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Questions and Answers

What is the term used for the realization of a problem triggered by an external stimulus?

  • Life stage changes
  • Opportunity recognition (correct)
  • Stock depletion
  • Developing new tastes

Which situation exemplifies stock depletion as a problem recognition trigger?

  • Deciding to start a new hobby
  • Developing a passion for art
  • Emptying a box of cereal (correct)
  • Feeling hungry for gourmet food

What type of problem recognition occurs as individuals transition through various life stages?

  • Encounter with new technology
  • Opportunity recognition
  • Stock depletion
  • Life stage changes (correct)

Which of the following describes the concept of developing new tastes?

<p>An aspiration to enjoy previously unexplored experiences (B)</p> Signup and view all the answers

How can marketers assist in recognizing invisible problems for consumers?

<p>By highlighting solutions that may not be consciously acknowledged (A)</p> Signup and view all the answers

What subtle problem recognition might occur with exposure to new technology or products?

<p>Underestimating the relevance of certain products (C)</p> Signup and view all the answers

What does 'solution stimuli' refer to in consumer problem recognition?

<p>External factors compelling a need or desire (A)</p> Signup and view all the answers

In the context of consumer behavior, how do automatic replenishment systems function?

<p>They eliminate the need for conscious problem recognition. (B)</p> Signup and view all the answers

What is the primary aim of primary demand creation?

<p>To convert nonusers into users by making them recognize a problem (B)</p> Signup and view all the answers

Which of the following sets includes brands that consumers do not remember during decision making?

<p>Inert set (B)</p> Signup and view all the answers

In the context of information search, what is typically found first by a consumer?

<p>One specific alternative and its features (A)</p> Signup and view all the answers

What does the consideration set include?

<p>Brands consumers will actively consider for purchase (A)</p> Signup and view all the answers

Marketers often engage in secondary demand creation to:

<p>Strengthen the existing user base for their brand (C)</p> Signup and view all the answers

What characterizes the evoked set in consumer decision-making?

<p>Brands that the consumer is actively remembering at the time of decision making (A)</p> Signup and view all the answers

If a consumer considers certain brands but finds them unsuitable, these brands belong to which set?

<p>Inept set (C)</p> Signup and view all the answers

What role do market leaders typically play in primary demand creation?

<p>They create awareness for previously unaware consumers (C)</p> Signup and view all the answers

What characterizes independent sources of information?

<p>They are not known personally to the consumer. (C)</p> Signup and view all the answers

What distinguishes an extender from a simplifier in consumer search styles?

<p>Extenders are satisfied with minimal information. (D)</p> Signup and view all the answers

Which type of problem is characterized by frequent past solutions and minimal new information?

<p>Routine problems (A)</p> Signup and view all the answers

What does the term 'information overload' refer to?

<p>A condition when consumers have too much information to process effectively. (B)</p> Signup and view all the answers

What main factors influence perceived risk in decision making?

<p>The degree of uncertainty and severity of consequences. (C)</p> Signup and view all the answers

What is a hallmark of limited problem solving?

<p>Minimal time and energy invested in decision making (C)</p> Signup and view all the answers

How does cognitive style affect consumer information processing?

<p>It influences how much time and effort a consumer invests in searching for information. (B)</p> Signup and view all the answers

Which type of problem requires extensive information search due to high risks and unfamiliarity?

<p>Extended problems (C)</p> Signup and view all the answers

What type of risk is associated with the possibility of experiencing negative social perceptions from others regarding a product?

<p>Social risk (C)</p> Signup and view all the answers

Which factor tends to increase the thoroughness of a consumer's information search prior to making a purchase?

<p>High involvement (C)</p> Signup and view all the answers

What is the term for the knowledge and understanding of product attributes that influences consumer decisions?

<p>Expertise (B)</p> Signup and view all the answers

Which consumer shopping style is characterized by thorough comparison shopping for better value?

<p>Extenders (C)</p> Signup and view all the answers

What term describes the standards consumers use to assess a product's attributes during decision-making?

<p>Evaluation criteria (D)</p> Signup and view all the answers

In which evaluation model do consumers trade off a product's perceived weaknesses against its strengths?

<p>Compensatory model (C)</p> Signup and view all the answers

What typically causes consumers experiencing time pressure to adjust their shopping behavior?

<p>Cut short their information search (B)</p> Signup and view all the answers

What does the term 'determinant attributes' refer to in consumer evaluation?

<p>Attributes that are significant for a specific consumer (A)</p> Signup and view all the answers

What does familiarity imply regarding consumer decision-making when purchasing a product?

<p>Quick resolution of purchasing problems (C)</p> Signup and view all the answers

Which of the following accurately describes the behavior of brand loyal consumers?

<p>They stick to known brands and avoid new options (A)</p> Signup and view all the answers

What is the first step in the consumer decision process?

<p>Problem recognition (B)</p> Signup and view all the answers

Which of the following best defines problem recognition in consumer behavior?

<p>Realization of a gap between current and desired states (B)</p> Signup and view all the answers

Which stimulus type represents discomfort arising from inner thoughts or feelings?

<p>Internal stimuli (B)</p> Signup and view all the answers

What type of external stimuli serves as a source of information that directly points to a problem?

<p>Problem stimuli (B)</p> Signup and view all the answers

Which scenario exemplifies internal stimuli in problem recognition?

<p>Noticing you feel bored and want a new hobby (C)</p> Signup and view all the answers

What does solution stimuli refer to in the context of consumer decision making?

<p>Information from a solution that arouses recognition of a need (C)</p> Signup and view all the answers

Which of the following is NOT an avenue of problem recognition?

<p>Second-hand stimuli (A)</p> Signup and view all the answers

When does problem recognition occur in the consumer decision process?

<p>Before searching for information (D)</p> Signup and view all the answers

What distinguishes the disjunctive model from the compensatory model?

<p>It focuses on the presence or absence of attributes. (B)</p> Signup and view all the answers

In the lexicographic model, what is the first step a consumer must take?

<p>Rank the product attributes in terms of importance. (B)</p> Signup and view all the answers

How does the elimination by aspects model differ from the lexicographic model?

<p>It requires defining minimum required values for attributes. (C)</p> Signup and view all the answers

What is a primary characteristic of decision heuristics?

<p>They involve an organized approach to specific questions. (C)</p> Signup and view all the answers

In the context of the disjunctive model, what implication does having a finished basement or an extra bedroom have?

<p>It indicates more living space available. (C)</p> Signup and view all the answers

If a consumer using the elimination by aspects model finds multiple options that meet the minimum requirement on the first attribute, what do they do next?

<p>Evaluate those options based on the next most important attribute. (C)</p> Signup and view all the answers

What is a key difference between the compensatory and disjunctive models in decision-making?

<p>The disjunctive model does not allow for trading of different attributes. (A)</p> Signup and view all the answers

What is the primary focus of questions addressed by systematic decision approaches?

<p>Evaluating the relative merits and demerits of various options. (A)</p> Signup and view all the answers

Flashcards

Consumer Decision Process

A series of steps consumers go through when making a purchase decision. Starting with recognizing a problem or need, then evaluating options, and finally making a purchase and evaluating their satisfaction.

Problem Recognition

The first step of the consumer decision process where a consumer realizes a gap exists between their current state and a desired state.

Consumer Problem

Any state of deprivation that causes discomfort physically or mentally, leading to a desired state.

Internal Stimuli

Sources of information about a problem or need that come from within the consumer, such as physical or psychological discomfort.

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External Stimuli

Sources of information about a problem or need that come from the outside world, like advertisements or seeing a product.

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Problem Stimuli

Information from the problem itself that triggers the recognition of a need.

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Solution Stimuli

Information from a potential solution that triggers the recognition of a need.

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Desired State

The ideal situation the consumer wants to achieve after addressing the problem or need.

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Opportunity Recognition

The realization that a product or service could solve a problem or fulfill a need, even if the need wasn't actively felt before.

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Stock Depletion

When everyday needs lead to recurring problems due to running out of essential items.

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Life Stage Changes

As we grow or change, new problems emerge, often requiring new products or services.

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Developing New Tastes

The acquisition of new interests, hobbies, or preferences that create new needs and opportunities.

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New Technology/New Products

These bring new problems and solutions to our attention, often subtly, by showing us what's possible.

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Helping Consumers Recognize Problems

Marketers can actively show consumers potential problems they might not realize they have, by highlighting the benefits of a product.

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Invisible Problems

Problems that exist but are not consciously recognized until a potential solution is presented.

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Primary Demand Creation

Creating demand for a product category that consumers may not even be aware of, by making them recognize a problem or need they didn't know existed.

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Secondary Demand Creation

Focuses on increasing market share for a specific brand within a product category that consumers are already aware of.

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Awareness Set

The set of all brands that consumers are aware of in a particular product category.

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Evoked Set

The subset of brands from the awareness set that consumers remember and consider during a purchase decision.

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Inert Set

Brands that are not actively considered during a purchase decision, but are not completely forgotten.

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Inept Set

Brands that are actively remembered but deemed unsuitable or unacceptable for the consumer's needs.

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Consideration Set

The set of brands that consumers will seriously consider buying from their evoked set.

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Information Search

The process of gathering information about different product alternatives and their features.

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Independent Sources

Information sources not controlled by marketers or known personally. Providing objective and unbiased perspectives.

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Search Styles

How consumers choose to gather information for a purchase, based on time commitment and effort.

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Extender

A consumer who conducts thorough searches, using multiple sources, and takes time to deliberate.

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Simplifier

A consumer who avoids extensive searches, relies on readily available information, and makes quick decisions.

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Information Overload

When consumers receive too much information to process effectively.

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Routine Problems

Simple, recurring purchase decisions with familiar solutions, requiring no new information.

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Extended Problems

Complex purchase decisions for unfamiliar items, where risks are high, leading to extensive research and deliberation.

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Limited Problems

Purchase decisions with moderate risks and complexity, involving some research and evaluation.

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Physical Risk

The possibility of a product causing harm to the user's body or health.

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Social Risk

The fear of being negatively judged by others for using a product.

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Psychological Risk

The worry that using a product will reflect badly on our personality or self-image.

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Financial Risk

The risk of losing money by buying a product that's overpriced or not worth the cost.

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Obsolescence Risk

The risk of a product becoming outdated or replaced by newer versions.

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High Involvement

When a consumer takes a strong interest in a product and is motivated to make a good choice.

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Familiarity and Expertise

When a consumer has prior knowledge or experience with a product, reducing the need for extensive research.

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Extender Shopping Style

A shopping style where consumers compare products extensively to get the best value.

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Determinant Attributes

The features that differentiate products and become key factors in consumers' decisions.

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Compensatory Model

A decision model where a product's strengths can offset its weaknesses, allowing consumers to trade off attributes.

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Disjunctive Model

A decision model where a product is chosen based on meeting a specific minimum requirement on at least one key attribute, even if other attributes are weak.

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Lexicographic Model

A decision model where product attributes are ranked in importance, and the best option on the most important attribute is chosen.

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Elimination by Aspects Model

Similar to the lexicographic model, but adds minimum acceptable levels for each attribute.

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What is the key difference between disjunctive and compensatory models?

The disjunctive model considers the presence or absence of attributes, while the compensatory model considers the degree or amount of those attributes.

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What is the key difference between lexicographic and elimination by aspects models?

The elimination by aspects model adds minimum acceptable levels (cut-off points) for each attribute, while the lexicographic model only prioritizes attributes.

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What are the advantages of using decision models in a consumer decision process?

Decision models help consumers organize information, prioritize factors, and make more informed choices, leading to higher satisfaction.

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What is the purpose of the 'minimum required values' in the elimination by aspects model?

These values act as cut-off points, helping to eliminate options that don't meet a certain minimum standard, even if they are strong in other areas.

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Study Notes

Consumer Decision Process

  • The consumer decision process begins when a consumer recognizes a problem or need that needs solving.
  • A problem can be physical, such as hunger, or psychological, such as boredom or anxiety.
  • Problem recognition is the consumer's realization of the gap between their current state and desired state.
  • Problem recognition has four avenues: internal stimuli, external stimuli, stock depletion, and life stage changes.
  • Information search involves finding out about available alternatives and their features in the marketplace.
  • When consumers are unfamiliar with a product, they initially explore one alternative, then learn more about it and others, until they feel they've gathered enough information.
  • This creates an awareness set (all known brands) and an evoked set (the subset of brands remembered during decision making).

Evaluation of Alternatives

  • Consumers evaluate alternatives by comparing them against criteria, which can be product attributes.
  • Judgment models are procedures for evaluating alternatives based on different criteria.
  • Compensatory models evaluate alternatives by weighing the positive and negative attributes and choosing the one with the most positives.
  • Noncompensatory models, such as the conjunctive method, assess alternatives based on minimum cutoffs on attributes and eliminate alternatives that don't meet these.

Purchase

  • Choosing and purchasing a product or service follows determining the most preferred alternative.
  • This includes purchase intent, making the transaction process and taking possession.

Post-purchase

  • The post-purchase experience provides feedback for future decision-making.

Involvement

  • Consumers have different levels of involvement in the decision process.
  • Low involvement purchases include frequently bought items (cereal, milk).
  • High involvement purchases include significant decisions (expensive items, first-time purchases).

Decision Heuristics

  • Quick decision-making methods.
  • Consumers use shortcuts such as brand names or past experiences to make choices quickly.

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