Chapter 9 Flashcards
Individual Decision Making
Habitual decision-making
Choices made with little to no conscious effort
Limited problem-solving
More straightforward or simple purchases, consumers use simple decision rules to choose am among alternatives
Extended problem-solving
High involvement and purchase decision is perceived as high risk. The consumer will collect extensive information and conduct evaluation of brand attributes.
The decision-making process
- Problem recognition.
- Information search.
- Evaluation of alternatives.
- Product choice.
- Consumption and learning.
Internal information search
Scanning memory to assemble product alternative information
External information search
Obtaining information from advertisements, retailers, catalogs, friends, family, people watching, and consumer reports.
Relying on a product signal
Observable product attributes that communicate underlying qualities.
A shiny car leads consumers to believe it’s in mechanical condition
Covariation
Perceived associations among events
Country of origin
We strongly associate certain items with specific countries.
Think, German cars, switch watches, and French wines.
Brand habit
We buy out of habit because it requires less effort, but branding may occur frequently due to cheaper price or original brand out out of stock, point-of-purchase displays.
Brand loyalty
Repeat purchase behavior, reflecting a conscious decision to continue buying the same brand.
Compensatory decision rules
A weakness on one attribute can be compensated by for a strength on another attribute.
Simple additive rule: the brand with a number of positive attributes is chosen.
Weighted additive rule: multiply brand scores by importance weighing, and then brand with high score is chosen.
Non-compensatory decision rules
A weakness on one attribute cannot be compensated by strength on another attribute.
Assessment of attributes across all brands:
- lexicographic rule
- elimination by aspect rule
- conjunctive rule
- disjunctive rule
Lexicographic rule
- Most important attribute.
- Winner, then choose that brand. Tie…
- If tie then second most important attribute.
Elimination by aspects
- Most important attribute.
- Set minimum cut off.
- Does the brand meet the cut off?
- If more than one brand left, go to next most important attribute.