Consumer Behavior and Decision Making

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Questions and Answers

According to the definition provided, what is the primary focus of consumer behavior?

The study of how companies manufacture and distribute products.

The development of marketing campaigns and promotional materials.

The analysis of financial markets and investment strategies.

The processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences. (correct)

Which of the following is NOT explicitly identified as an implication of consumer behavior, based on the content provided?

Consumer behavior encompasses multiple stages including pre-purchase and post-purchase.

Consumer behavior is solely limited to the point of purchase. (correct)

Consumers can be groups or organizations.

The purchaser of a product might be different from the consumer.

According to the content, why is it important for marketers to understand all three stages of the consumption process?

To minimize manufacturing costs and maximize profit margins.

To focus on the legal and ethical aspects of marketing.

To accurately track inventory and manage supply chains.

Because successful marketers need to understand all three stages. (correct)

Which of the following best describes the different stages in the consumption process mentioned?

Prepurchase, Purchase, Post-purchase issues. (D) Signup and view all the answers

Based on the content, what is a potential way that products can be made more desirable for men or women?

By using specific scents like cedarwood or roses. (D) Signup and view all the answers

What is the core characteristic of choice framing effects?

The manner in which information is presented influences choice. (A) Signup and view all the answers

Which of the following best describes the consequence of choice framing effects for consumers?

Consumers exhibit unstable preferences and shifts between choice tasks. (B) Signup and view all the answers

How does the effect of choice framing differ from that of context effects?

Choice framing does not manipulate the available choices, while context effects does. (C) Signup and view all the answers

According to the 'Compromise effect', how does adding a decoy option influence the target product's choice shares?

It increases the target's choice shares. (D) Signup and view all the answers

In the context of the provided information, what is considered a 'decoy' option?

A product that is priced higher than both the target and competitor. (A) Signup and view all the answers

What is the difference between the initial choice set and the extended choice set?

The initial choice set has a target and a competitor, while the extended set adds an additional decoy. (A) Signup and view all the answers

Based on the 'Compromise effect', which of the following is the most likely consequence of introducing a decoy higher priced product?

The target product becomes more attractive due to the higher priced decoy. (D) Signup and view all the answers

What does the upward arrow pointing to 'Low Price' signify on the diagram?

The benefit of a lower price influencing higher choice shares. (C) Signup and view all the answers

Which of the following is NOT a core condition for relationships, according to the text?

Relationships are static and unchanging (A) Signup and view all the answers

According to the context, what does the term 'multiplex phenomena' imply about relationships?

They have multiple dimensions, forms, and potential benefits. (C) Signup and view all the answers

What is the role of marketers in the context of consumer-brand relationships?

To understand and maintain consumer-brand relationships. (C) Signup and view all the answers

Which characteristic is associated with 'love/passion' in the context of consumer-brand relationships?

A biased, positive perception of the brand. (A) Signup and view all the answers

In the context of brand relationships, what does 'irreplaceable' imply?

The brand holds a unique and distinct position for the consumer. (C) Signup and view all the answers

What does the example of 'upholding the baranian tradition' illustrate regarding a brand?

The brand is trying to evoke a sense of heritage and belonging. (D) Signup and view all the answers

How does emotional love for a brand impact consumer perception, according to the text?

It fosters a subjective and favorable view of the brand. (A) Signup and view all the answers

According to Fournier's work referenced in the text, which aspect of consumer-brand relationships is essential for marketers?

Understanding and actively maintaining these relationships. (D) Signup and view all the answers

Which of the following is NOT considered a consumer's perception of product associations?

Price (D) Signup and view all the answers

Which of the following best describes 'sensation' in the context of sensory marketing?

The biochemical response of sensory receptors to stimuli. (A) Signup and view all the answers

What are the three stages of perception, in the correct order?

Exposure, Attention, Interpretation (C) Signup and view all the answers

According to the framework presented, what is the primary role of 'interpretation' in sensory perception?

To translate raw stimuli into meaning. (C) Signup and view all the answers

In the context of haptics, which of the following statements is TRUE?

Touch is the first sense to develop in the womb and is also the last sense to fade with age. (D) Signup and view all the answers

Which of the following is an example of a product attribute that impacts perceived quality?

Smell of a product (C) Signup and view all the answers

How do individuals typically differ in terms of their need for touch?

In their general need for tactile input and comfort with interpersonal touch. (C) Signup and view all the answers

What does the conceptual framework for sensory marketing according to Krishna (2012) likely emphasize?

The importance of designing products and marketing efforts to appeal to all the senses. (D) Signup and view all the answers

What is the core idea behind crossmodal correspondences?

Associations between different sensory modalities that are nonarbitrary. (C) Signup and view all the answers

Which of these examples best illustrates a crossmodal correspondence?

The scent of cedarwood being perceived as warm. (B) Signup and view all the answers

In the context of marketing, what does multisensory congruency refer to?

The alignment of different sensory modalities to encode the same concept or meaning. (A) Signup and view all the answers

Which scenario exemplifies multisensory incongruity?

A Haribo ad using vision-audio elements that do not correspond. (A) Signup and view all the answers

According to the information provided, what is one potential positive effect of a multisensory congruent retail setting?

Enhanced purchase-related self-confidence. (B) Signup and view all the answers

Why might a marketer intentionally use multisensory incongruity?

To create a memorable and attention-grabbing experience. (A) Signup and view all the answers

Which of the following package designs would be considered multisensory congruent?

A package for a lemon-flavored product, that is yellow and has the citrus shape. (C) Signup and view all the answers

If a company uses the scent of mint in their store, based on crossmodal correspondences, what feeling might shoppers have?

Cold. (C) Signup and view all the answers

Study Notes

Foundations of Value Management - Value management for customers

Lecture: Winter term 2024/25
Lecturer: Prof. Dr. Manfred Schwaiger (Institute for Market-based Management), Prof. Dr. Marko Sarstedt (Institute for Marketing)

Aim of the Lecture

Understand the stages of the consumption process and their importance for managerial decisions
Fully grasp the concept of market segmentation
Understand the relevance of consumer-brand relationships
Identify the attitude-behavior gap
Comprehend the construction of consumer preferences
Analyze the role of choice set composition, choice framing, and decision environment
Examine the role of sensory stimuli in consumer behavior
Comprehend context effects

Agenda

Part 1: Introduction - Consumers as stakeholders, consumer brand relationships
Part 2: Preferences and preference construction, context factors, choice set composition, choice framing, and decision environment

What is Consumer Behavior?

The study of processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.
Consumers may take the form of groups and organizations
Consumer behavior is not limited to the point of purchase
The purchaser might not be the same consumer

Stages in the Consumption Process (Prepurchase, Purchase, and Postpurchase Issues)

Prepurchase Issues (Consumer's Perspective): How a consumer decides they need a product, what sources of information they use to learn about choices.
Prepurchase Issues (Marketer's Perspective): How are consumer attitudes toward products formed, what cues used to infer which products are superior.
Purchase Issues: Acquisition process, stress/pleasure of experience.
Postpurchase Issues: Product performance, disposal, impact on decision-making about future purchase

Consumer Behavior Influences

Consumer-Specific Factors: Needs, wants, demographics (income, lifestyle, and personality).
Product-Specific Factors: Consumer-brand relationships, anthropomorphism, brand image
Context Factors: Choice set composition, choice framing, and decision environment (compromise effect, choosing the middle option)

Marketers' Understanding of Consumer Segments

Marketers have to understand the wants and needs of different consumer segments.
Consumers within a same product category have different needs.
Market segmentation involves viewing a heterogeneous market as smaller markets with differing preferences.

Ways to Segment, Target and Position the Brand

Choose clustering variables
Develop segment profiles
Validate segment structure
Choose segment
Develop marketing strategy
Position the brand in the segment
Develop brand communication strategy

Consumer-Brand Relationships

Love/Passion: Emotional bonds, positive brand perception, irreplaceable/unique.
Self-Connection: Establishing identity, past, current, and future self, maintenance of relationships.
Interdependence: Part of consumer's daily routine, frequent interaction, variety of brand-related activities, high intensity of individual events.
Commitment: Intention to build a long-lasting relationship, high brand loyalty, high personal dedication, strong emotional bond.
Intimacy: Intimate knowledge structure developed around brands, personalized/stored memory, belief in superior product performance, more durable relationship bonds.
Brand Partner Quality: Positive orientation, dependability, reliability, fulfilment of relationship contract, accountable for actions).

Consumer Decision-Making

Constructive Process: Multiple options and information, limited processing resources.
Context Dependence: Goals, task complexity, how one is asked, choice set representation.

Classification of Context Factors in Consumers' Decision-Making

Choice set composition: Influence of actual choice, attraction/compromise effect.
Choice framing: Influence of framing, message /common attribute effect, Single/Phantom decoy effect.
Decision environment: Influence of external cues, sensory stimul (visual, sound, smell, touch, taste), social stimuli (utilitarian/value expressive/informational influence).
Context Effects: How the presentation format changes how a customer decides to purchase

Effects of Choice Set Composition on Consumer Choice, Compromise effects, Attraction Effect

Basic principle: Proportion of consumer choosing a product from a set depends on set composition.
Compromise effect: Adding an extreme decoy option increases the target option's choice.
Attraction effect: Asymmetrically dominated option boosts the target.
Empirical Example: Illustrate these effects with choice scenarios and percentages.

Sensory Marketing

Engage consumers' senses to impact perception, judgment, and behavior.
Sensory marketing activities can influence product associations (quality, elegance, sophistication).

Foundatons of Sensory Marketing: Sensation and Perception

Sensation: Simple response of sensory receptors to basic stimuli
Perception: Selecting, organizing, interpreting sensations

Olfaction (Smell)

Ambient scent: Impacts mood, time spent in locations.
Long-term effect: Influence of ambient smells

Auditory (Sound)

Sound design: Fosters distinctiveness from other brands, enhances memorability.
Music: Creates a positive experience

Taste

Sensory cues: influence taste perception.
Cognitive cues: external factors like marketing and social context.

Vision

Visual elements: vital in advertising, store design, packaging.
Visual cues: differentiates products from competitors.

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Description

Explore key concepts of consumer behavior and decision-making processes with this quiz. Learn about the implications of understanding consumer stages and the effects of choice framing. Test your knowledge on the factors influencing consumer choices and preferences.