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MARK 305 Final Study Guide (CH9)
Terms in this set (46)
What is consumer hyperchoice?
too many choices can lead consumer to be less satisfied with purchase experience
What is the consumer decision process?
1. problem recognition
2. information search
3. evaluate alternatives
4. product choice
5. consumption and learning
What is the traditional rational perspective approach to decision making?
-consumers integrate as much info as possible with what they already know about a product
- consumers weigh the pos/neg of each alternative and then arrive at a satisfactory decision
What is purchase momentum?
an increase in the likelihood of buying after initial purchase is made
- occurs when consumer buys beyond needs
What is rational systems of cognition?
process info analytically and sequentially using rules of logic
What is experiential system of cognition?
processing info in a more holistically and in parallel
What is behavioural influence perspective?
when someone decides to buy something on impulse that is promoted as a surprise sale
What is experiential perspective?
consumers buy based on totality of product appeal
What are the types of effort consumers go through when making purchase decisions?
Habitual decision: low cost, frequent, familiar product
Limited problem solving: cognitive shortcuts (low risk items)
Extended problem solving: traditional decision making perspective (high risk items)
Describe the extended problem solving
1. problem recognition: difference between actual and desired state
2. information search: external and internal
What are the ways a problem can arise?
1. actual state - need recognition -actual state shifts (Ex. car breaks down)
2. ideal state - opportunity recognition - actual state shifts (ex. craves a new flashy car)
What are the different types of information search?
I D E A
1 internal - memory
2.deliberate search - internet
3. external - friends, ads, people watching
4. accidental search - passive learning
What is bounded rationality?
consumers rarely have the resources to weigh every possible factor into a decision
- they often settle for "satisfaction or good enough"
What is brand switching?
select familiar brands when decision is ambiguous
What is variety seeking?
the tendency of consumers to switch their selection among various brands in a given category in a seemingly random pattern
What is prospect theory?
highlights how individuals respond to losses and gains
What are the key elements of prospect theory?
Reference point - CALL A asked to wait 20 min
Risk averse concerning gain
Risk seeking concerning losses
Overweigh small probabilities
What is mental accounting?
the process of putting things into gains and losses to decide what to pick payin
What are sunk costs fallacy?
when you pay for something, you're less likely to waste it
What is hyperopia?
obsessed with preparing for the future
What is the house money effect?
People are more willing to take risks when they perceive that they are using someone else's resources
- we value money differently depending on where it comes from
How much search occurs?
- amount of info available: more info is not always better
- consumers' prior expertise: search is greatest among the consumer who is moderately knowledgable about a product
What is perceived risk?
The belief the product has potential neg/uncertain consequences
What are the types of risk?
5. psychological risk
What are the important aspects of identifying alternatives?
What is the evoked set?
The set of brands that come to mind when a product category is mentioned.
What is the inert set?
brands you can't consider because you don't know about them
What is the inept set?
brand you won't consider for a variety of reasons
You tend to put products into categories, what are the levels of categorizations?
1. super-ordinate level: broad and abstract (dessert)
2. basic level: most useful, items grouped at this level have a lot in common but still leave room for choosing alternatives
3. sub-ordinate level: specific, includes individual brands
What are the strategic implications of product categorization?
- exemplar product: product is a good example of the category ( cake = dessert)
- Locating products: placing product properly in store
What is feature creep?
companies overwhelm us with more and more features - choosing products is difficult
What are evaluative criteria?
1. determinant attributes: specific attributes that are actually used to differentiate among choices (pepsi freshness date)
2. Neuromarketing: using FMRI to track blood flow while we perform tasks
What is a cybermediary?
Website/app that helps to filter and organize online market info so the consumer can identify and evaluate alternatives more efficiently
What is the long tail?
success through selling a tong of different types of items
What are heuristics?
What is product signal shortcut?
the aspect of the product that is visible, acts as product signal of underlying quality
What are market beliefs shortcut?
general market place beliefs
Price quality relationships - higher price = better quality
What are country of origin shortcut?
based on stereotypes, different countries are better at different things
What is ethnocentrism?
prefers products from own country
What is inertia?
bought out of habit
What is brand loyalty?
repeat purchase behaviour reflecting conscious decisions to continue buying the same product
What are the qualities needed to be brand loyal?
positive attitude towards brand
emotional attachement and commitment
What is Zipf's Law?
Our tendency to prefer #1 brand to the competition
- preference is so strong that it seems to mimic a patterns in other domains
what are the 2 decision rules?
non-compensatory & compensatory
What are the compensatory decision rules?
simple additive: chooses alternative that has the most positives
Weighted additive: relative importance of positively rated attributes, essentially by multiplying
What are the non-compensatory decision rules?
1. Lexicographic: brand that is the best on the most important attribute selected
2. Elimination by aspect: same as lexicographic but with a specific cut off
3. Conjunctive rules: processing by brand
4. disjunctive rule: consumer develop acceptable standards for each attribute - standards are higher than shoppers' min cut-off for attributes
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