Launch your PollEV session: Text : UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 Alternate #: (747) 444-3548

3. The Consumer Decision Process

4. U-R-E Attribute Sets

6. U-R-E Attribute Sets e.g., Every brand & model of car BMW, Porsche Boxster, Ford Mustang, Pontiac G6, Pontiac Vibe, Chevrolet Malibu, Chevrolet Cobalt, Mitsubishi Eclipse Malibu, Cobalt, Eclipse

9. Your questions • What can a marketer do if they have a lot of negative customer reviews?

10. Value = Benefits versus Costs

11. What goes on in the “black box”??

12. Step 3 – Evaluation of Alternatives • Evaluative criteria – salient attributes about a product often used by consumers to help base their evaluations

13. “Evaluative criteria” – criteria that help me evaluate alternatives: “Is it whole grain?” “It’s got to be low-fat” “Is it a store brand?” “It’s got to be a green product”

14. Determinant attributes – product features important to the buyer on which competing brands may differ • Something special that helps differentiate one brand from another

15. “Caffeine-free?” Determinant attribute example:

16. Consumer decision rules – set of criteria that help consumers to quickly and efficiently select from among several alternatives • Compensatory decision rule – there is a trade-off here such that good characteristics can compensate for bad ones

17. Expensive (-) • Style • Brand • (+ +) Compensatory

18. Consumer decision rules – set of criteria that help consumers to quickly and efficiently select from among several alternatives • Noncompensatory decision rule – consumer chooses a product on the basis of one characteristic regardless of the values of its other attributes

19. Expensive (-) • Color • Style • Brand • (+ + +) Noncompensatory

21. Decision: Don’t Buy • It looks like fun • It’s eco-friendly • Save me a lot of time walking • (3 positives) It costs $5000!! (1 negative)

23. Decision: Buy • It’s really expensive • No touch ID • Fewer color options • One size only • (4 negatives) It’s an Apple! (1 positive)

24. The Consumer Decision Process How can we influence this?

25. Step 4 – Purchase and Consumption • Consumers are ready to buy • Consumers don’t always purchase the brand on which they’d originally decided!

27. Step 5 – Postpurchase • Customer satisfaction is important. Dissatisfied customers may leave or spread negative word-of-mouth • Cognitive dissonance – this is an internal conflict that arises after purchase, from an inconsistency between two beliefs, or between beliefs and behavior (“buyer’s remorse”)

29. Step 5 – Postpurchase • Customer loyalty - marketers attempt to solidify a loyal relationship with their customers • Loyal customers are very valuable to firms • Undesirable customer behaviors • Passive consumers • Negative consumer behavior (rumors, negative word-of-mouth, complaining)

31. Ted Levitt in Myopia: "Consumers are unpredictable, varied, fickle, stupid, shortsighted, stubborn, and generally bothersome.”

33. Factors Influencing the Consumer Decision Process • Marketing mix elements • Psychological (motives, attitudes, perception, learning, lifestyle) • Social factors • Situational factors

34. Factors Influencing the Consumer Decision Process

35. Maslow’s Hierarchy of Needs Motive = energized need

39. Basic (physiological) needs

40. Maslow’s Hierarchy of Needs Motive = energized need

42. Higher-order needs

43. Involvement • Involvement is the consumer’s degree of interest in or concern about the product (high/ low involvement)

44. High low

45. High low

46. Heart health

47. Involvement • Extended problem solving – common when the customer perceives that the purchase entails a lot of risk • Limited problem solving – a purchase decision that calls for a moderate amount of effort and time • Impulse buying – a buying decision made by customers on the spot • Habitual decision making – when consumers engage in little conscious effort during a decision process

48. The Elaboration Likelihood Model

50. The Elaboration Likelihood Model