Exam 1: Chapter 5

Question 1

Five step process for decisions

Answer 1

1. Problem recognition
2. Information search and shopping - Risk, involvement
3. Information processions and decisions models
4. Making a decision
5. Post-Decision

Question 2

Problem recognition

Answer 2

• General decision situation, doesn’t have to be specific
• Can be internally generated, or generated by marketers by advertising
• You identify you have a problem that you have to address

Question 3

Information search and shopping - Risk, involvement

Answer 3

• Information gathering through shopping
• Cost-benefit analysis
• Risk: $, technological, obsolescence, safety, social
• Involvement: Significance, impact on identity

Question 4

Information processions and decisions models

Answer 4

a. Decision Models
i. Multi-Attribute/Compensatory choice Models
ii. Importance x Rating = Score

Question 5

Making a decision

Answer 5

a decision

Question 6

Post-Decision

Answer 6

• Evaluate your purchase
• Make a judgment whether you made a good or bad decision
• Buyer’s remorse → Mental discomfort → Cognitive dissonance
• When you think you made a wrong decision
• Sometimes people go back to Stage 2 of this process even though they just bought something (tries to justify their purchase)

Question 7

Another name for buyer’s remorse

Answer 7

Cognitive dissonance

Question 8

(class and text), family influences including life cycles

Answer 8

Word-of mouth 
Through personal contacts
Trusted relatives or friends
Spread like wildfire… like rumors 
Unhappy customers generate negative word of mouth.

Reference group influences

Question 9

Sociological variables : Opinion leadership

Answer 9

People who you look up to

Question 10

Sociological variables : Word-of mouth

Answer 10

• Through personal contacts
  - Trusted relatives or
  friends
• Spread like wildfire… like rumors
• Unhappy customers generate negative word of mouth.

Question 11

Sociological variables: :Reference group influences

Answer 11

2. Groups that you may be associated with
3. Co-workers, peers
4. Other people put pressure on you to act a certain way
   Aspirational Groups
5. Groups you want to be a part of
   iii. Disassociate group
6. Groups you want to get away from

Question 12

5 Family influences:

Answer 12

1. Researcher
2. Influencer
3. Decider
4. Buyer
5. user

Question 13

Researcher

Answer 13

Someone that gathers information

Question 14

Influencer

Answer 14

People that exert pressure on another

Question 15

Decider

Answer 15

Someone who makes the decision

Question 16

Buyer

Answer 16

The person who does the transaction, usually the person who has the money

Question 17

user

Answer 17

Someone that uses the product

Question 18

Life cycles: classic

Answer 18

Classic 
Single
All your income 
Young married 
Consumer durables - the necessities to setup a household 
Full nest 1 
Kid-related necessities and expenses
Women usually quit working 
Household income decrease
Larger living space/house
Full nest 2 
You had all the kids you are going to have and they are all attending school
Kids around the age of 6 to 18 years 
Empty nest 1
All the kids are gone 
No more kid related expenses
Empty nest 2 
Both adults are retired and are living
Sole survivor 
Likely a women - men die earlier usually 
The original family ceases to exist once the sole survivor is no longer alive

Question 19

Life cycles: modern

Answer 19

Modern
Young adults 
No kids could be married or not 
New full nest
You have kids living under the same rood 
New empty nest
All the kids are gone 
Retired 
Both parents have stopped working