Ch 4 Flashcards

1
Q

Consumer Decision Process

A

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

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2
Q

Factors affecting consumers’ search processes

A
  • Perceived Benefit vs. Perceived Costs
  • Actual or Perceived Risk
  • Locus of Control
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3
Q

Actual or Perceived Risk

A
  • Performancerisk
  • financial risk
  • social risk
  • physiological risk
  • psychological risk
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4
Q

Alternative Evaluation: Decision Rules

A
  • compensatory
  • decision heuristics
  • noncompensatory
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5
Q

compensatory decision rule

A

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

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6
Q

noncompensatory decision rule

A

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

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7
Q

decision heuristics

A

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

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8
Q

Purchase & Consumption

A

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

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9
Q

Purchase & Consumption Tactics

A
  • Reduce real or virtual abandoned carts
  • Merchandise in stock
  • Reduce the actual wait time
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10
Q

Postpurchase outcomes

A
  • customer satisfaction
  • post purchase dissonance
  • customer loyalty
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11
Q

Customer satisfaction

A

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

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12
Q

Postpurchase cognitive dissonance

A

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

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13
Q

Customer loyalty

A

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

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14
Q

Factors Influencing Consumer Buying decisions

A
  • psychological
  • social
  • situational
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15
Q

Psychological Factors Influencing Consumer Buying decisions

A

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

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16
Q

Social Factors Influencing Consumer Buying decisions

A

family, reference groups & culture

17
Q

Situational Factors Influencing Consumer Buying decisions

A

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

18
Q

Psychological Factors: Motives

A

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).

19
Q

types of buying process/decisions

A

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)

20
Q

Step 1: Need Recognition

A

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

21
Q

Psychological factors: attitude

A

Your evaluation or feeling towards an object or idea

22
Q

Psychological factors: Perception

A

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

23
Q

Psychological factors: learning

A

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

24
Q

Psychological factors: lifestyle

A

way consumers spend their time and money to live