decision making

Question 1

name types of decisions

Answer 1

habitual: routine purchases
limited problem solving: some research involved
extended problem solving: high involvement, extensive search

Question 2

mental shortcuts: higher price = higher quality

Answer 2

heuristics

Question 3

play a significant role in shaping perceptions, attitudes, and decision-making, influence how consumers perceive stimuli

Answer 3

expectations

Question 4

expectations influence how noticeable changes are; consumers need a sufficiently large contrast to perceive differences

Answer 4

Weber’s law

Question 5

expectations influence how people assign meaning to stimuli

Answer 5

interpretation and biases

Question 6

how can marketers use expectations in marketing

Answer 6

marketers can use sensory marketing to meet and exceed consumer expectations, reinforcing positive perceptions of brands
- failure to meet expectations creates perceptual dissonance

Question 7

how does expectations influence attitudes and motivation

Answer 7

expectations affect how consumers evaluate a brand or product

Question 8

how do expectations effect goal discrepancy in motivation

Answer 8

motivation arises when there is a gap between the current state and an ideal state

Question 9

how do expectations effect memory and brand associations

Answer 9

expectations affect information when it is encoded and retrieved
e.g., a consumer who expects tide to be the “best stain remover” will store this information in memory

Question 10

consumers expectations from one brand extension to another

Answer 10

analogical transfer

Question 11

key idea of expectations in memory and learing

Answer 11

brands must manage consumer expectations by reinforcing consistent messages through advertising, product quality, and customer service

Question 12

consumers rely on simplified expectations to make decisions under time constraints

Answer 12

bounded rationality

Question 13

how do expectations affect decision making

Answer 13

• expectations serve as reference points
• consumers evaluate new options based on prior information

Question 14

expectations act as a filter through which consumers interpret stimuli

Answer 14

perception in expectations

Question 15

meeting or failing to meet expectations drives attitude formation and change

Answer 15

attitudes in expectations

Question 16

expectations of achieving an “ideal state” motivate behaviour

Answer 16

motivation in expectations

Question 17

expectatitions guide what consumers encode, store, and retrieve about brands

Answer 17

memory in expectations

Question 18

consumers simply decisions using expectations as heuristics

Answer 18

decision making in memory

Question 19

three types of rationality

Answer 19

1. logical rationality
2. material rationality
3. ecological rationality

Question 20

briefly describe logical rationality

Answer 20

people make decisions based on reference points
people tend to choose certainty in terms of gains
- usually the lower amount
when the problem is framed in terms of losses, people will gamble
- thus, people don’t know what their actual preference is

Question 21

material rationality?

Answer 21

setting goals

Question 22

briefly describe ecological rationality

Answer 22

• there is a fit between preference and options
• marketers have been shaping preferences for brands and benefits
• e.g., grocery stores selling produce and dairy next to one another bc they know they compliment one another
• long term companies may do this but a newer company might not

Question 23

something you can decipher about a product or brand based on observations

Answer 23

search attributes

Question 24

things you can only learn once you’ve purchased it or used it

Answer 24

experience attribute

Question 25

faith; e.g., studying at SFU will bring you to a desirable outcome

Answer 25

credence benefits

Question 26

rules used when consumers are more involved and willing to consider the bigger picture?

Answer 26

compensatory and non-compensatory

Question 27

choose the option with the largest amount of positive attributes

Answer 27

simple additive rule (compensatory rule)

Question 28

consider relative importance of positive attributes

Answer 28

weighted additive rule (compensatory rule)

Question 29

simple rules that eliminate options based on their standings in certain attributes

Answer 29

non-compensatory rule

Question 30

brand that is best on the most important attribute, is choosen

Answer 30

lexicographic rule (non-compensatory)

Question 31

evaluated by most important attribute with specific cut offs imposed

Answer 31

elimination by aspects rule (non-compensatory)

Question 32

entails processing a brand, not just the attributes of a product

Answer 32

conjunctive rule (non-compensatory)

Question 33

develop acceptable standards for each attribute
- if product exceeds set standards, it is chosen
- can work for unplanned purchases
- works best for unplanned purchases

Answer 33

disjunctive role (non-compensatory rule)