Chapter 15 part 2 - process

Question 1

Define and what makes up the process?

Answer 1

The process component focuses on how consumers make decisions. Made up of:

1. Need recognition
2. pre-purchase search
3. evaluation of alternatives

Question 2

Explain need recognition, What two styles are there.

Answer 2

Consumer faces a problem and needs a solution
actual state - problem when a product fails to perform satisfactorily
desired state - desire for something new may trigger decision process

Question 3

Explain the pre- purchase search process

Answer 3

o Process starts when consumer notices a need that needs to be satisfied with the use and purchase of a product
o Previous experiences can guide a consumer to make the right decision (Internal source of information)
o If there are no previous experiences, the consumer will have to start gaining information on the outside environment (External source of information)
o The internet is a platform with a lot of available information for a product (show-rooming)

Question 4

List 5 factors that are likely to increase pre purchase search

Answer 4

1. Product factors - Frequent price changes, many alternatives
2. Situational factors – experience, social acceptability
3. value- related considerations - discretionary vs necessary
4. consumer factors - demographic characteristics
5. personality – dogmatism, risk

Question 5

how do consumers evaluate alternatives?

Answer 5

They use two types of information:

1. a list of brands or models from which they plan to make their selection
2. the criteria they will use to evaluate each brand or model

Question 6

What is the evoked set?

Answer 6

Specific brands a consumer considers in making a purchase within a particular product category

Question 7

what is an inept set?

Answer 7

Consists of brands or models the consumer excludes from purchase consideration because they are believed to be unacceptable or inferior

Question 8

what is an inert set?

Answer 8

Consists of brands or models the consumer is indifferent towards because they do not seem to offer any particular advantages

Question 9

learn the diagram on page 419

Answer 9

.

Question 10

What are the two major categories of consumer decision rules?

Answer 10

1. Compensatory - consumer evaluate several brands models on each relevant attribute and calculates the weighted score (plus and minus)
2. non- compensatory - Consumers are not allowed to balance the evaluations of attributes

Question 11

List and describe the three non- compensatory decision rules

Answer 11

1. conjunctive rule – minimum cut-off For attribute; eliminate if beneath this point
2. disjunctive rule - minimum cut-off for attribute; accept if above this point
3. lexicographic rule - attributes ranked by relevance or importance; product with the most important attribute is chosen

Question 12

Describe how functionally illiterate consumers decide?

Answer 12

• Less information
• Basic frame of reference
• Often single criteria
• Price
• Packaging size
• Brand recognition
• Familiar stores
• Trust cashier

Question 13

How do consumers cope with missing information?

Answer 13

• Delay decision until missing information is obtained
• Ignore missing information and use available information
• Change the decision strategy to one that better accommodates for the missing information
• Infer the missing information