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31 Cards in this Set

  • Front
  • Back
5 steps in the decision making process
1. Problem Recognition
2. Information search
3. Alternative evaluation
4. Purchase
5. Post purchase
3 types of decision making
Nominal
Limited
Extended
Nominal Decision Making
Occurs when there is very low involvement with the purchase.

(internal search/long term memory) usually skips alternative evaluation stage
Product Involvement
Occurs when a consumer is very involved with a brand or a product category and yet has a very low level of involvement with a particular purchase of that product because of brand loyalty, time pressures, or other reasons.
Purchase involvement
the level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase
Limited decision making
involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little post purchase evaluation.
Extended decision making
Involves an extensive internal and external information search followed by a complete evaluation of multiple alternatives and significant postpurchase evaluation.
Problem recognition
The result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process.
What triggers problem recognition?
Any time the desired state is perceived as being greater than or less than the actual state, a problem exists.
Actual State
The way an individual perceives his or her feelings and situation to be at the present time.
Desired State
The way an individual wants to feel or be at the present time.
What factors influence consumer's desire to solve a problem?
1. The magnitude of the discrepancy between the desired and actual states
2. The relative importance of the problem
(controlled by consumers budget and time constraints)
Active problem
A problem that the consumer is aware of or will become aware of in the normal course of events.
Inactive Problem
A problem in which the consumer is not aware.
Generic Problem Recognition
A discrepancy that a variety of brands within a product category can reduce.
Marketers attempt to activate problem recognition in active problems how?
Require the marketer only to convince consumers that its brand is the superior solution. Consumers already aware.
Marketers attempt to activate problem recognition in inactive problems how?
Require marketer to convince consumers that they have the problem and that the marketer's brand is a superior solution to the problem. Much more difficult
4 concerns marketer's have that are related to problem recognition
1. Need to know the problem consumers are facing
2. Must know how to develop the marketing mix to solve consumer problems.
3. Occasionally want to cause consumers to recognize problems
4. Sometimes desire to suppress problem recognition among consumers
Activity analysis
Marketing technique where analysis is focused on a particular activity (dinner, cut lawn, swimming)
Uses survey or focus group
Product analysis
Examines the purchase or use of particular product or brand
Problem analysis
Starts with a problem and asks respondents to indicate which activities, products, or brands are associated with said problems
Human Factors Research
Attempts to determine human capabilities in areas such as vision, strength, response time, flexibility, and fatigue and the effect on these capabilities of lighting, temp, and sound
Emotional Research
Conduct research on the role of emotions in problems recognition and resolution.
Approaches used to determine the problems consumers face.
Survey's, focus groups, and intuition use three approaches
1. Activity analysis
2. Product analysis
3. Problem analysis
Generic problem recognition
A discrepancy that a variety of brands within a product category can reduce.
Selective Problem recognition
A discrepancy that only one brand can solve.
When will a firm attempt to influence generic problem recognition?
When the problem is latent or of low importance and one of the following exists
1. Early in product life cycle
2. High percentage of the market
3. External search after problem recognition is apt to be limited
4. It is an industry wide cooperative effort.
When will a firm attempt to influence selective problem recognition?
Attempt to influence selective recognition to gain or maintain market share. Other hand Generic recognition expands total market.
What approach techniques are used to activate problem recognition?
Influence the size of the discrepancy by altering the desired state or perceptions of the existing state. Or firm can influence perceptions of the importance of an existing discrepancy.
What timing techniques are used to activate problem recognition?
Marketer's can attempt to help consumers solve problems "after" they arise, but a more common strategy is to trigger the problem recognition.
When and why do marketers suppress problem recognition?
In the tobacco industry, to minimize the problem recognition caused by the mandatory warning at the bottom. Marketers do not want their current customers to recognize problems with their brands.