Week 2 Flashcards
What does the 360° brand entail?
Business conduct, social conduct, contributions conduct, employees conduct, product, communications, price, support, service, distribution channels, sales force all lead to company/brand image.
What are the Three Broad Types of Decision Modes? These terms describe different motivations that individuals may have when making decisions when purchasing or using products and services.
- Mundane
- Individuals make choices based on routine or habit.
- Driven by availability, the primary motivation being convenience and efficiency.
- E.g., Everyday household items like toothpaste or milk.
- Do → Know → (Feel) - Utilitarian
- Focus is placed on the functionality and performance of a product or service.
- Price/performance driven, prioritizing the practical aspects of a choice.
- E.g., Choosing a laptop based on its processing power, battery life, and other specifications.
- Know → (Feel) → Do - Self-Expressive
- Express their identity, values, or personal style.
- The primary motivation is self-expression, the desire to communicate something about oneself to others.
- E.g., Selecting clothing, accessories, or home decor that reflects personal taste or a specific lifestyle.
- Feel → Do → (Know)
★ Brands and aesthetics play a significant role in self-expressive decisions.
What is the Consumer Decision Making Process like? A series of steps that individuals go through when making a purchase or consumption-related decision.
→ Need Recognition
- Recognition of a need or a problem.
- This can be triggered by internal stimuli (such as a personal desire or discomfort) or external stimuli (such as advertising or word-of-mouth).
→ Information Search
- Consumers seek information to find solutions.
- This information can be gathered through internal sources (memory, personal experiences) or external sources (advertising, reviews, opinions of friends and family).
→ Evaluation of Alternatives
- Consumers assess and compare the available options based on various criteria.
- This involves considering the features, benefits, and price etc.
→ Product Choice
- After evaluating alternatives, consumers make a decision and choose one product or service that best satisfies their needs or preferences.
→ Post-purchase/consumption
- The consumer’s feelings and experiences after making the purchase.
- Satisfaction or dissatisfaction can influence future buying behaviour and brand loyalty.
★ Consumer Decision-Making Process is not always a linear progression.
How to differentiate Manifest Motives vs. Latent Motives?
Manifest Motives:
The visible, explicit, and conscious reasons that individuals provide for their actions or behaviour.
E.g., A person might state that they are studying hard because they want to get good grades, which is a manifest motive.
Latent Motives:
Deeper, hidden, and often unconscious motives that influence behaviour. These motives are not readily apparent and may require introspection or psychological analysis to uncover.
E.g., Despite stating that the primary motive for studying is to get good grades (manifest motive), the latent motive might be a deep-seated need for approval from parents or a fear of failure.
What are the classifications of consumer needs?
- Physiological Needs: the most basic and fundamental needs required for human survival.
- These needs include air, water, food, shelter, clothing, and sleep. - Safety Needs: involve the desire for personal and financial security, stability, and protection from physical and emotional harm.
- This includes the need for a safe environment, health, and economic security. - Social Needs: the human desire for belongingness, friendship, love, and social interaction.
- These needs highlight the importance of relationships and connections with others. - Esteem Needs: involve the desire for self-respect, recognition, status, achievement, and appreciation from others.
- This level encompasses both self-esteem and the need for the esteem of others. - Self-Actualization: represents the realization of one’s full potential, personal growth, and the pursuit of personal goals and aspirations.
- It involves the desire for creativity, problem-solving, and achieving one’s unique potential. - Value-Laddering: not explicitly part of Maslow’s hierarchy, but it refers to the process of moving beyond basic needs and seeking higher-order values or ideals.
- It involves the pursuit of values that go beyond individual needs and contribute to societal or global well-being.
What is the Stimulus-Organism-Response (S-O-R) framework? A model used in consumer behaviour to understand the process by which external stimuli influence individuals’ responses
- Stimulus (S):
Definition: The stimulus refers to any external factor or input that can influence an individual’s behaviour or decision-making process.
Nature of Stimuli: Stimuli can take various forms, including marketing messages, advertisements, product displays, pricing information etc. - Organism (O):
Definition: The organism represents the individual or the consumer who is exposed to the stimulus.
Influence of Organism: The way individuals perceive and interpret stimuli is influenced by their personal characteristics, attitudes, beliefs, motivations, and past experiences. - Response (R):
Definition: The response is the observable reaction or behaviour exhibited by the individual in response to the stimulus.
Nature of Responses: Responses can vary widely and may include actions such as making a purchase, forming an opinion, changing attitudes, or sharing information about a product or brand.
★ The response, in turn, can become a stimulus for future behaviours or decisions, creating a continuous feedback loop.
What is the difference between Top-down and Bottom-up Information Acquisition?
- Top-Down Information Acquisition: individuals use pre-existing knowledge to interpret incoming information.
- Guided by the individual’s existing knowledge, beliefs, and expectations.
- E.g., When reading a sentence, top-down processing involves using knowledge of grammar, vocabulary, and context to interpret the meaning of the words and the overall message. - Bottom-Up Information Acquisition: a.k.a. data-driven processing, involves building a comprehensive understanding of information from raw sensory input.
- E.g., When viewing a complex image, bottom-up processing involves first analyzing the individual visual elements (colours, shapes, patterns) before forming a holistic perception of the entire image.
What are the stages of information processing?
Summary of the Process:
- Incoming Information: Information from the environment is registered in the sensory register based on its signal strength and relevance.
- Short-Term Memory: Relevant information is transferred to short-term memory, where it is held temporarily.
- Rehearsal: Through rehearsal (mentally repeating or processing the information), some of the information is transferred to long-term memory.
- Long-Term Memory: Information that undergoes successful rehearsal is stored in long-term memory for more extended and potentially permanent storage.
- Retrieval: Information stored in long-term memory can be retrieved and brought back to short-term memory when needed.
Example of the Linear Model
- Decision based on all attributes given equal weight
Attitude towards Mazda = 124 = (10x8) + (6x4) + (4x5)
Attitude towards Ford = 128 = (10x6) + (6x6) + (4x8)
Ford > Mazda
(the weight of the attribute) x (the ratings of the product)
Example of the Lexicographic Model
- Decision based on most important attribute, then the
next if tied.
Sportiness of Mazda = 8
Sportiness of Ford = 6
Mazda > Ford
In this case sportiness is the one attribute the consumer cares most about, they will not compromise.
no calculations needed, just compare the most imp. attribute
Example of the Conjunctive Model
- Decision based on cutoff points, eliminate brands that
do not satisfy any cutoff level. Requires satisfaction of all criteria simultaneously.
Ford > Mazda
If one of the Ford ratings were also cutoff, cutoff points can be reevaluated.
→ For example, an additional feature could be added on top of existing ones.
The cut off points are given, you compare the ratings to that
Elimination By Aspects Model
- Decision based on going from most important attribute,
and eliminating brands that do not satisfy the cutoff level. Emphasizes evaluation on individual attributes.
Ford > Mazda
What is the difference between Compensatory vs. Non-compensatory attributes?
Trade-offs:
1. Compensatory Attributes: Allow for trade-offs between attributes. Strengths in one attribute can compensate for weaknesses in another.
2. Non-Compensatory Attributes: Do not allow for trade-offs. Alternatives must meet minimum standards for each attribute independently.
Decision Rigidity:
1. Compensatory Attributes: More flexible, as alternatives can make up for deficiencies in one attribute with strengths in another.
2. Non-Compensatory Attributes: Less flexible, as alternatives failing to meet minimum criteria for any attribute are immediately eliminated.
Decision Complexity:
1. Compensatory Attributes: Suitable for decisions where individuals weigh multiple factors and are willing to consider trade-offs.
2. Non-Compensatory Attributes: Suitable for decisions where certain attributes are considered non-negotiable and must meet specific criteria.
Example:
Compensatory: When considering buying a laptop, a compensatory decision-maker might still choose a laptop for its strengths in processing speed and large storage space if they feel it compensates for the lower battery life.
Non-Compensatory: A non-compensatory decision-maker might have a strict criterion for battery life, and any laptop falling below that threshold would be eliminated from consideration, regardless of other features.
What is the difference between Optimizing vs. Satisficing in decision-making strategies?
Outcome Orientation:
1. Optimizing: Seeks to maximize benefits and find the best possible outcome.
2. Satisficing: Aims for a satisfactory outcome that meets minimum criteria.
What is the difference between Choosing vs. Rejecting?
Action Orientation:
1. Choosing: Involves an affirmative action of selecting a preferred option.
2. Rejecting: Involves a negative action of eliminating or discarding an option from consideration.
