MODEL OF CONSUMER DECESION MAKING

This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice!) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favourite hamburger would recognise the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. The buying process starts with need recognition. At this stage, the buyer recognises a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins.

A customer can obtain information from several sources: Personal sources: family, friends, neighbors etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays Public sources: newspapers, radio, television, consumer organizations; specialist magazines Experiential sources: handling, examining, using the product The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal sources more than commercial sources (the influence of word of mouth). The challenge for the marketing team is to identify which information sources are most influential in their target markets. In the evaluation stage, the customer must choose between the alternative brands, products and services. How does the customer use the information obtained?An important determinant of the extent of evaluation is whether the customer feels involved in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. Where a purchase is highly involving, the customer is likely to carry out extensive evaluation. High-involvement purchases include those involving high expenditure or personal risk for example buying a house, a car or making investments. Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes. Why should a marketer need to understand the customer evaluation process? The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations.In high-involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying. The sales force may need to stress the important attributes of the product, the advantages compared with the competition; and maybe even encourage trial or sampling of the product in the hope of securing the sale. Post-purchase evaluation - Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as cognitive dissonance. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the postpurchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.

CONSUMER ACQUIRE KNOWLEDGE

Knowledge is power and for retailers, product knowledge can mean more sales. It is difficult to effectively sell to a consumer if we cannot show how a particular product will address a shopper's needs. Read on to learn some of the benefits of knowing the products you sell. Strengthens Communication SkillsHaving a thorough understanding of the products on the shelves can allow a retailer to use different techniques and methods of presenting the product to customers. Stronger communication skills will allow a salesperson to recognize and adapt a sales presentation for the various types of customers.Boosts EnthusiasmSeeing someone completely enthusiastic about a product is one of the best selling tools. As you generate excitement for the product, you remove any uncertainty the product may not be the best solution for that customer. The easiest way to become enthusiastic is to truly believe in the product.Grows ConfidenceIf a customer isn't fully committed to completing a sale, the difference may simply be the presence (or lack) of confidence a salesperson has towards the product. Becoming educated in the product and its uses will help cement that confidence.Assists in Overcoming ObjectionsObjections made by customers may be struck down with factual information regarding the product. That information usually comes in the form of product knowledge. Being well versed in not only your products, but similar products sold by competitors, allows you to easily counter objections. How to Gain Product Knowledge Marketing Literature Sales Reps Training Sessions Testimonials Role Playing Practical Use

It is important to understand how the product is made, the value of the product, how the product should and can be used, and what products work well together.

TYPES OF KNOWLEDGE
Explicit Knowledge This type of knowledge is formalized and codified, and is sometimes referred to as know-what (Brown & Duguid 1998). It is therefore fairly easy to identify, store, and retrieve (Wellman 2009). This is the type of knowledge most easily handled by KMS, which are very effective at facilitating the storage, retrieval, and modification of documents and texts.

Embedded Knowledge Embedded knowledge refers to the knowledge that is locked in processes, products, culture, routines, artifacts, or structures (Horvath 2000, Gamble & Blackwell 2001). Knowledge is embedded either formally, such as through a management initiative to formalize a certain beneficial routine, or informally as the organization uses and applies the other two knowledge types. Tacit Knowledge (Embodied Knowledge) This type of knowledge was originally defined by Polanyi in 1966. It is sometimes referred to as know-how (Brown & Duguid 1998) and refers to intuitive, hard to define knowledge that is largely experience based.

MARY ROSE BIGORNIA

Concept with Key Terms of activation

13.1 Chemical KineticsA PreviewChemical kinetics encompasses the measurement of reaction rates, the study of the factors affecting these rates, and the determination of the mechanisms by which chemical reactions occur. 13.2 The Meaning of Reaction RateRates of reactions are based on the rate of disappearance of a reactant or formation of a product; typically rates are expressed in concentration per time (M s-1) For the reaction a A c C,

13.3 Measuring Reaction RatesFrom experimental data, the average rate of reaction, the initial rate of reaction (rate at t = 0), and the instantaneous rate of reaction (rate at any specified time) can be determined. In general, these rates differ from one another because reaction rates depend on the concentrations of reactants, which decrease with time.

13.4 The Rate Law of a Chemical ReactionThe rate law for a reaction is Rate = k[A]m[B]n

where A, B, are reactants. The constant k is the rate constant, m is the order of the reaction in A, n is the order in B, and m + n + is the overall order. Values of m, n, must be obtained by experiment. Once established, the rate law can be used to calculate a value of k from known concentrations and an observed rate of reaction. Orders of reaction and rate constants are often determined through the method of initial rates. 13.5 First-Order ReactionsAn integrated rate law relates concentration and time. The integrated rate law for a first-order reaction is ln ([A]t/[A]0) = -kt The rate constant, k, is the negative of the slope of the straight-line graph: ln [A]r versus t.

The half-life (t1/2 of a reaction is the time in which one-half of the reactant initially present is consumed. For a first-order reaction, the half-life is constant: t1/2 = 0.693/k 13.6 Reactions of Other OrdersIn a zero-order reaction, the rate is independent of the concentration of reactant; a graph of reactant concentration as a function of time is a straight line. For a second-order reaction with rate = k[A]2, a plot of 1/[A] versus t yields a straight line. For both zero-order and second-order reactions, the halflife depends on concentration as well as on the value of k. The integrated rate law and half-life expression for a second order reaction are

Key terms & concepts of affects

Key concept: The fatal error with international communication for American technical writers is to adapt the point of view that the United States in the greatest country on earth. Explanation: Designing effective written business communications for readers in other countries requires that you approach the development of international communication documents from various perspectives.

Key Concept: American value individualism is one aspect of American culture that makes it different from many others. Explanation: It is important to understand that in group-valuing (collectivist) cultures, individuals live within tight social networks in which members identify closely with their families and business organization.

Key Concept: The written word is not valued the same in all culture. Explanation: Group-valuing organizations tend to prize oral communication over written communication. Documents prepared in collectivist cultures may not be as explicit or as detailed as they are in individualist cultures, like the United States.

Key Concept: In high-power-distance cultures, employees manage their work according to their superior's specifications, and authoritarian attitudes prevail. Explanation: Hierarchies in organizations are pronounced; the powerful have privileges that the less powerful do not have, and subordinates expect to take orders, age is valued and one is never openly aggressive.

Key Concept: The United States is generally a midlevel power-distance country. Explanation: Because of the emphasis on the responsibility of the individual and the individual's responsibility for his or her destiny, Americans like to be involved in decision making.

Key Concept: The differences between a universalism and a particularist culture areIn a universalism culture, the truth is definable and concise. In a particularist culture, the situation may define its own truth.