Chapter 6 Flashcards
(52 cards)
What is need recognition?
The beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.
What are wants?
Goods and services that are desired but not necessarily needed
What are functional needs?
Needs that pertain to the performance of a product or service
What are psychological needs?
Needs that pertain to the personal gratification consumers associate with a product or service
What are the steps in the consumer decision process?
1)Need recognition
2) Information search
3) Alternative evaluation
4) Purchase and consumption
5) Post-purchase
What does the consumer decision process represent?
The steps that consumers go through before, during and after making purchases.
What is the difference between functional needs and psychological needs?
Functional needs: pertain to the performance of a product or service. e.g. BMW motorcycle
Psychological needs: pertain to the personal gratification customers associate with a product or service
e.g. Jimmy Choo shoes as a luxury item
Most goods and services seek to satisfy both functional and psychological needs
What is internal search for info?
Occurs when buyer examines their memory and knowledge about the product/service using past experiences
e.g. going to the same restaurants bc you’ve already been there
What is external search for info?
Occurs when buyer seeks info outside their own personal knowledge base to help make the buying decision
e.g. using google, publications, internet
What is the length and intensity of the search of info based on?
perceived benefits vs perceived costs
What are the factors affecting consumers’ search processes?
1) Perceived benefits vs perceived costs of search
2) Locus of control
3) Actual/perceived risk
What is internal locus of control?
When consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities
Tend to work harder to achieve these goals compared to those with external locus of control i.e. doing research
What is external locus of control?
Refers to when consumers believe that fate/other external factors control all outcomes
What are the types of risks associated with purchase decisions?
The higher the risk, the more likely the consumer is to engage in an extended search.
Performance risk:
The perceived danger inherent in a poorly performing product/service
Financial risk: Risk associated with a monetary outlay; includes the initial cost of the purchase as well as the costs of using the item or service. e.g. an expensive piece of clothing
Social risk: The fears that consumers suffer when they worry others might not regard their purchases positively
Physiological/safety risk: The fear of an actual harm should a product not perform properly e.g. a car (can be checked with safety ratings)
Psychological risk: Associated with the way people will feel if the product/service does not convey the right IMAGE
How do attribute sets work?
Look at choice available, using attribute sets
Universal set: all possible choices for a product category
Retrieval sets: brands or stores that can be readily brought forth from memory
Evoked set: alternative brands/stores the consumer states they would consider when making a purchase decision
What is evaluative criteria?
Salient, or important attributes about a particular product. E.g. selling price, fit, materials construction quality, reputation of the brand (for clothing companies)
Ways to evaluate alternatives?
- Attribute sets
- Determinant attributes
- Costumer decision rules
- Choice architecture
What are determinant attributes?
Product/service features important to the buyer and on which competing brands or stores are perceived to differ.
(how to differentiate one brand from another)
What are consumer decision rules?
Set of criteria consumers use consciously/subconsciously to quickly and efficiently select from among several alternatives
Compensatory or non compensatory
Compensatory decision rule: assumes that consumer trades off one characteristic against another, such that good characteristics compensate for bad ones. e.g. buying more expensive cereal bc of a higher rating than the others
Noncompensatory decision rule : Consumer chooses a product based on one characteristic/one subset of a characteristic
What is a multi-attribute model?
A compensatory model of customer decision making based on the notion that consumers see a product as a collection of attributes or characteristics. Uses a weighted average score based on importance of various attributes + performance on those issues
Times score per product by the weight, add them up and see which is the highest total
What is choice architecture?
When evaluating alternatives, the influence that the design of the environment has on how consumers make choices.
E.g. an environment to purchase pulse products like cosmetics in department stores, magazines in supermarkets or in-game upgrades in virtual games
What are impulse products?
Products that are purchased without planning e.g. fragrances and cosmetics in a department store and magazines in supermarkets
What is a nudge?
One element of the choice architecture (environment) that alters behavior in a predictable way, without forbidding other options or significantly changing any economic initiatives e.g. placing magazines at the cashier of a supermarket
What is a default?
Element of choice architecture that deals with a no-action condition by imposing a choice on a person who fails to make a decision/does not actively opt for a different alternative
e.g. Amazon’s subscribe and save option
