Unit 6 - Problem recognition and information search

Question 1

Consumer hyper-choice:

Answer 1

condition where the large number of available options forces us to make repeated choices than may drain our psychological energy while, at the same time, decreasing our abilities to make smart decisions.

Question 2

Constructive processing:

Answer 2

Thought process where, we evaluate the effort we’ll need to make a particular choice and then tailor the amount of cognitive ‘effort’ we expend to get the job done.

Question 3

Mental budget

Answer 3

helps us to estimate what we will consume over time so that we can regulate what we do in the present.

Question 4

People differ in terms of their

Answer 4

cognitive processing style.
Some → rational system of cognition
Others → experiential system of cognition

Question 5

3 buckets of consumer decision-making

Answer 5

COGNITIVE → deliberate, rational, sequential
HABITUAL → behavioural, unconscious, automatic
AFFECTIVE → emotional, instantaneous

Question 6

Self-regulation:

Answer 6

if we have a self regulatory strategy, we specify in advance how we want to respond to certain situations.

Question 7

Feedback-loop:

Answer 7

These applications provide people with information about their actions in real time, and then give them a chance to change those actions so that you push them to improve.

Question 8

Morning Morality Effect:

Answer 8

shows that people are more likely to cheat, lie or even commit fraud in the afternoon than in the morning.

Question 9

Executive Control Centre:

Answer 9

part of the brain which is used for important decision-making, including moral judgements. It can be worn down or distracted by even simple task such as memorising numbers.

Question 10

Habitual problem solving:

Answer 10

decisions are made as many times as they are internalized.

Question 11

Extended problem solving:

Answer 11

Process which starts when the decision we have to make relates to our self- concept.

• we try to collect as much information as possible both from our memory and outside sources

Question 12

Limited problem-solving:

Answer 12

is usually more straightforward and simple.

• in this case we are not nearly as motivated to search for information or to evaluate each alternative rigorously
• we use simple decision rules to choose among alternatives

Question 13

Steps in the Cognitive Decision-Making Process

Answer 13

They can be described as:

1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Product choice
5. Post-purchase evaluation

Question 14

Problem Recognition:

Answer 14

it occurs when consumer sees differences between current state and ideal state.

Question 15

Opportunity recognition

Answer 15

consumer ’s ideal state can move upward

Question 16

Need recognition/identification:

Answer 16

consumer’s actual state declines

Question 17

primary demand:

Answer 17

consumers are encouraged to use a product or service regardless of the brand they choose
example: from mobile phones to smartphones

Question 18

secondary demand:

Answer 18

consumers are prompted to prefer a specific brand instead of others.
example: iPhone

Question 19

Information search is

Answer 19

the process by which the consumer surveys their environment for appropriate data to make a reasonable decision.

Question 20

types of information search

Answer 20

1. PRE-PURCHASE search: a consumer recognises a need and then searches the marketplace for specific information
2. ONGOING search: veteran consumers who enjoy browsing just for the fun of it, or because they like to say up-to-date on what’s happening in the marketplace

Question 21

internal VS external information search

Answer 21

each consumer has some degree of knowledge already in memory about many products either as a result of prior experience or simply from living in a consumer culture

Question 22

internal search

Answer 22

scanning our own memory bank to assemble information about different product alternatives

Question 23

external search

Answer 23

we obtain the information from advertisements, friends or just plain people-watching

Question 24

Cybermediary:

Answer 24

Website or app that helps to filter and organise online market information so that customers can identify and evaluate alternatives more efficiently.

skyscanner

Question 25

Intelligent agents:

Answer 25

Are sophisticated software programs that use collaborative filtering technologies to learn from past user behaviour in order to recommend new purchases.

Question 26

Search engine optimisation (SEO):

Answer 26

This term refers to the procedures companies use to design the content of websites and posts to maximise the likelihood that their content will show up when someone searches for a relevant term. The main goal is to persuade people to access their content.

Question 27

long tail

Answer 27

a business strategy that allows companies to realise significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items

Question 28

perceived risk

Answer 28

Belief that the product has potentially negative consequences from using or not using the product or service. Perceived risk may be present if the product is expensive or is complex and difficult to understand, or if the brand is unfamiliar.