WEEK 4

Question 1

What is the black box?

Answer 1

input –> black box –> output

Question 2

How do you understand consumers?

Answer 2

Ask yourself:
who is important?
what are there choice criteria?
when do they buy?
where do they buy?
How do they buy?

Question 3

Engel, Kollatt, and Blackwell (EKB) Consumer Decision-making Model

Answer 3

Personal influences
* Demographic
* Situational
* Involvement

Psychological influences
* Perception
* Motives
* Ability and Knowledge
* Attitudes
* Personality

Social influences
* Roles and family
* Reference groups
* Social classes
* Culture and subcultures

Consumer buying decision process
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase
- Post purchase evaluation

Question 4

What is involved in the personal influences component of the consumer decision-making model?

Answer 4

• Demographic
• Situational
• Involment

Question 5

What is involved in the psychological influences component of the consumer decision-making model?

Answer 5

• Perceptions
• Motives
• Attitudes
• Ability and knowledge
• Personality

Question 6

What is involved in the social influences component of the consumer decision-making model?

Answer 6

• Roles and Families
• Reference Groups
• Social classes
• Cultures and subcultures

Question 7

What is the consumer buying decision process

Answer 7

• Problem recognition
• Information search
• Evaluation of alternatives
• Purchase
• Post purchase evaluation

Question 8

How should companies get consumers to recognise they have a problem … and motivate them to start the decision
process

Answer 8

Maslow’s Hierarchy of needs

Question 9

What is Maslow’s Hierarchy of needs in the Western perspective

Answer 9

self actualisation
Prestige
Belonging
Safety
Physiological

Question 10

What is Maslow’s Hierarchy of needs in the Eastern perspective

Answer 10

Status
Admiration
Affiliation
Safety
Physiological

Question 11

What are the three Levels of Problem-Solving

Answer 11

1. habitual
2. limited
3. extended

Link to involvement: degree of perceived relevance and personal importance accompanying brand choice

Question 12

What is Impulse buying?

Answer 12

• Sudden desire
• Out of control
• Immediate conflict resolution
• Emotional consideration
• Lack regard for consequences
• you don’t go through the consumer buying process but the post purchase evaluation becomes prominent-

Question 13

Family as a Decision-Making Unit

Answer 13

the Purchasing Decision is effected by:
- user
- initiator
- influencer
- purchaser
- decider

Question 14

What are the Different types of buying

Answer 14

consumer (B2C) and Business (B2B)

Question 15

What is consumer buying?

Answer 15

• Buy for their own personal or household use
• Typically use more of an emotional approach

Question 16

What is business buying?

Answer 16

Buy on behalf of their organisation
* Typically consult others in the organisation
* Typically buy larger quantities
* Often use a bidding process
* Gatekeepers!

Question 17

What is a consumer profile? what do you do to conduct a consumer profile?

Answer 17

• Who are they really? What do they read, how do they think,
  what media do they interact with, what’s important to
  them, do they have similar products, when, why?
• Try ‘a day in the life of ….’
• Imagery? Representations?