Marketing for premaster.
Extensive summary with a glossary per paragraph and many examples. Part 3 The process of making decisions contains the chapters 7,8,9 and 10. You can download the flip-cards for the glossary below.
Summary Book chapters 1 t/m 10 + 17 Consumer Behavior
Summary Marketing for premasters 2nd Midterm Tilburg University 8th edition
Overview of Key terms and Concepts Consumer Behaviour ch1-10 +17 (book)
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Available practice questions
Glossary H7 & H8 / Begrippenlijst H7 & H8
Flashcards49 Flashcards
Free5 sales
Flashcards49 Flashcards
Free5 sales
Some examples from this set of practice questions
1.
Problem recognition
Answer: The perceived difference between an actual and an ideal state.
2.
Ideal state
Answer: The way we want things to be
3.
Actual state / Current state
Answer: The way things actually are
4.
Internal search
Answer: The process of recalling stored information from memory
5.
Consideration (or evoked) set
Answer: The subset of top-of-mind brands evaluated when making a choice
Glossary H9 / Woordenlijst H9
Flashcards30 Flashcards
Free4 sales
Flashcards30 Flashcards
Free4 sales
Some examples from this set of practice questions
1.
Representativeness heuristic
Answer: Making a judgement by simply comparing a stimulus with the category prototype or exemplar
2.
Availability heuristic
Answer: Basing judgements on events that are easier to recall
3.
Base-rate information
Answer: How often an event really occurs on average
4.
Law of small numbers
Answer: The expectation that information obtained from a small number of people represents the larger population
5.
Traditional hierarchy of effects
Answer: Sequential steps used in decision-making involving thinking, then feeling, then behavior
Glossary H10 / Woordenlijst H10
Flashcards22 Flashcards
Free4 sales
Flashcards22 Flashcards
Free4 sales
Some examples from this set of practice questions
1.
Post-decision dissonance
Answer: A feeling of discomfort about whether or not the correct decision was made
2.
Post-decision regret
Answer: The negative feeling that one should have made another purchase, consumption, or disposition decision than one actually did
3.
Hypothesis testing
Answer: Comparing prior belief or expectation with new information, such as evidence from experience
4.
Hypothesis generation
Answer: Forming expectations about the brand, product, or service
5.
Exposure to evidence
Answer: Actually experiencing the brand, product, or service
Content preview
MARKETING CONSUMER BEHAVIOR 7TH EDITION
PART 3 THE PROCESS OF MAKING DECISIONS SUMMARY
Part three examines the sequential steps in the consumer decision-making process.
Chapter 7 explores the initial steps of this process-problem recognition and information search. Consumers
must first realize they have a problem before they can begin the process of making a decision about solving it.
They must then collect information to help make this decision. As with attitude change, decision-making is
affected by the amount of effort consumers expend.
Chapter 8 examines the decision-making process when consumer effort is high and explores how marketers can
influence this extensive decision process.
Chapter 9 focuses on decision-making when consumer effort is low and discusses how marketers can influence
this kind of decision process.
Chapter 10 looks at how consumers determine whether they are satisfied or dissatisfied with their decisions and
how they learn from choosing and consuming products and services.
J. Weijts – Tilburg University
,CHAPTER 7: PROBLEM RECOGNITION AND INFORMATION SEARCH
7.1 P ROBLEM RECOGNITION
Problem recognition: The perceived difference between an actual and an ideal state.
Ideal state: The way we want things to be.
Actual state: Current state; the way things actually are.
The consumer decision process generally begins when a person identifies a consumption problem that needs
to be solved. E.g. “I need a new car” or “I would like some new clothes”. Problem recognition is the perceived
difference between the ideal state and the actual state. Problem recognition occurs when one becomes aware
of a discrepancy between the ideal and actual state. E.g. “My car needs frequent repairs” or “My clothes are
out of date”. The greater the discrepancy between the states, and the higher the level of motivation, ability
and opportunity (MAO), the more likely consumers are to act.
T HE IDEAL STATE : WHERE WE WANT TO BE
Where do we get our notion of the ideal state? Sometimes we rely on simple expectations, usually based on
past experience, about everyday consumption and disposition situations and how products or services fulfill
our needs. E.g. We consider how we might look in certain clothes, how much fun it would be to vacation in a
particular location, which old products we should keep.
The ideal state can also be a function of our future goals or aspirations. E.g. Driving a car that will provide
them with a social status (Tesla, Mercedes, or Ferrari).
Both expectations and aspirations are often stimulated by our own personal motivations – what we want,
based on our self-image – and by aspects of our own culture. Likewise, social class can exert an influence:
many consumers want to be accepted by members of their class or to raise their social standing, leading
them to aspire to a higher ideal state. Reference groups also play a critical role because we strive to be
accepted by others and reference groups serve as a guide to our behavior.
Finally, major changes in personal circumstances, such as getting a promotion or becoming a parent, can
instigate new ideal states. E.g. When you graduate and start a new job, you are likely to develop new ideal
states related to where you live, what your wear, what you drive, etc.
T HE ACTUAL STATE: WHERE WE ARE NOW
Our perception of the actual state can also be influenced by a variety of factors. Often these are simple
physical factors. E.g. Running out of a product (milk), having a product malfunction (broken phone) or
become obsolete (insufficient storage on your USB), or unexpectedly needing a service (roadside assistance).
Need also plays a critical role. E.g. If you are hungry or thirsty, or your friends make fun of your clothes, your
actual state would not be acceptable.
Finally, external stimuli can suddenly change your perceptions of the actual state. E.g. If someone tells you
Christmas is near, you might realize you haven’t bought any presents yet.
Marketing implications:
Marketing can help put consumers in a state of problem recognition and motivate them to start the decision
process, leading them to acquire, consume, or dispose of a product or service. Two major techniques are used
to try to stimulate problem recognition:
1. They can attempt to create a new ideal state. E.g. Look better with these amazing running shoes.
2. Marketers can try to encourage our dissatisfaction with the actual state. E.g. Creating stylish,
ecofriendly grocery bags, it encourages consumers to view free bags as the opposite.
J.W. 2
,7.2 I NTERNAL SEARCH : SEARCHING FOR INFORMATION FROM MEMORY
Internal search: The process of recalling stored information from memory.
Consideration (or evoked) set: The subset of top-of-mind brands evaluated when making a choice.
Diagnostic information: That which helps us discriminate among objects.
Salient attribute: Attribute that is “top of mind” or more important.
Attribute determinance: Attribute that is both salient and diagnostic.
Online processing: When a consumer is actively evaluating a brand as he/she views an ad for it.
Inhibition: The recall of one attribute inhibiting the recall of another.
Confirmation bias: Tendency to recall information that reinforces or confirms our overall beliefs rather than
contradicting them, thereby making our judgement or decision more positive than it should be.
After problem recognition has been stimulated, the consumer will usually begin the decision process to solve
the problem. Typically, the next step is internal search. Consumers have stored in memory a variety of
information, feelings, and past experiences that can be recalled when making a decision.
Since consumers have limited capability to process information (and memory decays over time), they are
likely to recall only a small subset of stored information. Researchers are investigating:
i. The extent of the search
ii. The nature of the search
iii. The process by which consumers recall information, feelings and experiences and enter them
into the decision process
H OW MUCH DO WE ENGAGE IN INTERNAL SEARCH?
The degree of internal search can vary widely from a simple recall of only a brand name, to more extensive
searches through memory for relevant information, feelings and experiences. In general, researchers know
that the effort consumers devote to internal search depends on their MAO to process information.
Thus, consumers will attempt to recall more information when felt involvement, perceived risk, or the need
for cognition is high. In addition, consumers can engage in active internal search only if the information is
stored in memory. Finally, consumers can recall information from memory only if they have the opportunity
to do so.
W HAT KIND OF INFORMATION IS RETRIEVED FROM INTERNAL SEARCH ?
Much of the research on the role of internal search in consumer judgement and decision-making has focused
on what is recalled. Specifically, researchers have examined the recall of four major types of information:
R ECALL OF BRANDS
The set of brands consumers recall from memory whenever problem recognition has been stimulated is an
important aspect of internal search that greatly affects decision-making. Rather than remembering all brands,
consumers tend to recall a subset of two to eight brands known as consideration or evoked set.
E.g. someone buying toothpaste might consider Colgate and Crest rather than all possible brands.
Yet due to the increased competition and increased number of offerings per brand (dozen toothpaste brands
worldwide), it creates a situation that increases competition for inclusion in the consideration set. In general,
the consideration set consists of brands that are “top of mind”, or easy to remember, when a consumer is
making a decision.
J.W. 3
,A small consideration set is usually necessary because consumers’ ability to recall brand information decreases
as the size of the set increases. However, even if they do not recall the entire set from memory, stored
information aids the recognition process. E.g. stored information can help consumers identify brands on the
shelf.
Studies indicate that consideration sets can vary in terms of their size, stability, variety, and preference
dispersion (the equality of preferences toward brands or products in the set). Consumers cannot recall brands
from memory to form a consideration set, the set will tend to be determined by external factors such as the
availability of products on the shelf or the suggestions of salespeople.
Researchers have looked at the following factors that increase the possibility of consumers’ recalling a
particular brand during internal search, and including that brand in their consideration set:
- Prototypically. When consumers engage in internal search, they more easily recall brands that are
closest to the prototype or that most resemble another category member, making these more likely
to be included in the consideration set. E.g. Apple iPad in the tablet market.
- Brand familiarity. Well-known brands are more easily recalled during internal search than unfamiliar
brands because the memory links associated with these brands tend to be stronger. E.g. Fast-food
McDonalds, Burger King.
- Goals and usage situations. Consumers have goal-derived and usage-specific categories in memory,
such as drinks to bring to the beach, and the activation of these categories will determine which
brands they recall during internal search. E.g. an ad for Kellogg’s Flakes with the tagline “share what
you love with who you love”. Usage situation: Break-fast. Goal: strengthen father-child connection.
- Brand preference. Brands toward which the consumer has positive attitudes tend to be recalled more
easily and tend to be included in the consideration set more often.
- Retrieval cues. By strongly associating the brand with a retrieval cue, marketers can increase the
chance that the brand will be included in the consumer’s consideration set. E.g. Packaging can be an
important retrieval cue for food products. Coca-Cola’s iconic glass bottle is still used in promotions.
R ECALL OF ATTRIBUTES
Often, we cannot remember specific facts about a product or service. Thus, the attribute information we recall
tends to be in summary or simplified form rather than in its original detail. E.g. we would be more likely to
remember that a car gets good gas mileage, than to remember the actual miles per gallon the car gets.
Nevertheless, consumers can often recall some details when they engage in internal search, and the recalled
attribute information can strongly influence their brand choices. As a result, researchers have been very
interested in determining which factors influence the recall of attribute information in the information search
and decision-making processes. These are some of the major variables they have identified:
- Accessibility or availability. Information that is more accessible or available is the most likely to be
recalled and entered into the decision process. Information that is perceived as being easy to recall is
also more likely to be accessible.
- Diagnosticity. Diagnostic information helps us distinguish objects from one another. E.g. If all brands
of computers are the same price, then price is not diagnostic, or useful, when consumers are making a
decision. On the other hand, if prices vary, consumers can distinguish among them, so the
information is diagnostic.
- Salience. Research has clearly shown that consumers can recall very salient (prominent) attributes
even when their opportunity to process is low. E.g. the Fitbit’s sleek bracelet design and multifunction
technology are salient attributes for consumers interested in wearable fitness trackers.
J.W. 4
, For information to be entered into the decision, it must have attribute determinance, which means the
information is both salient and diagnostic.
- Vividness. Vivid information is presented as concrete words, pictures, or instructions to image (E.g.
image of yourself on a tropical beach), or through word-of-mouth communication. E.g. a photo of an
arm wearing an Apple Watch is vivid information.
- Goals. The consumer’s goals will determine which attribute is recalled from memory. E.g. if one of
your goals in taking a vacation is to economize, you are likely to recall price when considering
possible destinations.
R ECALL OF BRANDS
Because of memory for specific details decays rapidly over time, we find overall evaluations or attitudes (E.g.
our likes and dislikes), easier to remember than specific attribute information. In addition, our evaluations
tend to form strong associative links with the brand.
Evaluations are also more likely to be recalled by consumers who are actively evaluating the brand when they
are exposed to relevant information. E.g. if you are ready to buy a new computer and suddenly see an ad for a
particular brand, you will probably determine whether you like the brand when you see the ad. This activity is
called online processing. Afterward, you will more likely recall this evaluation rather than the specific
information that led to it.
R ECALL OF EXPERIENCES
Internal search can involve the recall of experience from autobiographical memory in the form of specific
images and the effect associated with them. Like information in sematic memory, experiences that are more
vivid, salient, or frequent are the most likely to be recalled. E.g. if you have an experience with a product or
service that is either unusually positive or unusually positive experience with a product or service, it will be
easier to recall.
IS INTERNAL SEARCH ALWAYS ACCURATE?
In addition to being influenced by factors that affect what we recall, we all have processing biases that alter
the nature of internal search. These search biases can sometimes lead to the recall of information that results
in a less-than-optimal judgement or decision. Three biases have important implication for marketing:
i. Confirmation bias
ii. Inhibition
iii. Mood
Confirmation bias refers to our tendency to recall information that reinforces or confirms our overall beliefs
rather than contradicting them, thereby making our judgement or decision more positive than it should. E.g.
selective perception, we see what we want to see.
Another internal search bias is associated with limitations in consumers’ processing capacity. In this case, all
the variables that influence the recall of certain attributes can actually lead to inhibition of recall for other
diagnostic attributes. E.g. in buying a house, a consumer might recall information such as the selling price,
number of bathrooms, but may not recall other important attributes such as the size of the lot.
Consumers engaged in internal search are most likely to recall information, feelings, and experiences that
match their mood (chapter 6).
J.W. 5
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