Week 6 (Individual decision making) Flashcards
What are the 3 types of consumer decisions
extended problem solving, limited problem solving & habitual decision making
what 3 roles do consumers take in decision making
Emotion experiencers, habitual actors, problem solvers
What is extended problem solving
high involvement & price, high risk/infrequent, unfamiliar product, cognitive learning. (car)
What is Limited problem solving
infrequently bought, but familiar or a new unknown brand (clothes)
what is affective events theory
experiencing an affective event can create an emotion that leads to an affect-driven attitude and behaviour
What is affect control theory
explains the changes in our thoughts & behaviours to maintain our emotions, as opposed to changing our emotions to be consistent with our thoughts and behaviours
what are habitual actors
occurs with little or no conscious effort - can make low involvement decisions as learned responses to environmental cues, use heurstics (groceries)
What are problem solvers
a consumer purchase is a response to a problem
what does the model of consumer behaviour involve
problem recognition, information search, evaluation of alternatives, product choice, post purchase outcome
what is the marketing strategy for problem recognition
- discover consumer problems
- respond to consumer problems
- help consumers recognise problems
- time problem recognition
- suppress problem recognition
what are the two types of consumer problems
- active - aware of the problem: marketers job to provide solution
- inactive - unaware of problem: job to show problem
when does a problem occur
when actual state doesnt equal ideal state
what two types of information search are there
Internal - based on memory/experience
External - seek information from others
Search activity is greater when (3 things)…
purchase is important, information is easy to obtain, low experience with product categrory,
What is existing product knowledge based on
Directed learning - prior information search
Incidental learning - passive information acquired
what are the 4 decision alternatives
Evoked set - alternatives actively considered during decision making
Consideration set - alternatives that you would actually consider
Inept set - products we would never consider
Inert set - products that are not top of mind but could be considered
What is an evaluative criteria
the attributes good/great service or products should have, and the dimensions used to judge the merits of competing options
What are determinant attributes
the ones used to differentiate between choices
What is mental accounting
decisions are influenced by the way a problem is posed (called framing) and whether it is put in terms of gain or loss
What is the sunk-cost fallacy
having paid for something makes a consumer reluctant to waste it
What is loss aversion
people place more emphasis on the loss than any gains
What is prospect theory
utility is a function of gains & losses. Risk differs when the consumer faces options involving gains versus those involving losses.
What are heuristics
mental rules-of-thumb which aid speedy decision making
