Week_3_Pre-purchase

Question 1

The need recognition process centers on the degree of dicrepancy between …

Answer 1

Actual state and desired state

Question 2

How company can activate need recognition?

Answer 2

1. Change consumers’ desired state with new products or innovations.
2. Influence how consumers perceive their current state

Question 3

Latent Need

Answer 3

Hidden needs

Question 4

Two kinds of need recognition

Answer 4

1. Generic need recognition occurs when companies seek to grow the size of the total market for a product category. (drink more milk)
2. Selective recognition is the result of stimulating the need for a specific brand within a category (buy HEB milk)

Question 5

The determinant of internal search

Answer 5

Existing knowledge confidence in existing knowledge. satisfaction with prior purchases.
Ability to retrieve stored knowledge.

Question 6

What is on-going search?

Answer 6

When information acquisition takes place on a relatively regular basis, regardless of sporadic purchase needs

Question 7

External search can occur when

Answer 7

1. make better consumption choices.
2. create a knowledge base for future decisions.
3. simply for enjoyment

Question 8

External search set

Answer 8

Those choice alternatives that consumers gather information about during pre-purchase search are referred to as the external search set

Question 9

How Companies Benefit from Understanding Search

Answer 9

1. Adjusting the breadth of a product line based on consumers’ willingness to search.
2. Monitoring consumers’ price comparison activities to gauge their price sensitivity.
3. Focus promotions on sources that consumers search most, including individuals that provide information
4. Monitor search activities to identify new ways to reach and gain customers

Question 10

Consideration set definition

Answer 10

alternatives considered during decision making (also known as the evoked set).

Question 11

How Companies Can Get Into Consumers’ Consideration Sets

Answer 11

Ask to be in the set
Offer incentives
Modify the product offering

Question 12

Two kinds of piecemeal process for constructing new evaluation

Answer 12

1. non-compensatory evaluation strategies

2. compensatory evaluation strategies

Question 13

Lexicographic strategy.

Answer 13

brands are compared initially on the most important attribute, and the winner is chosen.
If more than one brand is evaluated similarly (close tie) on that attribute, the second most important is considered, and so on, until a winner is identified.

Question 14

Elimination by aspects

Answer 14

similar to the lexicographic strategy; however, the consumer imposes cutoffs. Eg: must be under $20, etc.
If only one brand meets the cutoff on the most important attribute it is chosen. If many brands meet the cutoff, then the next most important attribute is evaluated & the process continues until the tie is broken.

Question 15

Under pre-purchase evaluation, how to evaluate the choice alternatives?

Answer 15

1. rely on pre-existing product evaluations stored in memory
2. construct new evaluations based on information acquired from internal or external search

Question 16

Conjunctive strategy

Answer 16

each brand is compared, one at a time, against this set of cutoffs which is established for each salient attribute. If a brand meets the cutoffs for all attributes, it is chosen. Failure to meet the cutoff leads to rejection.

Question 17

Two factors are needed in piecemeal process when constructing new evaluation

Answer 17

Cut off: restrictions or requirements for acceptable performance
Singal: product attributes used to infer other product attributes (e.g., using high price to infer higher quality, using retail image to infer quality, using packaging, etc.)

Question 18

爆米花小中大桶定价策略used which marketing strategy?

Answer 18

Changing the cutoffs for altering choice

Question 19

Two compensatory evaluation strategies under constructing new evaluations

Answer 19

Simple additive

Weighted additive