Chapter 4 Flashcards
Potential benefit of understanding need recognition
may reveal a market segment with unsatisfied desires
spyware
software that’s downloaded onto a computer without the permission of the owner and that collects personal info such as the user’s online activities, financial records, and passwords
simply reminding consumers of a need may be sufficient to
trigger need recognition
how can manufactures remind customers of need recognition
with designs within their products
primary demand
representing the total sales of a product category
selective demand
representing the sales of each competitor within the product category
generic need recognition
when the need for an entire product category is stimulated
selective need recognition
when the need for a specific brand within a product category (selective demand) is stimulated.
external search set
those choice alternatives that consumers gather info about during pre-purchase search
Consumer Sources of Information
Personal: Sales personnel, other shoppers, family/friends, coworkers, experts/opinion leaders/influentials
Impersonal: product labels, store signage, point-of-purchase materials, advertising, catalogs, magazines, television and radio shows, websites
“funnel” search strategy
consumers begin their internet search with generic terms but eventually refine their search with terms focusing on specific products
–most start out this way, but very few refine afterward
cost versus benefit perspective
people search for decision-relevant info when the perceived benefits of the new info are greater than the perceived costs of acquiring this info
perceived risk
consumers’ uncertainty about the potential positive and negative consequences of the purchase decision
pre-purchase evaluation
third stage in CDP
the manner in which choice alts are evaluated
consideration set/evoked set/choice set
a;ts considered during decision making
retrieval set
recall of choice alts from memory
categorization process
evaluation of a choice alternative depends on the particular category to which it is assigned
piecemeal process
an evaluation is derived from consideration of alt’s advantages along important product dimensions
brand extensions
a well-known and respected brand name from one product category is extended into other product categories
Heuristics
a shortcut that the consumer uses to make decisions
decoy effect
indirect bias
a bait
a decoy “medium” so customers will be influenced t buy the most expensive product
