Lesson 3 Videos

Question 1

Need Recognition

Answer 1

The difference between consumers’ actual and desired states

The need recognition process centers on the degree of discrepancy between the actual state and desired state

Question 2

Degree of discrepancy

Answer 2

Discrepancy between the desired state and actual state

Below the threshold: No need recognition

At or above the threshold: Need recognition

Question 3

Understanding need recognition may identify a segment with…

Answer 3

…unsatisfied desires

Question 4

Unsatisfied needs help identify new business and…

Answer 4

…product opportunities for the future

Question 5

Analyzing need recognition can reveal…

Answer 5

…existing barriers

Question 6

How Companies Can Activate Need Recognition

Answer 6

Change consumers’ desired state with new products or innovations

Influence how consumers perceive their current state

Generic (primary) need recognition
Selective (secondary) need recognition

Question 7

Generic (primary) need recognition

Answer 7

occurs when companies seek to grow the size of the total market for a product category

Question 8

Generic (primary) need recognition

Answer 8

occurs when companies seek to grow the size of the total market for a product category

Question 9

Selective (secondary) need recognition

Answer 9

the result of stimulating the need for a specific brand within a category

Question 10

Search

Answer 10

The motivated acquisition of knowledge stored in memory or acquisition of information from the environment

Question 11

Internal search

Answer 11

involves scanning and retrieving decision-relevant knowledge stored in memory

Question 12

External search

Answer 12

involves collecting information from the environment

Question 13

What to Search?

Answer 13

Which choice alternatives should the consumer search?

Those choice alternatives that consumers gather information about during pre-purchase search are referred to as the external search set

Depending on the consumer’s experience and the importance of the decision, a considerable amount of effort may be invested into identifying search set members

Consumers must also decide what they wish to learn about each of the set members

Question 14

Consumers are more likely to rely upon the opinions of…

Answer 14

…other individuals than information sources with vested interests in their decisions

Question 15

Other consumers respected for their expertise in a particular product category are referred to as…

Answer 15

…opinion leaders or influentials

Question 16

Particular search words or phrases used by consumers fall into three categories

Answer 16

70% Generic terms; representing product categories

20% Specific retailers; e.g., Best Buy, Home Depot, etc.

10% Specific products; e.g., Canon digital camcorder, HP notebook, etc.

Question 17

Consumers are increasingly turning to _____ for their search needs

Answer 17

the Internet

Question 18

Traditional advtg triggers online searches
The top motivators for starting online search are:

Answer 18

Ads in magazines: 47.2%
Articles: 43.7%
TV ads: 42.8%
Newspaper ads: 42.3%

Question 19

___ Of Consumers Are More Likely To Buy Products From Amazon Than Other E-Commerce Sites Forbes

Answer 19

89%

Question 20

The relationship b/w the amount of pre-purchase search and the level of consumer knowledge is in ht shape of an

Answer 20

upside down parabola

Question 21

How Companies Benefit from Understanding Search

Answer 21

Adjusting the breadth of a product line based on consumers’ willingness to search

Monitoring consumers’ price comparison activities to gauge their price sensitivity

Focus promotions on sources that consumers search most, including individuals that provide information

Monitor search activities to identify new ways to reach and gain customers

Question 22

Pre-purchase Evaluation

Answer 22

The evaluation of choice alternatives

Intertwined with the search process

Question 23

Pre-purchase Evaluation

Forming the Consideration Set

Answer 23

How Companies Can Get Into Consumers’ Consideration Sets

Ask to be in the set

Offer incentives

Modify the product offering

Question 24

Consideration set

Answer 24

alternatives considered during decision making (also known as the evoked set)

Question 25

Pre-purchase Evaluation Deciding How to Evaluate the Choice Alternatives

Answer 25

Rely on preexisting product evaluations stored in memory Construct new evaluations based on information acquired through internal or external search

Question 26

Direct Experience

Answer 26

prior purchase or consumption experiences with product

Question 27

Indirect Experience

Answer 27

experiences or impressions gained second-hand

Question 28

Evaluating Alternatives: The Categorization Process

Answer 28

the evaluation of a choice alternative based on the evaluation of the particular category to which it is assigned. Categories may be general (drinks) or specific (colas) Evaluation of a category can be transferred to a new product assigned to that category ‘Brand extensions’ allow firms to use categorization to their advantage

Question 29

Latent Needs

Answer 29

hidden needs that consumers don't know what they need until you give it to them

Question 30

Evaluating Alternatives: The Piecemeal Process

Answer 30

constructing an evaluation of a choice alternative by considering its advantages & disadvantages along important product dimensions Determine the particular criteria or product dimensions to be used in evaluation Evaluate each considered alternative based on the identified criteria Cutoffs restrictions or requirements for acceptable performance Signals: product attributes used to infer other product attributes (e.g., using high price to infer higher quality, using retail image to infer quality, using packaging, etc.)

Question 31

Constructing New Evaluationsby the Piecemeal Process: Noncompensatory Evaluation Strategies

Answer 31

a product’s weakness on one attribute cannot be offset by strong performance on another attribute -Lexicographic strategy. -Elimination by aspects strategy. -Conjunctive strategy.

Question 32

Lexicographic strategy

Answer 32

brands are compared initially on the most important attribute, and the winner is chosen. If more than one brand is evaluated similarly (close tie) on that attribute, the second most important is considered, and so on, until a winner is identified.

Question 33

Elimination by aspect

Answer 33

similar to the lexicographic strategy; however, the consumer imposes cutoffs. Eg: must be under $20, etc. If only one brand meets the cutoff on the most important attribute it is chosen. If many brands meet the cutoff, then the next most important attribute is evaluated & the process continues until the tie is broken.

Question 34

Compensatory Evaluation Strategies

Answer 34

a perceived weakness of one attribute may be offset or compensated for by the perceived strength of another attribute. Did you notice in the earlier example that poor Brand D despite its “excellent” ratings on 3 attributes was never chosen…this is not the case in Compensatory evaluation. Simple additive Weighted additive

Question 35

Simple additive

Answer 35

the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria. The alternative with the largest number of positive attributes is chosen.

Question 36

Weighted additive

Answer 36

judgments about an alternative’s attribute performance are weighted by the attribute’s importance. The alternative with the best overall performance is chosen.

Question 37

Marketers need to understand evaluation strategies because they affect consumer choice.

Answer 37

- For example if customers use a ‘lexicographic’ strategy with “quality” being the most important attribute - the firm could use advertising campaigns to directly enhance the “quality” perception. - For example in the earlier example if consumers use a ‘conjunctive’ strategy with cutoffs of ‘good’ then improving the brand’s “taste” would be of little value since its “nutrition” rating of ‘poor’ is unacceptable. - Changing the cutoffs is another marketing mechanism for altering choice.

Question 38

Self Positivity Bias

Answer 38

we all have it--when you think your immune to danger