BE 604 - January 27 2022 Class Deck

BE 604 – Marketing Management

01 02
Recap Consumer
Agenda Behavior

January 31, 2022 BE 604 – Marketing Management
Key Words with update from last class

Market Oriented Organization
• “Outside-in” perspective, focus on target market (Pillar #1 –
Target Market)
• Focus is on discovering & satisfying customer needs, creating

environment conducive to dialogue building long term
“relationships” (Pillar #2- Customer Relationships)
• Attract and retain customers profitably (Pillar #3 - Profitability)
• Everyone is involved, having cross-functional coordination (Pillar

#4 - Integrated Marketing)

Consumer Behavior

Processes & activities people
engage in when searching for,
Consumer selecting, purchasing, using,
evaluating and disposing of
Behavior products and services so as to
satisfy their need/wants.
8
A Model of Buyer Behavior
Marketing Mix
Individual / Social Purchase

Psychological Influence Situation
Variables
Purchase Reason
Lifestyle Family Time
Motivation Social Class Surroundings
Perception Reference Groups
Learning
Attitude Culture
Personality
Individual Decision
Making
Problem-Solving Process
Person Does or Does Not Purchase (Response)

Problem Solving Process
1. Problem Recognition
2. Information Search
Temporal, Social,
Individual and
Psychological 3. Evaluation of Alternatives
Factors impact
all steps
4. Purchase
5. Post purchase Behavior
BE 604 – Marketing Management 10

Problem Recognition
Problem Recognition Occurs Whenever the Consumer Sees a Significant
Difference Between His or Her Current State and Some Desired or Ideal State.
Consumer’s Ideal State
Need Recognition
Occurs By:
• Running Out of a
Product
• Deficient Product
• New Needs
Opportunity
Recognition Occurs By:
• Exposure to Different
or Better-Quality
Products
Consumer’s Actual State

Problem Recognition
Desired State Actual State
Significant NO
Ideal State
Difference?
YES
Problem Definition
Hold Effects Info Search

Internal Search
Problem
Internal Search
Internal
Search
Results
No Solution Purchase External Search

External Search
WHAT ARE THE ALTERNATIVES? WHAT ARE THE EVALUATIVE HOW DOES EACH ALTERNATIVE
CRITERIA? PERFORM ON EACH
CRITERION?

External Search Information Matrix
Personal Non Personal
Commercial Salespersons Advertisement

Employees Packaging
Non Commercial Friends News

Co-Workers Articles

The Social Consumer

How Much Information to Search?
The Inverted U
Amount of Search
Why is the consumer

searching?
Novice Product knowledge Expert

Perceived Risk
• The focal point of consumer

behavior is the choice decision
• But, the outcome of any
decision can only be known in
the future
• So, the consumer is always
forced to deal with the
perceived risk
• As a general rule, a person will
not engage in a behavior unless
the perceived risk is somehow
reduced
What would make a purchase risky?

Perceived Risk
• Functional Risk
• Physical Risk
• Financial Risk
• Psychological Risk
• Time Risk

Reducing Perceived Risk

Problem Solving Process
External Search
WHAT ARE THE ALTERNATIVES? WHAT ARE THE EVALUATIVE HOW DOES EACH ALTERNATIVE
CRITERIA? PERFORM ON EACH
Evoked Set of CRITERION?
Brands
Evaluation of Alternatives
What Were We Evaluating ?

Decision Rules
Consumers Consider Sets of Product Attributes by Using Different Decision
Rules, Depending on the Complexity of the Decision and the Importance of
the Decision to Them.
Noncompensatory Compensatory
Decision Rules Decision Rules
Lexicographic Simple Additive
Conjunctive Weighted Additive

Mini Tablets Compared
2012 Kindle Kindle Kindle Google Nexus 7
iPad mini
Fire Fire HD Fire HD 8.9 8GB
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
Available now now now now (16GB) 2 Nov (Wi-Fi)
? (32GB) mid-Nov (3G/4G)
storage 8GB 16GB, 32GB 16, 32, 64GB 16GB, 32GB 16,32, 64GB
screen size 7in 7in 8.9in 7in 7.85in
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Actual screen area 133.5 sq cm 133.5 sq cm 230.4 sq cm 142.2 sq cm 192 sq cm
CPU speed, 1.2GHz dual-core 1.2GHz dual-core 1.2GHz dual-core 1.3GHz quad-core Dual-core A5 chip
cores
3G? option option N option
Wi-Fi 802.11n dual 802.11n dual 802.11n dual 802.11n 802.11n
antenna antenna antenna
Other wireless LTE in US LTE in US
Front camera "HD", 720p video “HD, 720p video "HD" 720p video 1.2MP HD, 1080p video
Rear camera N N N N 5MP
1080p video
OS version Android 4.0* Android 4.0* Android 4.0* Android 4.1 iOS6
weight 395g 395g 567g 340g 308g
312g (3G/4G)
Connectors Micro-USB Micro-USB Micro-USB Micro-USB Apple
BE 604 –
micro-HDMIMarketing Management
micro-HDMI ”Lightning”
34
Lexicographic - Kindle Fire HD 8.9 Wins!
iPad mini
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
cores
1080p video
weight 395g 395g 567g 340g 308g
312g (3G/4G)
BE 604 –
35
Conjunctive - Kindle Fire HD 8.9 Wins!
iPad mini
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
screen size Min: 7.5in 7in 7in 8.9in 7in 7.85in
screen res Min: 1024 x 1024 1280 1920x 1280 1024
768 x600 x800 1200 x800 x768
screen ratio Min: 16:9 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
cores
1080p video
weight 395g 395g 567g 340g 308g
312g (3G/4G)
BE 604 –
36
Simple Additive - Kindle Fire HD 8.9 Wins!
iPad mini
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Storage 1 2 3 2 3
cores
Screen size 1 1 3 1 2
Wi-Fi
Screen res 802.11n1dual 802.11n
2 dual 802.11n
3 dual 802.11n
2 802.11n
1
Other
Screenwireless
ratio 2 3 LTE 3in US 3 LTE1 in US
Screen ppi 1 2 2 2 1
1080p video
Score 6 10 14 10 8
weight 395g 395g 567g 340g 308g
312g (3G/4G)
BE 604 –
37
Weighted Additive - Kindle Fire HD 8.9 Wins!
iPad mini
US price $159 $199 (16GB) $299-$499 $199 (8GB) $329 (16GB)
$249 (32GB) $249 (16GB) to
screen res 1024 1280 1920x 1280 1024
x600 x800 1200 x800 x768
screen ratio 16:9 16:10 16:10 16:10 4:3
Screen ppi 169 216 254 216 162
Weight
cores
Storage 0.1 1 2 3 2 3
Screen
Wi-Fi 802.11n
0.05 1 dual 802.11n
1 dual 802.11n
3 dual 802.11n
1 802.11n
2
size antenna antenna antenna
Screen
Other wireless0.05 LTE 3in US LTE1in US
1 2 2
res
Screen
0.3 2 3 3 3 1
ratio
Screen 1080p video
0.5 1 2 2 2 1
ppi
weight 395g 395g 567g 340g 308g
Score 1 1.3 2.25 2.5 2.25 1.25
312g (3G/4G)
BE 604 –
38
Our Decision


BE 604 - January 27 2022 Class Deck

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BE 604 – Marketing Management

BE 604 – Marketing Management

BE 604 – Marketing Management

BE 604 – Marketing Management

• Focus is on discovering & satisfying customer needs, creating

• Attract and retain customers profitably (Pillar #3 - Profitability)

• Everyone is involved, having cross-functional coordination (Pillar

BE 604 – Marketing Management

BE 604 – Marketing Management

Individual / Social Purchase

Person Does or Does Not Purchase (Response)

5. Post purchase Behavior

BE 604 – Marketing Management 10

Consumer’s Ideal State

Consumer’s Actual State

Hold Effects Info Search

BE 604 – Marketing Management

No Solution Purchase External Search

BE 604 – Marketing Management

BE 604 – Marketing Management

Personal Non Personal

Commercial Salespersons Advertisement

Non Commercial Friends News

BE 604 – Marketing Management

BE 604 – Marketing Management 18

Why is the consumer

Novice Product knowledge Expert

BE 604 – Marketing Management

• The focal point of consumer

What would make a purchase risky?

BE 604 – Marketing Management

BE 604 – Marketing Management

BE 604 – Marketing Management

BE 604 – Marketing Management

Lexicographic Simple Additive

Conjunctive Weighted Additive

BE 604 – Marketing Management

BE 604 – Marketing Management

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