Lecture 4: Decision Making

Question 1

how do we decision make

Answer 1

• Realising there is a problem
• Finding out more information
  o how much search?
• How are alternatives evaluated?
  o Careful weighing up of ‘pros’ and ‘cons’
  o Use of quick heuristics

Question 2

what are the stages of evaluating the alternative

Answer 2

o The product alternatives a person considers compromise their evoked set.
o Members of the evoked set usually share some characteristics; we categorize them similarly.
o The way a person mentally groups or categorises products influences which alternatives he or she will consider.
o Usually we associate some brands more strongly with these categories

Question 3

what sets are involved in evaltating the alternative

Answer 3

evoked set: the alternatives a consumer knows about

Consideration set: the ones actually considered

Inept set: ones a consumer knows about but would not consider buying

Inert set: those not under consideration at all

Question 4

what are the strategic implications of product grouping (evaluation of alternatives)

Answer 4

product positioning

identifying competitoes

exemplar products

locating products

Question 5

define product positioning

Answer 5

o This hinges on the marketer’s ability to convince consumers that a product should be considered within a given category.

Question 6

define ‘identifying competitors’

Answer 6

o Many different product forms codo wempete for membership of a category

Question 7

define ‘exemplar products’

Answer 7

o Where a product is a really good example of a category, it is more familiar to consumers and is more easily recognized and recalled.
 Popular familiar product generally seen as a good product
 This is where might start to look at price point etc..

Question 8

define ‘locating products’

Answer 8

o Product categorization can also affect consumers’ expectations regarding the places where they can locate products.
 Category that choose to put product in

Question 9

what are the 3 elements of the multi attribute models on which consumers usually take into evaluation

Answer 9

attributes

beliefs

importance weights

Question 10

define attributes

Answer 10

those which consumers usually take into consideration when evaluating a particular product

Question 11

define beliefs

Answer 11

– the extent to which a consumer thinks a brand has a particular attribute

Question 12

define importance weights

Answer 12

the importance of each attribute for a consumer (this may vary considerably between individuals)

Question 13

what does the multi attribute model elements make possible

Answer 13

o Spot weaknesses in the brand profile
o Capitalise on advantages which the product already has
o Strengthen key product-attribute linkages
o Create new unique selling points if required
 Busier a market is  the more you need a unique selling point

Question 14

what did Fishbein 1983 create

Answer 14

created the first, and most influential, attribute model
o Model about gap between intention to buy and actually buying
o Key concepts in diagram = intention and behaviour
- Other models have been created to improve the predictability of the model

Question 15

what are alternative models to improve the predictability of the multi attribute models

Answer 15

o The theory of reasoned action (Ajzen & Fishbein, 1977)

o The theory of planned behaviour (Ajzen, 1991)

Question 16

why do - Mismatches between predictions based on multi-attribute models and questionnaires arise

Answer 16

There can be differences between intentions and actual behaviour

Social pressure may change our intentions or behaviour

Models concentrate on the evaluation of the product rather than evaluating what consumers feel about buying it (e.g. if the shop is far away or unpleasant)
- Eg if the shop is far away->will you go to the shop of just buy it on amazon context is key

Models also need to include what consumers feel about websites when shopping online

Attitudes can change for a variety of reasons (e.g. culture, shopping on-line, age)
-Mismatches between predictions that come up with (conscious decisions of buying) due to above