Ch 4

Question 1

Consumer Decision Process

Answer 1

Need recognition -> information search - > alternative evaluation -> purchase decisions -> post purchase

Question 2

Factors affecting consumers’ search processes

Answer 2

• Perceived Benefit vs. Perceived Costs
• Actual or Perceived Risk
• Locus of Control

Question 3

Actual or Perceived Risk

Answer 3

• Performancerisk
• financial risk
• social risk
• physiological risk
• psychological risk

Question 4

Alternative Evaluation: Decision Rules

Answer 4

• compensatory
• decision heuristics
• noncompensatory

Question 5

compensatory decision rule

Answer 5

when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones

Question 6

noncompensatory decision rule

Answer 6

when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.

Question 7

decision heuristics

Answer 7

Mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation

Question 8

Purchase & Consumption

Answer 8

Retailers use the conversion rate to measure how well they convert purchase intentions into actual purchases

Question 9

Purchase & Consumption Tactics

Answer 9

• Reduce real or virtual abandoned carts
• Merchandise in stock
• Reduce the actual wait time

Question 10

Postpurchase outcomes

Answer 10

• customer satisfaction
• post purchase dissonance
• customer loyalty

Question 11

Customer satisfaction

Answer 11

marketers can take the following steps to ensure postpurchase customer satisfaction:

build realistic expectations, demonstrate correct product use, stand behind your product or service, encourage customer feedback, periodically make contact with customers & thank them

Question 12

Postpurchase cognitive dissonance

Answer 12

buyer’s remorse – an internal conflict that arises from an inconsistency between two beliefs, or between beliefs & behaviours

Question 13

Customer loyalty

Answer 13

this develops over time with multiple repeat purchases of the product or brand from the same firm

Question 14

Factors Influencing Consumer Buying decisions

Answer 14

• psychological
• social
• situational

Question 15

Psychological Factors Influencing Consumer Buying decisions

Answer 15

influences internal to the consumer: motives, attitudes, perceptions, learning & lifestyles

Question 16

Social Factors Influencing Consumer Buying decisions

Answer 16

family, reference groups & culture

Question 17

Situational Factors Influencing Consumer Buying decisions

Answer 17

specific purchase situation, a particular shopping situation, & temporal states (the time of day) affect the decision process

Question 18

Psychological Factors: Motives

Answer 18

a need or want that is so strong that it causes the person to seek satisfaction

Maslows hierarchy of needs:
- psychological (food)
- safety (secure employment)
- love (family)
- esteem (confidence)
- self-actualization (personal growth activities).

Question 19

types of buying process/decisions

Answer 19

2 types depending on their level of involvement:

extended problem solving (high-priced, risky, infrequent or highly expressive purchases)

limited problem solving (impulse buying & habitual purchases/decision making)

Question 20

Step 1: Need Recognition

Answer 20

Need both functional and psychological needs

Want to go from needy state to desired state

Create need through reminder advertising, awareness about new products and its capabilities, showing how product could enhance consumers’ image, placing of product

Question 21

Psychological factors: attitude

Answer 21

Your evaluation or feeling towards an object or idea

Question 22

Psychological factors: Perception

Answer 22

process by which we select, organize and interpret information to form meaningful picture of the world

Question 23

Psychological factors: learning

Answer 23

change in person’s thought process or behaviour that arises from experience and takes place throughout the consumer decision process

Question 24

Psychological factors: lifestyle

Answer 24

way consumers spend their time and money to live