MK 5

decision-making process breakdown

need recognition

information search

alternative evaluation

purchase

post purchase

marketing funnel

awareness

interest

desire/consideration

action/puchase

re-purchase, loyalty

need recognition

need state, desired state

information search

internal search, external search

alternative evaluation

evaluative criteria, determinant attribute

purchase

action

post purchase

positive, negative

need recognition- trigger

a gap between actual and desired situation

if gap is big enough, it can trigger a reaction

triggers may be self generate or prompted by marketing

information search → consideration set

universal set → retrieval set → evoked/consideration set

universal set

ie. all winter coat brands known and unknown to consumer

retrieval set

brands consumers can easily recall from memory

evoked/consideration set

brands consumer would consider purchasing (positive association)

evaluative criteria

all the criteria you are considering

determinant attribute

the criteria among choices that overrides all other attributes

compensatory rule

consumers evaluate products by weighting their beliefs about products’ attributes according to importance

non-compensatory rule

a product’s weakness on one attribute cannot be offset or “compensated” by strong performance on another attribute

choice architecture

people are more likely to stick with the default than switch → setting full option as default is most profitable

optimizing purchase

make purchase process faster and easier to avoiding choice overload and decision paralysis

influences on consumer decision making

marketing mix

psychological factors

social factors

situational factors

marketing mix

product

price

place

promotion

psychological factors

motives

attitudes

perceptions

learning

lifestyle

social factors

family

reference groups

culture

situational factors

purchase situation

sensory situation

temporal state

high involvement

extended problem solving- consumers are high involvement decision makers when they percieve risks in decision

low involvement

habitual decision making- low involvement consumers rely on cues, brand, loyalty

limited problem solving- impulse buying

Big-box retailers regularly move products from one aisle to another. They also put personal-care products in the pharmacy area, many aisles away from the grocery products. Consumers who spend more time walking through the store are likely to buy things they hadn’t planned to buy, or make

1. Option A

   impulse purchases

2. Option B

   ritual consumption purchases

3. Option C

   extended problem-solving decisions

4. Option D

   affective alternative decisions

5. Option E

   routine problem-solving decisions

A. A common type of limited problem solving is impulse buying, a buying decision made by customers on the spot when they see the merchandise. It is a form of limited problem solving.

Marketers are particularly interested in postpurchase behavior because it

1. Option A

   involves both compensatory and noncompensatory consumers.

2. Option B

   involves both actual and potential customers.

3. Option C

   avoids situational conflicts.

4. Option D

   offers insights into information search methods.

5. Option E

   involves actual rather than potential customers.

E. Unlike prepurchase behavior, postpurchase behavior reflects the characteristics of actual customers. Satisfied customers may be a source of future purchases and/or positive word of mouth.

Marketers observe loyal consumers engage in________, buying their company’s product with little thought or consideration of alternatives.

1. Option A

   extended problem solving

2. Option B

   compensatory decisions

3. Option C

   reference group consumption

4. Option D

   habitual decision making

5. Option E

   personal problem solving

D. Habitual decision making describes a purchase decision process in which consumers engage in little conscious effort.

When does the consumer buying process begin?

1. Option A

   when learning follows perception

2. Option B

   after a consumer enters a store

3. Option C

   after a consumer’s performance risk is minimized

4. Option D

   when a consumer recognizes an unsatisfied need

5. Option E

   when consumers’ functional needs are greater than their psychological needs

D. Need recognition is the first step in the consumer buying process.

Marketers often use principles and theories from sociology and psychology to better understand consumers’ actions and to

1. Option A

   contribute to the theoretical knowledge in those disciplines.

2. Option B

   develop basic strategies for dealing with their behavior.

3. Option C

   maximize postpurchase cognitive dissonance.

4. Option D

   satisfy ritual consumption needs while avoiding overconsumption.

5. Option E

   avoid cultural reference group problems.

B. Sociology and psychology have both contributed many theories to marketing knowledge. Marketers have used these theories to decipher many consumer choices and develop basic strategies for dealing with consumers’ behavior.