Chapter 6 - Consumer Behavior

Question 1

As a purchaser, you can become involved through

Answer 1

advertisement, product, purchase decision

Question 2

5 perceived risks for consumers

Answer 2

1) Functional risk - what am I giving up for this product?
2) Financial risk - How much money is at stake?
3) Social Risk - How could my self-esteem or confidence be impacted? How will others perceive my purchase?
4) Physical Risk - What is the potential physical danger?
5) Psychological Risk - How will this make me look to others and affect my image?

Question 3

Ways to increase viewer involvement?

Answer 3

1) use novel stimuli
2) use prominent stimuli
3) include celebrity endorsers
4) provide value that viewers will appreciate
5) create spectacle where message is entertainment

Question 4

3 types of decision making

Answer 4

1) cognititve
2) habitual
3) affective

Question 5

Cognitive decision process (different stages)

Answer 5

1) Problem recognition - when functional (performance of product) and psychological needs (consumer gratification of product) are not being met
2) Information Search - process of surveying environment for data to make a decision
3) Evaluate alternatives
4) Product choice
5) post-purchase evaluation - determines whether product meets or exceeds expectations
6) Disposal - trash. recycle, resell, repurpose

Question 6

Need recognition vs opportunity recognition

Answer 6

need - actual state declines
opportunity - ideal state moves upwards

Question 7

Internal vs External locus of control

Answer 7

more search activities (YOU make things happen)
vs
facte/external factors (things happen to YOU)

Question 8

What is mental accounting?

Answer 8

• we are influenced by way problem is posed
• try to limit amount of thinking

Question 9

Heuristic

Answer 9

rules of thumb to help make decisions easier and quicker to make

Question 10

Evoked set vs consideration set

Answer 10

all of alternatives consumer knows about vs alternatives consumers actively consider

Question 11

What is the multi-attribute model of choice?

Answer 11

• more than 1 factor is important when making decisions
• each factor contributes a certain amount to decision making process

Question 12

What is habitual decision-making?

Answer 12

the decisions consumers make with little or no
conscious effort

Question 13

2 types of habitual decision making

Answer 13

1) heuristic - Mental rules of thumb that consumers use to make decision-making quicker and easier
2) ethnocentrism - The tendency to prefer products from one’s own country than those from other countries or cultures

Question 14

Factors that influence consumer decicion process

Answer 14

• Marketing mix (4 P’s)
• psychological factors (attitudes, lifestyle)
• social factors (family, culture)
• situational factors (purchase/shopping situation)