HONB Reflection Week 2
HONB 200-02 Marketing Concepts
Weekly Reflection 01/28/2018
When it becomes time for a consumer to purchase a new product, they follow the Consumer Buying Process. Depending on the potential cost or risk of the upcoming purchase, the time spent on each step varies dramatically. Step 1 is Problem Recognition. In this step the consumer realizes that there is a problem that needs to be solved for them. Step 2 is Information Search. Here a consumer identifies all possible solutions to their problem. Step 3 is Evaluation of Alternatives where the pros and cons of each identified option are weighed. Step 4 is Purchase Decision where one chooses and buys the "best" option for them. Finally Step 5 is Post-Purchase Behavior where a consumer evaluates the option they purchased. If the purchase was considered to be poor then there may be buyer's remorse. When one buys a soft drink from a vending machine, one does not typically think about Steps 2 and 3 but rather skips to Step 4 because of pre-existing preference. On the other hand, if the purchase was a new car or even choosing a college, there is a great deal of time and involvement. These are long term financial decisions that will affect life for years to come. When the Consumer Buying Purchase is applied in a B2B transaction, there is often a much greater deal of involvement than in a B2C transaction. Often times there are several people who need to approve the purchase, the person who expressed the need for the purchase might not even be the one searching, or there could be existing preference towards certain companies.
Most people do not spend a great deal of time deciding what drink they want to purchase. This is due to existing preference and bias towards certain brands or products. Personally most times I purchase a soda it is a Sprite. It is my drink of choice due to familiarity with the product. I've had it many times before, I know what it tastes like, and I like Coca-Cola in general. My purchase behavior here is an example of Habitual Buying Behavior. Habitual Buying Behavior refers to situations where consumers spend little to no time deciding on their purchase because the item is perceived as a commodity. The consumer here relies on familiarity with brands to influence their decision. Sometimes though, when I am at the vending machine, I want to change things up and get either a Coke or orange soda or even a soda I never usually get. This is an an example of Variety Seeking Buying Behavior. This type of behavior refers to consumer purchases where there is little consumer involvement as well as significant differences between brands or products. Some people will like to switch what they purchase perhaps out of boredom because the risk of a bad decision here is very minimal and the upside can potentially be higher than sticking with their typical product of choice. The last form of buying behavior is called Complex Buying Behavior. This behavior refers to consumer purchases with high level of involvement due to the risk involved. This can include computers, cars, homes, or any other purchase that will affect the consumer for several years.
A third concept taught in the previous week is understanding influences on consumers. One influence is personal circumstance. Financial well being is a major factor here because it determines whether the consumer needs to focus money on necessary payments such as for food or if there is an excess of money so they can buy products for utility. Social circumstance also plays a role in decision making. Every individual belongs to different social groups and will often succumb to peer pressure or openly attempt to conform by buying products that the group members purchase. People will also look at what their role models are either using or sponsoring as a way to make decisions on what products to purchase. Finally, one might look at market circumstances to look at economy, laws, tech, and competition in the market. In my Economics class, we use market circumstance as the basis for our most fundamental concepts known as demand. If the price for new cars is lowered then more people will be willing and able to purchase a new car. But on the other hand, if the price of a car doubles, then those able and willing to purchase a car will be dramatically lower than those who could at current market price thus influencing who will purchase the car.
One thing I would like to learn more about is how companies exploit the idea of Variety Seeking Buying Behavior. Do they do this exclusively through flashing packaging and labels or are there other common methods?
Weekly Reflection 01/28/2018
When it becomes time for a consumer to purchase a new product, they follow the Consumer Buying Process. Depending on the potential cost or risk of the upcoming purchase, the time spent on each step varies dramatically. Step 1 is Problem Recognition. In this step the consumer realizes that there is a problem that needs to be solved for them. Step 2 is Information Search. Here a consumer identifies all possible solutions to their problem. Step 3 is Evaluation of Alternatives where the pros and cons of each identified option are weighed. Step 4 is Purchase Decision where one chooses and buys the "best" option for them. Finally Step 5 is Post-Purchase Behavior where a consumer evaluates the option they purchased. If the purchase was considered to be poor then there may be buyer's remorse. When one buys a soft drink from a vending machine, one does not typically think about Steps 2 and 3 but rather skips to Step 4 because of pre-existing preference. On the other hand, if the purchase was a new car or even choosing a college, there is a great deal of time and involvement. These are long term financial decisions that will affect life for years to come. When the Consumer Buying Purchase is applied in a B2B transaction, there is often a much greater deal of involvement than in a B2C transaction. Often times there are several people who need to approve the purchase, the person who expressed the need for the purchase might not even be the one searching, or there could be existing preference towards certain companies.
Most people do not spend a great deal of time deciding what drink they want to purchase. This is due to existing preference and bias towards certain brands or products. Personally most times I purchase a soda it is a Sprite. It is my drink of choice due to familiarity with the product. I've had it many times before, I know what it tastes like, and I like Coca-Cola in general. My purchase behavior here is an example of Habitual Buying Behavior. Habitual Buying Behavior refers to situations where consumers spend little to no time deciding on their purchase because the item is perceived as a commodity. The consumer here relies on familiarity with brands to influence their decision. Sometimes though, when I am at the vending machine, I want to change things up and get either a Coke or orange soda or even a soda I never usually get. This is an an example of Variety Seeking Buying Behavior. This type of behavior refers to consumer purchases where there is little consumer involvement as well as significant differences between brands or products. Some people will like to switch what they purchase perhaps out of boredom because the risk of a bad decision here is very minimal and the upside can potentially be higher than sticking with their typical product of choice. The last form of buying behavior is called Complex Buying Behavior. This behavior refers to consumer purchases with high level of involvement due to the risk involved. This can include computers, cars, homes, or any other purchase that will affect the consumer for several years.
A third concept taught in the previous week is understanding influences on consumers. One influence is personal circumstance. Financial well being is a major factor here because it determines whether the consumer needs to focus money on necessary payments such as for food or if there is an excess of money so they can buy products for utility. Social circumstance also plays a role in decision making. Every individual belongs to different social groups and will often succumb to peer pressure or openly attempt to conform by buying products that the group members purchase. People will also look at what their role models are either using or sponsoring as a way to make decisions on what products to purchase. Finally, one might look at market circumstances to look at economy, laws, tech, and competition in the market. In my Economics class, we use market circumstance as the basis for our most fundamental concepts known as demand. If the price for new cars is lowered then more people will be willing and able to purchase a new car. But on the other hand, if the price of a car doubles, then those able and willing to purchase a car will be dramatically lower than those who could at current market price thus influencing who will purchase the car.
One thing I would like to learn more about is how companies exploit the idea of Variety Seeking Buying Behavior. Do they do this exclusively through flashing packaging and labels or are there other common methods?
Good reflection. Identified important concepts. What about the smart project. How does that fit into your learning from last week? How important is understanding the concept of value?
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