Response to Jackie Cook's Post...

“What was the last product you purchased? Under which category of consumer goods would you classify it as? Explain.”

Let’s see, the last product I purchased was a new phone. This classifies as a consumer product because, as Jackie stated, it satisfied a personal need not a business need. I did not need a new phone for my place of business. I got a new phone because I personally wanted it. This purchase could be classified under 2 of the consumer product categories: shopping and specialty. I did my homework in figuring out which phone I wanted, which phone would meet most of my needs, and what amount I was willing to pay for it. I had no problem spending money on a phone if it met all or most of my requirement; I also put in a great deal of time researching the various brands and models of phones to make sure I got the best possible option for my personal needs. This could all be classified as shopping.

This purchase also fell under the specialty classification. A new phone posed a unique characteristic to me. I also did not have a problem putting in the time, effort, and money to obtain this product; as I previously stated. As Jackie stated, a purchase of a product may fall under several different categories; each product does not have its own classification. For example, a car could fall under a shopping, specialty, and unsought classification all at the same time. Unsought because maybe the persons car broke down (sudden problem) and now they are in need of a new car; whereas before the break down the person did not see the need of looking for a new car. It also falls under the shopping classification because the buyer is willing to put in the effort to research and buy the new car. Last, the specialty classification because once they make a decision they are willing to go to any means necessary to obtain a product. Certain purchases can be classified under certain categories by the needs they meet and how far the consumer is willing to go to meet those needs. A product might meet a certain classification for one person but it could meet an entirely different classification another.

So now I as the same question to you: what was the last product you purchased? Under which category of consumer goods would you classify it as? Explain?

Consumer Buying Decision Process and Consumer Problem Solving Process

The consumer buying decision process consists of 5 stages: problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation. This is a process that people make when they realize there is a problem and they need to address it. This process can be broken off at any point when the consumer decides it is not worth it.

Do you really think we go through this process all the time? I think it all depends on what kind of problem solving response we use. If we use the routinized response-where we don’t have to think much about buying frequent, low cost items-then I feel we can skip through stages of this decision process. For example, we realize we’re out of ketchup. Once we recognize this problem, we go to the store and buy another bottle, skipping over the information search and evaluation of alternatives. This makes purchasing the item easier and eliminates the cognitive dissonance in the postpurchase evaluation. The 2 topics of consumer problem solving process and consumer buying decision process are heavily intertwined. I personally feel in some cases you have to use one in order to finish the other.

For instance, another example would be buying a new car. You would definitely use the extended problem solving process for this because you would want to make sure you’re getting the best deal possible. You would recognize the problem of needing or wanting a new car and start into the information search. This process would be extremely important because you would want to be well educated before spending a lot of money. You would definitely take into account all of the possible influences that affect this process. You would be aware of your physical surrounding; an SUV might be more practical than a Lexus, you would take into account your role and your family; a 6 passenger vehicle would be better for kids than a coupe; and you would also rely on your own perception and motives. Once you figured out what you were looking for you would engage in evaluating alternatives, something that is done in the buying decision process and in extended problem solving. One brand may have more features than another, or a certain brand may have a higher level of safety and customer satisfaction than a leading competitors. Once you eliminated alternatives you then purchase the car (product) and start on the postpurchase evaluation. Depending on the frequency of the item or the amount of money spent, you might run into more cognitive dissonance. You probably wont feel as guilty buying a bottle of ketchup as you might buying a $70,000 Lexus.

Depending on which problem solving process you use, it depends on how in depth your buying decision process is. When you constantly or frequently purchase an item I feel there is no subconscious process, you buy it and go; you don’t think twice about it. But the items that are purchased less frequently or even rarely, you engage in deeper levels of problem solving and buying decision processes.

How do you feel? Do you feel we always engage in the processes whether we know it or not?

Response to Jackie Cook's Post on Consumer-Solving Processes..

“What do you think about these three consumer problem-solving processes? Which one seems the most important to you and which one do you use more frequently?”

I feel people use all three processes-routinized response, limited problem solving, and extended problem solving-some more than others. Routinized response is the most commonly used process. People use this all the time when buying groceries or other household products. If a consumer is comfortable with a product there is no need to second guess it; it becomes routine. I feel I use this process more than the other two. As a college kid, I do not buy cars or laptops on a regular basis. I buy food and beverages, all of which take little or no thought.

I use limited problem solving only when looking to switch brands or a product. I get my information from the internet or family and friends to help me come up with a decision. I may also use this process when buying text books for classes. I may do a little research to see if I can buy the text book cheaper online or in a store. But, this does not happen as often because (as of right now) I am satisfied with all of my current products. Minimal research is needed because items are not as expensive.

More expensive items need the extended problem solving process. When I was deciding on which college to get my education I did months of research; college tours, online research, researching what the college has to offer, etc., etc. When getting ready to spend a large amount of money people want to make sure they make the right choice. If I was to buy a car or invest money, I would do a thorough amount of research to make sure I had an educated decision. This process is not as frequently used as routinized because people do not buy cars as often as they buy groceries.

Which process do you feel you use more?

Overspent Americans

“Overspent Americans” talks about how American lifestyles and spending habits have changed throughout the years. The United States was considered to be, at one point, a “leisure society”; there was even talk of switching to a 4 day work week. Too much time on our hands seemed to be the major problem throughout the states. Then, Americans were trying to “keep up with the Jones’s” or “the Gates’s”. Possessions started to turn into status symbols. Everyone was trying to keep up or one-up their neighbors. Firms took some control over the employees and things started to change. Classes were starting to be grouped by “personal possessions” (depending on who you talked too). American’s now a days face tremendous credit card debt. The documentary determines that some Americans buy items based solely on the brand name or the status it carries in society. Buying items by what you needed changed to buying items by what you wanted. “Living within your means” was soon thrown out the window. Brands and logos were chosen over quality and durability. Things have changed.

I agree with some of the documentary. The documentary states that purchasing certain items can pose as a status symbol to peers or co-workers. The example of SUV’s in cities helps define this. SUV’s are designed with four wheel drive to help get through snow or mud, but people in the cities were starting to buy these vehicles based on the status symbol they carried. People don’t care whether they are more expensive or impractical; they buy them because they are the “it” thing at the time. Another good example was the t-shirt test. Different company labels on the shirts influenced the way people ranked them, even though all three shirts were exactly the same. Jewelry is flaunted as to show you have the money to buy it; a necklace can be seen but figures in a bank account cannot. People buy brands because they were recognizable. Cars, clothes, jewelry, or homes are shown off and flaunted. They are status symbols.

“Work hard, play even harder”. That is what we hear in today’s society. Musicians and actors speak those very words whether on a song or in a movie. Media is a big influence on people today. We see celebrities on television with fancy cars, expensive jewelry, million dollar houses, and fashionable clothes. Like I previously stated, brands of clothing or cars can influence what consumers buy; price doesn’t seem to be a factor. The documentary states that 25% of people with $100,000 of annual income say they do not have the money for basic necessities. When did $100,000 not become enough to provide the basic necessities for your family? I could live off of an income of $100,000. I wonder how many people in that percentage have expensive cars or large houses. “Living within your means” is something that we have gotten away from. We work 50 hours a week and we feel we need to spend money to show that. I can’t be a hypocrite because if I’m working long hours and getting paychecks on a regular basis I’ll buy things I probably don’t need. I might be more willing to entertain the idea to eat out or rent more movies or whatever because I know that money is sitting in my pocket. American’s do not realize how much debt they are actually in, according to the documentary. We all need to determine the difference between needs and wants. Something I feel like I need (a new cell phone) my end up just being a want. I can’t pass judgment because I do some of these things, but I can see where this documentary is coming from.

How do you feel? Do you think this documentary is accurate? Are these issues blown out of proportion? Do we have a spending problem?

Response to Mallory Beam's Post on The John Smith Scenario..

“Do you feel as if John should take the risk and sell the names?”

I agree with you that he should not sell the names. He has a responsibility to live up to the Statement of Ethics provided by the American Marketing Association. He needs to either contact the people he interviewed and let them know he has been asked to share their information or he needs to let them know there is a possibility of sharing the information when he conducts the initial interview. He needs to live up to the ethical standards of honesty, responsibility, trust, respect, and fairness. He needs to respect the privacy of the 2,000 people he interviewed. He needs to be honest with the people he interviewed that he is giving away the information. He also needs to be fair with them and give them the option. Either way he decides to go he needs to take responsibility for his actions.

I feel he shouldn’t sell the names without contacting each and every person he surveyed. Yes it would be costly and very time consuming but it would be the right thing to do; otherwise you might lose future business. Ethically it would be the right thing to do. What do you think?

The John Smith Scenario..

"Should John Smith sell the names? Does the AMA Statement of Ethics address this issue?"

This would be a tough situation for John Smith because he has to make a tough decision: does he break the trust of the people he surveyed and sell the names? Or does he keep their privacy and lay off his own workers? If he breaks the privacy he gets to keep his employees on, but in turn could hurt the people he surveyed and in turn hurt his future business. The American Marketing Association has a Statement of Ethics pertaining to the actions of marketers. The marketers need to think of their actions, as abiding by the ethical standards, when dealing with customers, stakeholders, etc. John Smith is a marketer so yeah I would say the AMA addresses his issue.

I feel he shouldn’t sell the names. Selling off the information without alerting the people he surveyed would be unethical. The AMA Statement of Ethics talks about the “honesty to be forthright in dealing with customers”; if he wants to sell the names he should be honest and upfront with the 2,000 people. The Statement of Ethics also talks about the ethical norm of “Do Not Harm”. John would have to think about the people he could potentially be harming. Yes, some people might not care if they get contacted by the car dealership but some of the people might be hurt. If John told them he could ensure their privacy and he was only using their information for his benefit, and then he sold it off to a dealership, it could hurt some people. Then he would have to take responsibility for his actions (he has to take responsibility for all of his actions anyways), another point the AMA addresses.

I think if he really feels the pressure to earn the $8,000, he could call up the people he surveyed and get permission to give up their information. That process would be extremely time consuming but it would also be ethical. He would be honest with the 2,000 people by taking responsibility and hoping to cause little to no harm. I feel he shouldn’t sell off the names without abiding by that process; if it’s too time consuming for him and not worth it, then forget about the $8,000. What do you think? Should he sell off the names for his workers? Is it ethical?

Response to Sarah Hall's Post on The Articles..

"What is better for companies, direct mail, or electronic?"

I feel there are benefits to using electronic and direct mail. Electronic mail allows companies to contact a large group of people at a relatively cheap cost. It also allows you to access information and change information in a matter of minutes, compared to direct mail. Technology is of the present and email is a popular way to keep in touch and to keep updated. Kids now a days have email accounts to keep in touch instead of sending letters via Postal Mail. But a downside to electronic mail is that customers can instantly delete it without reading it and without giving it a second thought. Another downside is that emails can get annoying; spam and fraudulent emails filling up your inbox can take away from the important messages.

Direct mail gives a sense of personalization though. Receiving postcards in the mail addressed specifically to the customer can make the customer feel important and appreciated. Yes, envelopes, postcards, and postage stamps can be expensive but it can also leave a lasting impression on the recipient. I can say from experience that I will be more willing to do business with a company if I receive a letter in the mail alerting me of promotions, sales, or new arriving items. Also, direct mail has to be handled before it is thrown away. Someone will always have to look at the letter before throwing it in the trash; and those brief seconds of handling the mail can sway the customer one way or another. Direct mail will always be around and people will continue to use it. But direct mail has a couple downsides in the sense that it can be expensive and time consuming. The technology of electronic mail is ever changing and will have an effect on direct mail. But like I stated already, most people will have an apartment or home and attached to that is a mailing address; postal mail is never going away.

I don’t feel that electronic mail is better than direct mail and vice versa. Both have advantages and downsides to what they do for a company and a customer. I think companies should use both systems; alert someone in emails of sales and promotions while mailing customers to let them know of their importance to the company. If companies can find a balance in both mailing systems, I think it would be extremely helpful.