Marketing Strategy Topic 2

Question 1

Consumer Decision-Making Process (5)

Answer 1

1. Need recognition and problem awareness
2. Information search
3. Evaluation of Alternatives
4. Purchase
5. Post-purchase evaluation

Question 2

Evaluation of Alternatives (3)

Answer 2

Evoked Set (Brands that come to mind)
Inert Set (Brands you are aware of but not interested in)
Inept Set (Brands you are aware and think poorly of)

Question 3

Evaluation and Purchase Models: Low Involvement

Answer 3

The Ehrnberg and Goodhart repeat purchase model

1. Awareness
2. Trial
3. Repeat Purchase

Question 4

2 Factors that affect purchase decisions

Answer 4

Attitudes of others

Unexpected situational factors

Question 5

2 factors of post purchase evaluation

Answer 5

Determined by relationship between consumer’s expectation and product performance
Cognitive Dissonance - discomfort when consumer holds conflicting thoughts about a belief or product e.g. Dell laptop

Question 6

What is consumer deceleration?

Answer 6

“Consumer deceleration” is a perception of a slowed down temporal experience achieved via a decrease in certain quantities (travelled distance, use of technology, experienced episodes) per unit of time through altering, adopting, or avoiding forms of consumption.

Question 7

Husemann et al. (2019) explanation of deceleration (3)

Answer 7

Embodied deceleration - physical slowing down e.g. walk instead of bus
Technological deceleration - reducing use of technology
Episodic deceleration - engaging in only a few activities per day

Question 8

What does deceleration mean for companies?

Answer 8

Companies are starting to provide spaces where consumers can decelerate beginning to provide spaces where consumers can decelerate on embodied, technological and episodic deceleration.

e. g. Patagonia, less consumption
e. g. Selfridges quiet room

Question 9

Marketing implications of nature as extended self (3)

Answer 9

Companies can highlight positive outcomes to the self which generates positive attitudes towards responsible consumption behaviour
Reshape perceptions of nature to tackle environmental problems
Stronger attachment to nature means less focus on benefits to the self

Question 10

Consumer tribes (5)

Answer 10

• Unlike brand communities, consumer tribes pay attention to the relationships between its members
• Brand becomes deep expression of self. Tribes can be global or mass movements across countries
• Tribes create loyalty and are cheaper for brands to maintain their consumers than switching
• Largest potential in terms of brand extensions. Tribal members will look for new products from same brand (e.g. Apple)
• Tribes become carriers of the brand

Question 11

What is an attitude?

Answer 11

A mental position regarding idea or object is positive or negative

• Evaluations
• Feelings
• Actions

Question 12

What are habits?

Answer 12

Acquired behaviour pattern and much consumer behaviour is habitual because it is:

• Safe
• Simple
• Easy

Question 13

What is Brand Loyalty?

Answer 13

Consumers propensity to repurchase a brand

Question 14

Three advertising aims related to brand loyalty

Answer 14

1. Break habits
2. Acquire habits
3. Reinforce habits

Question 15

Implications for marketers regarding highly complex consumer decision-making processes

Answer 15

In highly complex situations individuals will spend a great deal of time, effort and money to ensure they make the right decision, therefore marketers must provide useful and high-quality information

Question 16

Implications for marketers regarding low complex consumer-decision making processes

Answer 16

Low complexity purchase tasks are relatively non-involving for most consumers, with purchase tasks becoming routine, therefore marketers must create an effective brand image and ensure their product is recognisable

Question 17

What is a reference group?

Answer 17

act as a point of comparison and source of product information - a consumer’s purchase decisions tend to fall in line with the advice, beliefs and actions of reference groups

Question 18

What are opinion leaders?

Answer 18

When consumers feel that they lack personal expertise they seek advice of opinion leaders, so, marketers will often seek out opinion leaders before trying to reach more mainstream consumers

Question 19

Criteria for succesful segmentation (5)

Answer 19

1. Identifiable and measurable
2. Substantial
3. Accessible
4. Responsive
5. Viable and sustainable

Question 20

Target marketing strategies (5)

Answer 20

1. Single segment targeting
2. Selective targeting
3. Mass market targeting
4. Product specialisation
5. Market specialisation

Question 21

Customer’s perceptions used to compare products (4)

Answer 21

• Products attributes
• Relative importance to consumer
• Perception of each brand’s image
• Consumer’s utility function for each of the attributes

Question 22

How can marketers modify the product to suit customer perceptions? (6)

Answer 22

• Changing the physical product
• Changing beliefs about the product by giving greater emphasis to particular attributes
• Changing beliefs about competitors’ products by comparative advertising
• Changing the relative importance of particular attributes as a product moves through the product life cycle
• Emphasising particular product features that previously have been largely ignored
• Changing buyers’ expectations

Question 23

Evaluation and Purchase Models - High Involvement

Answer 23

Fishbein and Ajzen (1977)

Question 24

Evaluation and Purchase Models - Low Involvement

Answer 24

Ehrnberg and Goodhart

Question 25

Fishbeing and Azjen (1977) High Involvement Purchase Model

Answer 25

Self - personal beliefs and attitudes
vs.
Others - normative beliefs and subjective norms
Leads to
Purchase intentions and actual purchase

Question 26

What is Problem Recognition and how is it triggered?

Answer 26

A difference between the actual and desired state.

Need can be triggered by internal (e.g. memory, thinking, hunger, thirst, sickness) or external stimuli (word of mouth, advertising, store visits, online browsing)

Question 27

Influences/types of information search

Answer 27

1. Internal - previous experience and feelings

2. External - reviews and views from peers/family

Question 28

What follows evoked set?

Answer 28

Retrieval set and prominent products in environment

Question 29

Advantages of Traditional Consumer Decision Making Model

Answer 29

• Makes it easy for marketers to decide on how to satisfy the customers expectations
• Can clearly identify/understand and target every stage of the process

Question 30

Disadvantages of Traditional Consumer Decision Making Model

Answer 30

• Assumes all customers to be the same across all purchase decisions
• Assumes all customers go through all the stages while purchasing a product

Question 31

Examples of Post Purchase Support

Answer 31

Zappos - customer support service
Nordstorm - offers the Nordstrom Rewards program which works across all of their different stores (retail, Nordstrom Rack or online). They offer a tiered membership system which offers different benefits depending on the amount customers spend

Question 32

Examples of information search

Answer 32

SEO/PPC

SkiCuisine

Question 33

Potential factors that influence the actual purchase decision (3)

Answer 33

Out of stock
Customer service
Positioning

Question 34

Determinants of the extent of problem solving (3)

Jobber, 2001

Answer 34

Level of Involvement
Differentiation and number of alternatives
Time Pressure

Question 35

Factors that contribute to the level of involvement in the extent of problem solving model (4)

(Jobber, 2001)

Answer 35

Self-Image
Perceived Risk
Social Factors
Hedonism