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MKTG1204 Midsemester Exam > Chapter 2: Decision making & CB > Flashcards

Chapter 2: Decision making & CB Flashcards

1
Q

Definition of Involvement: a person’s perceived relevance of an object based on…

A

Their needs, values and interests

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2
Q

Involvement reflects our level of motivation to process..

A

Information about a product or service we believe will help us reach a goal

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3
Q

Involvement is low in ______ decision making and high in ______ & ______ decision making

A

Habitual; Cognitive; Emotional/Affective

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4
Q

Definition of inertia: When we make decisions out of habit because…

A

We lack the motivation to consider alternatives

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5
Q

Antecedents of involvement (3)

A
  1. Person factors
  2. Object or stimulus factors
  3. Situational factors
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6
Q

Examples of person factors

A

Needs, importance, interest, values

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7
Q

Examples of object/stimulus factors

A

Differentiation of alternatives, source of communication, content of communication

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8
Q

Examples of situational factors

A

Purchase/use, occasion

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9
Q

Types of involvement (3)

A
  1. Product involvement
  2. Message involvement
  3. Situational involvmenet
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10
Q

Product involvement is defined as..

A

A consumer’s level of interest in a particular product

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11
Q

Product decisions are likely to have more involvement if the consumer believes there is a..

A

Perceived risk

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12
Q

Five kinds of risk

A
  1. Monetary
  2. Functional
  3. Physical
  4. Social
  5. Psychological
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13
Q

Monetary risk capital consists of..

A

Money and property

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14
Q

Functional risk capital consists of..

A

Alternative means of meeting the need

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15
Q

Physical risk capital consists of..

A

Physical vigour, health and vitality

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16
Q

Social risk capital consists of..

A

Self-esteem and confidence

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17
Q

Psychological risk capital consists of..

A

Affiliations and status

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18
Q

Message involvement is defined as..

A

A consumer’s motivation to pay attention to what the message is trying to convey

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19
Q

Print is a (high/low) involvement medium; Television is a (high/low) involvement medium

A

High; Low

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20
Q

Techniques to increase message involvement (6)

A
  1. Using novel stimuli
  2. Using prominent stimuli
  3. Including celebrity endorsers
  4. Providing value
  5. Inventing new media platforms
  6. Creating spectacles
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21
Q

Situational involvement is defined as..

A

The involvement that takes place with a store, website or a location where people consume a product/service

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22
Q

One way to increase situational involvement is to…

A

Personalise the messages shoppers receive at the time of purchase

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23
Q

3 types of decision-making

A
  1. Cognitive
  2. Habitual
  3. Affective
24
Q

Stages in the cognitive decision-making process (5)

A
  1. Problem recognition
  2. Information search
  3. Evaluation of alternatives
  4. Product choice
  5. Post-purchase evaluation
25
Q

Problem recognition can come from two sources..

A
  1. Need recognition

2. Opportunity recognition

26
Q

Need recognition is when (actual/ideal) state (increases/decreases)
Opportunity recognition is when (actual/ideal) state (increases/decreases)

A

Actual; decreases

Ideal; increases

27
Q

Primary demand occurs when consumers are encouraged to use…

A

A product or service, regardless of the brand

28
Q

Secondary demand occurs when consumers are encouraged to use…

A

A specific brand

29
Q

Two types of need recognition

A
  1. Generic

2. Selective

30
Q

Generic need recognition occurs when..

A

Companies seek to grow the size of the total market for a product category

31
Q

Selective need recognition occurs as a result of…

A

Stimulating the need for a specific brand

32
Q

Four sources of information during the information search

A
  1. Self
  2. Personal sources
  3. Marketing sources
  4. Experiential sources
33
Q

Evoked set consists of..

A

Products that the consumer are already aware of

34
Q

Consideration set consists of..

A

Options that are actually considered by the consumer

35
Q

Levels of product categorisation (3)

A
  1. Superordinate
  2. Basic level
  3. Subordinate
36
Q

Compensatory rules: A perceived weakness of one attribute (may/may not) be offset by…

A

May; The perceived strength of another attribute

37
Q

Non-compensatory rules: A product’s weakness on one attribute (may/may not) be offset by…

A

May not; Strong performance on another attribute

38
Q

Decision rules:
Non-compensatory (3)
Compensatory (2)

A 
Non-comp
1. Lexicographic
2. Elimination-by-aspects
3. Conjunctive
Comp
1. Simple additive
2. Weighted additive
39
Q

Lexicographic decision rule

A

Consumer selects the brand that is the best on the most important attribute. If there are two or more brands that are equally good on that attribute, they then compare them on the second most important attribute

40
Q

Elimination-by-aspects decision rule

A

The buyer evaluates brands on the most important attribute by imposing specific cut offs and keeps going until all but one brand is eliminated

41
Q

Conjunctive rule

A

Buyer establishes cutoffs for each attribute and chooses a brand if it meets all the cutoffs, but rejects a brand that fails to meet any one cut off. The first brand that meets or exceeds the threshold for each attribute is chosen

42
Q

Habitual decision making describes the choices we make with…

A

Little or no conscious effort

43
Q

Priming

A

Cues in the environment that make us more likely to react in a certain way

44
Q

Nudges

A

Subtle changes in a consumer’s environment that can change behaviour

45
Q

Default bias: we are more likely to comply with a requirement than to…

A

Make the effort not to comply

46
Q

Two types of solutions

A
  1. Maximising

2. Satisficing

47
Q

Maximising solutions help us arrive at..

A

The best result

48
Q

Satisficing solutions help us arrive at..

A

An adequate result with less effort

49
Q

Decision-making biases and shortcuts (4)

A
  1. Mental accounting
  2. Sunk cost fallacy
  3. Lost aversion
  4. Prospect theory
50
Q

Mental accounting

A

Framing a problem in terms of gains/losses will influence our decisions

51
Q

Sunk cost fallacy

A

We are reluctant to waste something we have paid for

52
Q

Loss aversion

A

We emphasise losses more than gains

53
Q

Prospect theory

A

Risks differ when we face gains versus losses

54
Q

Heuristics are..

A

Mental shortcuts

55
Q

4 Examples of heuristics

A
  1. Covariation
  2. Country of origin
  3. Familiar brand names
  4. Higher prices
56
Q

Affective decision making: decisions are made on the basis of..

A

Emotional reactions rather than an outcome of a rational thought process

MKTG1204 Midsemester Exam (6 decks)

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