intro

Question 1

What influences decisions?

Answer 1

Firm, friends, family, reviewers, celebrities, self, personal experience

Question 1

what is cb

Answer 1

onsumer behavior is the study of how consumers think, we want to understand their decision making process

Question 2

How should i present prices so that they look more attarctve

Answer 2

ending prices (using 99 at the end of the number like 39.99) this works because consumers pay more attention to the left digit → “anchoring”
they also think its a limited offer

Question 3

Reference price is another technique→

Answer 3

they show the original price compared to the current price ex: reg price $48 now sale $30

Question 4

Why introductory offers?

Answer 4

Experience is the best advertisement → First hand experience is better than second hand advertisement (using it yourself is better)
People find it difficult to give up things → “loss aversion”. Once you have smtg in your possession, you find it difficult to give it up

Question 5

Store design

Answer 5

Moving you closer to purchasing
Deep discounted items are often displayed far inside the store→ increases temptation and the weaker you become so you buy something. Make them come face to face with temptation
Limited time/ quantity offers are often used to increase sales→ anticipated regret. People dont want to regret missing the offer

Question 6

How can we maximize customer satisfaction

Answer 6

exceed expectations
Satisfaction with process of buying
Salesperson training
Retail ambiance
Post-purchase followup
minimizing distsaufation afer you buy

Question 7

minimizing dissatisfaction: how to find it

Answer 7

Can measure customer satisfaction with sales data and survey data.
Survey data: questions measuring satisfaction, and drivers of satisfavtion
Sales data: sales records of customers

Question 8

Why is brand equity important?

Answer 8

Ability to extend brand name to other categories

Question 9

what is Branding

Answer 9

What is brand equity?
 Psychological & financial measures
* Why is brand equity important?
 Price premium over unbranded alternatives
 Ability to extend brand name to other categories
 ………
* How can we manage brand equity?
 Retailing, Advertising, Product Design

Question 10

what influences decisions

Answer 10

pricing, Brandung, store design, advertising , reviews