What is the degree to which an innovation appears superior to existing products?

Q: Is the degree to which an innovation fits the values and experiences of potential consumers?

Compatibility – is the degree to which the innovation is perceived as being consistent with existing values, past experiences, and needs of potential adopters.

####### MRKT 3611

Inhaltsverzeichnis Show

Consumer Behavior
Learning Objective 1
Learning Objective 2
Learning Objective 3
Buyer Decision Process
Learning Objective 4
What factor indicates the degree to which the innovation appears superior to existing products?
Is the degree to which the results of using an innovation?
Is the degree to which an innovation fits the values and experiences of potential consumers?
Is the degree to which the results of using an innovation can be observed or described to others group of answer choices?

####### Principles of Marketing

####### Chapter 5

Consumer Markets and Buyer Behaviour

Consumer Behavior

By the end of this chapter students will be able to:

Define the consumer market and construct a simple model of consumer buyer behavior.

1. Name the four major factors that influence consumer buyer behavior and explain key characteristics (as highlighted by for each factor in Figure 5)
1. List and define the major types of buying decision behavior and stages in the buyer decision process.
1. Describe the adoption and diffusion process for new products.

Learning Objective 1

Define the consumer market and construct a simple model of consumer buyer behavior.

Consumer Behavior

Is the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption (So, consumer market).

The world consumer market consists of more than 6. billion people who annually consume an estimated US$ 65 trillion worth of goods and services.

The Arab world’s 22 countries comprise about 5 percent of the world’s population and 3 percent of the world’s GDP.

Learning Objective 2

Name the four major factors that influence consumer buyer behavior and explain key characteristics (as highlighted by for each factor in figure 5)

Characteristics Affecting Consumer Behavior

Marketers cannot control these factors, but they must take them into account!

####### Characteristics Affecting Consumer Behavior

Culture is the set of basic values, perceptions, wants, and behavior learned from family and other important institutions.

Cultural Factors

Characteristics Affecting Consumer Behavior Social Factors Groups and Social Networks

A person’s behavior is influenced by many small groups.
A person makes buying decisions based on what the group might accept.

Membership Groups

Groups with direct influence and to which a person belongs

Aspirational Groups Groups an individual wishes to belong to

Reference Groups

Groups that form a comparison or reference in forming attitudes or behavior

Characteristics Affecting Consumer Behavior

Online social networks are online spaces/communities where people socialize or exchange information and opinions.

Marketers use them to promote their products and build closer customer relationships

Benefits : cost effective , and provide valuable information on consumers responses and reactions. Risks: new and results are hard to measure, and those communities are largely user controlled.

Social Factors

Ch 5 -

Characteristics Affecting Consumer Behavior

Lifestyle is a person’s pattern of living as expressed in his or her psychographics.
It involves measuring consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment.

Personal Factors

Characteristics Affecting Consumer Behavior

Personality refers to the unique psychological characteristics that distinguish a person or group.

Brand Personality Traits

Personal Factors

Sincerity Excitement Competence

Sophistication Ruggedness

Characteristics Affecting Consumer Behavior

Psychological Factors

Motivation

Perception

Learning Objective 3

List and define the major types of buying decision behavior and stages in the buyer decision process.

Buyer Decision Process

The 5-stage process that consumers go through starting with need recognition to how they feel after making a purchase
It starts long before the actual purchase and continues long after
Marketers need to focus on the entire buying process
Depending on the kind of purchase, consumers may skip or reverse some of the stages 19

The Buyer Decision Process

Occurs when the buyer recognizes a problem or need triggered by:

Internal stimuli
External stimuli

Need Recognition

The Buyer Decision Process

The act by the consumer to buy the most preferred brand The purchase decision can be affected by:

Purchase Decision

Attitude of others
Unexpected situational factors

The Buyer Decision Process

The satisfaction or dissatisfaction that the consumer feels about the purchase.
Relationship between:
Consumer’s expectations &
Product’s perceived performance
The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction.

Post-Purchase Decision

The Buyer Decision Process

Cognitive dissonance is the discomfort caused by a post-purchase conflict.

Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value.

Post-Purchase Decision

Learning Objective 4

Describe the adoption and diffusion process for new products.

The Buyer Decision Process for New Products Individual Differences in Innovativeness –Adoption Process People differ greatly in their readiness to try new products and can be classified into the adopter categories shown in Figure 5.

The five

adopter groups

Innovators are venturesome—they try new ideas at some risk.
Early adopters are guided by respect—they are opinion leaders in their communities and adopt new ideas early but carefully.
Early mainstream are deliberate—although they rarely are leaders, they adopt new ideas before the average person.
Late mainstream are skeptical—they adopt an innovation only after a majority of people have tried it.
Lagging adopters are tradition bound they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.

The Adoption Process

Influence of Product Characteristics on Rate of Adoption Five characteristics are especially important in influencing an innovation’s rate of adoption.

Relative advantage Compatibility Complexity

Divisibility Communicability

The Influence of Product Characteristics on Rate of Adoption

Relative advantage : the degree to which the innovation appears superior to existing products.
Compatibility : the degree to which the innovation fits the values and experiences of potential consumers.
Complexity : the degree to which the innovation is difficult to understand or use.
Divisibility : the degree to which the innovation may be tried on a limited basis.
Communicability : the degree to which the results of using the innovation can be observed or described to others.

What factor indicates the degree to which the innovation appears superior to existing products?

Relative advantage: the degree to which the innovation appears superior to existing products.

Is the degree to which the results of using an innovation?

Observability is the extent to which the results or benefit of using an innovation are visible to potential adopters.

Is the degree to which an innovation fits the values and experiences of potential consumers?

Compatibility – is 'the degree to which the innovation is perceived as being consistent with existing values, past experiences, and needs of potential adopters.

Is the degree to which the results of using an innovation can be observed or described to others group of answer choices?

Divisibility : The degree to which the innovation may be tried on a limited basis. Communicability : The degree to which the results of using the innovation can be observed or described to others.