Launch your PollEV session: Text : UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Don’t forget to text LEAVE at the end of class; system will not let you sign in for discussion* Alternate #: (747) 444-3548

3. CDSTEP

4. cdstep • Culture = common behaviors. When culture changes, change your strategy • Demographics: modify your strategy based on changing demographics (age, generation, income, etc.) • Social trends: broad trends in society (e.g., Healthy eating)

5. cdstep • Technological trends = if technology changes, change your strategy (e.g., streaming & netflix) • economy: inflation, exchange rate, etc., (modify your strategy based on the ups & downs of economy) • Political/legal: watch for changes in laws that may impact your industry or business

6. A strong US$ = Happy Tourists, Sad Exporters

8. Reviewing chapter 1 • Transactional versus relational orientation? • “Orientation” = “a turning to” • Transaction = $3 cup of coffee • Relationship = $3 X 5 x 50 x 20 = $15,000

9. Exchange of value:the fundamental focus of marketing “PRODUCT” (Value) Seller Buyer VALUE

10. Your pollev questions • what if you want to change your answer to a question before the answer is shown? Text: “UNDO” • Can we thoroughly go over CDSTEP once more before the exam ? • Why did we skip the social media chapter in lecture?

11. Your pollev questions • “Not a question.. the Chile question just reminded me of a similar thing I had seen before in Australia, and the way they use a negative design for the packaging”

13. Understanding the Marketplace – Consumer Behavior Ref: Text, chapter 6

17. Principle? • Even though CB is somewhat IRRATIONAL, which principle explains a vast majority of consumer decisions?

19. The Consumer Decision Process

20. Step 1 – Need Recognition • Functional needs – what does the product do? What function does it perform? • Psychological needs – How does it make me feel? What do others think of me for using this?

23. Step 1 – Need Recognition • Key to successful marketing - determining the correct balance

24. Step 2 – Search for Information • Internal search – buyer examines own memory and knowledge about product through past experiences • External search – buyer seeks information outside personal knowledge base

27. Step 2 – Factors affecting info search? • Perceived benefits vs perceived costs of search • The locus of control: internal, external “locus” = “center”

29. Step 2 – Factors affecting info search? • Actual or perceived risk: • Performance risk – what if the product fails to perform? • Financial risk – risk associated with financial outlay, costs involved in use and purchase

30. Actual or perceived risk: • Social risk – fear that others might not regard purchase positively • Physiological risk (safety risk) – fear of actual harm from use of the product • Psychological risk – what if product does not convey the right image?

33. The Consumer Decision Process

34. Step 3 – Evaluation of Alternatives • Consumer must sift through choices and evaluate the alternatives

35. Attribute sets – the way a consumer’s mind organizes and categorizes alternatives, to aid decision process • Universal set: all possible choices for the product category • Retrieval set: which choices are readily brought forth from memory? • Evoked set: the alternatives that the consumer would actually consider when making a purchase decision

36. 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

38. 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

40. What goes on in the “black box”??

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

42. “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”

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

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

45. 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

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

47. 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

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

50. 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)