Chapter 9 Flashcards
(10 cards)
What is the first step in the consumer decision-making process?
The first step is problem recognition. This occurs when a consumer recognizes a significant difference between their current state and their desired state.
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Need recognition occurs when a person’s actual state moves downward. For example, your tablet breaks, and you now need a new one.
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Opportunity recognition occurs when a person’s ideal state moves upward. This can occur through advertising, sales promotions, new products, and other marketing efforts that create a desire for something new.
What is the second step in the consumer decision-making process?
The second step is information search, where the consumer gathers data to make a reasonable decision.
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Internal search involves scanning one’s memory for information about product alternatives.
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External search involves getting information from external sources such as advertisements, friends, family, or online reviews.
What is the third step in the consumer decision-making process
The third step is the evaluation of alternatives, where consumers narrow down their choices by comparing the pros and cons of different options.
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Consumers typically have an evoked set of brands they are aware of and would consider buying.
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They may also have an inept set of brands they would not consider and an inert set of brands they are unaware of or indifferent to.
What is the fourth step in the consumer decision-making process?
The fourth step is product choice. This is where the consumer selects a product from their evoked set based on various factors, including:
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Decision rules: These can range from simple heuristics to complex compensatory or non-compensatory rules.
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Perceived risks: Consumers assess the potential risks associated with each option, including financial, functional, physical, social, and psychological risks.
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Evaluative criteria: Consumers use criteria such as price, quality, features, and brand reputation to evaluate alternatives.
What is the final step in the consumer decision-making process?
The final step is post-purchase evaluation. After using the product, the consumer reflects on their satisfaction and whether the product met their expectations. This evaluation can influence future purchase decisions and brand loyalty.
What are the three main types of consumer decisions?
The three main types of consumer decisions are:
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Habitual decision-making: Routine purchases made with little or no conscious effort.
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Limited problem-solving: Decisions that require a moderate amount of effort and information search, often using simple decision rules.
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Extended problem-solving: Complex decisions that involve high risk and require extensive information search and evaluation of alternatives.
What is the difference between internal and external search?
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Internal search involves retrieving information about products from memory. Consumers may recall past experiences with a product or brand, information from previous searches, or general knowledge about the product category. This type of search is typically quick and effortless.
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External search involves gathering information from sources outside of the consumer’s memory, such as advertisements, websites, friends, family, or salespeople. Consumers may engage in external search when they need more information than what is available in their memory, especially for high-involvement purchases or when they perceive a high level of risk.
What are the five types of perceived risk?
Consumers consider various types of risks when making purchase decisions. The five main types of perceived risks are:
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Financial risk: The risk of losing money, such as buying a product that doesn’t work or depreciates quickly.
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Functional risk: The risk that a product will not perform as expected.
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Physical risk: The risk of a product causing harm or injury.
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Social risk: The risk of making a purchase that will lead to social embarrassment or disapproval.
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Psychological risk: The risk that a purchase will negatively impact one’s self-esteem or image.
What is the difference between the evoked set, inert set, and inept set?
Consumers mentally categorize brands they are aware of into different sets during the decision-making process. These sets include:
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Evoked set: Brands that the consumer is aware of and would consider buying.
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Inept set: Brands that the consumer is aware of but would not consider buying because they have negative perceptions of them or because they do not meet their needs.
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Inert set: Brands that the consumer is either unaware of or indifferent to.
How do consumers categorize products?
Consumers organize products into categories based on shared attributes, features, or benefits. This categorization process helps consumers:
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Simplify decision-making: By grouping similar products together, consumers can more easily compare and evaluate alternatives.
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Make inferences about product quality and performance: Consumers often assume that products within the same category will share similar characteristics.
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Reduce information overload: Categorization allows consumers to focus on a smaller set of relevant options rather than having to consider all available products.
This categorization process can influence which brands consumers consider during their decision-making process. Marketers aim to position their products in categories where they will be favorably perceived and to highlight attributes that differentiate them from competitors within that category.
