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Questions and Answers
What primarily influences the number of evaluations considered during the decision-making process?
Which of the following is NOT a factor that increases motivation to conduct an external search?
What feature distinguishes determinant attributes from non-determinant attributes in evaluative criteria?
Which decision rule is characterized by selecting the highest rated option across different criteria?
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What does the concept of 'satisficing' refer to in consumer behavior?
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Which heuristic involves consumers basing their decisions on how easily they can recall examples?
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What is a common effect of the sunk cost bias on consumer decision-making?
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What does the framing effect in decision-making imply?
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Which of the following correctly outlines the steps in the 5-step decision-making process?
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What distinguishes internal search from external search in the decision-making process?
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Which type of experiment is most likely to take place outside of a controlled environment?
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In the context of evaluation of alternatives, which strategy should be used according to the funnel approach?
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Which of the following best defines the concept of extended problem solving?
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Which of the following is NOT a typical type of experiment mentioned?
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Which statement best captures the function of a questionnaire in research?
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What is the primary purpose of understanding the actual versus ideal state in problem recognition?
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What is a key aspect of compensatory decision-making models?
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How do marketers create a problem recognition state among consumers?
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What is one implication of prospect theory for marketers?
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Which statement best illustrates a non-compensatory decision-making model?
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What marketing strategy can effectively use loss aversion to drive consumer behavior?
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What are marketers advised to do in relation to non-negotiable criteria?
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Which factor is NOT considered when evaluating alternatives in the decision-making process?
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What role does consumer feedback play in marketing strategy?
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Study Notes
Consumer Memory Retrieval
- Brand Recall: The ability to remember brands associated with a product category.
- Attribute Recall: Remembering specific features or characteristics of a brand.
- Evaluation Recall: Recalling past judgments or opinions about a brand.
- Experience Recall: Recalling personal experiences or interactions with a brand.
- Consideration Set: A shortlist of brands that a consumer considers for purchase.
Factors Influencing External Search
- Involvement and Perceived Risk: Higher involvement and perceived risk lead to a greater likelihood of conducting external search.
- Perceived Costs and Benefits: Consumers weigh the potential benefits of searching against the costs (time, effort, etc.).
- Relative Brand Uncertainty: Lack of familiarity with brands in a category increases the need for external search.
- Type of Product: Search is more likely for complex or expensive products.
- Attitudes Toward Search: Some consumers enjoy searching while others find it aversive.
- Discrepancy of Information: Conflicting information about a product motivates external search.
- Presence of Others: Seeking information might be influenced by social factors, such as recommendations from family or friends.
Decision Making with High Consumer Effort (Chapter 8)
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Number of Evaluations: The extent of brand consideration varies based on the decision-making process.
- Extended Problem Solving: Involves evaluating multiple brands and attributes.
- Limited Problem Solving: May also involve evaluating a few brand alternatives.
- Habitual Decision Making: Limited or no brand evaluation.
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Evaluative Criteria: Attributes used for comparing choices:
- Determinant Attributes: Features that influence a consumer's decision.
- Non-Determinant Attributes: Features that don't significantly impact the decision.
- Compensatory Decision Rules: Allowing a positive attribute to compensate for a negative one.
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Non-Compensatory Decision Rules: Strict criteria where a weakness in one attribute eliminates the option.
- Lexicographic Rule: Focuses on the most important attribute, with the best scoring brand winning.
- Conjunctive Rule: Sets minimum standards for each attribute and eliminates brands that fail to meet them.
- Affective Forecasting: Trying to predict future emotions and feelings in response to a decision.
Decision Making with Low Consumer Effort (Chapter 9)
- Performance-Related Tactics: Based on past product experiences (e.g., "I always buy Brand X because it performs well.").
- Brand Loyalty: Committed to a particular brand over time.
- Multi-Brand Loyalty: Switching among a limited set of preferred brands.
- Habit: Choosing a product out of routine and familiarity.
- Price-Related Tactics: Decisions driven by sale prices, discounts, etc.
- Normative Influences: Reflecting social norms and expectations (e.g., choosing a product based on what friends recommend).
- Affect-Related Tactics: Decisions based on emotional responses (e.g., "I love the feeling of this brand.").
- Variety Seeking: Desire for a change or new experience.
Heuristics and Biases
- Heuristic: Mental shortcuts or rules of thumb used for simplifying decision-making.
- Bias: Cognitive distortions that lead to systematic errors in judgment.
- Satisficing: Choosing a "good enough" option rather than striving for the absolute best.
- Availability Heuristic: Judging the likelihood of an event based on its ease of recall (e.g., overestimating the risk of plane crashes because of recent news coverage).
- Representativeness Heuristic: Making judgments based on how closely something resembles a prototype (e.g., assuming someone is a librarian because they are quiet and wear glasses).
- Sunk Cost Effect: Continuing to invest in a failing venture due to past investments (e.g., staying in an uncomfortable movie because you already paid for the ticket).
- Halo Effect: Generalizing positive feelings from one attribute to other unrelated attributes (e.g., assuming a product is high quality because of its attractive packaging).
- Confirmatory Bias: Seeking out information that supports existing beliefs and ignoring evidence that contradicts them.
- Shelf Space Heuristic: Assuming a product's popularity based on its shelf space allocation.
- Scarcity = Desirability Heuristic: Perceiving a product as more desirable when it's scarce (e.g., limited-edition items).
- Brand Name Effect: Relying on brand familiarity as a cue to product quality.
- Price-Quality Heuristic: Assuming higher-priced products are of higher quality.
- Family Influence or Intergenerational Effect: Choices influenced by family traditions or past generations.
More Issues in Decision Making
- Framing Effect: The way a choice is presented influences the decision (e.g., framing an offer as a "gain" is more appealing than framing it as a "loss").
- Evaluation of Individual Events vs. Overall Experiences: Consumers tend to focus more on single events than on the overall experience (e.g., a bad customer service experience can overshadow a positive overall product experience).
Questionnaires & Survey Structure
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Objectives:
- To collect specific information needed for research.
- To engage and motivate respondents.
- To minimize errors in answering questions.
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Determining the Order of Questions:
- Funnel Approach: Starting with general questions and progressively narrowing the scope (e.g., asking about overall satisfaction before specific details).
- Logical order: Grouping similar questions together.
Experiments and Experimental Designs
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Experiment Basics:
- Hypothesis: A statement to be tested.
- Independent Variable: The factor being manipulated.
- Dependent Variable: The factor being measured.
- Experimental Design: The structure of the study.
- Condition: A specific level of the independent variable.
- Control Experimental Groups: Groups that don't receive the treatment.
- Extraneous Variables: Uncontrolled factors that can influence the results.
- Randomization: Assigning participants randomly to conditions.
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Common Types of Experiments:
- Laboratory Experiment: Conducted in a controlled environment.
- Online Experiment: Conducted over the internet.
- Field Experiment: Conducted in a natural setting.
- A/B Testing: Comparing two versions of a website or advertisement to see which performs better.
Problem Recognition and Information Search (Chapter 7)
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5-Step Decision Process:
- Problem Recognition: Perceiving a need or opportunity.
- Information Search: Gathering data about potential solutions.
- Evaluation Of Alternatives: Comparing options.
- Purchase Decision: Making a choice.
- Post-Purchase: Evaluating the decision and seeking additional information.
- Extended Problem Solving vs. Limited Problem Solving vs. Habitual Decision Making: Refers to the level of effort involved in the decision-making process.
- Problem Recognition (Actual vs. Ideal State): Recognizing a gap between the current state and a desired state.
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Marketers' Role in Problem Recognition:
- Creating a new ideal state.
- Encouraging dissatisfaction with the current state.
- Presenting products as solutions to existing problems.
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Internal vs. External Search:
- Internal Search: Accessing information stored in memory.
- External Search: Seeking new information from outside sources.
- Marketing Implications: Marketers can influence the search process by providing easily accessible information or creating a need for their product.
Marketers' Importance of Post-Purchase Evaluation
- Customer Loyalty: Positive post-purchase experiences lead to repeat purchases and brand loyalty.
- Negative word-of-mouth: Negative experiences can harm a company's reputation.
- Product Development: Feedback from post-purchase evaluations can inform product improvement efforts.
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Description
Test your knowledge on consumer memory retrieval and the factors influencing external search. This quiz covers key concepts including brand recall, evaluation recall, and the impact of perceived risk on consumer behavior. Enhance your understanding of how consumers make purchasing decisions.
