week 9 - decision making

Question 1

what is a deicison

Answer 1

A decision is defined as “the selection of an action from two or more
alternative choices”

This definition includes decisions about: ‒ Whether or not to make a purchase ‒
Which brand to purchase

Question 2

3 levels of conscious decison making

Answer 2

extensive problem solving

limted problem solving

routinsed - response behaviour

(frequency of pruchase, famiality with product class or brands, though, search or time given)

Question 3

explain extensive problem solving

Answer 3

No established criteria for evaluating the product ‒ Brands to be considered in the evoked set not yet selected
‒ Common when buying expensive, important, or complicated products
“for the first time”

Question 4

explain limited probelm solving

Answer 4

Consumers have basic criteria for evaluating the product ‒ Have not fully established preferences ‒ Search for additional information is like ‘fine tuning’

e.g. cars

Question 5

explain routinised response behaviour

Answer 5

Consumers have some experience with the product category ‒ Have a well-established set of criteria ‒ May search for a small amount of information or purchase out of habit

e.g. phones

Question 6

models of deciison making (4)

Answer 6

economic model
passive model
cognitive model
emotional model

Question 7

explain economic model of deciosn making

Answer 7

Assumes that consumers: ‒ Always make rational decisions ‒ Are aware of all product alternatives, understand the pros and cons of
these alternatives, and can select the best alternative

Question 8

The assumptions of the economic model are unrealistic because
consumers:

Answer 8

Have limited knowledge and information
‒ Have existing habits and preferences ‒ Are often unwilling to spend the time necessary to make the ‘perfect’
decision

Question 9

explain models of deciosn making - passiv

Answer 9

Opposite of the economic model
• Assumes that consumers do whatever
marketers tell them to do
• Model is unrealistic because consumers
can be active and informed in their
purchase decisions

Question 10

explain models of deicion making - cognitive

Answer 10

Falls between the extremes of the passive and economic models
• Views consumers as a thinking problem solver
• Embraces the concept of bounded rationality ‒ Consumers are not rational in an economic sense but strive to make the
best decisions given their limitations
• Consumers develop mental short-cuts (called heuristics) to ease the burden
of decision-making

Question 11

explain models of decison making - emotional

Answer 11

Certain feelings may
become associated
with specific purchases

• For such purchases,
consumers spend less
time researching and
evaluating alternatives

Question 12

decison making process

Answer 12

1. input:
   - marketing inputs
   - sociocultural inputs
2. process:
   need recognition
   pre-purhcase search
   evaluation of alternatives
3. output
   purchase
   post purchase evaluation

Question 13

explain inputs

Answer 13

Receive information from:
o Product
o Packaging
o Advertising
o Personal selling
o Brands
o Pricing
o Etc.

Question 14

explain sociocultural inputs

Answer 14

Receive information from:
o Friends
o Organisations
o Mass media (e.g., TV shows)
o Social media
o Etc.

Question 15

explain need recongtion under ‘process’

Answer 15

difference between current state and desired state

unfuilled need

Question 16

explain decision making process - pre purchase search

Answer 16

Occurs when consumers recognise a need

‒ Search can occur via:
o Internal sources, which refers to past experience
o External sources (examples: friends, advertising, salesperson)

‒ Amount of external search is determined by:
o Level of product knowledge (↓ knowledge = ↑ external search)
o Perceived risk (↑ perceived risk = ↑ external search)
o Available time (↓ Ɵme = ↓ external search)
o Ease of obtaining information (↓ ease = ↓ external search)

Question 17

decision making (output) purchase phase

Answer 17

Purchase can be divided into three types: ‒
Trial purchases
‒ Repeat purchases ‒ Long-term commitment purchases

Question 18

explain post purchase evaluation

Answer 18

exceeds prior expectations = satisfaction = portential increase use, commited customers, positive wom

meets expectations = neutral feeling

below expectations = dissatisfaction = potential for: brand switching, discountinued use, complaining

Question 19

Post-purchase evaluation can give rise to post-purchase cognitive
dissonance

Answer 19

Refers to when we reassure ourselves that our purchase choice was wise ‒ Consumer strategies for reducing post-purchase cognitive dissonance:
o Rationalising decision as being wise
o Persuading friends/family to make the same choice
o Talking to satisfied consumers for reassurance ‒ Marketing strategies for reducing post-purchase cognitive dissonance:
o Structure ads to contain information about the benefits of a
product to reinforce consumer’s decision
o Offering strong warranties/guarantees
o Providing instructions or information about how to use product
o Emphasising the availability of after-sales service

Question 20

what is automatic decison making

Answer 20

refers to any process that operates outside our conscious

awareness but which can still influence our behaviour

Question 21

automatic deicsion making work through _____

Answer 21

primiing

In priming, people are exposed to particular stimuli (example: Christmas
trees, Christmas carols) ‒ These stimuli activate semantically associated ‘roles’ or ‘concepts’
(example: forgiveness) ‒ People may then act in a manner consistent with those roles or concepts
(example: forgiving rude service workers) ‒ Note: this process occurs outside our conscious awareness

Question 22

how can priming be facilitated

Answer 22

images - e.g. coke ad smiling

smell e.g. lemon scented cleaner

priming with actions