Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/87

Click to flip

87 Cards in this Set

  • Front
  • Back
Stages in COnsumer Decision Making
Problem Recognition
Information Search
Evaluation of Alternatives
Product Choice
Outcomes
Rational Perspective to Decision making
People integrate what the know with new info, weigh alternatives, and make the best choice
--not usually followed
COnstructive processing
People evaluate the effort required to make a particular choice and then chooce a strategy suited to this effort level
Behavioral Influence Perspective
-low involvement
- decision is a learned response to environmental cues, like physical surroundings and product placement
Experiential perspective
high involvement
-involves totality of product/service
-marketers measure ones affective responses to a product and develop offerings appropriate to them
DImension
The ammount of effort that goes into a decision each time it must be made
extended problem solving
follows rational way of thinking, carries fair degree of risk and usually related to the self concept
evaluation
considering the attributes of one brand at a time and seing how they shape up to some set of desired characteristics
limited problem solving
more straight forward and simple

-not motivated to search for info or to rigorously evaluate each alternative
cognitive shortcuts
enable people to fall back on general guidlines instead of starting from scratch each time a decision must be made
automaticity
choices are performed with minimal effort and witout conscious control
problem recognition
discovering a discrepency between a current state and some desired state
need recognition vs. opportunity recognition
need- actual state's quality moves downward
opportunity- ideal state's quality moves upward
primary vs. secondary demand
primary- encourages to buy a cateory of product

secondary- after primary exists, encouraged to buy a particular brand in that category
information search
surveying ones environment for appropriated info to make a reasonable decision
internal vs. external search
internal- drawing upon previous searches for info or previous experiences

external- ads, friends, people watching
deliberate vs. incidental leanring
deliberate- intentional, directed learning

incidental- taken in through mere exposure
economics of information
assumes people will gather enough info to make an informed decision
----not always true
---low incomes search less then affluent
mental accounting
being influenced by the way a problem is posed, and by whether it is put in terms of gains or losses
sunk cost fallacy
people are hesitant to get rid of things they already paid for
loss aversion
people tend to place a greater emphasis on loss then on gain
prospect theory
utility is a function of fains and losses, and risk differs when the person faces options involving gains vs. those involving losses
relationship b/t product knowledge and info search is?
a BELL SHAPE!!!!
selective search
experts have a better idea of what is relevant, and are more focused and efficient
-not influenced by price, brand....
evoked vs. inert vs. inept set
evoked- those that one is aware of and is actively considering
inert- those that a person is aware of, but won't consider
inept- those that a person isn't aware of and thus won't consider
cognitive structure
a set of factual knowledge about products and the way these beliefs are organized
levels of categoriization
basic middle- most useful-wide range of products, but decent alternatives
-superordinate- most broad, abstract level
subordinate- most specific, includes brands
exemplar products
if a product is a really good example of a profuct catefory, it is more familiar and call call the shots by defining the evaluative criteria that should be used to evaluate all catefory members
evaluative criteria
the dimensions used to judge the merits of competing options
determinant attributes
the attributes actually used to differentiate among choices
procedural learning
the decision about which attributes to use and the series of cognitive steps before making a decision
A new decisions criteria should include: (3 things)
1. Point out that there are significant differences among brands on an attribute
2. supply the consumer with a decision making rule
3. make sure the rule is easy enough to integrate with the original rule
Heuristics
Mental rules of thumb that lead to a speedy decision
covariation
association among events
market beliefs
specific beliefs about relationships in the marketplace
inertia
buying a brand out of habit b/c less effort is required
----easier to change these people's preference
brand parity
the belief that all brands are the same
noncompensetory rule
a product iwth low standing on one attribute can't make up for it
lexiographic
brand that ranks the best on the most important attribute is selected
elimination by aspects rule
brands evaluated by attributes, specific cuttoffs imposed, process of elimination used
conjunctive rule
processing by brand, cuttoffs established for each attribute
brand chosen if it meets all cutoffs
-brand will be rejected if it doesn't
simple vs. complex compensation rule
simple- brand with largest number of positive attributes wins
complex- uses weighted attributes
situational self image
the role a person plays at any time
situational matrix
lists all the possible users and all the contexts where the product is used
density vs. crowding
density- the actual number of people occupying a space
crowding- a psychological condition that ecists only if a negative affective state occurs b/c of a spaces density
economic vs. psychological time
economic- an actual commodity that must be divided up

psychological- how time is experienced
queing theory
people tend to have a negative association with service if their wait in line is bad
linear seperable time vs. procedural time
l.s.t.- events procede in an orderly sequence and there is a time and place for everything

p.c.- ignores teh clock completely, do things when time is right
2 dimensions to positive or negative reactions to a store environment
pleasure- enjoy a situation or not
arrousal- the intensity of stimulation
5 motives for shopping
Instant status
Interpersonal attraction
social experience
thrill of the chase
sharing a common interest
shopping orientation
general attitutes towards shopping
5 types of shoppers
1. economic- concerned with getting the most value from ones money
2. Personalized- one who forms strong attachment to staff
3. ethical- roots for small, local companies
4. apathetic- shops only b/c they have to
5. recreational- one who view it as a fun, social activity
atmospherics
the conscious designing of space and its various dimensions to evoke a certain effect in buyers, such as colors, scents, and sounds
unplanned vs. impulse buying
unplanned- may occur when a person is unfamiliar with a stores layout, is under time restraints, or is reminded of an item they need to get

impulse- a sudden, irresistable urge.
exchange theory
every interaction involves an exchange of value
---this is why salespeople are such an important in-store factor
commercial freindships
when service personnel and customers form fairly warm personal relationships
interaction style
the degree of adaptability and assertiveness
expectancy disconfirmation model
consumers form beliefs about a product's performance based upon prior experience with the product and by talking about it
-a product that meets these expectations are taken for granted
-product that doesn't results in a negative affect
-product that exceeds it pleases and satisfies
3 courses of action to take if disatisfied
voice response- return/exchange
private response- negative talk/boycott
third party- Better bus. b., tv stations
lateral cycling
selling or exchanging already used items
organizational buyer
people who purchase goods and services on behalf of a company
b2b marketers
people who focus on meeting the needs of organizations
buyers perception of the purchase decision affected by
expectations of the supplier, business climate of the company, and personal asessment of his or her own performance
differences b/t organizational and consumer decisions
-few are impulse buys
-involve many people
-products bought according to technical specifications
-decisions are often high risk
-companies usually make up a small customer base and a large ammount of dollars
-HOWEVER, brand loyalty, long term relationships, and aesthetic concerns still exist
internal vs. external stimuli
internal- buyers psychological characteristics

external- nature of org and overal market
greater the complexity, novelness, or riskiness of a decision......
more searching for info and comparing alternatives is done
straight rebuy vs. modified rebuy vs. new task
straight- out of habit, little thinking

modified- limited decision making, some changes

new buy- extensive problem solving
Initiator
the person who brings up an idea or need
gatekeeper
the person who searches for information and who controls the flow to the group
influencer
a person who tries to sway the outcome
buyer/user
buyer- person who actually purchases

user- person who uses product
nuclear family
a mother, father, and 1 or more children
extended family
three generations living in the smae house
-once most common family unit
family household
2 or more people related by blood or marraige
Family's needs and expenditures affected by:(3)
Size of family
age of family members
whether 1, 2, or more adults are employed outside the home
2 important factors determining how a family spends its money
1. whether women works
2. whether they have kids
Family Life Cycle and limitations
FLC- a families needs and consumption habits differ over time

limited b/c of changing womens roles, non kid household, alternative lifestyles, and single parent households
consensual vs. accomodative purchase decision
consensual- agreed upon by all family members

accomodative- group members can't agree on a purchase that will settle all preferences
degree of family decision conflict influenced by: (4 things)
interpersonal need- a persons level of investment in the group
product involvement and utility
responsibility
power- degree to which one family member exterts influence over others in making decisions
autocratic vs. syncratic decisions
autocratic- one family member
syncratic- made jointly
Family Financial Officer
individual in charge of a family's bills and incharge of allocating excess funds
4 factors that determine the degree to which decisions will be made jointly/or by one or the others
1. sex role stereotypes
2. spousal resources
3. experience
4. socioeconomic status- middle class make more joint the high/low
kin-network system
rituals performed to maintain ties among family members
synoptic ideal
husband and wife take a common view and act as joint decision makers
-weigh alternatives and then make mutually beneficial decisions
consumer socialization
process by which young people acquire skills, knowlege, and attitudes relevant to their functioning in the marketplace
Jean Piaget said.....
kids pass through distinct phases of cognitive development, and each stage is characterized by a certain cognitive structure the child used to handle info
3 segments of storage and retrieval in kids
under 6- limited- no s and r
6-12 cued- s and r when cued
12 and older- strategic s and r spontaneously.