Or this is needed when past experience or knowledge e is insufficient, he risk of making a wrong purchase decision is high , and the cost of gathering g information is low (external search). Alternative Evaluation Evaluative criteria , which represent both the objective attributes of a brand and the subjective ones you use to compare different products and bra ends. Firms try to identify and capitalize on both types of criteria to create the best value for the money paid by you and other consumers.
These criteria are often displayed in advertisement s. Consideration set , the group of brands that you would consider from among all the brands of which you are aware n the product class. Purchase Decision : Two choices (1) from whom to buy and (2) when to buy. Postprocessor Behavior : A satisfactory or unsatisfactory consumption or use experience IS an important factor in it. Postprocessor psychological tension or anxiety is called cognitive dissonance 3.
The manner in which each stage of the consumer decision process influence sees consumer behavior. In first stage, perceiving a difference between a person’s ideal and actual situ actions in second,internal search, and external search in third consumer’s evaluative criteria in fourth, Two choices remain: (1 ) from whom to buy and (2) when to buy. N fifth, consumer compares it with his or her expectations and is either satisfy De or dissatisfied 4.
Characteristics associated with high involvement versus low involvement co ensure purchase decisions. How do they differ? Highlighting purchase occasions typically have at least one of three characteristics: the item to be purchased (1) is expensive, (2) can have serious personal consequence once, or (3) could reflect On One’s social image. Lonesomeness purchases, such as toothpaste and soap, barely involve most of us, but audio and video systems and automobiles are very involving. 5.
The three types of problem solving techniques consumers use Extended Problem Solving In extended problem solving, each of the five stages of the consumer purchase decision process is used and considerable time and effort are devoted De to the search for external information and the identification and evaluation of alternatives. Several bran dos are in the consideration set, and these are evaluated on many attributes. Extended problem solving exists in highlighting purchase situations for items such as automobiles and audio systems.
Limited Problem Solving In limited problem solving, consumers typically seek some information or reel n a friend to help them evaluate alternatives. Several brands might be evaluate dated using a moderate number of attributes. Limited problem solving might be used in choosing a toaster, a r saturate for lunch, and other purchase situations in which the consumer has little time or effort to spend. Routine Problem Solving For products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and veal dating alternatives.
The purchase process for such items is virtually a habit and typifies linoleum’s NT decision making. Routine robber solving is typically the case for lollopped, frequently purchased prod cuts. 6. The “psychological influences” on consumer behavior (motivation, personals TTY, perception etc. ). How does each work, specifically, to influence behavior? The graph For motivation Motivation is the energize force that stimulates behavior to satisfy a need. Because consumer needs are the focus of the marketing concept, marketers try to are use these needs. An individual’s needs are boundless.
People possess physiological needs for b acacias such as water, shelter, and food. They also have learned needs, including selflessness, achievement, a d affection. Psychologists point out that these needs may be hierarchical; that is, once physiological nee dos are met, people seek to satisfy their learned needs. Personality While motivation is the energize force that makes consumer behavior purr useful, a consumer’s personality guides and directs behavior. Personality refers to a person’s consistent behaviors or responses to recurring situations. Perception One person sees a Cadillac as a mark of achievement; another sees it as est. notations.
This is the result of perception the process by which an individual selects, organizes, and interprets inform Zion to create a meaningful picture of the world. Learning Much consumer behavior is learned. Consumers learn which information so recess to consult for information about products and services, which evaluative criteria to use when assessing alternatives, and, more generally, how to make purchase decisions. Refers to those behaviors that result from (1) repeated experience and (2) reasoning. Values, Beliefs, and Attitudes Values, beliefs, and attitudes play a central role in consumer decision making and related marketing actions.
Consumer Lifestyle Lifestyle is a mode of living that is identified by how people spend their time and rest recess, what they consider important in their environment, and what they think of themselves a ND the world around them. The analysis of consumer lifestyles, called chirography’s , provides insights into consumer needs and wants. Lifestyle analysis has proven useful in segmenting and targeting consumers f or new and existing products and services 1 . Describe the alternative approaches a firm might use to enter global marker TTS.
Four general options exist: (1) exporting, (2) licensing (3) joint venture, and (4) direct investment. 2. Porters diamond of competitive advantage. How do the things in Porters d amend explain a nation’s competitive advantage? Factor conditions. These reflect a nation ‘s ability to turn its natural resources, education, and infrastructure into a competitive advantage . Consider Holland, which exports 60 percent of the world’s cut flowers. The Dutch lead the world in the cutler industry because e of their research in flower cultivation, packaging, and shipping-?not because of their weather. 2. Demand conditions.
These include both the number and sophistication of domestic customers for an industry’s product. Japan’s sophisticated consumers demand quality in their consumer electronics, thereby making Japan’s producers such as Sony, Sandy, Sharp, Poi Matthias, and Hitachi among the world leaders in the electronics industry. 3. Related and supporting industries. Firms and industries seeking leadership in global markets need clusters of world’s suppliers that accelerate innovation. Swiss comma nines are leaders in the global watch market, in part, because of high quality supporting watch movement makers. . Company strategy, structure, and. These factors include the conditions governing the way a nation’s businesses are organized and managed, along with the intensity of d mastic competition. The Italian shoe industry has become a world leader because of intense domestic competition among firms such as MBA, Bruno Magi, and Rosewoods, which h as made shoes for Christian Dior and Anne Klein Couture. 3. The four trends that have significantly influenced global marketing. Trend 1: Gradual decline of economic protectionism by individual countries.
Protectionism is the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quo task. Tariffs, which are a government tax on goods or services entering a country, armorial serve to raise prices on imports. A quota is a restriction placed on the amount of a product allowed to enter or leave a country. Quotas can be man dated or voluntary and may be legislated or negotiated by governments. As a consequence, the major industrialized nations of the world formed the World Trade Organization (WTFO) in 1 995 to address an array of world trade issues.
Trend 2: Formal economic integration and free trade among nations. European Union The European Union consists Of 27 member countries s that have eliminated most barriers to the free flow of goods, services, capital, and labor cross their 9 borders (see Figure 74 This single market houses more than 500 million consumers with a combined gross domestic product larger than that of the United States. In ad edition, 16 countries have adopted a common currency called the Euro . Adoption of the Euro has been a boon to electronic commerce in the ELI by eliminating the need to continually monitor currency exchange rates.
North American Free Trade Agreement The North American Free Trade Agreement (NONFAT) lifted many trade barriers between Canada, Mexico, and the United S tastes and 10 created a marketplace with more than 450 million consumers. NONFAT has stimulated trade flows among member nations as well as crossbred retailing, manufacturing, and investment. For example, NONFAT paved the way for Walworth move to Mexico, Target to enter Canada, and Mexican supermarket giant Giant to move into the United States. Whirl pool Corporation’s Canadian subsidiary stopped making washing machines in Can dad and moved that operation to Ohio.
Whirlpool then shifted the production of kitchen rang sees and compact dryers to Canada. Ford invested $60 million in its Mexico City manufacturing p Lana to produce smaller cars and light trucks for global sales. Asian Free Trade Agreements Efforts to liberalize trade in East Asia from Japan and the four “Little Dragons” (Hong Kong, Singapore, South Korea, and Taiwan) thru cough Thailand, Malaysia, and Indonesia-?are also growing . Although the trade agreements are less formal than those underlying the EX. and NONFAT, they have reduced tariffs among co entries and promoted trade.
Trend 3: Global competition among global companies for global customers. Global Competition Global competition exists when firms originate, produce, and market their products and services worldwide. The automobile, pharmaceutical, papa reel. electronics, aerospace, and telecommunication fields represent welkin industries wit h sellers and buyers on every continent. Other industries that are increasingly global in SC pope include soft drinks, cosmetics, readopted cereals, snack chips, and retailing.
Global strategic al alliances are agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation. For example, General Mills and Nests of Switzerland created Cereal Partners Worldwide to finitude Nestss European cereal marketing and district butte General Mills cereals worldwide. Today this global alliance produces almost $3 billion n annual sales in more than 130 countries. Global Companies Three types of companies populate and compete in the global 11 marketplace: (1 ) international firms, (2) multinational firms, and (3) translation anal firm s. Here employ people in different countries, and many have administrative, m racketing and manufacturing operations (Often called divisions us basis Aries ) around the world. However, a firm’s orientation toward and strategy for global markets and marketing define sees the type of company it is or attempts to be. Multinational firm sews the world as consisting of unique parts and markets to each part differently. Multinationals use a multiplicities marketing strategy , which means that they have as many different product variations, brand names, and advertising prop rams as countries in which they do business.
For example, Lever Europe, a division of Milliner, markets its fabric softener known as Snuggle in the United States in 10 Europe mean countries under seven brand names, including Shellacking in Germany, Cooling in It ally, and Myosin in France. These products have different packages, different advertise Inning programs, and occasionally different formulas. Procter & Gamble markets Mr.. Clean, its popular multipurpose cleaner, in North America and Asia. But you won’t necessarily if ND the Mr.. Clean brand in other parts of the world. In many Latin American countries, Mr..
Clean n is Master Limpid. Mr.. Clean is Mr.. Proper in most parts of Europe, Africa, and the Middle e East. A transnational firm views the world as one market and emphasizes cultural similarities across countries Or universal consumer needs and Wants more than differences. Transnational marketers employ a global marketing strategy the practice of standardizing marketing activities when there re cultural similarities and adapting them when cultures differ . This approach benefits marketers by allowing them to realize economies of scale from their production and market inning activities.
Global marketing strategies are popular among many boisterousness’s ma rosters such as Caterpillar and Comates (heavy construction equipment) and Texas Instrument nets, Intel, and Hitachi (semiconductors). Consumer goods marketers such as Timex, Seeks, and Swat chi (watches), Cloacae and PepsiCo (cola soft drinks), Mantel and Logo (children is toys), In eke and Aids (athletic shoes), Gillette (personal care products), L’Orealal and Shied (come CICS), and McDonald’s (eservices restaurants) successfully execute this strategy.
Each of these companies markets a global brand -?a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing program ms . 12 Global brands have the same product formulation or service concept, deliver the as me benefits to consumers, and use consistent advertising across multiple countries and cult rues. This isn’t to say that global brands are not sometimes tailored to specific cultures or count tries. However, adaptation is used only when necessary to better connect the brand to consul errs in different markets.
Global Consumers Global competition among global companies often focuses on the identification and pursuit of global consumers as described in the Marketing Matters box on the 14 next page. Global consumers consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and Ben felts from products or services. Evidence suggests the presence of a global Mendocino class, a youth market, and an elite segment, each consuming or using a common ass retirement products and services, regardless of geographic location.