06 People, part II

Question 1

What occurs during the Problem/Need Recognition stage?

Answer 1

There is a discrepancy between desired state and actual state due to stimuli.

Question 2

What occurs during the Information Search stage?

Answer 2

• There is higher personal time and effort spent when higher involvement or perceived risk of purchase.
• There would be psychological influence.
• Expertise shortens search.

Question 3

What are the factors of the Evaluation of Alternatives stage?

Answer 3

• Considered Set: mental list of acceptable brands.
• Evaluation Criteria: objective and subjective.
• Decision Rules: simplify decision making.
• There would be customer roles:
  - Payer.
  - User.

Question 4

What happens during the Purchase stage?

Answer 4

Identify best among alternatives.

• There would be a sociocultural influence.
  - Situational influence.
  - Social influence.

Question 5

What occurs during the Post-Purchase Evaluation stage?

Answer 5

Evaluation of performance in light of expectations.

Question 6

What do non-compensatory rules do?

Answer 6

Eliminates alternatives that are deficient on any of the criteria the consumer has chosen to use.

Question 7

What are the factors of compensatory rules?

Answer 7

• Options are evaluated in terms of each relevant attribute.

- Pros and cons trade-off.

Question 8

What are the different levels of involvement?

Answer 8

• Low/Routine.

- High/Non-Routine.

Question 9

What are the types of loyalty?

Answer 9

• Brand Loyalty.

- Store Loyalty.

Question 10

What is Customer Satisfaction?

Answer 10

“A consumer’s post-purchase evaluation of the overall service experience. It is an affective (emotion) state or feeling reaction in which the consumer’s needs, desires and expectations during the course of the service have been unmet, met or exceeded.”

Question 11

What is Hyperchoice and the Choice Paradox?

Answer 11

Although we may think that more choice is better, but there can be problems with excessive choice.

• Jam example:
  - Percentage of shoppers would have stopped and purchased at display with less jams.
  - Shoppers were more attracted to variety but were less likely to make a decision.

Question 12

What are the aspects of Psychological Influence?

Answer 12

• Perception.
  
  • Learning.
  • Attitude.

Question 13

What are the External Influences on Consumer Decision Making?

Answer 13

• Consumer Roles.
• Psychological Influence.
• Situational Factors.
• Social Factors.
• Hyperchoice and the Choice Paradox.

Question 14

What are the aspects of Situational Factors?

Answer 14

• Purchase factors.
• Shopping factors.
• Temporal factors.

Question 15

What are the aspects of Social Factors?

Answer 15

• Family.
  
  • Culture.
  • Reference groups.

Question 16

What are the tools of Persuasion?

Answer 16

• Conformity persuasion.
  
  • Social comparison.
  • Power of opinion leaders.
  • Mere exposure theory.

Question 17

What is the influence of Perception on Consumer Decision Making?

Answer 17

• Perception definition.

- Exposure → Attention → Interpretation.

Question 18

What is the meaning of Perception?

Answer 18

Process by which an individual receives, selects and interprets stimuli that affect your senses to form a meaningful and coherent picture of the world.

Question 19

What is the meaning of Learning?

Answer 19

Process by which consumers change their behaviour after they gain information or experience.

Question 20

What is the meaning of Attitude?

Answer 20

A person’s enduring evaluation of their feelings about, and behavioural tendencies towards, an object or idea.

Question 21

What are the results of excessive choice?

Answer 21

1. Decisions become less likely (paralysis).

2. Choice satisfaction drops.

Question 22

What is Brand Loyalty?

Answer 22

• Consistently buy the same brand.

- No other alternatives in consumers’ consideration sets.

Question 23

What is Store Loyalty?

Answer 23

• Consistently shop at the same store.

- There are no other alternatives in consumers’ consideration sets.

Question 24

What are the factors of Low/Routine?

Answer 24

• No need to..
  
  • Invest effort (no need to search for/evaluate alternatives)
• Not interested in..
  
  • Investing effort (i.e. buying a “good enough” is fine).

Question 25

What is High/Non-Routine?

Answer 25

Higher personal time and effort spent when higher involvement or perceived risk of purchase.

Question 26

What are the types of Consumer Decision Rules?

Answer 26

• Non-compensatory rules.
• Compensatory rules.
• Level of involvement.
• Types of Loyalty.

Question 27

What must you not do according to non-compensatory rules?

Answer 27

Do not balance positive evaluations of a brand on one attribute against a negative evaluation on another attribute.

Question 28

What are the steps of the Consumer Decision Making Process?

Answer 28

1. Problem/Need Recognition.
2. Information Search.
3. Evaluation of Alternatives.
4. Purchase.
5. Post-purchase Evaluation.

Question 29

What are the types of stimuli that influences the Problem/Need Recognition stage?

Answer 29

• Internal (functional value).

- External (psychological value).

Question 30

What are the types of Searches that occur during the Information Search stage?

Answer 30

• Internal (past experience/memories).

- External (outside sources, e.g. friends, online).

Question 31

What are the Results of Post-Purchase Evaluation?

Answer 31

1. Performance < expectations = dissatisfaction.
2. Performance = expectations = satisfaction.
3. Performance > expectations = delight.
4. Cognitive dissonance: consumer’s doubts after a purchase about whether the decision was correct.