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Consumer Behaviour > Decision Making > Flashcards

Decision Making Flashcards

1
Q

What is the main purpose of consumer decision-making?

A

Consumers are continually making decisions that are meant to solve problems.

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2
Q

What are the five activities generally included in decision-making processes?

A
  1. Need recognition
  2. Search for information
  3. Evaluation of alternatives
  4. Choice
  5. Post-choice evaluation
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3
Q

How do decision-making processes lead to consumer choice?

A

Decision-making processes lead to consumer choice by recognizing needs and making choices.

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4
Q

What does choice in decision-making not necessarily mean?

A

Choice does not necessarily mean identifying what brand of product to buy; it could involve whether to make a purchase at all.

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5
Q

Does consumer decision-making always focus on tangible products?

A

No, consumer decision-making does not always focus on the purchase of a tangible product; it always involves choices linked to value.

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6
Q

What types of value are associated with consumer decision-making?

A

Both utilitarian value and hedonic value are associated with consumer decision-making.

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7
Q

How do value perceptions influence decision-making?

A

Value perceptions influence decision-making activities.

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8
Q

What are motivations in the context of consumer decision-making?

A

Motivations are the inner reasons or driving forces behind human actions as consumers are driven to address needs.

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9
Q

How are decision-making and motivation related?

A

Decision-making and motivation are closely related concepts; almost all consumer decisions revolve around goal pursuit.

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10
Q

What feelings do consumers frequently experience during the decision-making process?

A

Consumers frequently have feelings of frustration, irritation, or even anger as they attempt to satisfy needs.

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11
Q

Can the decision-making process be enjoyable?

A

Yes, the decision-making process can also be enjoyable, especially when using certain search apps.

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12
Q

From what perspectives do consumer researchers view the decision-making process?

A

Consumer researchers view the decision-making process from three perspectives: Rational decision-making perspective, Experiential perspective.

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13
Q

What is the rational decision-making perspective?

A

A perspective that assumes consumers diligently gather information about purchases, carefully compare various brands of products on salient attributes, and make informed decisions regarding what brand to buy.

Example: Consumers identify the expected value associated with a purchase.

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14
Q

What does the rational decision-making perspective assume about human beings?

A

It assumes that human beings are rational creatures who carefully consider their decisions.

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15
Q

What is the experiential decision-making perspective?

A

A perspective that assumes consumers often make purchases and reach decisions based on the affect, or feeling, attached to the product or behavior under consideration.

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16
Q

What does the experiential decision-making perspective focus on?

A

It often focuses on hedonic value, where value comes from the experience, not necessarily from an end result.

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17
Q

What is variety-seeking behavior?

A

A behavior that involves seeking new brands or products as a response to boredom or to satisfy a perceived need for change.

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18
Q

What is the behavioral influence decision-making perspective?

A

A perspective that assumes many consumer decisions are actually learned responses to environmental influences.

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19
Q

How does the behavioral influence decision-making perspective help explain consumer reactions?

A

It helps to explain how consumers react to store layout, store design, and point-of-purchase displays.

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20
Q

What do retailers use the brand-lift index for?

A

To measure the incremental sales that occur when a product is on display.

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21
Q

What can most consumer decisions be analyzed from?

A

A combination of the rational, experiential, and behavioral influence perspectives.

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22
Q

What does the decision-making approach depend on?

A

The decision-making approach heavily depends on the amount of involvement a consumer has with a product category or purchase and the amount of perceived risk involved with the decision.

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23
Q

How do involvement and risk affect consumer behavior?

A

As involvement and risk increase, consumers are motivated to move more carefully through the decision-making process.

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24
Q

What is perceived risk?

A

Perceived risk is the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take.

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25
Q

What is Extended Decision-Making?

A

Extended decision-making is a decision-making approach when consumers move diligently through various problem-solving activities in search of the best information that will help them reach a decision.

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26
Q

Where can information come from in Extended Decision-Making?

A

Information can come from both internal sources and external sources.

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27
Q

When does Extended Decision-Making typically occur?

A

It occurs when involvement is high and when there is a significant amount of purchase risk involved with the decision.

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28
Q

What is Limited Decision-Making?

A

Limited decision-making is a decision-making approach when consumers search very little for information and often reach decisions based largely on prior beliefs about products and their attributes.

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29
Q

Why does Limited Decision-Making occur frequently?

A

This type of decision-making occurs with great frequency due to the time constraints that consumers often feel.

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30
Q

When does Limited Decision-Making usually occur?

A

It usually occurs when there are relatively low amounts of purchase risk and product involvement.

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31
Q

What is Habitual Decision-Making?

A

Habitual decision-making is a decision-making approach when consumers generally do not seek information at all when a problem is recognized and select a product based on habit.

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32
Q

What are two topics of special importance in decision-making?

A

Brand loyalty and perceived risk.

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33
Q

What is brand loyalty?

A

A deeply held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior.

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34
Q

What is brand inertia?

A

A buying behavior that occurs when a consumer simply buys a product repeatedly without any real attachment.

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35
Q

How does brand loyalty impact a firm?

A

Brand loyalty has an impact on the value of the brand to the firm.

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36
Q

What do decision-making processes not guarantee?

A

Decision-making processes do not guarantee maximum value.

37
Q

What mistakes do consumers often make in decision-making?

A

Consumers often make mistakes or settle for alternatives that they are unsure of.

38
Q

What characterizes most daily purchases?

A

Most purchases made daily are low involvement and do not entail significant risk.

39
Q

What is satisfying in decision-making?

A

Satisfying is the practice of using decision-making shortcuts to arrive at satisfactory, rather than optimal, decisions.

40
Q

When is a need recognized?

A

A need is recognized when a consumer perceives a difference between the actual state and the desired state.

41
Q

What is opportunity recognition?

A

Opportunity recognition is when there is no change in the actual state, but there is significant change in the desired state.

42
Q

How can desired states be impacted?

A

Desired states can be impacted by unanticipated needs, reference group information, consumer novelty seeking, and cognitive thought processes.

43
Q

What triggers the decision-making process?

A

When consumers perceive a difference between an actual state and a desired state, the decision-making process is triggered.

44
Q

What is consumer search behavior?

A

The set of behaviors that consumers engage in as they seek information that can be used to satisfy needs.

45
Q

What is the purpose of consumers seeking information?

A

Consumers seek all types of information about potential solutions to needs.

46
Q

What factors do consumers consider when evaluating alternatives?

A
  1. The number of alternatives available
  2. The price of various alternatives
  3. The relevant attributes that should be considered and their importance
  4. The performance of each alternative on the attributes
47
Q

What is ongoing search?

A

Ongoing search is a search effort that is not necessarily focused on an upcoming purchase or decision, but rather on staying up to date on the topic.

48
Q

What is pre-purchase search?

A

Pre-purchase search is a search effort aimed at finding information to solve an immediate problem.

49
Q

How has the concept of information search changed recently?

A

The concept of information search has changed dramatically in recent years due to the mass adoption of the internet and the proliferation of mobile information technologies.

50
Q

What is information overload?

A

Information overload is the situation in which consumers are presented with so much information that they cannot assimilate the variety of information presented.

51
Q

What is internal search?

A

Internal search is the retrieval of knowledge stored in memory about products, services, and experiences.

52
Q

What is a universal set?

A

The universal set is the total collection of all possible solutions to a consumer problem.

53
Q

What is an awareness set?

A

The awareness set is the set of alternatives of which a consumer is aware.

54
Q

What is a consideration set?

A

The consideration set is the set of alternatives that are considered acceptable for further consideration in decision-making.

55
Q

What is an inert set?

A

The inert set includes the alternatives in the awareness set about which consumers are indifferent or do not hold strong feelings.

56
Q

What is an inept set?

A

The inept set consists of the alternatives in the awareness set that are deemed to be unacceptable for further consideration.

57
Q

What do consumers lack when making decisions?

A

Consumers don’t have enough information stored in memory that will enable them to reach a decision.

58
Q

What is external search?

A

The gathering of information from sources external to the consumer such as friends, family, salespeople, advertising, independent research reports, and the internet.

59
Q

What factors do consumers consider when gathering information?

A

Consumers consider factors such as:
1. The ease of obtaining information from the source.
2. The objectivity of the source.
3. The trustworthiness of the source.
4. The speed with which the information can be obtained.

60
Q

What does the term ‘evaluative criteria’ refer to?

A

Evaluative criteria refers to the product attributes that consumers consider when reviewing possible solutions to a problem.

61
Q

What are two evaluative criteria used across almost all consumer decisions?

A
  1. Price: The information that signals the amount of potential value contained in a product.
  2. Quality: A perceived overall goodness or badness of some product.
62
Q

How has the internet affected search behavior?

A

The internet has affected search behavior by:
1. Lowering the costs associated with the search process and making the process more productive.
2. Making the search process itself more enjoyable by delivering hedonic value to the consumer.

63
Q

What is mobile visual search (MVS)?

A

Mobile visual search (MVS) technologies allow consumers to simply take a photo of an object or scan it into their screen and quickly find information.

64
Q

What is the purpose of scanning an object into a screen?

A

To quickly receive information about it.

65
Q

What technology do apps use to recognize objects?

A

Image recognition technologies.

66
Q

What do augmented reality apps do?

A

They augment reality with computer simulated information to create interactive experiences.

67
Q

What do GPS-based technologies combine?

A

Elements of GPS capabilities with consumer needs.

68
Q

How do most smartphones utilize GPS?

A

They include features that show popular retailers nearby.

69
Q

What can apps allow consumers to find?

A

Information about nearby points of interest.

70
Q

What needs can consumers address while traveling?

A

Specific needs they have.

71
Q

What does evidence show about moderately experienced consumers?

A

They search for purchase-related information more than either experienced or inexperienced consumers.

72
Q

What challenges do individuals with little experience face?

A

They are unable to make fine distinctions between product differences.

73
Q

What can highly experienced consumers do?

A

Make fine distinctions between products and may not need to search at all.

74
Q

How do moderately experienced consumers perceive brand differences?

A

They perceive some differences among brands and are more likely to value information about these distinctions.

75
Q

What is the relationship between purchase involvement and search activities?

A

Purchase involvement is positively associated with search activities.

76
Q

What happens to search effort as perceived risk increases?

A

Search effort increases.

77
Q

What do consumers derive when benefits from searching exceed associated costs?

A

Value.

78
Q

What do consumers derive from associated costs?

A

Consumers derive value from associated costs.

79
Q

What happens when search costs exceed benefits?

A

Consumers no longer value the activity, and the search stops.

80
Q

How does time availability affect search activity?

A

More time to spend on a search usually results in increased search activity; the search will decrease when time constraints are present.

81
Q

What is the attitude of consumers who value shopping?

A

Consumers who value shopping and possess positive attitudes toward shopping generally spend more time searching for product information.

82
Q

How do personal factors influence search behavior?

A

Search tends to increase as a consumer’s level of education and income increase.

Search tends to decrease as consumers become older.

83
Q

What situational influences can impact search behavior?

A

Perceived urgency, financial pressure, and mood can all impact search behavior.

84
Q

How does the purchase occasion affect search?

A

The purchase occasion can also affect the search.

85
Q

What do consumers do when there is an urgent need for a product?

A

Consumers will select the first option.

86
Q

How does the amount of search depend on the relationship between the giver and receiver?

A

If purchasing a gift, the amount of search will depend on the relationship between the giver and the receiver and on the amount of time before the occasion.

87
Q

How is consumer decision-making viewed?

A

Consumer decision-making is not viewed as a series of steps because consumers don’t always follow a linear pattern when making decisions.

88
Q

What metaphor do some consumer researchers prefer to use?

A

Some consumer researchers prefer to use a consumer journey metaphor to describe decision-making.

89
Q

What is the concept of the consumer decision journey?

A

The consumer decision journey concept was introduced by McKinsey & Company and is viewed as a circular journey including initial consideration, active evaluation, closure, and post-purchase behavior.

Consumer Behaviour (14 decks)

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