Discussion Board Answer Response

Assignment: Read the discussion questions and answers below and write a written response (at least half page, single space for each answer) by working in the textbook pdfs (see attachments labeled pg 172-178 and pg 258-259, be sure to use them as references at least once in each of your responses).  If you need to see a student example (do not use this answer, this is just for reference) of a response to a discussion post by another student, see attachment that’s labeled “Response Post”.

Question 1:  Discuss the five stages of the Buying Decision Process by applying them to an example of a recent or important purchase that you have made as a consumer.

Answer: In today’s economy, consumers have more power than ever over the goods and services they purchase.  With modern technology as advanced as it is, consumers have the ability to price out items and find deals at the drop of a hat.  These advancements have led to less impulse purchases and we as consumers are placing more thought into what we are consuming.  According to the Wall Street Journal (2014), “customers are now browsing online first and then coming into stores on a mission.  Shoppers who once spent two hours at a women’s apparel retailer are down to 45 minutes.”  These changes have led to a much more extensive Buying Decision Process.  According to Kotler and Keller (2015), “Consumers don’t always pass through all five stages – they may skip or reverse some” (P195).  However, when making larger purchases and even some smaller purchases many times consumers will use a 5 stage model as I did when looking for a new home. 

Stage 1- Problem Recognition: In February of this year, my current lease was up at the apartment that I was renting.  The problem in that situation was evident that I needed to either find a new place to live, or renew my lease with the current apartment complex even though they were requesting a significant “inflation adjustment” in order to live there again. According to the Wolters World video, I clearly had a functional problem and needed to serve a purpose, finding a place to live.

Stage 2 – Information Search: The second stage of the buying decision process is to seek out information.  This information can come from a variety of sources.  According to Kotler and Keller (2015), there are 4 major sources of which consumers with turn to for information.  The four sources include: personal sources, commercial sources, public sources, and experiential sources.  I used multiple sources when looking for a place to live because I was concerned about price, location, the condition of my residence, previous tenants that have lived on the property and other pertinent information that must be taken into account when looking for a place to live.  I asked other personal friends and family how they found homes in the area that I was searching.  I also went to the public and used an agent to help find and narrow down some location for my next home.  This was a major decision that I was about to make so I wanted to make sure that I searched reasonably for information.  

Stage 3 – Evaluation of Alternatives: The third step in the process is to evaluate your alternatives.  I needed to look at all of my different options and prior to purchasing and make sure that I had done my due diligence.  I did have slight brand loyalty to the complex that I was already at. The apartment was nice, the living conditions were great, I really enjoyed the location but I was frustrated with the price increase.  I was also looking at a few houses because I wanted more space to live in, a yard and to not have to deal with constantly being able to hear people around me.  In doing so, I compared my choices using multiple determinant attributes, (Woltersworld 2012). 

Stage 4 – Purchase Decision: In the previous stage, I had to determine my most preferred living area and prepare for the purchase stage.  Throughout the Buying Decision process, it was imperative that I evaluate all of my options, not make an impulse decision and find the location that was right for me.  I eventually settled on a house in the Buckhead area, called up the real estate agent and went to sign the lease and finally paid my deposit and made the transaction. 

Stage 5 – Post Purchase Behavior: The fifth and final stage in the buying process is the post purchase behavior.  Companies strive to give customers the maximum amount of customer satisfaction so that they will consider them and use them in the future for their purchases.  In my specific situation, I was ecstatic and still am at the location, size and features of the house that I am in. I had a few moments of dissatisfaction because of how old the house is.   There were a few appliances that I had difficulty with.  The AC unit was old and had not been tended to in a while and this caused for a significant power bill one month.  Other than that, I have been extremely happy with my purchase.  

Each step of the purchasing process is extremely important for a customer to make the right decision.  As I mentioned previously, I believe that the 5 stages are now more relevant than ever and companies must continue to improve in order to meet customer demands.   

Question 2:  Discuss the VALSTM approach to Psychographic segmentation. Take the VALS Survey and discuss your results. Do you agree with your survey results and why/why not?

Answer: Psychographic segmentation uses psychology and demographics to better understand customers (Kotler&Keller, 2016).  Companies are able to divide consumers into different groups in order to attack their target market in the most efficient and profitable way.  The VALs framework that is discussed by Kotler and Keller stands for values, attitude, and lifestyle.  The VALs approach classifies US adults into eight primary groups: innovators, thinkers, achievers, experiencers, believers, strivers, makers and survivors.  These different groups are divided up from the dimensions that a consumer exhibits, primarily consumer motivation or consumer resources and according to Kotler and Keller, the primary motivators are ideals, achievement and self-expression. 

Vals results- My results showed that I am primarily an experiencer and my secondarily and achiever.  As an experiencer, I have access to high resources and self-expression motivation.  I fall into a category that loves physical activity, goes against the mainstream, sees myself as very sociable and have a heightened sense of visualization.  According to the text, those with self-expression motivation also desire activity, variety and risk.  Achievers are goal oriented, hardworking, scheduled, and put myself first. 

I am mixed with my results. I agree with certain sections of my segment, but do not agree entirely as I imagine is pretty common.  I do agree that I am sociable, love physical activity and tend to go against the mainstream.  However, I absolutely do not think I am up on the latest fashions, nor have I ever been too concerned with my attire.  I tend to wish that I was more spontaneous but in many instances I find myself being somewhat reserved.  I also believe that I share many of the same characteristics of innovators in that I am constantly wanting to learn, am future oriented and thoroughly enjoy problem solving.