B2C Flashcards
(46 cards)
customer behavior
the study of individuals, groups or organizations and the processes they use to select, secure, use and dispose of porducts… to satisfy needs and the impacts of these processes on customer and society
customer behavior implications
understand of customer behavior enables firms to adapt and improve their campaigns and strategies
and furthermore enables them to reach and satisfy the needs of their customers
- problem recognition:
concept of needs
subjectively perceived deficiancies,
difference between actual and desired state of being
- information search
heightened attention - more open to information about products
information search - more intense searcher who seeks out different sources (reading material, peers, friends, users…)
- information search:
sources of information
personal
commercial
experimental
public
- evaluation of alternatives
achieve a place in customer´s awareness set, evoked set and especially choice set
recognize competitors in choice set
identify customers information sources and evaluate their relative influence
- evaluation of alternatives:
definitions of sets
number of products or brands the customer will become aware of
number of alternatives considered
number of products or brands for which more information is processed
- evaluation of alternatives:
definitions of sets
number of products or brands the customer will become aware of
number of alternatives considered
number of products or brands for which more information is processed
- purchase decision
in some cases a customer may decide not to evaluate each product and/or intervening factors may affect the decision - attitudes of others, unanticipated situational factors -
- post pruchase behavior
confirmation disconfirmation paradigm perception vs expectation delight satisfaction dissatisfaction
- post purchase behavior:
ways to influence
increase performance
influence perception
manage expectations
Decision theory / biases
normative theory - best decision to take (fully informed & rational)
descriptive theory - explains how individuals actually make decisions and takes into account psychological influences and limited information processing capacity
explains irrationality and decision anomalies
decision making:
influencing factors
psychological influences
marketing mix influences
sociocultural influences
situational influences
biases / behavioural effects
framing effect
anchoring effect
endowment effect
status quo bias
framing effect
change in risk preferences depending on how choices are described
anchoring effect
point of reference (influences person towards given value)
in developing their final estimate decision makers adjust the considered anchor but tend to do so insufficiently
endowment effect
demand higher price for item endowed with than oneself would pay for it (overestimation of value / psychological influence)
loss when given up, gain when acquired
status quo bias
tendency of maintaining one´s current (previous) decision
prospect theory definition
descriptive decision theory
describes decision between akternatives that involve risk and probabilities are known
-predicts real life choices
prospect theory concept
two phases of choice process:
early phase of editing
subsequent phase of evaluation
prospect theory assumptions
a) natural reference point
b) function is concave for gains, convex for losses
c) loss function is steeper than gain function
i. e. losses loom larger than gains
editing phase
organize and reformulate available options
coding (define outcomes relative to neutral reference point)
combination (simplifiy prospects by combining probabilities for identical outcomes)
segregation (riskless / risky - decomposition into sure gain and risky prospect)
evaluation phase
individual will choose alternative with highest subjective value (SV)
prospect theory implications / take aways
response of market to offer
how to frame advertising
pricing and adjustment of premium customer is willing to pay
how product´s price s perceived to competition
how new product is positioned
