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27 Cards in this Set
- Front
- Back
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Consumers are involved in all kinda of decisions that range from: |
Mundane --> Extremely Important Automatic Processing --> Highly Structured Processing |
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Three types of consumer decision variations |
1. Routine Choice: Familiar, Trivial, little risk 2. Intermediate Problem Solving: preference already established 3. Extensive Problem Solving: Unfamiliar product categories |
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Consumer Decision Making can be characterized by two key factors: |
1. Processing Effort: Automatic--> systematic 2. Involvement--> depends on personal relevance, importance and risk |
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Types of Consumer Decision Making |
1. Brand Laziness 2. Brand Loyalty 3. Variety Seeking 4. Problem Solving |
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Brand Laziness |
-Habitual buying, little effort -Familiarity, convenience |
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Brand Loyalty |
-Involved because of loyalty to the brand -Buy based on established brand preference |
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Variety Seeking |
- Familiar with product category but no clear preference has been established - Not loyal, instead seek variety |
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Problem Solving |
- Unfamiliar, expensive, infrequent purchases - Deliberate effort and careful evaluation |
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What are determinate attributes? |
Attributes that are most likely to influence choice. |
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Attributes can be described based on two factors: |
1. Importance: amount of added benefit provided by the attribute 2. Uniqueness: how equal or different the brands are on the attribute |
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Traditional Model of Consumer Decision Making Process |
1. Problem recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase Decision 5. Post-purchase Evaluation All have feedback loops |
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Problem Recongnition |
Disparity between what you have and what you want. |
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To be motivated to take action, the gap must be: |
Substantial- sufficient in magnitude Attainable- problem must be readily solvable |
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Triggers of Problem Recognition |
1. Needs: fundamental state of felt deprivation. We run out of or use up a product or service 2. Wants: are shaped by personality, experiences and culture -including marketing 3. Opportunities: as products or service are used up, new innovations enter market |
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Pre-purchase searches |
information gathered for the consumption problem at hand (once the problem has been recognized). -Internal Search: deliberate retrieval of information from memory, past experience, relevant info, product options -External Search: personal, public and marketing sources of information |
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Two types of involvement |
1. Situational Involvement: search is driven bby specific situation 2. Enduring involvement: long-term continuous interest in a product category or brand. |
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4 other Influences on Search |
1. Ease of search (e.g Internet) 2. Brand chaos- to many choices can stop search 3. Situational Variables: Time, perceptions of crowding 4. Market Mavens: people who enjoy searching info |
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Bounded Rationality |
rational decisions depend on time and cognitive constraints - reducing uncertainty results in better decision making, and increased satisfaction |
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Consumer Uncertainty |
1. External uncertainty (knowledge about the marketplace) - gap between actual brands and perceived brands 2. Internal uncertainty (related to satisfaction) - gap between true preference and the preference |
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Three types of External Uncertainty |
Incomplete information - lack of awareness about all brands and attribute information Measurement error - incorrect beliefs and attitudes related to brand attributes Obsolete Information - brand universe is growing faster than can be updated. |
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Two types of Internal uncertainty |
1. Absolute Error- uncertainty regarding satisfaction that a particular attribute will deliver 2. Relative Error- uncertainty about the relative influence or weight of each attribute |
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Perceived Product Market |
How brands are organized in the consumers mind. Consumers usually categorize brands based on how they are similar and how they are different. These categories often form clusters. |
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Cluster frontier (ideal brand) |
-The best possible combination of attributes observed within a cluster |
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Brand variance |
- awareness of uncertainty regarding a particular brands' attributes -makes it difficult to identify the frontier |
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Consideration and Choice |
- Narrow choice to a single cluster |
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Post-Purchase Evaluation |
Consumers continue to process information about attributes and brands after purchase and consumption to determine satisfaction. |
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What are the types of post-purchase evaluation?
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Expectancy Disconfirmation Model: compares perceptions of a brand's performance with their expectations Dissonance- Reduction: Dissatisfaction results in dissonance |
