Brainscape's Knowledge GenomeTM

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


See full index

Consumer behaviour > Decision-making > Flashcards

Decision-making Flashcards

1
Q

What are low involvement products?

A
  • There is not made a big search ahead
  • the search process is either very small or not existing
  • decisions are of less importance
  • habitual decision-making
  • Daily buys such as food and drink aren’t always low, this depends on the consumer
  • ‘’What drinks should I choose’’
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are high involvement products?

A
  • Product that will affect aspects of our life
  • it is important decision’s
  • the process of search is deeper
  • Other alternatives are considered
  • routine decision: when purchasing a brand that you have purchased before.
  • ‘’What University should I go to’’
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Mention the four types of purchase under involvement?

A
  • Random choice; Inertia or spurious loyalty
  • Dissonance reduction; Complex decision making
  • Experimentation; Variety seeking; Random choice
  • Brand loyalty; Complex decision making
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Explain the five stages of decision-making

A
  • Problem recognition
  • Information search
  • Alternative evaluation
  • Evaluation
  • Outcomes of choice
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is involvement?

A

Involvement is the perceived relevance of a purchase to the consumer

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

Difference between low and high involvement

A

The difference is the research and alternative evaluation process that you see in the high involvement end intention in the low involvement (model p. 89)

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

Explain Random choice (the four types of purchase under involvement)

A

Food products i.e.
Consumers may buy the same tomatoes every week. But that’s doesn’t make them loyal, because in case of a price promotion on another of the same product, the consumer changes the brand without any more consideration.
- Low involvement (low price, low risk)
- Few differences between brands

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

Explain Experimentation (the four types of purchase under involvement)

A
  • Consumers may engage in variety seeking.
  • They might try out different brands.
  • i.e. soft drinks, there is different variety and it is a cheap product, if you don’t like it, you won’t be buying it next time and move on to the next one.
  • Low involvement (low price, low risk)
  • Significant differences between brands
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Explain Dissonance reduction (the four types of purchase under involvement)

A

I.e. the consumer may go around and look for other brands, to reassure that they have made the right choice (Dissonance reduction-strategy).

  • Few differences between brands
  • High involvement (high price, high risk)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Explain Brand loyalty (the four types of purchase under involvement)

A
  • Consumers carefully examine all possibilities
  • These consumers tend to be loyal to a brand, when they have found their favorite.
  • Significant differences between brands
  • High involvement (high price, high risk)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is and when does ACTIVE LEARNING occur?

A
  • Brand beliefs in high involvement is formed thru active learning
  • When consumer is in an active learning mode, they would like to learn more about the brand they are buying, because it is important for them.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is and when does PASSIVE LEARNING occur?

A
  • Brand beliefs in low involvement is formed thru passive learning
  • When the consumer is in a passive learning mode information about brands is not important. They may be stimulated at the time of purchase.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Explain routine decisions in high involvement situations

A

It’s not every time you buy a high involvement product that you consider the brand. i.e. if you have purchased an Apple before, and you’ve had a good experience with the product you chose to buy it again – this is a high involvement routine decision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The 5 steps of decision-making: Problem recognition (1)

A
  • Problem Recognition is the consumers realization of that there is a difference between his/her actual and ideal state
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Problem recognition: Need recognition and Opportunity recognition. Explain these

A

Need:

  • a situation where consumer easily moves between actual and ideal state. i.e. you recognize that you are hungry -> you buy lunch.
  • you do not gain something that you have, when you were in the actual state.

Opportunity:

  • you gain something when you go from the actual state to the ideal state.
  • when you are in a situation that you have never considered before. i.e. seeing a add of a mobile phone you think that you need a new phone

Eks. If my car breaks down and I go to the shop to fix it then I get my need recognition filled up - while I’m at the shop I see some additional stuff I can buy for the car this is the opportunity recognition.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The 5 steps of decision-making: information search (2)

A
  • It is the process by which we identify appropriate information to aid our choice in a decision-making situation.
  • The search for information is more complex in high than low
17
Q

The 5 steps of decision-making: Alternative evaluation (3)

A

at this stage the gathered information can be placed into diffrent categories.

  • Evoked set: the possible brands that the consumer knows and have the opportunity to choose from. Brands that comes to mind when specific brands come to mind.
  • Consideration set: consist in evoked sets and are sets that you might buy.
  • Inept set: means having or showing no skill. These are those brand that the consumer has come by, but the consumers might not see them as accepted for the problem/it won’t solve their problem. Those brands that the consumer may have come across during their search or from previous experience but would not consider for this decision.
  • Inert set: means lacking the ability or strength to move. Brands that are not under consideration at all. Basically, these brands are indifferent for them.
18
Q

The 5 steps of decision-making: Evaluation (4)

A
  • Consumers evaluate the different offerings to make a choice. Incl. belief, attitude
  • This stage is especially important in high involvement process.
19
Q

The 5 steps of decision-making: Outcomes of choice (5)

A
  • We may be satisfied or not and we will talk about it both offline and online situations.
20
Q

What is disconfirmation paradigm?

A

It is the difference between a consumer’s pre-purchase expectations of the product’s performance and their post-purchase experience

21
Q

What are the motives behind shopping

A

Personal motives and social motives.

22
Q

Mention the 6 personal motives for shopping

A 
o	Role playing 
o	Diversion 
o	Self-gratification 
o	Learning about new trends – i.e. by checking out stores we might find new trends.
o	Physical activity
o	Sensory stimulation
23
Q

Mention the 5 social motives for shopping

A 
o	Social experiences
o	Communicating with others with similar interests
o	Peer group attraction
o	Status and authority 
o	Pleasure of bargaining
24
Q

What are the five kind of shoppers?

A
  • Apathetic shoppers
  • Enthusiasts
  • Destination shoppers
  • Basic shoppers
  • Bargain-seekers
25
Q

What are the 4 groups of online shoppers

A
  • Convenience shopper
  • Variety shopper
  • Balanced buyer
  • Store-oriented shopper
26
Q

What is Maximizing when dealing with choices?

A

It is when the consumer are trying to consider all alternatives.
This can be difficult in environments where there is a lot choice! There are situations where maximizing is a better strategy for us i.e. when It comes to our health such as in medical treatments.

27
Q

What is the prediction heuristics, and mentioned the two types?

A

when the consumer is trying to predict an outcome
there are two types
1. Availability heuristic – out judgment is bases on how vividly we remember some other events.
2. Representativeness heuristic – we judge something by how similar it is to something else.

28
Q

What is the persuasion heuristics?

A

refers to how consumers take shortcuts. i.e. when a dentist recommends a toothpaste, we choose it

29
Q

What is the choice heuristics?

A

we decide that we won’t to use more than 20 kr.

30
Q

What is the compliance heuristics? and what are Scarcity and reciprocity

A

– the like hood of choosing something bases on with a Compliance request. i.e. you are shopping for a sweater and there is only one in your size we judge stuff on rare therefor we chose to buy it.

a. Scarcity: we place a higher value on something if it’s rare. So, if we find out that a store only has 2 products left, we tend to buy it because it is rare. ‘hurry low stock!’
b. Reciprocity return of favour. If a service person does something for you, you pay back in return by buying a product.

Consumer behaviour (1 decks)

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