Supply And Demand Essay

2524 words - 11 pages

1. Consumers go through five steps when deciding to buy a product or service. Identify and briefly describe these five steps.

1. Need recognition – The consumer decision process begins when consumers recognize when they have an unsatisfied need, and wanting to from their actual needy state to a different, desired state. The greater the difference between these two states, the greater the need. These consumer needs like this can be both functional, psychological, or both. (Grewal & Levy 2013)
2. Search for information – The next step, happens after the consumer acknowledges a need, is to search for information regarding the many options that exist to satisfy the need. The length ...view middle of the document...

Marketers hope to create satisfied customers because they become loyal customers, repeat customers, and spread positive word of mouth, which are quite important to marketers. There are three possible post purchases outcomes, customer satisfaction, post purchase dissonance, and customer loyalty. (Grewal & Levy 2013)

2. Customer satisfaction builds product and brand loyalty. Identify and explain the importance of at least three things a retailer can do to make sure they have satisfied customers after the purchase is made.

1. Demonstrate correct product use. Because improper product use can cause customer dissatisfaction. Marketers should provide product demonstrations to potential customers to reduce the risk of post purchase dissonance (buyer’s remorse) and an unsatisfied customer.

2. Stand behind the product or service by offering money-back guarantees and warranties. Marketers who provide money-back guarantees and product warranties add value to the product or service they are offing to the customer and aid in alleviating risks associated with the consumer decision process and post purchase.
Warranties are used to mitigate the risk of a malfunctioning product or the risk of making a wrong purchase decision regarding misinformation about a product. (Boundless 2014)
A money-back guarantee is a simple guarantee that if a buyer is not satisfied with a product or service, a refund will be made. (Boundless 2014)
3. Encourage customer feedback, which cuts down on negative word of mouth and helps marketers adjust their offerings. Encouraging and acting on consumer feedback allows marketers to tailor and improve products or services to customer’s needs and wants, which lead to satisfied customers and potential customers. Product reviews let potential customers view what satisfied and unsatisfied customers think of the product or service before the purchase and helps with making the decision to buy or not buy.

3. There are many factors that influence a consumer's buying behavior. Identify and describe the three social factors that influence the consumer decision making process. Using a recent or a future purchase of yours, explain how each of these three factors influenced your decision.

The three social factors are:
Family – Families often consider the needs of all the family members when making purchase decision.
Reference groups – An individual uses a reference group as a basis for comparison, regarding beliefs, feels, and behaviors when making purchase decisions.
Culture – The set of values, guiding beliefs, understanding, and ways of doing things shared by members of a society. (Grewal & Levy 2013)
Recently I purchased a washer to replace a broken one. I was influenced by family to make this decision for my family’s well being because my family needs clean clothes. I was influenced by reference groups because I used the internet to research washers and made my decision on a washer using prior...

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