Chapters 7-15 Flashcards
Define ideal state and actual state, and provide an example of each
Ideal State: the way we want things to be
Ex. Clean room, good meals, exciting job
Actual state: the way things actually are
Ex. dirty dorm, ramen noodles, boring entry level job
What does ‘keeping up with the Joneses’ mean? Provide an example.
To always want to own the same expensive objects and do the same things as your friends or neighbours, because you are worried about seeming less important socially than they are.
Ex.) Your neighbor gets the newest lawnmower, so do you.
Define internal search. What are two types of information recalled during an internal search?
Internal search: the process of recalling stored information from memory
Brands
Attributes
Define retrieval set and evoked set. Which set is more desirable for a company
Evoked set: All of the brands you consider purchasing from.
Retrieval set: All of the brands you can think of
Evoked
Define confirmation bias and provide an example
Tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them; news reporter seeking witnesses with their view on the issue
What is the difference between pre-purchase search and ongoing search?
pre-purchase search- a search that aids buying decision
ongoing search- a search that occurs regularly, regardless of whether the consumer is making a choice
Define anchoring and provide an example of anchoring in a retail setting
Starting with an initial evaluation and adjusting it with additional information.
Ex.) The initial price offered for a new car. prices lower than the initial price may seem more reasonable than if they were to be the initial price
Define multiple unit pricing and provide an example in a retail setting.
A form of promotional pricing where the product is priced for more than one unit
Ex.) such “as two for one” sale. Gatorades 2 for 1.
Define framing and provide an example in a marketing context
The initial reference point in the decision process.
200 saved or 50% of 400 saved
What is the difference between compensatory and noncompensatory decision rules? Provide an example of each.
compensatory- the consumer trades off one characteristic against another; strength of a product compensates for the weakness.
noncompensatory- selecting a product or service on the basis of one characteristic or subset of characteristics regardless of the values of other attributes; Ford, never Chevy
Define and provide an example of prospect theory
losses have more influence than gains. consumers have stronger reactions to price increases than price decreases
Define post-decision dissonance and provide an example
a feeling of anxiety of whether the correct decision was made or not.
EX: you buy an expensive jacket at Nordstorms because the salesperson was pushy and now you are wondering if you made the right choice.
How does post-decision dissonance differ from post-decision regret?
regret- a feeling that one should have purchased another option
What are two things that a consumer might do to relieve cognitive (post-purchase) dissonance?
take back the item
seek positive feedback to justify purchase
