Chapter 5

Question 1

Information search

Answer 1

internal and external search

Ads appeal to consumer who are looking to info to help them evaluate products

Question 2

Evaluation of alternatives

Answer 2

of alternatives depend on the type of consumer decision
Extended (problem solving): evaluate several brands
limited: some
habitual: only usual

Evoket set: alt actively considered (retrieval set + prominent products in the environment)
only few brans + simplifies decision process
Marketers want to be part of if

Inept Inert

Question 3

Evaluation of alternatives (product categorization and strategic implications)

Answer 3

Product categorization:

1. Product evaluation is a crucial determinant
2. Products in consumers evoked set: share similar features
3. Product grouping is important

Strategic implications:
Way of grouping 
Product positioning
Identifying competitors
Product -> really good example of category

Question 4

Involvement

Answer 4

Def: indiv. perceived relevance of the obj based on their inherent needs, values and interests

• > motivation to process info (dimple - elaboration)
• > deals cognitively and emotionally with the decision

High involv: high activation and motivation (high info search, high processing)

*the extent of involvement depends on stimulus, specific situations and on the person

Question 5

High vs low involvement purchases

Answer 5

High:
Careful info processing
Decision for subj. best product
High corr with personality and lifestyle

Low: RedBull
Superficial info processing
Decision for acceptable product
Low corr

Question 6

Positioning in the mind of a customer

Answer 6

Def: decision about the offering’s desired image
(What the product is + why different?

Existing offerings - repositioning
New offerings - initial positioning

Perceptual maps (positioning tool)

• y arriba: premium y abajo: mass market
• x izq: classic x derec: dynamic

Question 7

Pricing decisions

Answer 7

1. Classical pricing theory and elasticity
   Prices increases - sales decreases
   Elasticity: how quantity demanded will be affected by changes in its price
2. Marketing basics
   Lebensteinn effects: bandwagon, snob, Veblen
   Price strategies: skimming (alto bajo), penetration (bajo alto)
   Price positioning: premium-, discount- strategies
3. Price discrimination
   1D: indiv WTP is known
   2D: indiv WTP unknown + different price quantity (self selection)
   3D: segmentation

Question 8

Types of shoppers

Answer 8

Consumers segmented in terms of shopping orientation depends on product categories + store types

Economic: Kim
Personalized: miadidas
Apathetic: zalando man box
Ethical: Patagonia
Recreational: mall of America
Hate-to-shop: Amazon fresh

Question 9

Different kinds of buying decisions

Answer 9

Extent of cognitive control (low - high)
Involvement (low to high)
Impulsive 
Habitualized
Limited
Extensive  

B2C + indiv: consumers buying decision
B2C + collec: families’ buying decision
B2B + indiv: representatives buying decisions
B2B + collec: buying centers buying decisions

Question 10

Types of choices

Answer 10

Compensatory: mental cost/benefit model to make a decision
Non compensatory: simple decision model: negative info - rejection

Brand processing: evaluating one brand at the time
Attribute processing: comparing brands (one attribute at the time)

C+B = multi attribute
C + A = additive difference
N + B = conjunctive model
N + A = lexicographic / elimination by aspects