Chapter 14 - Decision-Making and Diffusions Flashcards
What is Consumer Journey?
The consumer journey is the newest way of describing the stages consumers pass through as they develop relationships with brands before, during, and after purchase.
What are the inputs of a consumer journey?
External Influences
Outside influences that effect the consumer
- Marketing mix
- Sociocultural influences (family, peers, social class, reference groups, culture/subculture)
- Communications (spread marketing mix, and sociocultural influences)
What is the process of a consumer journey?
Process: Need Recognition
- Actual state need recognition (broken, need new one)
- Desired state need recognition (want new one with better features or one that other people have)
What are the steps in the decision spectrum?
• Extensive Problem Solving (don’t have much experience in shopping in this product category, Mr Clean not bought often needed more info)
– A lot of information needed
– Must establish a set of criteria for evaluation (how do we decide with product to chose)
• Limited Problem Solving (need a bit more to fine tune our decision)
– Criteria for evaluation established
– Fine tuning with additional information
• Routinized Response Behavior (already know! Milk)
– Usually make decisions based on what they already
know
– Frequent, low risk purchases
What is consumer Involvement?
The degree of personal relevance that the product or purchase holds for the consumer.
Recall - elaboration likelihood/peripheral route to persuasion. Not about how much it costs but how important to us.
Highly important to you!! Doesn’t indicate price!
What is an example Extensive Problem Solving v ersus. Routinized Response Behavior
Extensive - buying a Diamond - not familiar - lots more information needed. Hardly any experience in the category. Brand try’s to provide that information.
Routine - Advil - often purchased
What is the Pre-Purchase Search?
• Personal experience (internal) and external information (outside sources)
• Memory Search
• Shopping provides external information
– Men and women are different
– Seek opinions of friends (e.g. shopping selfies)
• Search greatest when product category knowledge is low
• Cognitive challenge may limit search
What are the Contextual Factors of information search?
• Task complexity
• Information organization (what format is the information)
• Time constraints
- Consumers have limited information-processing capacity
What are things that increase search?
Product factors
Long periods of time between successive purchases, Frequent changes in product styling, Frequent price changes, Volume purchasing (large number of units), High price, Many alternative brands, Much variation in features
Situational Factors
Experience: First-time purchase; no past experience because the product is new; unsatisfactory past experience within the product category
Social Acceptability: The purchase is for a gift; the product is socially visible
Value-Related Considerations: The purchase is discretionary rather than necessary; all alternatives have both desirable and undesirable consequences; family members disagree on product requirements or evaluation of alternatives; product usage deviates from important reference groups; the purchase involves ecological considerations; many sources of conflicting information. Discretionary vs Necessary
Consumer Factors
Demographics: Education, income, occupation, age, wealth, and marital status
Personality Traits: One’s degree of dogmatism, willingness to accept risk, product involvement, and novelty seeking
Explain the evaluation of alternatives: Brand Sets.
First look at all brands - (will chose from a known brand! and not unknown)
Evoked set (consideration set) - Acceptable Brands
Final Choice!
- Purchased Brands
- Not Purchased Brands
Inept set - unacceptable brands (inferior)
Inert set - indifferent brands (no particular advantage)
Explain the excluded product in the evaluation of alternatives: Brand Sets.
• Unknown brands or models
• Unacceptable brands of poor quality or inappropriate
positioning
• Brands that are perceived as not having special benefits
• Overlooked brands that have not been clearly positioned
• Brands that do not satisfy perceived needs
As marketers we need to show more relevance and favour ability
Explain how we evaluate alternatives in terms of attributes.
• Product attribute examples (– Size – Weight – Sweetness – Color – Packaging)
• Criteria to assess product may be advertised
• Price less important when products are “right”
• Brand credibility is affected by (– Perceived quality – Information costs saved – Perceived risk)
What are some decision rules?
Compensatory decision rules
• Each relevant attribute weighted (how important each attribute is, good vs negative attribute can be weighted/balanced. Offsetting criteria. Overall sum)
• Summated score for each brand
Noncompensatory decision rules
Conjunctive (each attribute has a minimally acceptable cut of level, if it doesn’t meet that minimal level you eliminate that brand. Ex. Screen must be a certain size)
Lexicographic (rank attributes by importance to you. Yes I want screen size but memory is more important. Then we compare brands on the most important attribute)
Disjunctive (Which attributes are relevant, chose a brand if it meets the criteria on even one attribute (ex if it has the processing speed you can buy it!))
Affect Referral - no assessment of individual attribute (from your memory you simplify balancing attributes. This using an overall rating)
What is the difference between recognition heuristic and majority vote heuristic?
Recognition Heuristic: Consumers choose the most familiar product or brand
Majority Vote Heuristic: Consumers choose the option that most other people have chosen.
How do we cope with incomplete information?
• Delay the decision until information is obtained
• Ignore missing information (continue with available information)
• Change the decision strategy to accommodate missing
information (not looking for that missing info anymore)
• “Construct” the missing information (based on other things we might try to fill in the blanks)
