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WHAT'S CB?
It tells you why and how people buy products, use them and dispose them.
THREE STAGES
Obtaining the product How they buy? Where they buy? What are their choices? How you decide? Consuming How you store? Who uses? How much you consume? How it compares with expectations?
THREE STAGES
Disposing Disposing package Resell recycle
REMEMBER ME?
I'm the fellow who goes into a restaurant, sits down and patiently waits while the I'm the I'm the fellow who goes into a restaurant, sits down and patiently waits while the waitresses do everything but take my order. I'm the fellow who goes into a department store and stands quietly while the sales clerks finish their little chitchat. I'm the man who drives into a gasoline station and never blows his horn, but waits patiently while the attendant finishes reading his comic book. "Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back into your store, when I was there in the first place, and all you had to do to keep me was to give me a little service; show me a little courtesy." Source: From a Better Business Bureau bulletin submitted by An Arkansas Reader to Dear Abby
Meet the new customer and smile when you do because she is your boss. It may not be the person you thought you knew. Instead of choosing from what you have to offer, she tells you what she wants. You figure it out how to give it to her. -Fortune Editor
Postpurchase Processes
PROSPECT THEORY
In 1979, Kahneman and Tversky presented an idea called prospect theory, which contends that people value gains and losses differently, and, as such, will base decisions on perceived gains rather than perceived losses.
EXAMPLE
For example, in a traditional way of thinking, the amount of utility gained from receiving $50 should be equal to a situation in which you gained $100 and then lost $50. In both situations, the end result is a net gain of $50. However, despite the fact that you still end up with a $50 gain in either case, most people view a single gain of $50 more favorably than gaining $100 and then losing $50.
PROSPECT THEORY
+50/Loss -50/Gain
Pain
Behavior is Not Done by Choice >Gratification is Short-Lived >Strong Feelings of Regret or Guilt Afterwards
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Gambling
Illegal Activities
Consumed Consumers
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APPLICATION OF CB?
Marketing Strategy Informed Individuals Regulatory Policy Social Marketing