1. Buyer Behaviours Chapter 3

2. Apple iPhone July 2007 introduction - $600 Initial problem with AT&T phone activation Sales soared After 3 months – priced reduced to $200 Despite problems – Why did the iPhone succeed?

3. Traditional factors affecting consumer purchasing behaviors Demographics (age, gender, income, etc.) Heredity and home environment Family life cycle Life changing events Cultural environment Social environment Situational environment

4. Information Search Two ways of gathering information: 1.Internally 2.Externally

5. Attitude Sequence Cognitive  Affective  Conative Affective  Conative  Cognitive Conative  Cognitive  Affective

6. Discussion Questions Question 2, page 83 – www.tattoos.comwww.tattoos.com Question 4, page 83 www.starbucks.com www.ikea.com www.cadillac.com

7. What’s Happening? http://www.macrumors.com/ These ads are not very new but the goal is to counter the spread of new technology such as Apple tablet, iPhone... http://www.youtube.com/watch?v=YJ1QwExp0_g&feature=resp onse_watchhttp://www.youtube.com/watch?v=YJ1QwExp0_g&feature=resp onse_watch http://www.youtube.com/watch?v=fVMnmTFxAjA&feature=playe r_embedded http://www.youtube.com/watch?v=fVMnmTFxAjA&feature=playe r_embedded http://www.apple.com/ipad/ Here is a link with a few new futuristic cell phone concepts. http://www.stumbleupon.com/su/1vLqVQ/www.toxel.com/tech/201 0/01/07/10-futuristic-cell-phone-concepts/http://www.stumbleupon.com/su/1vLqVQ/www.toxel.com/tech/201 0/01/07/10-futuristic-cell-phone-concepts/

8. Consumer Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Evaluation

9. Cognitive Mapping Cognitive maps are simulations of the knowledge structures and memories embedded in an individual’s brain They contain our assumptions, beliefs, thought processes to interpret new information and to determine an appropriate response

10. Principles concerning processing of information and cognitive mapping Cognitive mapping enhances movement of messages from short-term memory to long- term memory. Most persuasive messages reinforce current linkages. Repetition is necessary to establish new linkages. Difficult to modify or create new linkages.

11. Evaluation of Alternatives Evoked set method 1. Evoked set 2. Inept set 3. Inert set Affect referral Multi-attribute approach – used more in B to B buying situations

12. The Purchase Decision Decision to purchase a particular product may based on several decisions: ____________

13. Common Reasons Purchases Are Made Products/services provide utility To satisfy physical needs To satisfy psychological needs To satisfy social needs To satisfy emotional needs To satisfy epistemic needs

14. Trends and Factors in the Consumer Buying Environment Age complexity Gender complexity Individualism Active, busy lifestyles, time pressures Cocooning Pleasure binges Emphasis on health

15. How likely is each of the following marketing material to alter your purchase decision for food items? Why? An advertisement A coupon A sweepstake or contest offer A price-off offer An in-store display The food package A in-store sample A billboard

16. Postpurchase Evaluation Evaluation of product performance. Cognitive dissonance. Impacts future purchases. Impacts word-of-mouth communications.

17. Dual Channel Marketing Consumer and B-to-B markets Spin-off market Image concerns Dual strategy Different communication messages Create different brands Use multiple or different channels Single strategy Integrate communication message Sell same brand in both markets Scan both markets for dual opportunities