What term is used to describe when a customer purchase a product with no planning for forethought?

Definition: Impulsive buying is the tendency of a customer to buy goods and services without planning in advance. When a customer takes such buying decisions at the spur of the moment, it is usually triggered by emotions and feelings.

Description: Impulsive buying can't be categorized for one specific product category. Impulsive buying can be seen in products such as chocolates, clothes, mobile phones and in big-ticket items such as cars, jewellery etc. Impulsive buying means making an unplanned purchase. It is based on an irrational thinking. Marketers try to tap this behavior of customers to boost sales. There is a great likelihood that customers end up making a purchase of products after entering the hypermarket without any actual intent of doing so. Many mobile phone-makers tend to exploit this trait in customers by introducing products which can be an add-on gadget for their mobiles such as fitness bands, watch etc.

9 Questions | Total Attempts: 264

• Describe the components of a situational analysis.  Be certain to explain each step in the process, its purpose, and the type of information collected.

• Four-Fifteen, a small tax preparation firm is considering expanding its services.  Several clients have mentioned that they are inundated with paper. They don't know what documents to keep, for how long or where. One of the staff is suggesting that the firm branch into the home organization business. The principal of this firm has asked you if Four-Fifteen should consider expanding. Your reply unequivocally that the addition of any services needs to be consistent with the firm's mission.  The owner has asked you to submit a proposal for a mission- and vision-building workshop.  You need to explain the process, strategies and people associated with developing a mission and vision.  You also need to elaborate on the benefits associated with developing a mission and vision, and how it will help Four-Fifteen determine the services it should offer going forward.

• When consumers realize there is a difference between their current state and their desired state, they have entered the ______ stage of the buying process.

• Consumer Reports and Epinions.com aid consumers engaged in what step of the buying process?

• Purchasing a product with no planning or forethought is called ____________.

  • High-involvement purchasing

• ________ are temporary conditions that affect how buyers behave.

  • Subliminal advertisements

• Al, the grocery store manager, puts the bread in aisle #1 and the milk next to aisle #10. He is controlling his store's ____ to increase the time his customers spend in the store, which will hopefully translate into increase sales.

• Situational factors that affect people's buying behavior include all of the following EXCEPT _________.

  • The reason for the consumer's purchase

  • The consumer's social situation

  • The consumer's physical situation

• A firm's ___________ states the purpose of the organization and why it exists.

• Organization
• Project Management
• Risk Management

Consumers don’t necessarily go through all the buying stages when they’re considering purchasing product. You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. At yet other times, you skip stages 1 through 3 and buy products on impulse. As Nike would put, you “just do it.” Perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. Purchasing a product with no planning or forethought is called impulse buying.

Impulse buying brings up a concept called level of involvement—that is, how personally important or interested you are in consuming a product. For example, you might see a roll of tape at a check-out stand and remember you need one. Or you might see a bag of chips and realize you’re hungry. These are items you need, but they are low-involvement products. Low-involvement products aren’t necessarily purchased on impulse, although they can be. Low-involvement products are, however, inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them.

Consumers often engage in routine response behavior when they buy low-involvement products—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. If you’re served a Diet Coke at lunchtime, and it’s flat, oh well. It’s not the end of the world.

By contrast, high-involvement products carry a high risk to buyers if they fail, are complex, or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving, where they spend a lot of time comparing the features of the products, prices, warrantees, and so forth.

High-involvement products can cause buyers a great deal of postpurchase dissonance if they are unsure about their purchases. Companies that sell high-involvement products are aware of that postpurchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople are typically utilized to do a lot of customer “hand-holding.”

Limited problem solving falls somewhere in the middle. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a bit more information. The backpack you’re looking to buy is an example. You’re going to spend at least some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or, you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten the decision-making process.

Brand names can be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement product—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brands or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality, buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the makers of high-involvement products can’t become complacent about the value of their brands.

KEY TAKEAWAY

Consumer behavior looks at the many reasons why people buy things and later dispose of them. Consumers go through distinct buying phases when they purchases products: (1) realizing the need or want something, (2) searching for information about the item, (3) evaluating different products, (4) choosing a product and purchasing it, (5) using and evaluating the product after the purchase, and (6) disposing of the product. A consumer’s level of involvement is how interested he or she is in buying and consuming a product. Low-involvement products are usually inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.

REVIEW QUESTIONS

1. What is consumer behavior? Why do companies study it?
2. What stages do people go through in the buying process?
3. How do low-involvement products differ from high-involvement products in terms of the risks their buyers face? Name some products in each category that you’ve recently purchased.

Which is the technique used for effective marketing planning?

The five major marketing control techniques are competitor analysis, customer analysis, testing research, customer feedback and cost analysis.

What are the 4 P's define and what else are they called?

The marketing mix, also known as the four P's of marketing, refers to the four key elements of a marketing strategy: product, price, place and promotion.

What is the term marketing?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. ( Approved 2017)

Are groups of people within organizations who make purchasing decisions?

Buying centers are groups of people within organizations who make purchasing decisions. Large organizations often have permanent departments that consist of the people who, in a sense, shop for a living. They are professional buyers, in other words.