Week 6 (Individual decision making)

Question 1

What are the 3 types of consumer decisions

Answer 1

extended problem solving, limited problem solving & habitual decision making

Question 2

what 3 roles do consumers take in decision making

Answer 2

Emotion experiencers, habitual actors, problem solvers

Question 3

What is extended problem solving

Answer 3

high involvement & price, high risk/infrequent, unfamiliar product, cognitive learning. (car)

Question 4

What is Limited problem solving

Answer 4

infrequently bought, but familiar or a new unknown brand (clothes)

Question 5

what is affective events theory

Answer 5

experiencing an affective event can create an emotion that leads to an affect-driven attitude and behaviour

Question 6

What is affect control theory

Answer 6

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

Question 7

what are habitual actors

Answer 7

occurs with little or no conscious effort - can make low involvement decisions as learned responses to environmental cues, use heurstics (groceries)

Question 8

What are problem solvers

Answer 8

a consumer purchase is a response to a problem

Question 9

what does the model of consumer behaviour involve

Answer 9

problem recognition, information search, evaluation of alternatives, product choice, post purchase outcome

Question 10

what is the marketing strategy for problem recognition

Answer 10

• discover consumer problems
• respond to consumer problems
• help consumers recognise problems
• time problem recognition
• suppress problem recognition

Question 11

what are the two types of consumer problems

Answer 11

• active - aware of the problem: marketers job to provide solution
• inactive - unaware of problem: job to show problem

Question 12

when does a problem occur

Answer 12

when actual state doesnt equal ideal state

Question 13

what two types of information search are there

Answer 13

Internal - based on memory/experience
External - seek information from others

Question 14

Search activity is greater when (3 things)…

Answer 14

purchase is important, information is easy to obtain, low experience with product categrory,

Question 15

What is existing product knowledge based on

Answer 15

Directed learning - prior information search
Incidental learning - passive information acquired

Question 16

what are the 4 decision alternatives

Answer 16

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

Question 17

What is an evaluative criteria

Answer 17

the attributes good/great service or products should have, and the dimensions used to judge the merits of competing options

Question 18

What are determinant attributes

Answer 18

the ones used to differentiate between choices

Question 19

What is mental accounting

Answer 19

decisions are influenced by the way a problem is posed (called framing) and whether it is put in terms of gain or loss

Question 20

What is the sunk-cost fallacy

Answer 20

having paid for something makes a consumer reluctant to waste it

Question 21

What is loss aversion

Answer 21

people place more emphasis on the loss than any gains

Question 22

What is prospect theory

Answer 22

utility is a function of gains & losses. Risk differs when the consumer faces options involving gains versus those involving losses.

Question 23

What are heuristics

Answer 23

mental rules-of-thumb which aid speedy decision making