Test 3 Chpt 12-16 Flashcards
Decision making process
- Need recognition
- Search for information
- Evaluation of alternatives
- Choice
- Post-choice evaluation
Rational Decision Making Perspective
Assumes that consumers gather information, compare brands, and make informed decisions
Perceived Risk
The perception of the negative consequences that could result from a course of action and the uncertainty of which course of action is best.
Financial Risk
associated with the cost of the product
Social Risk
related to how other consumers will view the purchase
Physical Risk
related to the safety of the product and the likelihood of physical harm
Extended Decision Making
When consumers tend to search diligently for information that will help them reach a satisfactory decision
Limited Decision Making
Consumers search very little for information and make decisions based on prior beliefs about products
Habitual Decision Making
Consumers generally do not seek information at all when a problem is recognized (Brand Loyalty)
Need Recognition
when a consumer perceives a difference between an actual state and a desired state
Ongoing Search
When the search effort is not focused on an upcoming purchase, rather staying focused on up to date interests
Evaluated Criteria
Product attributes that consumers consider when reviewing possible solutions to a problem
Quality
perceived overall goodness or badness of a product
QR Code (quick response)
With this code, consumers can easily gain access to all types of product related information
Product Experience
Moderately experienced consumers search for purchase-related information
Involvment
Purchase involvement is positively associated with search activities
Perceived Risk
As perceived risk increases, search effort increases
Value of Search Effort
When the benefits received from searching exceed the associated costs, consumers derive value
Search Regret
the negative emotions that come from failed search processes
Feature
Performance characteristic of an object
Benefit
Perceived favorable result that is derived from the presence of a particular feature.
Hedonic Criteria
Emotional, symbolic, and subjective attributes or benefits that are associated with an alternative.
Bounded Rationality
Perfectly rational decisions are not always feasible due to constraints found in information processing.
Affect-based Evaluations
Consumers evaluate products based on the overall feeling that is evoked by the alternative
Attribute- Based Evalutations
Consumers evaluate alternatives across a set of attributes that are considered relevant to the purchase situation.
Perceptual Attributes
Visually apparent and easily recognizable.
Size, shape, color, price
Underlying Attributes
not readily apparent and can only be learned through experience with the product
(product quality)
Product Knowledge
As a consumers level of knowledge increases, they are able to focus on criteria that are most important in making a selection.
Expert Opinions
Brand experts have well developed knowledge for products and services; consumer can be guided by them.
Online Sources
Popular websites can explain what attributes consumers should consider
Marketing Communications
Marketers can help promote the attributes that their products excel on.. and attempt to convince consumers that these attributes are important.
Just Noticeable Difference (JND)
The ability of a consumer to make accurate judgments
Compensatory Rules
Allows you to select products that may perform poorly on one attribute by compensating for the poor performance by performing well on another one
Non-Compensatory Rules
Strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from considerations.
Lexicographic Rule
Consumers select the product that they believe performs best on the most important feature.
Meaning Transference
Process by which cultural meaning is transferred to a product and onto the consumer
-Begins with culture
Predictive Expectation
Consumer thinks will actually occur during an experience
Normative Expectations
What should happen given past experiences with product
Ideal Expectations
Wants to happen during an experience if everything was ideal
Equitable Expectations
What should happen given the work put into experiences
Cognitive Dissonance
Lingering doubts about a decision that has already been made
Rancorous Revenge
When a consumer yells, insults or makes a public scene to harm the business
Retaliatory Revenge
Consumer becomes violent with employee and tries to vandalize a business
Switching Costs
Costs associated with changing from one choice to another
Costumer Share
The portion of resources allocated to one brand from among the set of competing brands.
Customer Commitment
A sense of attachment with a brand
Competence in Relationship Quality
Consumer views company and service providers as knowledgeable and capable
Personalization in Relationship Quaitly
Buyer treats the customer as an individual with unique desires and requirements.
Retail Borrowing
Purchasing a product for a day, using it, and then returning it
Consumerism
the activities of various groups to protect basic consumer rights
-Prez Kennedy set up Consumer Bill of Rights
Puffery
Making exaggerated claims about a products superiority
Price Gouging
Act of changing a higher than reasonable price for a good that occurs following some kind of natural disaster of event
