week 2

Question 1

what are the basic processes of decision-making (consumption processes)

Answer 1

Need recognition, search for information, evaluation of alternatives, choice, post choice evaluation

Question 2

what are the 2 states of need Recognition

Answer 2

Actual state perceived current state

Desired state perceived state that consumer strives

Question 3

When searching for product

define

Pre-purchased search ,ongoing search, internal search and external search

Answer 3

Pre purchase search : aimed at finding information to solve an immediate problem

Ongoing search : focused on staying up to date on a topic

Internal search: retrieval of knowledge stored in memory about products services and experience

External search: gathering information from sources external to the consumer

Question 4

what is a universal set and awareness set

Answer 4

Universal set : everything in the market

Awareness set : the ones the consumer is aware of

Question 5

Name to find all the considerations that

Answer 5

• Consideration/ evoked consideration set: brands that met the consumers initial buying criteria yes set
  • Inert set : the brand which the consumers are indifferent maybe set

Inept set : brands that the consumer excludes from the market no set

Question 6

What are the factors that influence information search

Answer 6

Previous product experience : low familiarity means an increased search

Involvement : high involvement means an increased search

Perceived risk : High risk means an increased search

Value of search effort : benefits versus cost of conducting search

Time availability : Time constraints mean less search

Attitudes toward shopping : positive attitudes generally result in more search

Personal factors : higher income and education means more search

Situational factors : urgency of purchase and occasion of purchase

Question 7

what is search regret

Answer 7

Search regret :
- Negative emotions that come from failed search processes
- when a consumer can not solve their problems

Question 8

what are the 3 Decision making approaches

Answer 8

Extended decision-making eg. buying car
- high-risk high involvement purchases
- consumers move diligently to find the best information to reach a decision

Limited decision making eg. Buying a pen
- Low involvement low risk
- Search very little for information decisions are often based on prior beliefs
- Very few comparisons across brands

Habitual decision-making eg. buying soap
- Consumer does not seek more information when a problem is recognised
- Product is selected based on habit

Question 8

what are the 3 decision making perspectives

Answer 8

1. Rational decision making
   
   • Logical process
   • Consumers gather information about purchases to make an informed purchase
   2. Experiential decision making perspective
      - Emotionally motivated
      - Consumers make decision based on effect attached to a product or behaviour the emotion can be good or even bad out of anxiety
      - These can be influenced by other people
      - Focuses on hedonic values
   3. Behavioural influence
      - Consumer decisions that are influenced by external environmental influences

Question 9

What are the types of risks faced by consumers

Answer 9

Financial- cost of the product

Social- how people view the product

Performance- call the product work as expected

Physical- is it dangerous

Time- search servicing and maintenance

Question 10

Define the following terms brand loyalty, brand inertia and satisficing

Answer 10

brand loyalty: the commitment to re-buy a product or service regardless of situationally influences that could lead to switching behaviour

brand inertia : occurs when a consumer simply buyers a product repeatedly without any real attachment

satisficing: practice of using decision-making shortcuts to arrive at a satisfactory rather than optimal decisions