Lecture Unit 9: Pre-purchase, purchase and post-ppurchase proces (2/3)

Question 1

What are noncompensatory evaluation strategies?

Answer 1

= a product’s weakness on one attribute cannot be offset by strong performance on another attribute

Question 2

What is the Lexicographic strategy?

Answer 2

• Brands are compared based on the most important attribute
• The brand that scores highest on this attribute is chosen
• If multiple brands score equally, the comparison moves to the second most important attribute,
• and so on, until a winner is identified.

Question 3

What distinguishes the elimination by aspects strategy from the lexicographic strategy?

Answer 3

• Similar to the lexicographic strategy, brands are compared on key attributes one at a time
• However, the consumer sets a cutoff point for each attribute
• Brands that **do not meet **the cutoff for any attribute are immediately eliminated from consideratio

Question 4

How does the conjunctive strategy work in selecting brands?

Answer 4

• Each brand is compared, one at a time, against a predefined set of minimum acceptable standards for each salient attribute
• A brand must meet or exceed all the established cutoffs for all attributes to be chosen

Question 5

What are compensatory evaluation strategies in consumer decision-making?

Answer 5

• a perceived weakness in one attribute of a product can be offset by a strong performance in another

Question 6

What is the simple additive strategy in consumer decision-making? (Compensatory evaluation strategies)

Answer 6

• the consumer evaluates each alternative based on a set of salient evaluative criteria
• They count or add the number of times each alternative is judged favorably across these criteria
• The alternative with the** highest total** number of favorable judgments is chosen

Question 7

What is the weighted additive strategy in consumer decision-making? (Compensatory evaluation strategies?

Answer 7

• Judgments about an alternative’s performance on each attribute are weighted according to the importance of that attribute
• The alternative that scores the highest when all weighted scores are summed up is chosen

Question 8

Why do consumers often struggle to determine the best alternative for themselves?

Answer 8

• Consumers often face difficulties in decision-making
• because they may not have the capability or the necessary information to accurately evaluate all available choice alternatives.
• This limitation can lead to suboptimal choices

Question 9

How do consumers use signals in decision-making, and what are the risks?

Answer 9

• tend to rely on signals such as price, brand name, warranty, and packaging to infer product quality
• these signals may not always be accurate indicators of actual quality, leading to potential misjudgments

Question 10

What do consumers decide in the purchase process?

Answer 10

• Whether to buy
• When to buy
• What to buy (product type/brand)
• Where to buy
• How to pay

–>Consumers Make

• A fully planned purchase
• A partially planned purchase
• An unplanned purchase

Question 11

What is a fully planned purchase?

Answer 11

Fully planned: both the product and brand are chosen in advance

• Purchase planning is more likely to occur when product involvement is high with purchase affected by in-store factors and marketing efforts

Question 12

What is a partially planned purchase?

Answer 12

Partially Planned: intent to buy the product exists, but brand choice is deferred until shopping

• When involvement is low, consumers resort to buying a brand they know and like but may also be influenced by price reductions or special displays

Question 13

What is a unplanned purchase?

Answer 13

Unplanned: both the product and brand are chosen at the point of sale

• In-store influences can guide product and brand choices made by consumers
• reminding them of a need and triggering a purchase

Question 14

What is the purchase factor?

Answer 14

• When and if purchase occurs is affected by timing factors
• Timing also affects the price and the liklihood of a purchase
• When making a purchase, consumers must also decide how to pay - cash, checks, or plastic

Question 15

What is important to consider for the retail image?

Answer 15

• Consumers rely on their overall perception of a store (store image)
• Involves both functional and emotional attributes
• The perceived level of crowding within the store may also affect shopping behavior, reducing shopping for some consumers while appealing to other segments

Question 16

What are determinants of retailer sucess?

Answer 16

• Location
• Price
• Physical store attributes
• Consumer logistics
• Advertising and promotion
• Nature and quality of assortment
• Sales personnel
• Service offered
• Nature of store clientele
• Point of purchase displays

Question 17

Determinants of retailer sucess:
What is important to consider about the location?

Answer 17

• Perceived in terms of time and hassle in addition to actual distance
• Cognitive maps or consumer perceptions of store locations and shopping areas are more important than actual location
• Consumers generally overestimate both actual distance and time

Question 18

Determinants of retailer sucess:
What is important to consider about the nature and quality of assortment?

Answer 18

• Depth, breadth, and quality of assortment
• Specialty stores
• Mass merchandisers
• Department stores
• Value merchants

Question 19

Determinants of retailer sucess:
What is important to consider about the price?

Answer 19

• Price as a determinant of store patronage varies by type of product
• The importance of price depends on the nature of the buyer
• Consumers’ perception of price is usually more important than the actual price
• Consumers ultimately rely on their overall image of the retailer to filter the effects of price advertising

Question 20

Price promotions effect?

Answer 20

Effects of price promotions on:
- Building store patronage
- Demand for different brands
- Short-term buying behavior
- Long-term buying behavior

Question 21

Determinants of retailer sucess:
What is important to consider about the advertising and promotion? (Image vs. information advertising)

Answer 21

Image advertising:
- Visual components and words that
help consumers form an expectation about their experience in the store

• and about what kinds of consumers will be satisfied with the store’s experience

Information advertising:
- Details provided about products, prices, hours of operation, locations
- and other attributes that might influence purchase decisions

Question 22

Determinants of retailer sucess:
sales personnel: What makes them effective?

Answer 22

= Salespeople are important when choosing a store or shopping center

What makes a salesperson effective?
- Perceived knowledge and expertise
- Perceived trustworthiness
- Customer knowledge
- Adaptability
- Recruiting, training, and motivating

Question 23

Determinants of retailer sucess:
What is important to consider about the service offered?

Answer 23

• Varies depending on the type of outlet and consumer expectations
• Includes such considerations as self-service facilities, ease of merchandise return, delivery, credit, and overall good service

Question 24

Determinants of retailer sucess:
What is important to consider about the Physical store attributes?

Answer 24

• The physical properties of the retail environment designed to create an effect on consumer purchases are referred to as store atmospherics
• Can help shape the direction and duration of consumer attention, express the store’s character or elicit particular emotional reactions

Question 25

Determinants of retailer sucess:
What is important to consider about the Nature of store clientele?

Answer 25

• The type of people who shop in a store affects consumer purchase intention because of the tendency to match one’s self-image with that of the store
• Some customers may be attracted to or repelled from a store due to their perception of the store’s clientele

Question 26

Determinants of retailer sucess:
What is important to consider about the Point-of-sales displays?

Answer 26

POP displays and signs can increase the odds of capturing attention and stimulating purchase
* * Digital POP
* * Computer Enhanced Merchandising
* * Digital Self-Service

Question 27

What is the advantages of POP displays?

Answer 27

• Inexpensive compared to other forms of promotion
• They reach people where they buy the products
• They add atmosphere to retail stores

Question 28

Determinants of retailer sucess:
What is important to consider about the Consumer logistics?

Answer 28

• The speed and ease with which consumers move through the retail and shopping process: Preparation to shop + Arriving at the store + Entering the store + Movement through the store + Checkout + Travel home and home-warehousing + Inventory stockouts (which prompt repurchase)
• The purchase process is facilitated, positively or negatively, by consumer logistics
• What consumers expect and demand from a purchase situation changes depending on what type of store they are visiting

Question 29

What do people spend when they make a purchase?

Answer 29

• Money
• Tiime
• attention

Question 30

What is the concept of time budgets?

Answer 30

• People have “unlimited” money budgets: have potential to earn as much money as they want
• People have limited time budgets: maximum of 24 hours per day
• How consumers allocate their time depends on their timestyles

Question 31

What are timestyles?

Answer 31

= determine how consumers allocate their time

As people work and make more money, leisure time decreases leading to an increased value of time

Question 32

What is discretionary time?

Answer 32

leisure time when individuals feel no
sense of economic, legal, moral, social or physical
compulsion or obligation

Question 33

What is nondiscretionary time?

Answer 33

= : includes physical obligations, social
obligations and moral obligations

Question 34

What are time-using goods?

Answer 34

• Goods that require time to use, such as television, skiing, fishing, golfing and playing tennis
• As consumer have less leisure time, they are often willing to spend more money on the precious time they do have (travel, extreme sports and eating out)

Question 35

What are time-saving goods?

Answer 35

• Goods and services that gain leisure time by decreasing nondiscretionary time expenditures
• Housecleaning services or dishwashers and microwave ovens free up time to spend on leisure or other activities
• Some firms position products with time-saving benefit

Question 36

What is polychromic time use?

Answer 36

Involves combining activities simultaneously

This trend has given rise to products:
- cellular phones (talk and walk or drive)
- online radio services (listen to music while working on computers)
- beepers for dental patients (wait for appointments and shop)
- prepared meals (shop for groceries and buy completed dinner at same store)

Question 37

What is time price?

Answer 37

• Products have economic prices as well as time prices
• How much time it takes to shop for, install or use a product
• Firms sometimes use time prices in their ads (only takes 2 hours to install or 10 seconds for quick-dry paint)