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30 Cards in this Set

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steps in the decision making process

*know order
1. problem recognition
2. information search
3. evaluation of alternatives
4. product choice
5. postpurchase evaluation

then cycles back to problem recognition
order of problem solving
1. routine response behavior
2. limited problem solving
3. extensive problem solving
extended problem solving
- level of involvement
high (important decision)
extended problem solving
- perceived risk
high (expensive complex product)
extended problem solving
- information processing
careful

(search advertising, magazines, car dealers, websites)

- new car as a product
extended problem solving
- learning model
cognitive

( use incite and creativity to use information found in the environment)
extended problem solving
- needed marketing actions
provide information via advertising, salespeople, brochures, websites,

educate consumers to product benefits, risks of wrongdoing etc...
Habitual decision making
- level of involvement
low (unimportant decision)
Habitual decision making
- perceived risk
low (simple, low cost product)
Habitual decision making
- information processing
respond to environmental cues (store signage or display)
Habitual decision making
- learning model
behavioral

(ad show product in beautiful setting creating positive attitude)
Habitual decision making
- needed marketing actions
provide environmental cues at point of purchase such as product display
levels of customer engagement
confidence, integrity, pride, passion

** satisfaction is NOT one of these**
3 things a consumer can be involved with
-advertisements
-products
-purchase decisions
perceived risk
the belief that choice has potentially negative consequences, either financial, physical, or social
5 types of perceived risk
- monetary
- functional
- physical
- social
- psychological

** cultural risk is NOT one of these **
potential states of product recognition
- no problem
- opportunity recognition
- need recognition

** "problem avoidance" is NOT one of these**
internal search
an information search in which buyers search their memories for information about products that might solve their problem

(E.g. memories)
external search
an information search in which buyers seek information from outside sources

(e.g. advertisements, consumer reports)
heuristics
a mental rule that leads to a speedy decision by simplifying the process
brand loyalty
perhaps the most common heuristic, it is a pattern of repeat product purchases, accompanied by an underlying positive attitude toward the brand, that is based on the belief that the brand makes products superior to its competition.
country of origin
another heuristic wherein one assumes that a product has certain characteristics if it is from a certain country. often based on ethnocentrism.
ethnocentrism
the tendency to prefer products or people of one's own culture over those from other countries. This is a prevalent problem with American students today!
consumer satisfaction/ dissatisfaction
it is about fulfillment from a marketing exchange
ACSI model
quality -> value -> satisfaction -> loyalty
marketers response to problem recognition
e.g. TV commercials showing the excitement of owning a new car.
marketers response to product choice
e.g.

advertise "made in America" (country of origin)

stress long history of the brand (brand loyalty)
3 primary influence factors of consumer decision making
- internal influence
- social influence
-situational influence

** advertising is NOT one of these**
process of perception
1. Exposure
2. attention
3. interpretation
selective exposure
the process of selecting inputs to be exposed to our awareness while ignoring others. We basically ignore a lot of potential stimuli!