Chapter 4

Question 1

The uncertainty that consumers face when they cannot foresee the consequences of their purchase decisions. Includes functional, physical, financial, psychological, and time risks.

Answer 1

Perceived risk

Question 2

High-risk perceivers who prefer to limit their choices to a few safe alternatives rather than face the consequences of a wrong decision.

Answer 2

Narrow categorizers

Question 3

Low-risk perceivers prefer to choose from a wide range of alternatives because they would rather face the consequences of a wrong decision than limit the number of alternatives from which they choose.

Answer 3

Broad categorizers

Question 4

The process by which a company creates a distinct image and identity for its products, services, or brands in consumers’ minds. The image differentiates the company’s offering from competiton by communicating to the target audience that the product, service or brand fulfills the target consumers’ needs better than alternatives.

Answer 4

Positioning

Question 5

The process by which a company strategically changes the distinct image and identity that its product or brand occupies in consumers’ minds.

Answer 5

Repositioning

Question 6

Constructing a maplike diagram representing consumers’ perceptions of competing brands along relevant product attributes.

Answer 6

Perceptual mapping

Question 7

What three things do perceptual maps show marketers?

Answer 7

1. how consumers perceive their brand in relation to competition.
2. determine the direction for altering undesirable consumers’ perception of their brands.
3. Find gaps, in the form of “un-owned” perceptual positions that represent opportunities for developing new brands or products.