Lamb, Hair, McDaniel , Kapoor, Klaise, & Appleby

MKTG

Canadian Edition

5&6
CHAPTERS

Consumer & Business Decision Making

http://www.swlearning.com/marketing/mktg/temp_video/eoc_video/ch05 00.html (ready made) Supermarket Psychology - Entrances, layout and shelving (3:05) http://www.youtube.com/watch?v=RjgkQ6bq7aE&feature=channel Supermarket Psychology: Specials, pricing, labelling and packaging http://www.youtube.com/watch?v=yzRDEKyqIJs&feature=related Decision Making Process: How Consumers Make Buying Decision? http://www.youtube.com/watch?v=Rn5a03Xp0Kc Consumer decision making (6:50): http://www.youtube.com/watch?v=fjdVCxn67Yc&feature=related

Chapter 5

Copyright 2010 by Nelson Education Ltd. All rights reserved

Consumer Decision-Making Process

Need Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Behaviour

Cultural, Social, Individual and Psychological Factors affect all steps

Consumer Decision-Making Process

Need Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Behaviour

LO4

Factors Influencing Buying Decisions

Cultural Factors

Social Factors

Individual Factors

Psychological Factors

CONSUMER DECISIONMAKING PROCESS

BUY / DONT BUY

Chapter 5

Copyright 2010 by Nelson Education Ltd. All rights reserved

Personal Exercise
Draw a line down the middle of a piece of paper Label the 2 columns: what I want what I need

Watch the video, and develop an answer to the 1 of the following questions
1. While the ReadyMade magazine was still in the design stages, very little research was done to determine whether an interested market existed. Did this adversely affect the magazine as it moved forward to publication? Explain.

Readymade Magazine

2. How does the cover of ReadyMade magazine reflect the principles of packaging design as influenced by the known behaviours of its consumers? 3. To what extent does ReadyMade rely on opinion leaders to promote the magazine? Is this a successful tactic?

Consumer Buying Decisions and Consumer Involvement

Routine Response Behaviour

Limited Decision Making

Extensive Decision Making

Less Involvement

More Involvement

LO3
Chapter 5 Copyright 2010 by Nelson Education Ltd. All rights reserved 8

Perception

Selective Exposure Selective Distortion Selective Retention

Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Consumer remembers only that information that supports personal beliefs

LO7
Chapter 5 Copyright 2010 by Nelson Education Ltd. All rights reserved 9

Marketing Implications of Perception

Important attributes Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Foreign consumer perception

LO7
Chapter 5 Copyright 2010 by Nelson Education Ltd. All rights reserved 10

Take a break
and refresh your mind and body

What Is Business Marketing?

Business Marketing

The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

LO1
Chapter 5 Copyright 2010 by Nelson Education Ltd. All rights reserved 12

Relationship Marketing more important in B2B!

Customer loyalty Trust
Ongoing partnerships provide more business opportunities & greater profit

Sales rep role is key Strategic Alliances Keiretsu

Ethels Chocolate Boutique case

Answer groups assigned question you have 15 minutes