Test 2 Study Guide Flashcards
Chapter 7-10 (236 cards)
1
Q
Actual state definition
A
Current state; The way things ACTUALLY are.
2
Q
Attribute determinance definition
A
Attribute that is both salient and diagnostic.
3
Q
Confirmation bias definition
A
Tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them, thereby making our judgment or decision more positive than it
should be
4
Q
Consideration (or evoked set) definition
A
The subset of top-of-mind brands evaluated when making a
choice.
5
Q
Diagnostic information definition
A
That which helps us discriminate among objects.
6
Q
External search definition
A
The process of collecting information from outside sources
Examples: magazines, dealers, and ads.
7
Q
Ideal state definition
A
The way we WANT things to be.
8
Q
Inhibition definition
A
The recall of one attribute inhibiting the recall of another.
9
Q
Internal search definition
A
The process of recalling stored information from memory.
10
Q
Ongoing search definition
A
A search that occurs regularly, regardless of whether the consumer is making a choice
11
Q
Online processing definition
A
When a consumer is actively evaluating a brand as they view an ad for it.
12
Q
Prepurchase search definition
A
A search for information that aids a specific acquisition decision.
13
Q
Problem recognition definition
A
The perceived difference between an actual and an ideal state.
14
Q
Salient attribute definition
A
Attribute that is “top of mind” or more important.
15
Q
MAO
A
Motivation
Ability
Opportunity
16
Q
Problem Recognition
A
- Motivates the consumer to action
- Occurs if consumers become aware of a discrepancy between the actual state and the ideal state
- Relates to consumption and disposition as well as to acquisition
17
Q
Where do we get our notion of the ideal state?
A
- Simple expectations, usually based on past experience
- Future goals or aspirations
- Cultural influences and reference groups
- Major changes in personal circumstances
18
Q
What influences our perception of the actual state?
A
- Physical factors (such as a product malfunction)
- Needs (hunger, thirst)
- Creative mindset
- External stimuli
19
Q
How can marketers can help put consumers in a state of problem recognition and motivate them to start the decision process, leading them to acquire, consume, or dispose of a product or service?
A
- Attempt to create a new ideal state
- Try to encourage our dissatisfaction with the actual state
20
Q
How can Marketers target the ideal state?
A
By showing consumers how the product is the
solution to their problems.
21
Q
What are the 3 factors of Internal Search?
A
- The extent of the search
- The nature of the search
- The process by which consumers recall information, feelings, and experiences and enter them into the decision process
22
Q
How can the degree of the Internal Search vary?
A
- The effort consumers devote to internal search depends on their MAO to process information.
- Consumers can engage in active internal search only if the information is
stored in memory. - Consumers can recall information from memory only if they have the
opportunity to do.
23
Q
What kind of information is retrieved from internal search?
A
- Recall of brands
- Recall of attributes
- Recall of evaluations
- Recall of experiences
24
Q
As the size of the set increases, what happens to the consumers’ ability to recall brand information?
A
It decreases.
25
How do consideration sets vary?
Size
Stability
Variety
Preference Dispersion
26
Brand recall is impacted by the following factors:
Prototypicality
Brand familiarity
Goals and usage situations
Brand preference
Retrieval cues
27
Prototypicality explanation
When consumers engage in internal search, they more easily recall brands that are closest to the prototype or that most resemble other category members, making these more likely to be included in the consideration set than brands that are not typical of the category.
28
Brand Familiarity explanation
Well-known brands are more easily recalled during internal search than unfamiliar brands because the memory links associated with these brands tend to be stronger
29
Goals and usage situations explanation
Consumers have goal-derived and usage-specific categories in memory, such as drinks to bring to the beach, and the activation of these categories will determine which brands they recall during the internal search.
30
Brand preference explanation
Brands toward which the consumer has positive attitudes tend to be recalled more easily and tend to be included in the consideration set more often than brands that evoke negative attitudes.
31
Retrieval cues explanation
By strongly associating the brand with a retrieval cue,
marketers can increase the chance that the brand will be included in the consumer’s consideration set.
32
Consumers can often recall some details when they engage in internal search, and the recalled attribute information can strongly influence their brand choices influenced by the following variable factors:
Accessibility or availability
Diagnosticity
Saliance
Vividness
Goals
33
Accessibility or availability explanation
Information that is more accessible or available—having the strongest associative links—is the most likely to be recalled and entered into the decision process.
34
Salience explanation
Research has clearly shown that consumers can recall very salient (prominent) attributes even when their opportunity to process is low. However, for information to be recalled and entered into the decision, it must have attribute determinance, which means the information is both salient and diagnostic.
35
Vividness Explanation
Vivid information is easier to recall than less dramatic
information, but it only tends to influence judgment and decision- making when consumers have not formed a strong prior evaluation, especially one that is negative.
36
Goals Explanation
The consumer’s goals will determine which attribute is
recalled from memory.
37
Because our memory for specific details decays rapidly over time, what do we find easier to remember than specific info?
Overall evaluations or attitudes (i.e., our likes and dislikes) >>>
specific attribute information.
38
What do our evaluations do?
Form strong associative links with the brand.
39
When are evaluations more likely to be recalled?
Evaluations are more likely to be recalled by consumers who are actively evaluating the brand when they are exposed to relevant information.
40
How does internal search involve the recall of experiences from autobiographical memory?
in the form of specific images and their associated effects
41
What type of experiences are more likely to be recalled?
Experiences that are more vivid, salient, or frequent are the most likely to be recalled.
42
How do processing biases affect internal search and decision-making?
Processing biases alter the nature of internal search and can sometimes lead to the recall of information that results in a less-than-optimal judgment or decision.
43
What's Mood?
Consumers engaged in internal search are most likely to recall information, feelings, and experiences that match their mood.
44
What does internal search collect?
* Collect additional information about which brands are available
* Collect details about attributes and benefits associated with brands in the consideration set
- Prepurchase search
- Ongoing search
45
Two major types of external search
- Prepurchase search occurs in response to problem recognition; the goal is to make better purchase decisions.
- Ongoing search results from enduring involvement and occurs continually (independent of problem recognition).
46
Where can consumers acquire information from several external sources?
* Retailer search
* Media and social media search
* Interpersonal search
* Independent search
* Experiential search
47
What info can consumers get from the internet?
* Speed, user control, and two-way communication capability are key elements of website interactivity for conducting online searches.
* Consumers report higher satisfaction and stronger buying intentions when searching and shopping on sites that use an avatar.
* The number of exposures to online ads, the number of websites visited, and the number of pages viewed all have a positive effect on repeat purchasing.
* Online ads can speed up product search by suppressing interest in competing products.
* Consumers tend to employ social media sites when searching for hedonic products, while search engines and third-party reviews are more critical for utilitarian products.
* Analyzing consumers’ buying patterns can improve shopping agents’ recommendations.
48
What can overload lead to?
Reduced decision quality, especially in complex situations, though some research suggests more options don’t always lower choice quality
49
Online community information is not controlled by marketers and is, therefore, seen
as _______ __________?
More Credible
50
What % of consumers changed their mind about buying a good or service after reading a negative review online?
80%
51
What % of consumers changed their mind about buying a good or service after reading a positive review online?
87%
52
When consumers look for EXPERIENCE GOODS, (products that cannot easily be evaluated until after purchase and use)... what do they do?
consumers tend to dig into the details and spend some time on each web page.
53
When consumers look for SEARCH GOODS, (products that can easily be evaluated until after purchase and use)... what do they do?
consumers tend to cast the net wider, searching more
sites but spending less time on each web page
54
What are the 7 (8) Factors that increase our motivation to conduct an external search?
Involvement and perceived risk
Perceived costs and benefits
Consideration set
Relative brand uncertainty
Type of product
Attitudes toward search
Discrepancy of information
55
Involvement and percived risk explanation
Higher situational involvement increases prepurchase search, while enduring involvement leads to ongoing search.
56
Percieved costs and benefits explanation
Consumers search until costs outweigh benefits.
57
Consideration set explanation
More attractive alternatives drive external search, while fewer options reduce it.
58
Relative brand uncertainty explanation
Uncertainty about the best brand increases external search.
59
Type of Product explanation
Hedonic products prompt more search than functional ones due to personal preference uniqueness.
60
Attitudes towards search
Experienced internet users search more enthusiastically, while others see it as just an information tool.
61
Discrepancy of information
Consumers search more when encountering unfamiliar information that doesn’t fit existing knowledge.
62
Consumer’s ability to process information is influenced by four variables.
Consumer knowledge
Cognitive abilities
Consumer affect
Demographics
63
Subjective knowledge definition
The consumer’s perception about what they know relative to what others know.
64
Objective knowledge definition
The actual information stored in memory that can be measured with a formal knowledge test
65
Consumers who have the motivation and ability to search for information must still have what?
The opportunity to process that information before an extensive search can take place.
66
What situations may affect the search process?
o The amount of information
o The information format
o The time available
o The number of items being chosen
67
How does the extent to which consumers search for external information have important implications for marketing strategy?
Marketers should make information easily accessible, highlighting key attributes that differentiate their brand. Segmenting consumers by search activity helps tailor information strategies, while stimulating external search through accessible content enhances engagement.
68
What is the most frequently accessed type of information?
Brand name
69
What is often the focus of consumer search because it tends to bediagnostic and can be used to make inferences about other attributes such as quality and value.
Price
70
Can consumers be just as biased in their search for external information as they are during internal search?
Yes. Consumers can be just as biased in their search for external information as they are during internal search.
71
What do consumers tend to search for in regards to external information?
Consumers tend to search for external information that confirms rather than contradicts their overall beliefs.
72
What can confirmation bias lead to?
Confirmation bias can lead consumers to avoid important information, resulting in a less-than-optimal decision outcome.
73
External Search Steps
Orientation, Evaluation, and Verification.
74
consumer new product process
- Start by searching for information about low-risk, well-known brands
- Then search lesser-known brands
- Then consolidate the information leading to a preference for brands that provide the greatest utility.
75
two major types of processes for external search
Searching by brand: Consumers acquire all the needed information on one brand before moving on to the next.
Searching by attribute: Consumers compare brands in terms of one attribute at a time, such as by price.
76
How do consumers who process by BRAND act during search?
high in uncertainty until the very end of the search process.
77
How do consumers who process by ATTRIBUTE act during search?
gradually reduce their uncertainty.
78
CH.7 Quiz Question 1: Typically, the next step in consumer decision-making after problem recognition is _______.
Internal Information Search
79
CH.7 Quiz Question 2: Claudio has always been interested in computers. He consistently reads computer mmagazines, attends various seminars on computer rechnolofy, and follows developments in teh field through the Internet. In this case, Claudio is engaged in __________.
Ongoing Search
80
CH.7 Quiz Question 3: Which concept refers to the tendency to recall information taht reinforces our overall beliefs rather than contradicting them?
Confirmation Bias
81
CH.7 Quiz Question 4: When Erica runs out of toothpaste, she buys Shonder toothpaste. If that brand is not available Erica purchases Smoshable toothpaste even though the store has other brands or toothpastes that are inexpensive and of good quality. In this scenario, Shonder toothpaste:
Is a part of the evoked set.
82
CH.7 Quiz Question 5: Breanna is an interior designer. Before buying products for interior furnishing, she gathers information about the products manufactured by a company and then moves on to the next company's products. In this scenario, Breanne is:
Searching by brand
83
CH.7 Quiz Question 6: Chloe wants to buy a digital camera. She compares camera of different brands by their picture quality, level of optical zoom, and the availablility of lenses, respectively. In this scenario, Chlor is:
Searching by attribute
84
CH.7 Quiz Question 7: With regard to extenal search, the most frequently accessed type of information - because it is a central node around which other information can be organized in memory - is ________.
Brand Name
85
CH.7 Quiz Question 8: Trae wants to buy furniture for his living room. He does not know much abbout couches, but he knows that the expensive ones are better than the cheaper ones. In this case, the price of couches can be categorized as _________.
Diagnostic Information
86
CH.7 Quiz Question 9: Which of the following is an internal search that involves retrieving information from autobiographical memory in the form of specific images and the effect associated with them?
Recall of Experiences
87
Affective decision-making model definition
The process by which consumers base their decision on
feelings and emotions.
88
Affective forecasting definition
A prediction of how you will feel in the future.
89
Alternative-based strategy definition
Making a noncomparable choice based on an overall evaluation.
90
Anchoring and adjustment process definition
Starting with an initial evaluation and adjusting it with
additional information.
91
Attraction effect definition
When the addition of an inferior brand to a consideration set increases the attractiveness of the dominant brand.
92
Attribute balancing definition
Picking a brand because it scores equally well on certain attributes rather than faring unequally on these attributes
93
Attribute processing definition
Comparing brands, one attribute at a time.
94
Attribute-based strategy definition
Making a noncomparable choice by making abstract representations of comparable attributes.
95
Brand processing definition
Evaluating one brand at a time.
96
Cognitive decision-making model definition
The process by which consumers combine items of information about attributes to reach a decision.
97
Compensatory model definition
A mental cost-benefit analysis model in which negative features can be compensated for by positive ones.
98
Compromise effect definition
When a brand gains share because it is an intermediate rather than an extreme option.
99
Conjunctive model definition
A noncompensatory model that sets minimum cutoffs to reject “bad” options
100
Cutoff level definition
For each attribute, the point at which a brand is rejected with a noncompensatory model.
101
Decision framing definition
The initial reference point or anchor in the decision process.
102
Decision-making definition
Making a selection among options or courses of action
103
Disjunctive model definition
A noncompensatory model that sets acceptable cutoffs to find options that are “good.”
104
Elimination-by-aspects model definition
Similar to the lexicographic model but adds the notion of
acceptable cutoffs
105
Emotional accounting definition
The intensity of positive or negative feelings associated with each mental “account” for saving or spending.
106
Endowment effect definition
When ownership increases the value of an item.
107
Estimation of likelihood definition
Judging how likely it is that something will occur.
108
Extremeness aversion definition
Options that are extreme on some attributes are less attractive than those with a moderate level of those attributes.
109
Imagery definition
Multi-sensory mental representation (image) of a stimulus or an event.
110
Inept set definition
Options that are unacceptable when making a decision.
111
Inert set definition
Options toward which consumers are indifferent.
112
Judgment definition
Evaluation of an object or estimate of likelihood of an outcome or event.
113
Judgment of goodness/badness definition
Evaluating the desirability of something.
114
Lexicographic model definition
A noncompensatory model that compares brands by attributes, one at a time in order of importance.
115
Mental accounting definition
Categorizing spending and saving decisions into “accounts” mentally designated for specific consumption transactions, goals, or situations.
116
Metacognitive experiences definition
How the information is processed beyond the content of the
decision.
117
Multiattribute expectancy-value model definition
A type of brand-based compensatory model.
118
Noncomparable decision definition
The process of making a decision about products or services from different categories
119
Noncompensatory model definition
A simple decision model in which negative information leads to rejection of the option.
120
What are the 2 kinds of Judgement?
High Effort and Low Effort
121
Marketers need to understand judgments about 3 things:
(1) likelihood
(2) goodness or badness
(3) mental and emotional accounting.
122
Judgment is a critical input into the decision process, but do they require a decision?
Nope. Judgments do not require a decision.
123
What are some examples of estimates of likelihood?
if a product breaks down
if others will like it
if it will satisfy our needs
124
Example of Assessment of the likelihood
an ad is truthful
125
What are the judgements of goodness/badness affected by
Attributes of a product
AND
How we feel
126
Mental and emotional accounting will vary from __________ to _____________
consumer to consumer
127
Self-positivity bias explanation
Consumers have a self-positivity bias when making these judgments about the likelihood that bad outcomes will happen.
128
Negativity bias explanation
Consumers with this bias give negative information more
weight than positive information when they are forming judgments.
129
Mood and bias explanation
Mood can serve as the initial anchor for a judgment.
Moods also bias consumers’ judgments by reducing their search for and attention to negative information. Lastly, mood can bias judgments by making consumers overconfident about the judgments they are reaching
130
Prior brand evaluations explanation
Favorable brand name may “block” learning about quality-revealing product attributes that should affect consumers’ judgments.
131
Prior experience
Customers learn from their previous experiences, which can be helpful but may also bias judgments during future decisions.
132
Difficulty of mental calculations explanation
When comparing various prices or discounts, the ease or difficulty of calculating the difference will affect consumers’ judgment of the size of these differences.
133
“Level effect” explanation
This bias occurs when people put more emphasis on the
left-most digit in a number.
134
Acquisition, usage, and disposition all involve what?
Consumer Decision
135
When faced with brands to consider, consumers often first what?
Categorize them.
136
It is critical for a company to get its brand into the consumer’s consideration set. But HOW?
Use brand name repetition for top-of-mind awareness
compare with weaker competitors
boost high-margin sales by introducing a pricier option.
137
Consumers’ determination of which criteria are relevant to a decision and how important each criterion is to their decision are influenced by three factors.
Goals, Time, and Framing
138
Low-level construals definition
specific, concrete elements impacting immediate decisions
139
Hedonic aspects definition
for decision outcomes realized far in the future
140
Cognitive decision-making models can be classified along two major dimensions:
a) whether processing occurs one brand at a time or one attribute at a time
&
(b) whether they are compensatory (bad attributes can be compensated for by good ones) or noncompensatory (a bad attribute eliminates the brand).
141
If most consumers are using a compensatory strategy, switching them to a _____________ may be advantageous.
noncompensatory strategy
142
What is an example of a Multiattribute expectancy-value model:
the theory of reasoned action (TORA)
143
Brand-based compensatory models help marketers understand what???
which alternatives consumers may choose or reject and the beliefs that consumers have about the outcomes or attributes associated with a product.
144
Which models help marketers determine which attributes or outcomes exhibit the greatest differences among brands and use this knowledge to improve and properly position their brand.
- Lexicographic model: A noncompensatory model that compares brands by attributes, one at a time in order of importance
- Elimination-by-aspects model: Similar to the lexicographic model but adds the notion of acceptable cutoffs
145
Research shows that the decisions consumers make also depend on whether the consumer is motivated to __________?
seek gains or to avoid losses
146
Prospect Theory Definition
Losses loom larger than gains for consumers even when
the two outcomes are of the same magnitude
147
Consumers may avoid making decisions to a greater degree when a decision involves ___________??
losses relative to gains
148
Consumers make decisions based on their __________
emotions
149
Brands can be associated with __________ or _____________ _____________, which can be recalled, playing a central role in the decision process.
positive or negative feelings
150
Appraisal theory examines how our emotions are determined by the way that we ____________?
think about or “appraise” the situation.
151
Consumers in high-effort situations face two more key decisions:
- Should they delay the decision or make it right now?
- How can they make a decision when the alternatives cannot be compared?
152
Decision delay occurs if:
* If consumers perceive the decision to be too risky or if it entails an
unpleasant task
* If they have too many attractive choices that are difficult to compare
* In situations where they are fearful (such as health-care decisions)
* If they feel uncertain about how to get product information
153
Consumers typically use ____________ to screen alternatives for the consideration set rather than as the main basis of comparison among noncomparable alternatives.
Price
154
What Affects High-Effort Decisions?
- Consumers
- the decision
- the group that they are a part of
155
Decision characteristics that can affect consumer choices
Information availability
Information Format
Trivial attributes
156
individual–alone
Goals that are attained by the individual’s action alone
157
individual–group
Goals that are achieved depending on the actions of both the individual and the group
158
Information gathering
Consumers can learn more about the different choices each has made through interaction with other group members.
159
CH.8-9 Quiz Question 1: In the evaluation of different car models, Angel sets a specific level for each attribute. If a brands falls eblow that level on any of the attributes, it is rejected from the consideration set. For each attribute, the point at which a brand is rejected with a non-compensatory model is referred to as the _______.
Cutoff Level
160
CH.8-9 Quiz Question 2: Judgement is which part of the decision making process?
A Critical input into it
161
CH.8-9 Quiz Question 3: When shopping for a new TC, Austin wants to rule out unsuitable options quickly. He adops a decision-making model, where he focuses on specific requirements and eliminates brands that do not meet the minimum requirements. Which of the following is best when a customers wishes to rule out unsuitable options asap?
Conjunctive model
162
CH.8-9 Quiz Question 4: The process by which consumers combine items of information about attributes to reach a decision is referred to as the _______.
Cognitive decision-making model
163
CH.8-9 Quiz Question 5: Which of the following statements is true about decision framing?
Consumers are more willing to take risks with products when a choice is framed as avoiding a loss than when it is framed as acquiring a gain.
164
CH.8-9 Quiz Question 6: In the context of noncomparable decisions, which of the following statements is true of alternatice-based strategy?
It involves formation of abstract representations of comparable attributes
165
CH.8-9 Quiz Question 7: According to prospect theory:
Losses loom larger than gains for consumers even when the outcomes of decision models are of the same magnitude
166
CH.8-9 Quiz Question 8: Zachary is moving out of town and wishes to sell his Legone motorbike. Patrick, Zachary's friend, is ready to purchase the motorbike. However, Zachary wants to charge a price that is much higher than Patrick is willing to pay. This scenario is an example of the ________.
Endowment Effect
167
CH.8-9 Quiz Question 9: Heather is considering buying a new car, and she finds that two brands in her consideration set are similar in attractiveness based on their features and price. She puts more effirt into making a decision by comparing additional attributes like customer reviews and warranty policies. When brands in a consumer's consideration set are similar in attractiveness, they must put more effort into make a decision and will more likely use a(n) ____________.
Compensatory Model
168
CH.8-9 Quiz Question 10: In the context of decisions based on gains and losses, which of the following statements is true of prevention-focused consumers?
They tend to preserve the status quo
169
CH.8-9 Quiz Question 11: Destini recently started following a healthy diet and has promised her nutritionist that she is going to only eat healthy food. On her way back home from work one day, she notices a new fast food restaurant. She decides to enter the restaurant to just have a look on the menu but ends up buing a large pizza. This is a example of ________.
Impulse Purchase
170
CH.8-9 Quiz Question 12: Dontrell is considering buying a new smartphone and relies on the availability heuristic. He remembers hearing from a friend about a specific brand's reliability but ails to consider the statistical information about the brand's overall reputation. Judgements based on the availability heuristic are biased because consumers tend to ignore ____________.
Base-rate information
171
Affect
Low-level feelings
172
Affect referral
A simple type of affective tactic whereby we simply remember our feelings for the product or service.
173
Affect-related tactics
Tactics based on feelings.
174
Availability heuristic
Basing judgments on events that are easier to recall.
175
Base-rate information
How often an event really occurs on average.
176
Brand familiarity
Easy recognition of a well-known brand.
177
Brand loyalty
Buying the same brand repeatedly because of a strong preference for it.
178
Choice tactics
Simple rules of thumb used to make low-effort decisions.
179
Co-branding
An arrangement by which the two brands form a partnership to benefit from the power of both
180
Deal-prone consumer
A consumer who is more likely to be influenced by price.
181
Habit
A learned behavior that involves regular performance of the same act repeatedly over time.
Behaviors are often performed unconsciously and may be difficult to discontinue.
182
Impulse purchase
An unexpected purchase based on a strong feeling.
183
Law of small numbers
The expectation that information obtained from a small number of people represents the larger population.
184
Low-effort hierarchy of effects
Sequence of thinking-behaving-feeling
185
Multibrand loyalty
Buying two or more brands repeatedly because of a strong preference for them.
186
Normative choice tactics
Low-elaboration decision-making that is based on others’ opinions.
187
Operant conditioning
A process of learning drive by the use of rewards to reinforce desired behavior and punishment to discourage objectionable behavior.
188
Optimal stimulation level (OSL)
The level of arousal that is most comfortable for an individual.
189
Performance-related tactics
Tactics based on benefits, features, or evaluations of the brand.
189
Price-related tactics
Simplifying decision heuristics that are based on price.
190
Representativeness heuristic
Making a judgment by simply comparing a stimulus with the
category prototype or exemplar
190
Satisfice
Finding a brand that satisfies a need even though the brand may not be the best brand.
191
Sensation seeker
A consumer who actively looks for variety.
192
Shaping
Leading consumers through a series of steps to create a desired response.
193
Traditional hierarchy of effects
Sequential steps used in decision-making involving thinking, then feeling, then behavior.
194
Unity
When all the visual parts of a design fit together.
195
Variety seeking
Trying something different.
196
Vicarious exploration
Seeking information simply for stimulation.
197
Zone of acceptance
The acceptable range of prices for any purchase decision.
198
Ambiguity of information
When information from consumption experiences is insufficiently clear
or precise to evaluate brand, product, or service performance.
199
Attribution theory
A theory of how individuals find explanations for events.
200
Behavioral costs
The money, time, effort, and emotional discomfort needed to implement one’s intentions or urges to act.
201
Customer retention
The practice of retaining customers by building long-term relationships with them
202
Delight
Intense positive emotion, beyond satisfaction, that consumers experience when the superior performance of a company, brand, products, or service confirms or exceeds their expectations.
203
Disconfirmation
When expectations do not match the actual brand, product, or service performance because performance is either better or worse than expected.
204
Disloyalty
Reduced or discontinued patronage of a company, brand, product, or service based on negative attitudes from earlier consumption experiences
204
Dissatisfaction
The feeling that a purchase decision, consumption experience, or disposition decision falls short of one’s expectations.
205
Emotional detachment
Emotionally disposing of a possession
205
Encoding of evidence
Processing information from consumption experiences.
205
Equity theory
The extent to which the balance of exchanges between consumers and companies and among consumers is perceived to be fair.
205
Loyalty
Repeated patronage of a company, brand, product, or service based on positive attitudes from earlier and expected future consumption experiences.
205
Exposure to evidence
Actually experiencing the brand, product, or service while consuming it.
205
Expectation
A prediction (hypothesis) about the performance of a brand, product, or service and about the outcomes of acquiring, consuming, or disposing of it.
205
Hypothesis testing
Comparing prior expectations or predictions with new information, such as evidence from experience.
205
Hypothesis generation
Forming expectations about a brand, product, or service and its consumption.
205
Integration of evidence
Combining new information from the consumption experience with stored knowledge
206
Physical detachment
Physically disposing of an item.
206
Negative word-of-mouth communication
The act of consumers sharing negative information about a brand, product, or service with other consumers.
206
Performance
How well a brand, product, or service does on objective criteria, such as fuel efficiency, battery life, and on subjective criteria, such as style or taste.
207
Pride
The positive emotion that consumers experience upon perceiving that they themselves rather than others or luck are responsible for obtaining positive, hard to get outcomes.
207
Opportunity costs
The value to the consumer of the best alternative not chosen. The opportunity costs of choosing an option are low when there are few good alternatives and none are better than the chosen option.
208
Satisfaction
The feeling that a purchase decision, consumption experience, or disposition decision meets or exceeds one’s expectations
208
Regret
The negative emotion that consumers experience upon perceiving that they could have made a better decision than they did.
208
Top dog
A market leader or brand with a large or the largest market share.
208
ON THE TEST: CH.10 Quiz Question 1: When consumers are highly motivated to learn, and the top dog encourages consumers not to acquire new information, this is referred to as ________.
BLOCKING EXPOSURE TO EVIDENCE
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CH.10 Quiz Question 2: What are 2 ways retailers can motivate recycling behavior?
Offering incentives and providing separate recycling containers
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CH.10 Quiz Question 3: GoodCo. Inc. focuses on customer retention by providing exceptional customer service, personalized recommendations, and loyalty rewards. By fostering customer loyalty, the company aims to increase repeat purchases and customer lifetime value. Customer retention:
Is the practice of working to satisfy customers with the intention of developing long-term relationships with them
208
CH.10 Quiz Question 4: In the context of Consumer Responses to Dissatisfaction, complaining is:
More likely when motivation, ability, and opportunity are high.
209
CH.10 Quiz Question 5: In the context of the disconfirmation paradigm, which of the following are desired or anticipated product/service outcomes and include "pre-consumption beliefs about overall performance or... the levels of attributes possessed by a product (service)?"
Expectations
210
CH.10 Quiz Question 6: Which of the following are advantageous to top dogs because consumers will simply confirm existing beliefs and expectations and be overconfident, particularly when the motivation to learn is low?
Limitations to learning
211
CH.10 Quiz Question 7: When a consumer is highly motivated to learn, and evidence about the top dog is unambiguous, the marketer simply needs to try:
Explaining the experience
212
CH.10 Quiz Question 8: When evidence is ambiguous, confirmation bias and overconfidence can lead consumers to:
Avoid both negative and highly diagnostic information
213
CH.10 Quiz Question 9: Which of the following are reasons why even satisfied customers may not remain loyal?
High opportunity costs and low behavioral costs
214
CH.10 Quiz Question 11: Which of the following is mentioned as a strategy to tie customers to the brand without making them a hostage to it?
Brand Communities and customer loyalty programs
215
CH.10 Quiz Question 12: Ying bought a new brand of laundry detergent that she originally didn't like the smell of but then kept using it because it removed stains well. In this scenario, Ying can be referred to as a ___________.
Low-Involvement customer
216
CH.10 Quiz Question 14: Disney considers the end of the Disney experience for customers is when
When you look at your photos and share memories.
