Lecture 9

Question 1

Typology of consumer buying decisions (1 is best 4 lowest)

Answer 1

extensive decisions > problem solving
Limited decisions> information search
Decisions by habit > purchasing program
Impulsive decisions > unplanned acquisition

Question 2

Typology of goods based on effort and acquisition experience

Answer 2

Low effort high acq experience = convenience foods (food, cigs)

Mid effort mid acq experience = shopping goods (clothes, shoes)

High effort low acq experience = speciality goods (eg cars, houses)

Question 3

Deciding which brands to consider

Answer 3

Awareness set, consideration set, inert set

Question 4

Deciding what is important

Answer 4

goals, time framing

Question 5

Deciding what to choose

Answer 5

Cognitive decision model, affective decision model

Question 6

Deciding what to buy now or later

Answer 6

Buying, delaying

Question 7

Systematical processing of attributes to reach a decision in a rational manner

Answer 7

Processing by brand and compensatory = multi attribute modeL

Processing by brand and non compensatory is conjunctive model and disjunctive model

Processing by attribute and compensatory - additive difference model

Processing by attribute and non compensatory - lexicographic model and elimination by aspects

Question 8

Compensatory

Answer 8

Compensatory is a positive attribute can compensate for a negative attribute

> select brand that provides higher overal utility (ie cost benefit analysis)
combining attribute performance and attribute importance per brand

Question 9

Non compensatory

Answer 9

Non compensatory is a positive attribute does not compensate for negative attitudes

> using cut off levels (eg price not higher than £)
eliminate brand that does meet cut off, select brand that is not eliminated
non compensatory models require less cognitive effort
consumers might first use non compensatory modes ( to decrease larger considerations sets) than compensatory models

Question 10

Brand processing

Answer 10

Brand processing is to compare brands based on attributes
> evaluative the attributes of one brand at the time
>select brand that best fits your attribute preference

Question 11

Attribute processing

Answer 11

Attribute processing compares attributes across brands
> rank attributes in terms of importance
>select brand that provides the best performance per attribute (eg lowest price)

Question 12

Key takeaways

Answer 12

Differentiate between the consumer effort, the good and the decision making unit when seeking to manage purchase decisions

The eventual purchase decisions depends on several decisions, involving the consideration, the goals and the cognitive decision model that is applied

Non complementary decision modules are usually applied to filter a larger consideration set based on cutoff levels (eg price not higher than x £)

Consumers might compare brands on severel attributes on purchase the brand that performs the best on the attribute that is most important to them

Espicslly in non compensatory settings, managers need to take actions if their product performs poorly on an important attribute