Consumer Behavior: Problem Recognition, Search, and Judgment Processes

What is problem recognition in consumer behavior?

The perceived difference between an actual state and an ideal state that motivates the consumer to take action.

What triggers problem recognition?

Awareness of a discrepancy between the actual state and the ideal state, influenced by factors like expectations, product malfunctions, and personal motivations.

What is the actual state in problem recognition?

The current state; the way things actually are.

What is the ideal state in problem recognition?

The way we want things to be.

What is the role of tension in problem recognition?

The discrepancy between actual and ideal states creates tension, motivating consumers to resolve it.

How can marketers stimulate problem recognition?

By creating a new ideal state or dissatisfaction with the actual state, and positioning their product as a solution.

What is internal search in the context of consumer decision-making?

The process of recalling stored information from memory to aid in decision-making.

What factors influence the degree of internal search?

Motivation, ability, and opportunity, as well as the information stored in long-term memory.

What is a consideration set?

The subset of top-of-mind brands evaluated when making a choice.

What factors affect brand recall during internal search?

Prototypicality, familiarity, goals/usage situations, preference, and retrieval cues.

What is confirmation bias in internal search?

The tendency to recall information that confirms prior beliefs, potentially leading to selective perception.

What is external search in consumer decision-making?

The process of acquiring information from external sources when internal information is insufficient.

What are the two types of external search?

Prepurchase search (for a specific decision) and ongoing search (regularly regardless of current needs).

What are the sources of external information search?

Retailers, media, interpersonal sources, independent sources, and experiential search.

How do consumers' internet search patterns differ for experience goods versus search goods?

Experience goods require detailed research and more time on each page, while search goods involve broader searches with less time spent per page.

What is choice overload?

A situation where having too many options leads to a decline in decision quality.

What influences the motivation for external search?

Involvement, perceived risk, perceived costs and benefits, and type of product.

What factors influence a consumer's ability to conduct an external search?

Consumer knowledge, cognitive abilities, and demographics.

What role does opportunity play in external search?

Availability of information, format of information, time availability, and number of items being chosen affect the extent of the search.

What is the difference between searching by brand versus by attribute?

Searching by brand involves collecting all information on one brand before moving to another, while searching by attribute compares all brands on one attribute at a time.

What is the impact of mood on internal search?

A good mood can enhance the recall of positive information.

What is the significance of retrieval cues in brand recall?

Logos and packaging serve as important cues that aid in recalling brand information.

What is the effect of the size of the consideration set on brand recall?

Consumers' ability to recall brand information decreases as the size of the consideration set increases.

What is the relationship between expertise and memory structures in internal search?

Experts have better memory structures, which enhance their ability to recall relevant information.

What is the role of external stimuli in problem recognition?

External stimuli can remind consumers of needs or discrepancies, prompting problem recognition.

What is the concept of obsolescence in problem recognition?

Obsolescence refers to the perception that a product is outdated or no longer meets consumers' needs.

What is the definition of judgment in the context of decision-making?

Judgment is the evaluation of an object or estimate of the likelihood of an outcome or event.

How does decision-making relate to judgment?

Decision-making involves making a selection among options or courses of action, while judgment is a critical input into this process.

What are the three types of judgments marketers need to understand?

Marketers need to understand judgments about likelihood, goodness or badness, and mental and emotional accounting.

What is the anchoring/adjustment process in judgment?

Anchoring/adjustment involves starting with an initial evaluation and adjusting it based on additional information.

How can imagery influence judgment?

Imagery can help visualize an event, creating a positive bias when imagining oneself using a product.

What strategies can marketers use to ensure their brand serves as a positive anchor?

Marketers can focus consumers' attention on attributes that position the brand as the best, affect the set of products used in adjustments, and expose consumers to brand extensions.

What are some ways marketers can affect judgments of goodness and badness?

Marketers can make consumers feel good and ask them to imagine the attributes or benefits of a product or service.

What is confirmation bias in judgment processes?

Confirmation bias is the tendency to focus on information that supports existing beliefs while ignoring contradictory information.

What is self-positivity bias?

Self-positivity bias is the assumption that bad things are less likely to happen to oneself compared to others.

How does negativity bias affect consumer judgment?

Negativity bias leads consumers to weigh negative information more heavily than positive information.

In what way can mood influence judgment?

Mood can act as an anchor; a good mood can lead to positive responses and reduce the likelihood of seeking negative information.

What are the three sets of options consumers consider when making high-effort decisions?

The inept set (unacceptable options), inert set (indifferent options), and consideration set (options consumers want to choose from).

What is the importance of getting a brand into the consideration set?

It is critical for a company to ensure its brand is in the consumer's consideration set to influence their choices.

What is decision framing?

Decision framing is the initial reference point or anchor in the decision process, influencing how choices are perceived.

How do goals affect decision-making?

Goals can dictate whether consumers prefer a large or small consideration set, depending on their desire for flexibility or simplicity.

What is the difference between low-level and high-level construal in decision-making?

Low-level construal focuses on specific, concrete elements for immediate decisions, while high-level construal focuses on general, abstract elements for future decisions.

What are cognitive decision-making models?

Cognitive decision-making models involve combining information about attributes to reach a decision.

What is the affective decision-making model?

The affective decision-making model is based on feelings and emotions rather than purely cognitive evaluations.

What is a compensatory decision model?

A compensatory model allows negative features to be compensated for by positive ones in a mental cost-benefit analysis.

What is a non-compensatory decision model?

A non-compensatory model rejects options based on negative information without allowing for compensation.

What is a cutoff level in non-compensatory models?

The cutoff level is the point at which a brand is rejected based on missing a minimum acceptable value for an attribute.

How can marketers influence consumers' decision-making strategies?

Marketers can encourage a shift from compensatory to non-compensatory strategies or vice versa to influence consumer choices.

What is the Simple Additive Rule in brand decision-making?

A method where each alternative is evaluated based on a set of criteria, counting favorable judgments for each attribute with equal weight.

What does the Weighted Additive Rule involve?

It uses a Multiattribute Expectancy-Value Model where the value to the customer is calculated as the sum of the importance of attributes multiplied by beliefs about those attributes.

What is the Conjunctive Model in decision-making?

A noncompensatory model that sets minimum cutoffs to reject options that do not meet the criteria.

What is the Disjunctive Model used for?

A noncompensatory model that sets acceptable cutoffs to identify options that meet at least one favorable criterion.

What is the Additive Difference Rule?

A method where alternatives are compared two at a time by calculating the difference in performance on each attribute and summing the differences to choose the better option.

What does the Lexicographic Rule entail?

Choosing the brand that performs best on the most important attribute, and if there is a tie, comparing the next most important attribute.

What is the Elimination by Aspects strategy?

A flexible method where cutoffs are imposed on all attributes, evaluating brands based on the most important attribute first.

How do emotions influence high-effort decision-making?

Consumers may choose options based on feelings rather than systematic evaluations, especially for products with hedonic or symbolic aspects.

What is affective forecasting?

The prediction of how one will feel in the future regarding a decision or outcome.

How does imagery in advertising affect decision-making?

Imagery can induce consumers to imagine themselves in specific situations, evoking associated feelings and emotions that influence their choices.

What factors can lead to decision delay in consumers?

Perceived risk, unpleasant tasks, too many attractive choices, fear, or uncertainty about obtaining product information.

What are noncomparable decisions?

Decisions made when choosing from different product categories, requiring alternative-based or attribute-based processing.

What role does expertise play in consumer decision-making?

Consumers with expertise are more likely to understand their preferences and make informed decisions.

How does mood affect consumer decision-making?

A good mood can lead to more information processing, closer attention to brands, and more positive evaluations.

What is a heuristic in decision-making?

A rule of thumb that simplifies decision-making processes.

What is the Representativeness Heuristic?

A judgment method where a stimulus is compared to a category prototype or exemplar.

What is the Law of Small Numbers in decision-making?

The assumption that information obtained from a small sample can be generalized to a larger population.

What is the difference between conscious and unconscious low-effort decision-making?

Conscious decisions involve awareness of the process, while unconscious decisions may occur spontaneously and be influenced by environmental stimuli.

What is the hierarchy of effects in decision-making?

In high-effort decisions, the sequence is thinking, feeling, then behaving; in low-effort decisions, it is thinking, behaving, then feeling.

What does it mean to 'satisfice' in decision-making?

To find a brand that meets the need without necessarily being the best option available.

What are choice tactics in low-effort decision making?

Simple rules of thumb used to make decisions, such as price tactics, affect tactics, and brand loyalty tactics.

What is operant conditioning in the context of consumer behavior?

A learning process driven by rewards to reinforce desired behavior and punishment to discourage objectionable behavior.

How does reinforcement affect consumer choice tactics?

Reinforcement increases the probability that a consumer will purchase the same brand again due to satisfaction.

What is the role of punishment in consumer behavior?

Punishment leads to negative evaluations of a product or service, discouraging future purchases.

How do experiences influence choice tactics?

Experiences help consumers learn what works for each product, influencing their choice tactics for future purchases.

What is shaping in consumer behavior?

Leading consumers through steps to create a desired response, such as using free samples and coupons to form a habit.

What is the zone of acceptance in pricing?

The acceptable range of prices consumers are willing to pay, which influences their purchasing decisions.

What are normative influences in consumer decision making?

Basing choices on others' opinions, which can be direct, vicarious, or indirect.

What is affect referral in low-effort affect-based decision making?

Relying on feelings and brand familiarity to make purchasing decisions.

What is variety seeking in consumer behavior?

The tendency to try different products due to boredom or the desire for new experiences.

What characterizes an impulse purchase?

An unexpected purchase driven by strong feelings, often disregarding potential negative consequences.

What is post-decision dissonance?

Anxiety experienced when multiple attractive alternatives are available, leading to loss of confidence in the decision.

How can consumers reduce regret after a purchase?

By breaking decisions into smaller parts and focusing on lessons learned from the experience.

What is hypothesis testing in learning from consumption?

Comparing prior expectations with new information gained from actual product experiences.

What factors affect learning from experience in consumer behavior?

Motivation, ability, processing biases, and opportunity all influence how consumers learn from their experiences.

What is the optimal stimulation level (OSL)?

The level of arousal that is most comfortable for an individual, influencing their variety-seeking behavior.

What is co-branding?

An arrangement where two brands partner to leverage the strengths of both for mutual benefit.

What are deal-prone consumers?

Consumers who prefer to take advantage of coupons, rebates, and direct deals.

What is the importance of value in consumer pricing techniques?

Consumers assess the quality of a product relative to its price, which influences their purchasing decisions.

What is the role of advertising in choice tactics?

Advertising influences consumer experiences and perceptions, affecting their choice tactics for different product categories.

What is affect-based decision making?

Decision making primarily influenced by feelings and emotional responses to products.

What is the impact of cultural differences on impulse purchases?

The prevalence of impulse purchases can vary significantly across different cultures and individuals.

What is the significance of brand loyalty in low-effort decision making?

Brand loyalty leads consumers to consistently choose the same brand based on strong preferences.

What is the difference between direct, vicarious, and indirect normative influences?

Direct involves manipulation, vicarious involves observation, and indirect involves concern for others' opinions.

What is hypothesis testing in consumer learning?

Comparing prior expectations or predictions with new information from experience.

What are the stages of hypothesis testing?

1. Hypothesis generation 2. Exposure to evidence 3. Encoding of evidence 4. Integration of evidence.

What factors affect learning from experience?

Motivation, ability, opportunity, and processing biases.

How does motivation influence consumer learning?

Marketers can facilitate learning when motivation is high or low.

What role does ability play in consumer learning?

Ability affects how much and what consumers learn from consumption experiences.

What is the impact of opportunity on consumer learning?

Ambiguity of information can hinder the evaluation of brand, product, or service performance.

What are Top-Dog Strategies in marketing?

Strategies used by market leaders to justify evaluations, block exposure to evidence, and explain experiences.

What are Underdog Strategies in marketing?

Strategies employed by lower-share brands to encourage consumer learning and facilitate product trials.