Week 2 - Information Search, Evaluation, and Selection

Question 1

problem recognition (in classical model of consumer decision making) - how does it arise?

Answer 1

when there is a misalignment/discrepancy between their desired state and their perception of actual state

Question 2

4 types of problems

Answer 2

1. routine problems: require little search and evaluation
2. planning problems: can be seen ahead of time and there is time to make a decision (e.g., new laptop, retirement)
3. evolving problems: come up unexpectedly, but don’t require an immediate decision (e.g., going to the dentist)
4. emergency problems: unexpected problems that cannot be postponed

Question 3

primary needs of consumers

Answer 3

needs we often fulfil to stay alive, and are needs we are generally aware/conscious of
e.g., water, shelter, air, food, sex, bodily functions, sleep…

Question 4

secondary needs or motives of consumers

Answer 4

needs that are often learned in response to our cultural and environmental contexts e.g., need for recognition, self-esteem, belonging, status etc…
often not fully conscious/aware of these underlying needs or motivations

Question 5

Limitations of Maslow’s Needs

Answer 5

• doesn’t work for some consumption situations e.g., nature of the need can change, doesn’t account for individual variation (no malleability)
• doesn’t work for some consumers e.g., people who value status more than belonging etc.
• multiple motives behind each need e.g., lovemaking for physiological, security, belonging and esteem needs

Question 6

intrinsic motivation (+ examples and impact on marketing)

Answer 6

• doing something for the inherent challenge, fun, interest and satisfaction without external pressure or reward
• e.g., self-driven, personal interest, joy or passion for activity itself
• examples: shopping for pleasure rather than necessity; consumer learning about a product for joy of gaining new knowledge
• impact on marketing: strategies that enhance the consumer’s personal connection to a product/experience can boost intrinsic motivation

Question 7

extrinsic motivation (+ examples and impact on marketing)

Answer 7

• doing something because of the external demand, regulation, sanction or outcome
  e.g., reward-driver, influence by eternal factors outside of an individual’s personal satisfaction
• examples: purchasing a product for status or recognition; buying items to gain points in a loyalty program
• impact on marketing: marketers can leverage extrinsic motivators through rewards, discounts, loyalty programs, and social recognition to influence consumer behaviour

Question 8

positive motivation

Answer 8

• driving an individual TOWARDS an object or condition (needs, wants, desires)
• approach goal: a generally positive goal toward which behaviour is directed

Question 9

negative motivation

Answer 9

• driving the individual AWAY FROM an object or condition (fears, aversions)
• avoidance goal: a generally negative goal from which behaviour is directed away

Question 10

goals of consumer

Answer 10

• tangible expression of a method to reduce the tension of an unsatisfied need
• internal representations of desired states (biological states to complex desired states)
• can be generic or product-specific

Question 11

information search (in consumer decision process)

Answer 11

• once the decision making process has been activated, the consumer searches for information

Question 12

internal information searching

Answer 12

• past experience and learning stored in memory
• guides and limits proceeding external searches
• includes both evaluation criteria and product/brand awareness
• actively acquired (past searches, past experiences)
• passively acquired (low-involvement learning e.g., overhearing)

Question 13

external information searching

Answer 13

• seeking external stimulus to inform and guide decision-making
• actively acquired: independent groups, personal contacts, marketer information, experiential.

Question 14

when do consumers use external search more

Answer 14

• prior knowledge insufficient
• have a personality trait that prefers more information
• many alternatives to discover and evaluate
• risk of making a wrong purchase decision is high
• cost of gathering info is low

Question 15

what determines high involvement vs low involvement decisions

Answer 15

• how wide a consumer searches depends on their level of personal involvement
• affected by: personal characteristics, product category characteristics, situation characteristics
• what is low involvement for one consumer can be high involvement for another

Question 16

the purchase involvement spectrum (3 types)

Answer 16

• habitual DM
• limited DM
• extended DM

Question 17

habitual decision making

Answer 17

1. brand loyalty: initially highly involved + planned; post-purchase satisfaction and repeat behaviour enables a consumer to form habits
2. repeat purchase: satisfactory, but not committed to the brand
   - shopping on autopilot - makes effortful decision-making effortless, freeing the individual’s cognitive capacity to think about other things.

Question 18

limited decision making

Answer 18

• middle ground
• internal and limited external searching
• some level of evaluation and application of decision making rules
• may change their standard behaviour simply because they are bored or seek the approval of others.

Question 19

extended decision making

Answer 19

• emotive: often involved in the construction of identity
• high risk: e.g., financial status, identity
• highly involved
• complex decision rules
• may be time consuming
  internal and external info search; can have dissonance and complex evaluation after purchase

Question 20

information search: awareness set

Answer 20

appropriate alternatives
- while informed by internal and external searches, most purchases involve minimal or no external searching
- imperative a brand be in the evoked consideration set
evoked set –> acceptable vs. inept vs. inert set (within acceptable - purchased vs. not purchased brands)
- sets are open to change

Question 21

implication for awareness set

Answer 21

brand position (in evoked set)
- if in habitual DM - maintenance strategy
- if in limited DM - capture strategy
- if in extended DM - preference strategy
brand position (not in evoked set) - how do they get into evoked set
- if in habitual DM - disrupt strategy
- if in limited DM - intercept strategy
- if in extended DM - acceptance strategy

Question 22

search goods

Answer 22

easy to see the features and judge the quality and value

Question 23

experience goods

Answer 23

value of features cannot be easily determined before purchase, but value can be seen with consumption

Question 24

credence goods

Answer 24

cannot be easily evaluated before or even after purchase and consumption e.g., health foods, car repair services

Question 25

heuristic

Answer 25

rule-of-thumb strategy to shorten decision-making time and reduce cognitive load evaluations not optimal but usually acceptable

Question 26

group decision making

Answer 26

initiator: first identifies the problem + decides it is time to make a purchase information gatherer: search for alternatives and evaluative criteria influencer: personal interest in the outcome of the decision, but not necessarily involved in actually buying/paying for the purchase decision maker: assess the info presented and makes final decision purchaser: fulfils purchase transaction user: benefits from the purchase consumption.

Question 27

what is laddering?

Answer 27

drawn out steps and motivations - involves asking a series of linked questions that lead the interviewee through the underlying reasons/consequences of purchase part of means end chain

Question 28

means-end chain

Answer 28

attribute --> functional consequences --> psychological consequences --> value