1. Dr. Bea Bourne 1

2. 2 If you have any trouble in seminar, please do call Tech Support at: 1-866-348-1196 They can assist if you get “bumped” from the seminar room or experience other difficulties.

3.  This seminar will focus on the consumer decision-making process. Please be prepared to discuss need recognition, pre purchase search, evaluation of alternatives, purchase behavior, and post purchase evaluation.  Questions 3

4.  Unit 9 ties together the influences on and process of consumer decision making. There is a focus on models of consumer decision making, as well as levels of decision making. 4

5. 5 Chapters 15 & 16 Chapter 15 introduces the surrounding community’s influence on consumer behavior and on the acceptance of new products or services. As you read, you should pay particular attention to the following ideas: Opinion leadership The diffusion process The profile of the consumer innovator Chapter 16 examines consumer decision making within a wider context. As you read, you should pay particular attention to the following ideas: Need recognition Prepurchase search Evaluation of alternatives Purchase behavior Postpurchase evaluation

6.  Unit 8 explained subcultures and cross- cultural consumer behavior. This unit stresses the importance of segmenting and targeting these specific groups. Analyzing these target markets provides marketers with additional opportunities. 6

7. 7 After completing this unit, you should be able to: Explain the concept of subculture Analyze the different types of subculture Describe the geographic impact of nationality subcultures Analyze the relationship of sex roles and consumer behavior Analyze multinational strategies Explain why it is important to conduct cross-cultural consumer analysis Describe the major marketing blunders made by multinational corporations Explain how marketers segment the working woman market Explain the concept of ethical behavior

8.  So who recalls the five stage of the consumer decision making process? 8

9. 1. need recognition, 2. pre-purchase search, 3. evaluation of alternatives, 4. purchase behavior, and 5. Post-purchase evaluation 9

10. 10 Why is the consumer decision making process important to marketers?.

11. 11 The Consumer Decision-Making Process is an important element to understanding your buyers, their buying habits, and properly marketing to them. The Consumer Decision-Making Process is the order of operations a person generally follows before making the final purchase and hopefully that purchase is your product

12. 12 Stage one of the Consumer Decision-Making Process is needs recognition. Who can describe what this stage is? What are some techniques marketers can use to help trigger this need? Once the need has been recognized by the consumer the information search stage begins. Needs recognition

13.  The second stage defines a consumer's options available and the product package - or bundle of benefits the customer perceives the item to be.  This includes the price, quality, and access to the product.  Information search happens in two ways. ◦ Internally and externally.  Does anyone know the difference? 13 Second stage

14.  An internal search is most often used in frequent purchases.  The consumer recalls memories and previous experiences with a product or with a company.  External searches are most often used when there is a lack of prior experience with a product.  There are 3 primary sources of external information...  personal (friends, family, co-workers)  Public (media reviews, magazines, i.e. Consumer Reports)  Marketed (commercials, print ads, websites, sales person)  Do you feel that any of theses sources for external information is better than another?  Why? 14 An internal search

15. 15  After the information search is done, an evaluation of alternatives takes place.  Here the consumer notes product features he or she wants and does not want.  Brands play a significant role in this step.  A consumer is likely to go with a brand that is trusted.  Typically, the alternatives will be weighed to seek the best outcome for the consumer. Evaluation of alternatives

16. 16 Once the alternatives have been made the purchase decision is made. What do we mean here? This is the actual action taken by the consumer. What are some other variables considered here? The customer will decide where to buy and when to buy. Time availability, convenience, and sales are considered.

17. 17 The post purchase evaluation is where the consumer evaluates their purchase. Are they pleased or displeased with their decision. If satisfied, customer loyalty is gained because the right decision was made. If not, negative feedback may occur and lose of loyalty. What types of things/service can businesses offer to help prevent buyers remorse?

18.  We have discussed the consumer decision making process  What are the factors that can influence the process? 18

19.  Personal factors such as age, gender, race, sexual orientation, and other personal traits.  Psychological factors like motives, perception and knowledge and social factors all influence the consumer decision making process. 19 The consumer decision making process

20.  How is the final project coming along?  Remember... it is due by Tuesday of next week by midnight. 20

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22. 22 Assignment Week 9 Prepare a 5-7 page research paper on one of the following consumer behavior topics: The Impact of the Digital Revolution on Consumer Behavior Market Segmentation of Online Consumers Consumer Motivation and High Tech Products The Influence of Culture on Consumer Behavior The Adult Consumer's Decision-Making Process Your paper should include a minimum of five academic references. As with all material you submit to the Instructor, check for correct spelling, grammar, punctuation, mechanics, and usage. Please refer to the Online Communications Directions for Submitting Your Project Before you submit your project, you should save your work on your computer in a location and with a name that you will remember. Make sure your project is in the appropriate format (Word, Excel, PowerPoint, or other), then, when you are ready, you may submit on the Dropbox page.

23.  I appreciate your time and attention during our 1 hour seminar today. If you have questions, feel free to contact me: BBourne@kaplan.edu and I’ll be happy to help! BBourne@kaplan.edu  See you in Class! 23