Understanding consumer decisions 1 Flashcards
What is the first stage of the consumer decision-making process?
Need/Problem Recognition
This stage occurs when a consumer identifies a problem or need.
What occurs during the Need Recognition stage?
A consumer recognizes a discrepancy between desired and actual states, leading to tension and the acknowledgment of a need
Example: A father realizes he needs a bigger car for his growing family.
What factors influence the desire to resolve a problem during need recognition?
- Magnitude of the discrepancy
- Relative importance of the problem
These factors determine how urgently a consumer feels the need to address the issue.
What are the five stages of consumer decision making?
- Need/Problem Recognition
- Information Search
- Evaluation of Alternatives
- Purchase
- Post Purchase Evaluation
These stages represent the complex decision-making process consumers undergo.
What influences the level of decision making a consumer will engage in?
- Degree of perceived risk
- Differentiating factors (complexity, financial impact, range of brands, etc.)
These elements affect how much effort the consumer will put into solving their problem.
What are the levels of decision making?
- Routinized Response Behaviour
- Limited Problem Solving
- Extended Problem Solving
These levels vary based on the complexity and risk associated with the purchase.
What characterizes Routinized Response Behaviour?
Buying usual, regular products with little thought
Example: Purchasing your regular toothpaste.
What characterizes Limited Problem Solving?
Involves some thought and consideration, often for new or slightly different products
Example: Choosing a new brand of toothpaste due to sensitivity.
What characterizes Extended Problem Solving?
Involves significant thought and research, typically for high-risk or expensive purchases
Example: Getting braces for the first time.
What sources do consumers use for information during the Information Search stage?
- Internal sources (memory, past experiences)
- External sources (advertisements, friends, family, internet)
Consumers seek information from various sources to resolve their recognized needs.
What is the purpose of the Evaluation of Alternatives stage?
To evaluate different options based on collected information and select the most suitable one
Consumers compare brands using specific evaluation criteria.
What types of decision-making rules might consumers apply during the evaluation process?
- Compensatory rule
- Non-compensatory rule
- Affect referral rule
These rules help consumers weigh the importance of different attributes when making a decision.
What is an Evoked Set in consumer decision making?
The specific brands a consumer considers acceptable for purchase within a product category
This set is derived from the consumer’s awareness and evaluation of known brands.
What does the Inept Set consist of?
Brands that consumers exclude from consideration because they are seen as unacceptable or inferior
Consumers do not consider these brands during decision making.
What is the Inert Set?
Brands that consumers are indifferent toward due to perceived lack of advantages
These brands do not stand out to consumers as favorable or unfavorable.
What are Overlooked Brands?
Brands that are known but not recalled at the time of decision making
These brands may be forgotten during the evaluation process.
What are Unknown Brands?
Brands that consumers do not know due to selective exposure and perception of advertising
These brands remain outside the consumer’s awareness.
What are overlooked brands?
Brands that are known but not recalled at the time of the decision making.
What are unknown brands?
Brands that are not known due to consumer’s selective exposure to advertising media and selective perception of advertising stimuli.
Fill in the blank: The _______ set influences consumer decision making.
[awareness]
What does the consumer decision making process involve?
Stages that include problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
True or False: The awareness set is a part of the evaluation of alternatives stage.
True
Who stated, ‘Think 100 times before you take a decision, but once that decision is taken, stand by it as one man’?
Muhammad Ali Jinnah
What is the main focus of Part 1 in the consumer decision making process?
Understanding consumer decision making.
What are the levels of decision making in consumer behavior?
Includes individual, family, and organizational decision making.
Fill in the blank: The consumer buying behavior is covered in Chapter _______ of Schiffman and Kanuk’s textbook.
[16]
What does the evaluation of alternatives stage entail?
Assessing different brands or products that are in the awareness set.
What is the significance of the case study ‘From Inept to the Evoked Brand Set’?
It illustrates how brands can transition from being unknown to being part of the consumer’s evoked set.
What type of media exposure leads to unknown brands?
Selective exposure to advertising media.
