consumer decision making process (5 steps) - Answer 1. need recognition
2. information search
3. evaluation of alternatives
4. purchase (commitment/action)
5. post purchase behavior
How marketers create need recognition (4) - Answer - establish/change ideal state
- awareness of actual sta...
EDRD Exam 2 Detailed Questions & Well Elaborated
Answers |Expert Verified
consumer decision making process (5 steps) - Answer 1. need recognition
2. information search
3. evaluation of alternatives
4. purchase (commitment/action)
5. post purchase behavior
How marketers create need recognition (4) - Answer - establish/change ideal state
- awareness of actual state
- create dissatisfaction with the actual state
- make a new actual state possible
internal search - Answer info search to scan memory to assemble product info
'Inhibition'- recall of one option (attribute) may inhibit recall of another
external search - Answer info obtained from first-hand experiences, marketers, interpersonal sources, or
independent media
Info search: 2 factors & MAO influence - Answer 1. Consideration set- ex: 50% of consumers look at one
store and 70% look at only one brand 2. benefit tradeoff- effort, time, stress, delay vs savings, accuracy,
confidence, satisfaction
- if MAO is high, engage in lots of search (be accurate goal is very active) , If MAO is low, tend to rely on
heuristics (shortcuts and simple rules of thumb (save effort goal is very active
Cognitive decision making - Answer Systemically use info about product attributes to reach a decision in
a rational systematic manner
, Affect in Decision Making - Answer On the basis of feelings or emotions-- Affect can be central in the
decision process particularly when the feelings are relevant to the offering
judgement - Answer products have physical and intangible characteristics; a judgement is a
psychological representation of a consumers perception of these characteristics
Multi-attribute utility model - Answer -Assumes that people are rational and that people try to maximize
perceived value or utility- rational choice model based on expected utility theory
-Assumes that utility of a product can be decomposed into utilities (or importance of weights of
attributes
Heuristics (definition and cause) - Answer shortcuts and simple rules of thumbs
- Lack of MAO: Instead of going through all 5 stages in choice process, they may skip steps
(accuracy/effort tradeoff)
Types of Heuristics - Answer attribute-based, attitude, alternative-based
Attitude & frequency heuristics - Answer Attitude: use attitudes stored in memory- go with the one you
like the best
Frequency heuristic: evaluate if the product is 'good' in isolation not relative to other
Attribute-based heuristics (definition & 2 types) - Answer Comparing alternatives side by side, attribute
by attribute
1. Lexicographic: most important feature dictates choice
2. Elimination by aspects: set minimum cutoffs; start with most important feature
Alternative-based heuristics (definition & 1 type) - Answer Sequentially evaluate each alternative- start
with the first option and see if it satisfies need
1. Conjunctive heuristic: set min. Acceptable levels for each feature and select the first one that makes it
across the hurdle
First brand that meets the min cutoffs wins
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