Exam (elaborations)
MBA 706-M. Kim-Summer AP1 '23 Questions and Answers
- Course
- Institution
MBA 706-M. Kim-Summer AP1 '23 Questions and Answers
[Show more]
Content preview
MBA 706-M. Kim-Summer AP1 '23 Questions andAnswers
Consumer Buying Process: Purchase Decision CORRECT ANS--after consumer evaluates
each alternative in the evoked set, they form an intention to purchase a product/brand
-purchase intention & actual act of buying are distinct concepts
-unforeseen circumstances can interfere w/consumer's decision to buy product
Marketers overcome unforeseen circumstances by: CORRECT ANS--reducing risk of
purchase: warranties, guarantees
-making purchase easy
-finding creative solutions to unexpected problems
Issues in purchase decision stage CORRECT ANS--product availability: related to
distribution component of marketing program, CONVENIENCE.
Goal: to put product within consumer's reach where they are
-possession utility: easy for customers to find product; ease of taking possession of the
product.
EX: layaway or financing, delivery, installation, proper packaging, prompt shipment
(newspapers, pizza)
4 Outcomes that Consumers Experience in Post-Purchase stage (how are they diff?)
CORRECT ANS-1. delight
2. satisfaction
3. dissatisfaction
4. cognitive dissonance(post-purchase doubt)
1. delight CORRECT ANS-product's performance "greatly exceeds" buyer's expectations
2. satisfaction CORRECT ANS-product's performance "matches" buyer's expectations
, MBA 706-M. Kim-Summer AP1 '23 Questions and
Answers
3. dissatisfaction CORRECT ANS-product's performance "falls" short of buyer's
expectations
4. cognitive dissonance (post-purchase doubt) CORRECT ANS-buyer is "unsure" of
product's performance relative to their "expectations"
high likelihood of experiencing dissatisfaction or cognitive dissonance when: CORRECT
ANS--dollar value of purchase increases
-opportunity costs of rejected alternatives are high
-purchase decision is emotionally involving
firms can manage responses (dissatisfaction or cognitive dissonance) by: CORRECT ANS--
offering liberal return policies
-providing extensive post-sale support
-reinforcing the wisdom of consumer's purchase decision
Issues in the buying process CORRECT ANS-1. consumers dont always follow stages in the
sequence & can be swayed by brand loyalty (also impulse purchases)
2. making parallel decisions: what to buy and where to buy?
3. bias towards a merchant limits purchasing powers
The Buying Process CORRECT ANS--describes possible range of activities that may occur in
consumers making purchase decisions
Need Recognition CORRECT ANS--1st stage of buyer decision process where consumer
recognizes need
-based on internal & external stimuli
, MBA 706-M. Kim-Summer AP1 '23 Questions and
Answers
Characteristics of Information Search in CONSUMER Buying Process CORRECT ANS-
marketing activities can stimulate desire for info:
~~~passive info search
~~~active info search
sources of info:
~~~internal sources
~~~external sources
amount of time, effort, & expense dedicated to info search depends on:
~~~degree of risk
~~~amount of expertise w/product category
~~~actual cost of search (time & money)
Characteristics of Information Search in Consumer Buying Process
PASSIVE INFORMATION SEARCH CORRECT ANS-consumer becomes more attentive &
receptive to info
EX: noticing car ads
Characteristics of Information Search in Consumer Buying Process
ACTIVE INFORMATION SEARCH CORRECT ANS-consumer purposely seeks additional info
EX: browsing internet, ask friends, visit car dealership
Characteristics of Information Search in Consumer Buying Process
INTERNAL SOURCES CORRECT ANS-personal experiences & memories
-1st type of info consumers search for.
EX: word-of-mouth, advice from friends, family, coworkers. (getting advice can be personal
experience, can be stored as a memory)
, MBA 706-M. Kim-Summer AP1 '23 Questions and
Answers
Characteristics of Information Search in Consumer Buying Process
EXTERNAL SOURCES CORRECT ANS-advertising, websites, packaging, display, salespeople
-most numerous; consumers trust EXTERNAL sources less than internal & personal sources b/c
consumers perceive the ext sources are initially designed to sell & promote product instead of
provide info about product
Characteristics of Information Search in Consumer Buying Process
DEGREE OF RISK CORRECT ANS-consumers are naturally risk averse and use info search to
reduce risk & increase odds of making right decision
EX: financial (paying reasonable price for a house), social (buying socially acceptable
products), emotional (lead to negative emotions if product is diff from expectation), personal
(choosing right drug or surgeon) risks
Characteristics of Information Search in Consumer Buying Process
AMOUNT OF EXPERTISE WITH PRODUCT CATEGORY CORRECT ANS-if youre a first-time
buyer, youre more likely to engage in extensive info search to reduce risk & narrow product
choices
Characteristics of Information Search in Consumer Buying Process
ACTUAL COST OF THE SEARCH (TIME & MONEY) CORRECT ANS-in situations like time
deadlines or emergencies, consumers have little time to consult all sources of info at their
disposal
evoke set CORRECT ANS--throughout info search, consumers learn about diff
products/brands & begin to remove some from consideration
-narrowing down product choices
-represents the outcome of info search & the beginning of the next stage of the buying
process
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now