5) • Hearing can • Increase spending • e.g., Quick tempo music = increased spending • Convey a brand • e.g., Harley-Davidson’s distinctive sound • Smell can • Get attention • e.g., Smelling the Cinnabon store • Allow product sampling • e.g., Perfume in magazines © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 21 Sensation and Perception (slide 3 of 5) • Taste can • Distinguish one brand from another • e.g., Coke vs. Pepsi • Touch can • Convey brand imagery • e.g., Well-designed products compared to value designed products • e.g., Ergonomics, clean lines, simplicity, beauty, and sensual experiences © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 22 Sensation and Perception (slide 4 of 5) • Subliminal advertising • An ad that is shown so quickly that is doesn’t meet the threshold of liminal recognition • Has been debunked by research © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 23 Sensation and Perception (slide 5 of 5) • Mere exposure • Repeated exposure to an ad brings familiarity and a positive feeling • Perceptual fluency • Customers may pay the most attention to the content of a message • However, the colors, font, etc. make a brand impression as well © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 24 Learning, Memory, and Emotions • Sensory and perceptual impressions can become brand associations • Learning is the process by which associations get past the sensory and perception stages into short-term memory and then, with repetition and elaboration, into long-term memory • Classical and operant conditioning © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 25 Classical Conditioning (slide 1 of 2) • Pavlov’s dogs • Stage 1: a dog drools at sight of food • Stage 2: a dog doesn’t respond to a bell • Stage 3: ringing a bell while placing food in front of the dog elicits drool • Stage 4 (occurs over time): a bell rung in front of the dog elicits drool • A similar process can be used in advertising and jingles © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 26 Classical Conditioning (slide 2 of 2) • Companies may have negative brand associations in customers’ memories • Some companies change names to help create new associations • e.g., Philip Morris is now Altria • e.g., ValuJet is now AirTran © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 27 Discussion Question #4 • Use classical conditioning theory to explain this advertisement. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 28 Operant Conditioning • Skinner used pigeons to show that learning occurs by positively reinforcing behavior • Fixed ratio reward: reward is given every time or every 4th time, etc. • Variable ratio reward: reward timing varies unpredictably • Subject will engage in the behavior more often if rewarded on the variable schedule © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 29 Discussion Questions #5 1. Discuss how a deli could utilize operant conditioning to design a loyalty program under • fixed ratio reward, and • variable ratio reward 2. Which reward ratio do you think would be more effective and why? © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 30 Motivation: Hierarchy of Needs © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 31 Maslow’s Hierarchy of Needs (slide 1 of 2) • Maslow suggests that people must have their basic needs met before moving on to more abstract needs • Marketers may identify their product with one of Maslow’s needs • e.g., Volvo and safety needs • Many brands are associated with a sense of belonging, social acceptance, and respect © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 32 Maslow’s Hierarchy of Needs (slide 2 of 2) • Marketers may identify products with aspiration groups • Marketers may offer an extended brand line for customers at different levels in Maslow’s hierarchy • e.g., Mercedes has a lower-end C model, then upward to E, S, and finally CL models • Marketers use hierarchy for positioning © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 33 Distinguishing Motivations • Utilitarian vs. hedonic • e.g., Suit for interviews vs. Armani suit • Conformity vs. individuality • May vary over lifetime or in different situations • Risk seeking vs. risk averse • Risk tolerance may vary with product knowledge © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 34 Attitudes and Decision Making • Attitudes and decision making influence whether consumers • Will buy a brand • Repeatedly purchase it • Become loyal • Recommend it to others, etc. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 35 What Are Attitudes? • Attitudes are a mix of beliefs and importance weights • Beliefs • e.g., I think Sprite has caffeine • Importance • e.g., I think having caffeine is important • Customer may differ on both importance and beliefs © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 36 Decision Making (slide 1 of 3) • Decision making: • With a few choices, consumers easily compare brands to make decision • With many choices, consumers use two stages: • Stage 1: Determine consideration set • Stage 2: Compare brands to make a purchase decision © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 37 Decision Making (slide 2 of 3) • Stage 1 • Non-compensatory method: if a brand doesn’t have important attributes, it is cut • Lexicographic method: compare all brands on most important attribute; cut brands that don’t have it; move on to next important attribute and compare and cut, etc. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 38 Decision Making (slide 3 of 3) • Stage 2: Compare brands in detail • Compensatory model (cost/benefits) • One excellent attribute can compensate for a poor attribute • Some websites aid this process by allowing users to view a side-by-side comparison of attributes © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 39 Cultural Differences • Socio-cultural differences influence consumers and produce shopping patterns • Social class • e.g., Old-monied people seek exclusivity; nouveaus indulge in conspicuous consumption • Age • e.g., Young people buy furniture; as they get older they buy diapers and minivans; then college and finally healthcare © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 40 Discussion Question #6 • How can a marketer capitalize on the Baby Boomer segment? © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 41 Managerial Recap (slide 1 of 2) • Three major phases of consumption • Pre-purchase, purchase, post-purchase • Three major classes of purchases • B2C: convenience, shopping, specialty • B2B: straight rebuy, modified rebuy, new buy • Involvement determines class © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2. 42 Managerial Recap (slide 2 of 2) • How do consumers think? • Sensing and perceiving information that is learned and stored in memory • Motivations help marketers understand what consumers are seeking to satisfy • Attitudes and decision making are subject to influence by good information and biases • Social norms define consumers © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2.