Flashcards

Number of flashcards in this category: 15.

1.
loyalist buyers
Have some sort of emotional attachment to a brand. Less likely to switch brands. Very good lifetime value.
2.
basic needs (4)
1. esteem - feel good about self
2. control - bring about own outcomes
3. belonging - connect w/ other people, social acceptance
4. meaningfulness - do things that will last, be significant

mktg plays on these: e.g. you can't control your weight due to genes/ fast food but we can help you control it! You don't have control over earthquakes, but insurance can help you feel more in control of it.
3.
evaluation of alternatives
- Can use multi-attribute model to determine how to better serve customers.
- High effort vs. low effort.
4.
consumer decision making process (5)
1. recognize need
2. information search
3. evaluate alternatives
4. decision to pruchase
5. postpurchase behavior (extremely important, links back to all others in cycle)
5.
post purchase decisions
- satisfaction or dissatisfaction: very important
- repeat business is core of making profit
- costs less to keep a customer than to make a new one
- "level" of satisfaction is very subjective, can be based off of performance, value
6.
multi-attribute model
The attitude towards a brand is the weighted sum of:

(importance of an attribute)*(brand's performance in that attribute)
7.
Visa & Mastercard
Mastercard was ahead; Visa had better acceptability but acceptability was not a big factor for customers.

Changed mktg strategy to boost "more widely accepted" model -> as a result, increased importance of acceptability, and made ppl thing Visa was doing better in acceptability.

Able to succeed by bettering self against American Express (limited acceptability) and not really going against Mastercard.
8.
recognition of needs
- Needs are driven by a discrepancy between current state and desired state.
ex. hungry, want food. in school studying, want a good job and happy family.
- Products take a consumer from one state to another.
- Needs can be utiliarian (useful) or psychological (nice car for self esteem)
- mktg pushes the "ideal state" away from current state in order to get people to want smthg.
9.
quantifying satisfaction
Satisfaction or dissatisfaction ONLY occurs when there is a difference between expectations and actual performance.

e.g. Expected really great meal at Le Bec Fin, only moderate. Expected really lousy @ Philly Diner, wasn't too bad.
10.
information search
- internal searches: come from memory, short list of brands that could satisfy need, VERY HIGH CHANGE that final purchase will be from initial consideration set.

So, companies try very hard to make sure brand is well-known and in mind. Build high awareness.

- external search: word of mouth/ ask other people/ look it up on web or in stores
11.
high vs low effort decisions
High: high price item, very important, expensive, think a lot more about it and consider options carefully.

Low: cheap item, not a huge difference between brands, does not require as more consideration.
12.
habitual buyers
Buy a brand out of habit. Can be more easily swayed to change. (Strategic because will then continue to buy that brand; build lifetime value.)
13.
managing expectations
- Don't overpromise, overdeliver. (e.g. shipping with Amazon. Tell will take longer, deliver faster for higher satisfaction.)
14.
heuristics for product selection
"Rules of thumb" people use to choose what to buy.

- price (high vs. low, may believe price correlates with quality)
- habit (stick with something they're familiar with)
- normative (do what others do, go with the #1 brand that more people use)
- more is better (more features, size for value, etc.)
15.
purchase decision cycle (4)
1. use heuristics to determine choice
2. actually buying it
3. using the product
4. outcome: reinforces or doesn't reinforce brand

The last step (positive or negative reinforcement) alters the heuristic used to determine, whether that choice tactic is a good one.

(ex. I used "want to try smthg new" as a choice tactic, it paid off so I'll consider that again OR it failed, I will never try smthg new again.)

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Number of flashcards in this category: 15.
1.	loyalist buyers	Have some sort of emotional attachment to a brand. Less likely to switch brands. Very good lifetime value.
2.	basic needs (4)	1. esteem - feel good about self 2. control - bring about own outcomes 3. belonging - connect w/ other people, social acceptance 4. meaningfulness - do things that will last, be significant mktg plays on these: e.g. you can't control your weight due to genes/ fast food but we can help you control it! You don't have control over earthquakes, but insurance can help you feel more in control of it.
3.	evaluation of alternatives	- Can use multi-attribute model to determine how to better serve customers. - High effort vs. low effort.
4.	consumer decision making process (5)	1. recognize need 2. information search 3. evaluate alternatives 4. decision to pruchase 5. postpurchase behavior (extremely important, links back to all others in cycle)
5.	post purchase decisions	- satisfaction or dissatisfaction: very important - repeat business is core of making profit - costs less to keep a customer than to make a new one - "level" of satisfaction is very subjective, can be based off of performance, value
6.	multi-attribute model	The attitude towards a brand is the weighted sum of: (importance of an attribute)*(brand's performance in that attribute)
7.	Visa & Mastercard	Mastercard was ahead; Visa had better acceptability but acceptability was not a big factor for customers. Changed mktg strategy to boost "more widely accepted" model -> as a result, increased importance of acceptability, and made ppl thing Visa was doing better in acceptability. Able to succeed by bettering self against American Express (limited acceptability) and not really going against Mastercard.
8.	recognition of needs	- Needs are driven by a discrepancy between current state and desired state. ex. hungry, want food. in school studying, want a good job and happy family. - Products take a consumer from one state to another. - Needs can be utiliarian (useful) or psychological (nice car for self esteem) - mktg pushes the "ideal state" away from current state in order to get people to want smthg.
9.	quantifying satisfaction	Satisfaction or dissatisfaction ONLY occurs when there is a difference between expectations and actual performance. e.g. Expected really great meal at Le Bec Fin, only moderate. Expected really lousy @ Philly Diner, wasn't too bad.
10.	information search	- internal searches: come from memory, short list of brands that could satisfy need, VERY HIGH CHANGE that final purchase will be from initial consideration set. So, companies try very hard to make sure brand is well-known and in mind. Build high awareness. - external search: word of mouth/ ask other people/ look it up on web or in stores
11.	high vs low effort decisions	High: high price item, very important, expensive, think a lot more about it and consider options carefully. Low: cheap item, not a huge difference between brands, does not require as more consideration.
12.	habitual buyers	Buy a brand out of habit. Can be more easily swayed to change. (Strategic because will then continue to buy that brand; build lifetime value.)
13.	managing expectations	- Don't overpromise, overdeliver. (e.g. shipping with Amazon. Tell will take longer, deliver faster for higher satisfaction.)
14.	heuristics for product selection	"Rules of thumb" people use to choose what to buy. - price (high vs. low, may believe price correlates with quality) - habit (stick with something they're familiar with) - normative (do what others do, go with the #1 brand that more people use) - more is better (more features, size for value, etc.)
15.	purchase decision cycle (4)	1. use heuristics to determine choice 2. actually buying it 3. using the product 4. outcome: reinforces or doesn't reinforce brand The last step (positive or negative reinforcement) alters the heuristic used to determine, whether that choice tactic is a good one. (ex. I used "want to try smthg new" as a choice tactic, it paid off so I'll consider that again OR it failed, I will never try smthg new again.)