Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

1 Principles of Consumer Behaviour > Decision Making > Flashcards

Decision Making Flashcards

1
Q

How many decisions are made per day (est.)?

A

between 1k and 10k (depends on which types you take into consideration)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

define the term consumer hyperchoice

A

= exposure to a number of different alternatives

makes the decision-making process more difficult

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is the buyer’s black box model?

A

the environment can be observed (marketing stimuli and other), as well as buyer responses, but the characteristics and decision process of the buyer is unknown

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

how can the black box be opened?

A

with neuroscience and neuromarketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

define the term decision

A

a problem-solving process, of which the outcome is a choice.

the key process within it is the integration process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

define the term integration process

A

= combos of previously-acquired knowledge + evaluation and selection of alternative behaviours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

is there a big or small gap between choice/decision and behaviour?

A

big

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

state the generic model of consumer problem-solving

A

key assumption: consumer goes through all five stages

  1. problem recognition
  2. search for alternative solutions
  3. evaluation of alternatives
  4. purchase (decision)
  5. postpurchase use and reevaluation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is the critique of the generic model of consumer problem-solving? (3)

A
  1. consumers do not proceed in a linear manner in real life
  2. it is rarely as extensive (this much thought put into it) - depends on the situation
  3. can involve multiple problems
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

state the classification of involvement. (3)

A

based on involvement, which translates into effort + dedication

  1. product involvement (interest in the product, it is the most important)
  2. purchase involvement (motivation to process info about product only during purchase)
  3. advertising involvement (motivation to process info is during exposure to ads)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

state the classification of consumer decision-making (3)

A
  1. routine d-m (habitual, little or no conscious effort)
  2. limited d-m (straightforward, simple)
  3. extensive d-m (initiated by a motive that is central to self-concept + final decision is risky)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what does involvement depend on? (2)

A
  1. degree of intrinsic and situational self-relevance

2. percieved risks (physical, financial, psycho-social)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

how do we differentiate between different decision-making classes?

A
  1. problem recongition:
    - – routine: selective problem recongition (we have one brand in mind)
    - – limited+extensive: generic problem recongition (we decide between brands)
  2. information search
    - – routine: limited internal (browsing only in memory)
    - – limited: internal, limited external
    - – extensive: internal, external
  3. alternative evaluation
    - – routine: none
    - – limited: few atrributes, alternatives
    - – extensive: many attributes, complex decision
  4. postpurchase
    - – routine: no dissonance, very limited evaluation
    - – limited: no dissonance, limited evaluation
    - – extensive: dissonance (= not being sure about the final decision), complex evaluation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

state 2 examples for routine decision making

A

buying salt, tooth-paste

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are the marketing mix requirements for routine decion making? (4)

A
  1. consistent product
  2. stable price
  3. promotion = reminders
  4. always available (in regards to distribution)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

define impulsive purchases (4 characterisitcs)

A
  • not necessarily repetitive
  • affect-based decisions
  • emotional purchases
  • low engagement purchases
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

state 2 characteristics of routine d-m

A
  1. repeated purchases

2. low purchase involvement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

state 2 characterisitcs of limited d-m

A
  1. buying products we know (medium involvement)

2. consumer doesn’t know exactly which product to choose (which brand) -> simple decision rules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

state 4 characterisitcs of extensive d-m

A
  1. high level of involvement
  2. intensive search of information
  3. decision between several brands
  4. d-m process takes a long time
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what are the marketing mix requirements for extensive decion making? (4)

A
  1. product: physical value
  2. price has to reflect value
  3. cognitive and rational promotion
  4. distribution depends on the product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

define game-based marketing

A

= involves incorporating gaming elements into a non-gaming context to improve engagement levels and encourage users to take specific actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

which one of the d-m types happens most often?

A

limited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

state 2 characteristics of problem recongition

A
  1. occurs when the consumer sees the difference between current and ideal state (need recognition or opportunitiy recognition)
    https: //slideplayer.com/slide/6885982/23/images/9/Problem+Recognition%3A+Shifts+in+Actual+or+Ideal+States.jpg
  2. problems can be solved in various ways (internal or external stimuli)
24
Q

state 3 marekting activities regarding problem recongition

A
  1. analyse problems
  2. activate recognition
  3. reduce recongition with existing consumers (when marketers don’t want consumers to switch to other brands)
25
Q

define the term information search

A

= the process by which we survey the environment for appropriate data to make a reasonable decision

26
Q

what are the 4 determinants of the amount of information search?

A
  1. percieved risk
  2. involvement
  3. familiartiy
  4. expertise
27
Q

what is the difference between prepurchase search and ongoing search?

A 
prepurchase:
- to make a good purchase decision
ongoing:
- about involvement with the product
- increases impulse buying
28
Q

state two types of information sources

A
  1. marketer sources (ads, salespersons, brochurses, displays, websites, product packaging)
  2. nonmarketer
    - personal
    - indepedndent
29
Q

state 3 types of digital marketing media types

A
  1. owned (website, blog, social media profiles)
  2. paid (pay per click, paid influencers etc.)
  3. earned (word of mouth)
30
Q

depending on the product knowledge, when do people search the most?

A

those who are familiar with the product.
those who are not at all -> don’t have any idea and just buy something
those who know all about it -> they just search a tiny bit of info they forgot or something

31
Q

when do we tend to search more? (3)

A
  • importance of purchase
  • easy to obtain relevant information
  • when we want to
32
Q

how many people start their information search online? (%)

A

60%, 40% of them continue on social media

33
Q

do consumer always search rationally?

A

no - especially with limited time and durable goods i.e. cars

34
Q

define the term brand switching

A

= selecting familiar brands when decision making situation is ambiguous

35
Q

define the term variety seeking

A

= desire to choose new alternative over more familiar ones

36
Q

define the term maximizing (in terms of info search)

A

checking all the options and choosing the one that brings the most satisfaction

37
Q

define the term satisficing (in terms of info search)

A

choosing the option that bring us satisfaction the first

38
Q

what are the 5 types of percieved risks? (EXAM: essay question - situation given and then you define the risks)

A
  1. monetary risks (wasting money)
  2. functional risks (product not working properly)
  3. physical risks (product hurts us physically) - can be connected with functional risk
  4. social risks (other people not liking our decision)
  5. psychological risks (product evoking guilt or anxiety)
39
Q

of which tasks does the evaluation of alternatives consist?

A
  1. evaluation on choice criteria (e.g., expected life-span, price, design) - if the criteria is the same for all alternatives, it is not important
  2. selection of one alternative
40
Q

state classification of alternatives

A
  1. unknown brands
  2. known brands
    - – evoked set (acceptable brands)
    - ——- purchased brands
    - ——- not purchased brands
    - – inept set (unacceptable brands)
    - – inert set (indifferent brands and overlooked brands)
41
Q

define the term neuromarketing

A

= use of MR (magnetic resonance) imaging for brain scanning and mapping (playing trailers and making choices when in the MR machine)

42
Q

state 2 types (ab for 1) of integration procedures used in evaluation of alternatives

A
  1. formal
    - – compensatory (a good attribute outweighs bad ones)
    - – noncompensatory (product must meet a certain critieria)
  2. heuristics
43
Q

define the term heuristics and state 3 types of it

A

mental shortcuts (rules of thumb) used to simplify decision-making

  1. relying on product signals = surrogate indicators (noticeable feature of the product)
  2. market beliefs (beliefs about how the market works - which product is bought the most by others)
  3. country of origin
44
Q

state 4 characteristics of choice and purchase

A
  1. they vary in specificity and complexity
  2. marketers aim to increase the likelihood of the positive intended behaviours
  3. there are many interruption factors (that result in not buying the product; stimuli, affective states, goal conflicts)
  4. purchase is not the only option
45
Q

define the term omnichannel marketing

A

the marketing channels are connected amongst each other

https://www.omnisend.com/blog/wp-content/uploads/2020/10/omnichannel-vs-multichannel-marketing-comparison.jpg

46
Q

what can marketers do to sell products consumers are embarassed to buy?

A
  • make subtle and discreet packaging
  • campaign to make it more acceptable
  • select the location in the store
47
Q

what are the three possibilities of postpurchase behaviour?

A
  1. product use
  2. product misuse
  3. product non-use
48
Q

define the process of postpurchase behaviour

A
  1. purchase
  2. use
  3. evaluation
  4. satisfaction
  5. possibilities:
    - – loyal customer
    - – repeat purchases
    - – increased use
    - – brand swtiching
    - – discontinued use
49
Q

define the expectancy disconfirmation model

A

= customers compare the performance of a product against their expectations of that product

50
Q

what are the possible outcomes of the expectancy disconformation model?

A

satisfaction = expectations are met or exceeded
dissatisfaction = performance falls short of expectations
cognitive dissonance = post-purchase regret

we get expectations from ads

51
Q

what are the possible responses to dissatisfaction? (2, abcde for one)

A
  1. take actions
    - – complain to store
    - – stop buying from that store
    - – negative WOM (warning friends)
    - – complain to gov agencies
    - – initiate legal action
  2. take no action (less favourable)
52
Q

what are the possibilities to product disposition (disposal)? (3)

A
  1. keep it (use it for original purpose / new purpose, store it)
  2. get rid of it permanently (recycle, throw away, give away, trade it, sell it)
  3. get rid of it temporarily (rent it, loan it)
53
Q

how can a consumer reduce their dissonance? (4)

A
  1. increasing desirability of selected brand
  2. reducing desirability of not selected brand
  3. decreasing importance of decision
  4. repealing the dicision (returning the product)
54
Q

how can marketers reduce consumers’ dissonance (3)

A
  1. warranty
  2. assurance
  3. ads with customers that made a good decision
55
Q

what is the trend with decision-making?

A

‘always-on-shopper’ = constant interactions (social media, alerts about new prices)

1 Principles of Consumer Behaviour (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions