Exam 4 Flashcards
Every consumer decision is…
A response to a problem
Types of involvement: degree of interest in a certain product category
Product involvement
Types of involvement: level of engagement with marketing communication
Message involvement
Types of involvement: temporary interest due to certain situation
Situational involvement
Types of involvement: long term interest even when there is no purchase needed
Enduring involvement
Types of involvement: focus on importance of purchase itself, regardless of product category
Purchase decision involvement
Types of involvement: sense of self, values is closely product to product
Ego involvement
Types of perceived risk
Financial, performance/functional, physical/safety, social, psychological, time
Habitual decision making
Behavioral, automatic, unconscious
Affective decision making
Emotional
Cognitive decision making
Rational
To repeatedly but protect w/o attachment
Inertia
Conscious decision to buy brand
Brand loyalty
Step one of decision making process
Problem recognition
Types of problem recognition
Need and opportunity
Step 2 of cognitive decision among process
Information search
Types of info search
Ongoing, pre purchase, internal (retrieval of memory), external
Too much info to process is called
Information overload
Set that is large and brands that customers have reasonable access to
Universal set
Set of brands that the customer is familiar with
Evoked Set
Set of brands the customer will seriously consider
Consideration set
Set of brands the consumer is indifferent towards
Inert set
Set of rejected brands
Inept set
The final group of brands that the consumer has narrowed down
Choice set
Increased anxiety or decision paralysis of cause of
Choice overload
Optimal amount of choices is
7 +/- (millers law)
Dimensions that can be used to judge the merits of competing options
Evaluative criteria
Differentiators (make or brake purchase
Determinat attributes
Customer that but based of good enough, efficiency, and quickly
Satisficers
Perfectionists, take time in decision, likely to experience buyer remorse
Maximizers
People are limited to make fully rational decisions due to constraints such as time, info availability, cognitive capacity
Bounded rationality
Rules that allows tradeoffs, chose the best overall
Compensatory rules
No exception rules
Non compensatory rules
Minimum acceptable level rule
Conjunctive rule
Minimum level rule but only for dominant attributes
Disjunctive rule
Rule that looks at only most important attribute
Lexicographic rule
Eliminate rule if brand doesn’t have certain attributes
Eliminate by aspects rule
Sum of points for each brand rule
Simple additive rule
Weight x points = weighted sum rule
Simple additive w/ weights rule
Feeling uncomfortable/having doubts about a decision and occurs before satisfaction is the phenomenon called
Cognitive dissonance
Cognitive decision making process (PIECE)
- Problem 2. Information search 3. Evaluation of alternatives 4. Choice 5. Post purchase evaluation
Expectations and performance perceptions 🔜 disconfirmation 🔜 (dis) satisfaction
Expectancy disconformation model
NPS or net promoter score is
Promoters (9-10), passives (7-8), detractors (0-6)
NPS is single question on 0-10 scale (T/F)
True
NPS =
Promoters - subtractors (%-%)
Under 0 on NPS scale
Needs improvement
0-30 on NPS scale
Good
30-70 on NPS scale
Great
70-100 on NPS scale
Excellent
Both customer satisfaction and dissatisfaction happen after consumption (T/F)
True
The idea that loss weighs heavier than gain and leads to risk bahavior
Loss aversion
Expectations: beliefs of the will do
Performance
Expectations: the should do
Normative
Expectations: based on historical outcome
Predictive
Expectations: best possible outcome
Ideal
Expectations: based on price or loyalty
Deserved
Source of expectations
World of mouth, experience, marketing, price, product/service specifications
The process of conparing expectations with actual experience
Disconformation
Expectations < performance
Positive disconformation
Expectations = performance
Simple conformation
Expectations > performance
Negative disconformation
How humans assign reasons to outcome of product/service
Attribution theory
Locus of control
Internal: within consumer control
External: outside control
Likeliness to change (stable vs unstable)
Stability
Controlability
Controllable leads to anger and uncontrollable leads to more understanding
