Lecture 3

Question 1

Model of Consumer Decision Making

Answer 1

• Consumer Behaviour: the process and activities people engage in when making a choice about p/s so as to satisfy their needs and desires

Question 2

Decision making process

Answer 2

• Problem Recognition
• Information Search
• Evaluation of Alternatives
• Purchase Decisions
• Post-purchase evaluation

Question 3

DMP • Problem Recognition

Answer 3

o Occurs when a buyer becomes aware of a difference b/w a desired state and an actual condition

Question 4

DMP • Information Search

Answer 4

o Internal (memories for information about products) vs external

Question 5

DMP • Evaluation of Alternatives

Answer 5

o Evoked set: a group of brands that the buyer views as alternatives for possible purchase
o Evaluative criteria: objective an subjective traits important to the buyer
o Framing the alternatives:

Question 6

DMP Purchase Decisions

Answer 6

o Choosing the product or brand to be bought, based on the outcome of the evaluation stage
o Choice of seller, terms of sale, price, delivery and warranties may effect final selection

Question 7

DMP Post-purchase evaluation

Answer 7

o Cognitive dissonance: buyer’s doubts shortly after purchase about whether decision was correct
o Buyers are most likely to seek reassurance after the purchase of an expensive, high-involvement product

Question 8

Psychological Process

Answer 8

Motivation
Perception
Attitude Formation
Integration
Learning

Question 9

PP Motivation

Answer 9

o Maslow’s hierarchy of needs: physiological, safety, social, esteem, self-actualisation

Question 10

PP Perception

Answer 10

o The process through which we interpret the stimuli that we encounter in the world around us

Question 11

PP Attitude Formation

Answer 11

o Attitudes: learned predispositions to respond in a consistently favourable or unfavourable manner with respect to an object (brand, company, person, ad, store ect)
o Summary construct that represents an individual’s enduring evaluation of an object or idea

Question 12

PP Integration

Answer 12

o The way product knowledge, meanings and beliefs are combined to evaluate two or more alternatives
o Decision rules: the strategies used to decide among alternatives
 Can be formal (deliberate evaluation of alternatives) or informal (heuristics)

Question 13

PP Learning

Answer 13

o Process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour
 Behavioural learning theory (classical conditioning and operant conditioning)
• Operant: Behaviour  pos/neg consequence  influences repeat behaviour
 Cognitive learning theory

Question 14

External influences on consumer behaviour

Answer 14

• Culture, subculture, social class, reference group, situational determinants
• Target Marketing Process: identify markets with unfulfilled needs  determine market segmentation  select market to target  position through marketing strategies