Lesson 2 Videos

Question 1

The Consumer Decision Process

Answer 1

How do consumers make purchase decisions?

What are the different types of decision making?

Question 2

Consumer Decision Process Model

Answer 2

Need Recognition&raquo_space; Search for Information
&raquo_space; Pre-purchase Evaluation of Alternatives
&raquo_space; Purchase&raquo_space; Consumption&raquo_space; Post-consumption Evaluation&raquo_space; Divestment

Question 3

Need Recognition

Answer 3

An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs

Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems

Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively

Question 4

Needs

Answer 4

an internal state of tension caused by disequilibrium between existing state and an ideal or desired state.

Question 5

Need Recognition is affected/influenced by…

Answer 5

Memory

Environmental Influences

• Culture
• Social Class
• Personal Influence
• Family
• Situation

Individual Differences
- Consumer Resources
- Motivation
- Knowledge
- Attitudes
- Personality, Values,
  and Lifestyle

Question 6

Search for Information

Answer 6

Internal search
External search

Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior

Search refers to a receptivity of information that solves problems or needs rather than a search for specific products

Question 7

Internal search

Answer 7

retrieving knowledge from memory or genetic tendencies

Question 8

External search

Answer 8

collecting information from peers, family, and the marketplace

Question 9

Marketer Dominated Stimuli

Answer 9

• Advertising
• Salespeople
• Infomercials
• Websites
• Point-of-sales materials

Question 10

Non-Marketer Dominated Stimuli

Answer 10

• Friends
• Family
• Opinion leaders
• Media

Question 11

Information Processing

Answer 11

As a consumer is exposed to information from external search, they begin to process the stimuli.

Question 12

Hedonic needs/Hedonic benefits

Answer 12

needs satisfied by products that offer hedonic benefits.

what are these needs? needs that give you pleasure

Question 13

Search: Information Processing

Answer 13

Exposure

Attention

Comprehension

Acceptance

Retention

Question 14

Pre-purchase Evaluation of Alternatives

Answer 14

The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer

Can use new or preexisting evaluations stored in memory

CB stuff
55% intentionally carry their smartphone
while shopping so they can comparison shop.

40% said they had changed their mind
about purchasing in-store based on
information found online while shopping.

Question 15

Pre-purchase Evaluation of Alternatives

Evaluative criteria:

Answer 15

standards and specifications used to compare different products and brands

Alternatives can be considered on attributes that are salient or determinant

Question 16

salient

Answer 16

attributes such as price and reliability are important to the consumer (may be very little difference)

Question 17

determinant

Answer 17

attributes such as a car’s style and finish usually determine which brand or store consumers choose

Question 18

Purchase

Answer 18

Acquisition of the product that involves choosing a specific retailer, and in-store choices

Purchase intention can change during the purchase stage—it can be influenced by factors such as:
in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

Question 19

Consumption

Answer 19

The process of using the product or service purchased

Consumption can either occur immediately or be delayed

How consumers use a product affects satisfaction with product

How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

Question 20

Post-Consumption Evaluation

Answer 20

Consumption is an important determinant of satisfaction

Satisfaction: when consumers’ expectations are matched by perceived performance

Dissatisfaction: when experiences and performance fall short of expectations

Cognitive dissonance: questioning the purchase decision (post-purchase regret)

Usually, the higher the price, the higher the level of cognitive dissonance

Emotion strongly affects the evaluation of a product or transaction

Question 21

Divestment

Answer 21

How consumers dispose of the packaging or product after use

Options include:
Disposal

Remarketing or reselling

Recycling

Question 22

lateral cycling

Answer 22

hand me downs

Question 23

Variables That Shape the Decision Process

Answer 23

Individual Differences

Environmental Influences

Psychological Influences

Question 24

Individual Differences

Answer 24

1. Demographics, psychographics, values, and personality
2. Consumer resources
3. Motivation
4. Knowledge
5. Attitudes

Question 25

Environmental Influences

Answer 25

1. Culture (one of the most important!)
2. Social Class (combo of income, old/new money, where you live, etc.)
3. Family (also works as a type of reference group)
   –peer groups, membership groups, etc. are also types of
   reference groups
4. Personal Influence
5. Situation behaviors

Question 26

Psychological Influences

Answer 26

1. Information processing
2. Learning
3. Attitude and behavior change

Question 27

Consumer Decision Process Continuum

Answer 27

Extended Problem Solving (High Degree of Complexity)

Limited Problem Solving (Moderate Degree of Complexity)

Routine Problem Solving (Low Degree of Complexity)

Question 28

Types of Decision Processes

Answer 28

Extended Problem Solving (EPS)
Limited Problem Solving (LPS)
Routine Problem Solving
Habitual Decision Making
Impulse Buying
Variety Seeking

Question 29

Extended Problem Solving (EPS)

Answer 29

Problem solving of a higher degree of complexity that influences consumers actions.

Often occurs with expensive items or can be fueled by doubts and fears.

High importance in making the “right choice”.

All seven consumer decision making stages are often activated.

Dissatisfaction is often vocal and more critical.

Question 30

Limited Problem Solving (LPS) / Routine Problem Soving (RPS)

Answer 30

Problem solving of a lower degree of complexity that influences consumers’ actions.

Consumers don’t have motivation, time, or resources to engage in EPS

Little search and evaluation before purchase

Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance.

Question 31

Routine Problem Solving

Answer 31

Decisions are made with a minimal amount of time and only moderate deliberation.

Question 32

Impulse Buying

Answer 32

Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion

Least complex form of LPS but differs in some important ways

Question 33

Variety Seeking

Answer 33

Consumers may be satisfied with the present brand but still engage in brand switching

Can be triggered because bored with current brand or because of special offer

Question 34

Brand Inertia

Answer 34

“If you buy my brand and keep buying my brand.”

Kind of like habitual decision making, but it becomes brand inertia when the habit surrounds a specific brand.

Question 35

Brand Loyalty vs Brand Inertia

Answer 35

Brand Loyalty - if colgate is not available, i will go to the next store to buy colgate

Brand Inertia - buying colgate b/c I just buy colgate

Question 36

Cigarette smokers are very Brand…

Answer 36

…Loyal. They will drive miles for a specific brand.