Chapter 04 Consumer Behaviour

Chapter 04 - Consumer Behaviour Chapter 04 Consumer Behaviour Multiple Choice Questions Consumer decision process model represents… A Steps consumers go through during a purchase B Process that consumers go through in a store to make a final purchase decision C Process that companies go through to convince customer to make a purchase D Factors that target market consider to make a purchase decision E Steps that consumer go through before, during, and after making purchases The consumer decision process model represents steps before, during, and after making purchases that consumer go through Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 04-01 Describe the steps in the consumer buying decision process Topic: 04-01 The Consumer Decision Process Which of the following needs pertain specifically to the performance of a product or service? A Esteem needs B Functional needs C Safety needs D Physiological needs E Psychological needs Functional needs pertain to the performance of a product or service The consumer decision process begins when consumers recognize they have an unsatisfied need and want to go from their needy state to a different, desired state 4-1 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 04-01 Describe the steps in the consumer buying decision process Topic: 04-02 Step 1: Need Recognition The personal gratification that consumers associate with a product or service fulfills: A esteem needs B functional needs C safety needs D physiological needs E psychological needs Psychological needs pertain to the personal gratification consumers associate with a product and/or service If consumers pay $500 to $1,500 for shoes of a particular brand, they are most likely seeking a way to satisfy their psychological needs Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 04-01 Describe the steps in the consumer buying decision process Topic: 04-02 Step 1: Need Recognition Marketers can all the followings to influence consumers decision process at the need recognition stage EXCEPT: A Reminder advertising for the product B Showing how a new product can enhance consumers' image C Creating awareness about a new product D Changing physical layout of a store to remind customers to buy certain products E Invest on SEO of the company website At the need recognition stage, marketers should remind customers of a need SEO is tactic that is helpful at the information search stage 4-2 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-02 Step 1: Need Recognition Ishika is planning to throw a party for her friends in a restaurant She tries to recall all the restaurants that she has visited over the years and weighs the pros and cons of each of these restaurants before coming to a decision Which of the following is being exemplified in this scenario? A Habitual decision making B An internal search for information C Postpurchase dissonance D Impulse buying E An external search for information This scenario exemplifies an internal search for information In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search Ansel is planning to purchase a new house He consults his family and friends for suggestions on suitable residential areas He contacts a number of real estate agents to find out more about the prices of houses He also searches online to have a look at the houses for sale and reads the comments of people interested in buying houses This is an example of: A habitual decision making B an internal search for information C postpurchase dissonance D impulse buying E an external search for information This scenario exemplifies an external search for information In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson 4-3 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search What is a buyer most likely experiencing when he or she examines his or her own memory and knowledge about a product or service that is gathered through past experiences? A An external locus of control B An impulse buying decision C An external search for information D An internal locus of control E An internal search for information In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search A buyer seeks information beyond her personal knowledge base to help make a buying decision This is an example of a(n): A external locus of control B ritual-based purchase C external search for information D internal locus of control E internal search for information In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson 4-4 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search Mark wants to go to a good fast-food restaurant for dinner He recalls all the fast-food restaurants that he has visited He then decides on his favourite, a restaurant that he has been visiting since childhood This is an example of: A habitual decision making B an external search for information C impulse buying D an internal search for information E postpurchase dissonance This scenario exemplifies an internal search for information In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 10 Gina wants to buy a car Before buying it, she asks her friends for their opinions, reads reviews in consumer reports, consults several websites, and visits several dealerships This is an example of: A habitual decision making B an external search for information C impulse buying D an internal search for information E postpurchase dissonance This scenario exemplifies an external search for information In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision Consumers might fill in their personal knowledge gaps by talking with friends, family, or a salesperson 4-5 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 11 Brian believes that he can get a better deal when buying his first bike This is because he believes that if he conducts an extensive search for information and tries to use this information when negotiating his purchase, he will definitely be able to strike a better deal This is an example of: A an external locus of control B limited problem solving C an internal locus of control D ritual consumption E extended problem solving In this scenario, Brian has an internal locus of control People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 12 Coraline wants to buy a new house She is a great believer in destiny and fate She feels that regardless of what information she has, she can little to influence the outcome of the deal and therefore does not engage in extensive research This is an example of: A an external locus of control B limited problem solving C an internal locus of control D ritual consumption E extended problem solving In this scenario, Coraline has an external locus of control With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault 4-6 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 13 The consumer belief that fate or other external factors control all outcomes is called a(n): A external locus of control B ritual-based pattern C external search for information D internal locus of control E internal search for information With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 14 When consumers believe they have some control over the outcomes of their actions, they generally engage in more search activities This is called a(n): A external locus of control B ritual-based pattern C external search for information D internal locus of control E internal search for information People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities 4-7 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 15 While buying a new gown, Rhonda goes online and looks at several websites She makes copious notes and spends hours comparing prices and designs She then consults a designer friend, looks at several magazines, and discusses the issue with her sisters and mother This is an example of: A an external locus of control B limited problem solving C an internal locus of control D ritual consumption E extended problem solving In this scenario, Rhonda displays an internal locus of control People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 16 Mary believes that if she makes a wise decision, it is not to her credit, and if she makes a poor one, it is not her fault This is an example of: A an external locus of control B limited problem solving C an internal locus of control D ritual consumption E extended problem solving In this scenario, Mary displays an external locus of control With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault 4-8 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 17 Which of the following statements is true of financial risk? A It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively B It is the risk that involves the perceived danger inherent in a poorly performing product or service C It is the risk associated with the fear of an actual harm should a product not perform properly D It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service E It is the risk associated with the way people will feel if a product or service does not convey the right image Financial risk is risk associated with a monetary outlay and includes the initial cost of a purchase, as well as the costs of using the item or service Car manufacturers, for instance, recognize that extended warranties help alleviate financial risk because consumers fear extensive postpurchase repair costs 4-9 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 18 Raheem wants to purchase a new laptop He believes that no matter how hard he looks at other alternatives and other brands available in the market, he will end up compromising some of the features that he would want in his laptop He feels that he has no restraint over the outcome of his purchase This belief is most indicative of a(n): A need for self-actualization B internal locus of control C postpurchase dissonance D external locus of control E social need In this case, Raheem's belief indicates an external locus of control With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 19 Which of the following statements is true of physiological risk? A It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively B It is the risk that involves the perceived danger inherent in a poorly performing product or service C It is the risk associated with the fear of actual harm should a product not perform properly D It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service E It is the risk associated with the way people will feel if a product or service does not convey the right image Physiological risk could also be called safety risk Whereas performance risk involves what might happen if a product does not perform as expected, physiological (or safety) risk refers to the fear of actual harm should the product not perform properly 4-10 Chapter 04 - Consumer Behaviour Short Answer Questions 110 Explain the factors that affect consumers' search processes and provide one example for each It is important for marketers to understand the many factors that affect consumers' search processes A few are listed below:  Perceived benefits versus perceived costs of search: Is it worth the time and effort to search for information about a product or service? For instance, most families spend a lot of time researching the automobile market before they make a purchase because cars are a relatively expensive and important purchase with significant safety implications, whereas families likely spend little time researching which inexpensive plastic toy car to buy for the youngest member of the family  Locus of control: People who have an internal locus of control believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities With an external locus of control, consumers believe that fate or other external factors control all outcomes In that case, they believe it doesn't matter how much information they gather; if they make a wise decision, it isn't to their credit, and if they make a poor one, it isn't their fault  Actual or perceived risk: The higher the risk, the more likely the consumer is to engage in an extended search 4-63 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-07 Factors Influencing Consumer Buying Decisions 111 Describe the types of risk associated with purchase decisions that can delay or discourage a purchase The following types of risk are associated with purchase decisions that can delay or discourage a purchase:  Performance risk involves the perceived danger inherent in a poorly performing product or service An example of performance risk might be the possibility that a new sports car will not start or break down on the day the owner is supposed to take his girlfriend out for a drive to show off his new car  Financial risk is risk associated with a monetary outlay and includes the initial cost of a purchase, as well as the costs of using the item or service Car manufacturers, for instance, recognize that extended warranties help alleviate financial risk because consumers fear extensive postpurchase repair costs  Social risk involves the fears that consumers suffer when they worry others might not regard their purchases positively When buying a suit, a consumer considers what his friends would think  Physiological risk could also be called safety risk Whereas performance risk involves what might happen if a product does not perform as expected, physiological (or safety) risk refers to the fear of an actual harm should the product not perform properly  Psychological risks are those risks associated with the way people will feel if a product or service does not convey the right image 4-64 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-03 Step 2: Information Search 112 Describe determinant attributes and its role in reducing the complications of a consumer decision-making process To simplify the potentially complicated decision process, consumers use shortcuts such as determinant attributes and consumer decision rules Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ Because many important and desirable attributes are equal among the various choices, consumers look for something special—a determinant attribute—to differentiate one brand or store from another and on which to base their choice Determinant attributes may appear perfectly rational, such as health and nutrition claims offered by certain foods and beverages, or they may be more subtle and psychologically based, such as the red soles on a pair of Christian Louboutin heels Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-04 Step 3: Alternative Evaluation 113 Explain the concept of consumer decision rules Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives These rules take several different forms: compensatory, noncompensatory, or decision heuristics A compensatory decision rule assumes that a consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics Sometimes, however, consumers use a noncompensatory decision rule, in which they choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes Not everyone uses compensatory or noncompensatory decision rules Some people use decision heuristics, which are mental shortcuts that help them narrow down their choices Some examples are price brand and product presentation 4-65 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-04 Step 3: Alternative Evaluation 114 Explain three examples of decision heuristics Not everyone uses compensatory or noncompensatory decision rules Some people use decision heuristics, which are mental shortcuts that help them narrow down their choices Some examples of these heuristics follow:  Price: Consumers can choose the more expensive option, thinking they are getting better quality along with the higher price ("You get what you pay for"), or they might buy the product priced in the middle of the alternatives, neither the most expensive nor the cheapest, thinking that it is a good compromise between the two extremes  Brand: Always buying brand-name goods allows some consumers to feel safe with their choices Purchasing a national brand, even if it is more expensive, gives many consumers the sense that they are buying a higher quality item  Product presentation: Many times, the manner in which a product is presented can influence the decision process Consumers want to see that some effort has been put into the selling process, and just the way the product is presented can make or break a sale 4-66 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-04 Step 3: Alternative Evaluation 115 Mario is launching a new washing machine detergent in the market that promises the best possible results Explain the steps that Mario can take to ensure postpurchase satisfaction Mario can take the following steps to ensure postpurchase satisfaction:  Build realistic expectations—not too high and not too low—and deliver on those expectations  Demonstrate correct product use; improper usage can cause dissatisfaction  Stand behind the product or service by providing money-back guarantees and warranties  Encourage customer feedback, which cuts down on negative word-of-mouth and helps marketers adjust their offerings  Periodically make contact with customers and thank them for their support This contact reminds customers that the company cares about their business and wants them to be satisfied It also provides an opportunity to correct any problems Customers appreciate human contact, though it is more expensive than email or postal mail contacts 4-67 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-06 Step 5: Postpurchase 116 Tracie buys only certain brands and shops only at certain stores, and does not consider any other brands or firms in her decision What is Tracie displaying here? Explain Tracie is displaying customer loyalty Customer loyalty develops over time with multiple repeat purchases of a product or brand from the same marketer In the postpurchase stage of the decision-making process, marketers attempt to build and nurture a loyal relationship with their customers from the very first purchase and with each subsequent purchase They want customers to be satisfied with their purchase every time and buy from the same company again Just like Tracie, loyal customers will buy only certain brands and shop only at certain stores, and they not consider other brands or firms in their decision Such customers are therefore very valuable to firms, and marketers have designed customer relationship management (CRM) programs specifically to retain them 4-68 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-06 Step 5: Postpurchase 117 Explain Maslow's hierarchy of needs People have several types of motives One of the best-known paradigms for explaining these motive types was developed by Abraham Maslow more than 30 years ago Maslow categorized five groups of needs, namely, physiological (e.g., food, water, shelter), safety (e.g., secure employment, health), love (e.g., friendship, family), esteem (e.g., confidence, respect), and self-actualization (people engage in personal growth activities and attempt to meet their intellectual, aesthetic, creative, and other such needs)  Physiological needs deal with the basic biological necessities of life: food, drink, rest, and shelter Although for most people in developed countries these basic needs are generally met, there are those in both developed and less-developed countries who are less fortunate  Safety needs pertain to protection and physical well-being The marketplace is full of products and services that are designed to make you safer, such as airbags in cars and burglar alarms in homes, or healthier, such as vitamins and organic meats and vegetables  Love or social needs relate to our interactions with others Haircuts and makeup make you look more attractive, and deodorants prevent odour Greeting cards help you express your feelings toward others  Esteem needs allow people to satisfy their inner desires Yoga, meditation, health clubs, and many books appeal to people's desires to grow or maintain a happy, satisfied outlook on life  Finally, self-actualization occurs when you feel completely satisfied with your life and how you live You don't care what others think You drive a Prius because it suits the person you are, not because some celebrity endorses it or because you want others to think better of you 4-69 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-03 Summarize how psychological; social; and situational factors influence consumers' buying behaviour Topic: 04-08 Psychological Factors 118 Anushka likes where she lives but doesn't like the weather Anushka is displaying an attitude What is attitude? Explain the three components of attitude and provide one example for each An attitude is a person's enduring evaluation of his or her feelings about and behavioural tendencies toward an object or idea Attitudes are learned and long lasting, and they might develop over a long period of time, though they can also abruptly change For instance, you might like your instructor for much of the semester—until she returns your first exam One thing we all have in common is that our attitudes have the ability to influence our decisions and actions An attitude consists of three components The cognitive component reflects what we believe to be true, the affective component involves what we feel about the issue at hand —our like or dislike of something—and the behavioural component comprises the action(s) we take based on what we know and feel 4-70 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-03 Summarize how psychological; social; and situational factors influence consumers' buying behaviour Topic: 04-08 Psychological Factors 119 Describe five techniques used by retailers to influence consumers at the choice stage of the decision process when they are at a store Provide one example for each technique you describe Consumers might be ready to purchase a product or service but for a variety of reasons be completely derailed once they arrive in the store Marketers use several techniques to influence consumers at this choice stage of the decision process  Store atmosphere: Some retailers and service providers have developed unique images that are based at least in part on their internal environment, also known as their atmospherics Research has shown that, if used in concert with other aspects of a retailer's strategy, music, scent, lighting, and even colour can positively influence the decision process  Salespeople: Well-trained sales personnel can influence the sale at the point of purchase by pointing out the advantages of one item over another and by encouraging multiple purchases  Crowding: Customers can feel crowded because there are too many people, too much merchandise, or lines that are too long If there are too many people in a store, some people become distracted and may even leave Others have difficulty purchasing if the merchandise is packed too closely together This issue is a particular problem for shoppers with mobility disabilities  In-store demonstrations: The taste and smell of new food items may attract people to try something they normally wouldn't Similarly, some fashion retailers offer "trunk shows," during which their vendors show their whole line on a certain day During these welladvertised events, customers are often enticed to purchase that day because they get special assistance from the salespeople and can order merchandise that the retailer otherwise does not carry  Promotions: Retailers employ various promotional vehicles to influence customers once they have arrived in the store 4-71 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-03 Summarize how psychological; social; and situational factors influence consumers' buying behaviour Topic: 04-10 Situational Factors 120 Compare and contrast the five steps in the decision making process that consumer go through to purchase a new car and a pack of gum Student answers will vary: 1) Need recognition for a car purchase: family grows and need a bigger car, make more money and need a more prestige car, the old car is broken etc For gum: impulse buying, recognize the need at the store (e.g running out of gum, mouth smells bad, having a date at night, etc) 2) Information search: customers tend to gather much more internal and external information for a car purchase as it is risky purchase All the four types of risk is significantly higher for a car purchase than a gum purchase For gum, consumer will collect information right in the store by looking at the prices and available/new flavours Mostly internal information would be used for a gum purchase 3) Alternative Evaluation: For a car purchase, consumer will likely to visit car dealers that are in the evoked set, will establish decision rules, test drive the cars and read blogs or articles about cars For a gum purchase, consumers are most likely use decision heuristics right in the store; price, brand, and flavours are some examples 4) Purchase decision for car: after a thorough evaluations, the decision will be made It may take days for a consumer to make the final decision for a car purchase For a gum purchase, the evaluations and purchase decision might take seconds 5) Postpurchase: Postpurchase dissonance is more likely for a car purchase as it's more expensive and is riskier A car purchase, for most consumers, is an extended problem solving while purchasing a gum is more of impulse or habitual purchase 4-72 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-01 The Consumer Decision Process 121 Imagine you want to join a university Explain in detail the evaluative criteria that would lead you to choose a particular school over others What shortcuts would you use to arrive at a decision? Student answers will vary Students should include the following points in their answers Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives These rules take several different forms: compensatory, noncompensatory, or decision heuristics A compensatory decision rule assumes that a consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics Sometimes, however, consumers use a noncompensatory decision rule, in which they choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes Not everyone uses compensatory or noncompensatory decision rules Some people use decision heuristics, which are mental shortcuts that help them narrow down their choices Some examples are price, brand, and product presentation 4-73 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-04 Step 3: Alternative Evaluation 122 A customer might face postpurchase cognitive dissonance after buying a particular product Explain the concept of postpurchase cognitive dissonance with an example Student answers will vary Postpurchase dissonance (or buyer's remorse) is an internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour Thus, postpurchase cognitive dissonance is a feeling of regret, guilt, or grave uneasiness, which generally occurs when a consumer questions the appropriateness of a purchase after his or her decision has been made This usually occurs when consumers feel, for example, that they made the purchase without all the information they needed, they were persuaded by a salesperson, they liked the good features of the product or service but not like the negative aspects of the product or service, or if immediately following the purchase they see the product or service advertised elsewhere at a better value Postpurchase dissonance is especially likely for products that are expensive, infrequently purchased, highly expressive, and associated with high levels of risk 4-74 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-02 Identify what determines how much time consumers will spend searching for information before buying a product or service Topic: 04-06 Step 5: Postpurchase 123 Consumers might arrive at a product under the influence of reference groups Explain reference groups and their role in shaping the consumer decision-making process Provide one example A reference group is one or more persons an individual uses as a basis for comparison regarding beliefs, feelings, and behaviours A consumer might have various reference groups, including family, friends, coworkers, or famous people the consumer would like to emulate These reference groups affect buying decisions by (1) offering information (2) providing rewards for specific purchasing behaviours, and (3) enhancing a consumer's self-image Reference groups provide information to consumers directly through conversation or indirectly through observation Some reference groups also influence behaviours by rewarding behaviour that meets with their approval or chastising those who engage in behaviour that doesn't For example, smokers are often criticized by their friends and made to smoke outside or in restricted areas Consumers can identify and affiliate with reference groups to create, enhance, or maintain their self-image Customers who want to be seen as "earthy" might buy Birkenstock sandals, whereas those wanting to be seen as "high fashion" might buy Christian Louboutin shoes Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-03 Summarize how psychological; social; and situational factors influence consumers' buying behaviour Topic: 04-09 Social Factors 124 Assume you want to buy a new laptop Use the compensatory decision rule for at least brands and on at least attributes to illustrate which brand you would buy Student answers will vary They need to use exhibit 14.2 for at least three laptop brands (e.g Apple, Lenovo, HP, and Acer) on three attributes Attributes must be relevant to laptop (e.g price, memory, speed, warranty, design, etc) 4-75 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-04 Explain how involvement influences the consumer buying decision process Topic: 04-11 Involvement and Consumer Buying Decisions 125 What is limited problem solving and how is impulse buying related to limited problem solving? Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time Customers engage in this type of buying process when they have had some prior experience with the product or service and the perceived risk is moderate Limited problem solving usually relies on past experience more than on external information For some people even a car purchase could require limited effort A common type of limited problem solving is impulse buying, a buying decision made by customers on the spot when they see the merchandise Some purchases require even less thought Habitual decision making describes a purchase decision process in which consumers engage with little conscious effort Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 04-04 Explain how involvement influences the consumer buying decision process Topic: 04-13 Limited Problem Solving 126 Describe a purchase decision that you would use extended problem solving and one that you would use limited problem solving Student answers will vary The extended problem solving is usually used when customers perceive the purchase decision entails a great risk Limited problem solving is when the product doesn't impose much risk 4-76 Chapter 04 - Consumer Behaviour Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-04 Explain how involvement influences the consumer buying decision process Topic: 04-13 Limited Problem Solving 127 Explain "attitude" and its three components Select one brand and explain how each attitude component can influence your decisions and actions Student answers will vary Attitude is individual's enduring evaluation of feelings about and behavioural tendencies toward an object, idea, brand, product etc and consists of three components: cognitive, affective, and behavioural Cognitive component reflect what a person believe to be true (I believe Apple produces the best laptop) Affective component reflect what a person feels about the issue at hand or his/her like or dislike of something (I like to have an Apple computer) Behavioural component is the actions a person take with regard to the issue at hand (I go to Apple store to make a purchase) Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 04-04 Explain how involvement influences the consumer buying decision process Topic: 04-07 Factors Influencing Consumer Buying Decisions 4-77 ... feelings, and behaviours A consumer might have various reference groups, including family, friends, coworkers, or famous people the consumer would like to emulate 4-37 Chapter 04 - Consumer Behaviour. .. perceptive consumer B high-involvement consumer C open consumer D emotive consumer E opinionated consumer Allison can be categorized as a high-involvement consumer Involvement is the consumer' s... Objective: 04- 04 Explain how involvement influences the consumer buying decision process Topic: 04- 11 Involvement and Consumer Buying Decisions 67 In the context of consumer buying decision, a consumer' s