Consumer Purchase Flashcards
Chioces:
Creating a consideration set
All alternatives are devided into:
• Inert set > Rejected Options
• Evoked set > Consideration Set
• Inept set > Not considered yet
The Evoked Set then devides into “Retrieval Set” through internal search and into “Sailent Alternatives” through external search
Choices:
Types of decision rules
• Compensatory decision rules - Additive - Weighted - Averaging • Non-compensatory decision rules - Conjunctive - Disjunctive - Lexicographic - Elimination by aspects • Heuristics - Availability - Representativeness - Anchoring and adjusting
Biases:
Context effect in choice
• Effects on Reference Points - The importance of expectations - Contrast effects - Assimilation effects • Choice Set Effects - Decoy effect - Compromise Effect
Biases:
Decision making under uncertainty
Expected utility theory
Contrast effect
Negative relation between the value people place on a target stimulus (example: tie) and the value that they place on the contextual stimulus (example: suit)
Assimilation effect
Positive relation between the value people place on a target stimulus and the value that they place on the contextual stimulus (target and context perceived similar)
Decoy effect
Adding a decoy product to make target product more attractive (cross)
Compromise effect
Adding a premium product to make the compromise product (intermediate
product) more attractive (Canon)
Expected Utility Theory
Example:
You want to buy a specific calculator. You know that it costs $247 / $47 in the electronics store just around the corner. However, you also know that it only costs $230 / $30 in another electronics store.
Unfortunately, this store is on the other side of town.
• Will you make the trip to the other side of town to buy the calculator,
or will you simply buy it at the store around the corner?
- store around the corner: $247 (V1) / $47 (V2)
- other side of town $230 (V1) / $30 (V2)
• What option would be the one with the highest “utility”?
Effects on reference points: The Importance of Expectations
Example:
You are on the beach on a hot day. For the last hour you have been thinking about how much you would enjoy a cold beer. Your companion needs to make a phone call and offers to bring back a beer from the only nearby place where beer is sold, which happens to be a fancy resort (V1)
run-down grocery store (V2).
Your companion asks how much you are willing to pay for the beer and will only buy it if it is below the price you state. How much do you state for each of the places (what is your reservation price)?
Purchase: Environmental Psychology
• The Mehrabian-Russel Stimulus-Response Model
• The Russel Model of Affect
• Store atmospherics, i.e.,
- sensory inputs
(vision & color, smell& fragrances, music & hearing, phonetic symbols, touch)
- personal interactions
- waiting lines
- architecture
influence emotional responses and influence buying behavior
Purchase Experimental Marketing
Focus is on the experience with a product on the - sensorial - emotional - relational - intellectual elements of the value proposition
The Mehrabian-Russel Stimulus-Response Model
- Store Atmospherics: • Sensory inputs • Personal interactions • Architecture and merchandising >Emotional Responses >Behavor: • Average expense • Time spent in-store • Impulse buying • Satisfaction/ Store loyalty
Store Atmospherics:
- Vision & Color
- Smell & Fragrances
- Music & Hearing
- Touch
- PersonalInteractions
6: Waiting Lines - Architecture & Merchandising
Experiential Marketing
-Assumes that consumers are emotional and impulsive
-Believes that functional benefits of products are the same
-Focuses on consumption as a holistic experience
-Enriches consumer’s sensory, emotional, relational and
intellectual experiences
