Chapter 6: Consumer Decision Making

Question 1

Define Consumer Decision Making

Answer 1

A five-step process used by consumers when buying goods or services

Question 2

What is the Importance and Understanding of Consumer Decision Making?

Answer 2

Without an understanding, the development of an effective mic is highly compromised. Consumer preferences are continually changing

Question 3

Types of Needs

Answer 3

Functional Needs: Basic Needs

Psychological Needs: Wants

Question 4

Define Need Recognition

Answer 4

The results of an imbalance between actual and desired states

Question 5

Define Stimulus

Answer 5

Any unit of input affecting one or more of the five sense: sight, smell, taste, touch, or hearing

Question 6

Define Imbalance

Answer 6

Triggered when a consumer is exposed to internal or external stimulus. Internal would be hunger or thirst, and external could be advertising or sales promotions

Question 7

What is Internal Information Searching?

Answer 7

The process of recalling information stories on one’s memory (already know)

Question 8

What is External Information Searching?

Answer 8

The process of seeking information in the outside environment (online, or from experts)

Question 9

What is Non Marketing Controlled Information Searching?

Answer 9

An informational source not associated with advertising or promotion

Question 10

What is Marketing Controlled Information Searching?

Answer 10

Originates with marketers promoting the product

Question 11

Factors Affecting Information Searching

Answer 11

The extent of the information search is dependent on the consumer’s perceived risk, knowledge, prior experience, and level of interest in the good or service.

• Generally, as the perceived risk increases, the amount of information search increases

Question 12

Define Evaluation and Alternative

Answer 12

Comparing both pros and cons; based on value (the perceived value: values based on the person)

• This is different for everyone
• Based on preference
• Ex. Hot vs Cold Vacation
• Ex. Cheap vs. Luxury

Question 13

Define Evoked Set (Consideration Set)

Answer 13

A group of the most preferred alternatives resulting from an information search, which a buyer can further evaluate to make their final choice

Question 14

Define Post-Purchase Behaviour

Answer 14

Consumer Satisfaction; the goal is to ensure that the outcome of the purchase meets or exceeds the customer’s expectations

• Redefining, Satisfying
• Unsatisfied = return = lose $
• Must work to satisfy customers

Question 15

Define Cognitive Confirmation

Answer 15

The reaffirmation of the wisdom of the decision a consumer has made (satisfied)

Question 16

Define the Types of Consumer Buying Decision

Answer 16

Types of buying decisions can be best described by referring to five factors

Question 17

Define Level of Consumer Involvement

Answer 17

The amount of total time and effort a buyer invests in the search and evaluation, and decision process

Question 18

Define Routine Response Behaviour

Answer 18

The type of decision, making exhibited by consumer buying frequently purchased, low-cost and services; requires little search and decision time

Question 19

Define Limited Decision Making

Answer 19

The type of decision making that requires moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

Question 20

Define Extensive Decision Making

Answer 20

The most complex type; Used when considering the purchase of an unfamiliar, expensive product or an infrequently purchased items; require the use of several criteria for evaluating options and much more time for seeking info.

Question 21

Define Cultural Influences as a Factor Affecting Consumer Buying Decisions

Answer 21

Culture comprises the set of values, norms, attitudes, and other meaningful symbols that shape human behaviours. Culture is the essential character of a society that distinguishes it from other culture groups

• Makes it easier to target markets

Question 22

Define Social Factors as a Factor Affecting Consumer Buying Decisions

Answer 22

Combination of income, occupation, education, wealth, and others. Consumers interact socially with reference groups, opinion leaders, and/or family members who obtain product information and decision approval

Question 23

Define Opinion Leaders as a Factor Affecting Consumer Buying Decisions

Answer 23

Reference groups who influence others, often the first to try new products (varies by category)

Question 24

Define Family as a Factor Affecting Consumer Buying Decisions

Answer 24

The most important social institution

Question 25

Define Gender as a Factor Affecting Consumer Buying Decisions

Answer 25

Physiological differences between men and women result in different needs and in how they make purchases. Changing roles in work and society are influencing this

Question 26

Define Age as a Factor Affecting Consumer Buying Decisions

Answer 26

Influences what we buy

Question 27

Define the Family Life Cycle

Answer 27

Related to age- an orderly series of stages through which consumers’ attitudes and behaviour tendencies evolve as they age, they gain more experience and maturity.

Question 28

Define Personality as a Factor Affecting Consumer Buying Decisions

Answer 28

Each individual has a unique personality; psychological makeup and environmental factors

Question 29

Define Self Concept as a Factor Affecting Consumer Buying Decisions

Answer 29

Ideal self-image and real self-image. Consumers generally never buy products that jeopardize their self-image. We try to raise our real self-image toward our ideal. Body image is part of self-image and much in the media around appropriate body image and products today is marketed to enhancing perceived body image, whether that be weight loss products or products that make the aging boomer feel younger.

Question 30

Define Perception as a Factor Affecting Consumer Buying Decisions

Answer 30

Marketers must recognize the importance of cues, or signals, in consumers’ perception of products. Marketing managers first identify the important attributes that the targeted consumers want in a product, such as price, social acceptance, or quantity, and then design signals to communicate these attributes.

Question 31

Define Motivation

Answer 31

Motives are the driving forces that cause a person to take action to satisfy specific needs.

Question 32

Define Learning

Answer 32

Almost all consumer behaviour results from learning, which is the process that creates changes in behaviour, immediate or expected, through experience and practice. It is not possible to observe learning directly, but we can infer when it has occurred by a person’s actions.

Question 33

Define Experimental Learning

Answer 33

When an experience changes your behaviour.

Question 34

Define Conceptual Learning

Answer 34

When you hear about/are told something that changes your behaviour.