Question: Need recognition

Answer: the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.

Question: functional needs

Answer: Pertain to the performance of a product or service

Question: psychological needs

Answer: Pertain to the personal gratification consumers associate with a product or service.

Question: What are the five steps in the consumer decision process model?

Answer: 1) Need recognition 2) Information search3) Alternative evaluation4) Purchase5) Post purchase

Question: Need recognition

Answer: the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.

Question: Information search

Answer: the stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into an active information search

Question: Alternative evaluation

Answer: The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set

Question: Purchase

Answer: The stage of the buyer decision process in which the consumer actually makes his/her selection in buying the product

Question: post purchase

Answer: positive: a) satisfaction: high consumer expectations of product lead to high sales first, but result in dissatisfaction if product fails expectations. b) personal dissonance: buyer's remorse, psychologically uncomfortable when expectation levels aren't met. c) customer loyalty: customer relationship management (CRM) programs to retain them. d) undesirable customer behavior: do not repeat purchase or recommend product.

Question: internal search for information

Answer: the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences

Question: external search for information

Answer: the buyer seeks information outside his or her personal knowledge base to help make the buying decision

Question: Factors affecting consumers' search processes [The perceived benefits vs. perceived costs of search]

Answer: Is it worth the time and effort to search for information about a product or service?

Question: Factors affecting consumers' search processes [The Locus of Control]

Answer: 2 types: internal locus of control and external locus of controlinternal locus of control - refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activitiesexternal locus of control - refers to when consumers believe that fate or other external factors control all outcomes

Question: actual vs perceived risk

Answer: 5 types of risk associated with purchase decisions can delay or discourage a purchase: 1) Performance2) financial3) social4) physiological5) psychological

Question: performance risk

Answer: involves the perceived danger inherent in a poorly performing product or service

Question: financial risk

Answer: risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service

Question: social risk

Answer: The fears that consumers suffer when they worry others might not regard their purchases positively

Question: physiological risk

Answer: (also known as safety risk) The fear of an actual harm should a product not perform properly

Question: psychological risk

Answer: associated with the way people will feel if the product or service does not convey the right image

Question: attribute sets

Answer: Universal, Retrieval, and Evoked Sets

Question: universal sets

Answer: Includes all possible choices for a product category.However, because it would be unwieldy for a person to recall all possible alternatives for every purchase decision, marketers tend to focus on only a subset of choices

Question: retrieval sets

Answer: includes those brands or stores that the consumer can readily bring forth from memory.

Question: evoked sets

Answer: Compromises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.If a firm can get its brand or store into a consumer's evoked set, it has increased the likelihood of purchase and therefore reduced search time because the consumer will think specifically of that brand when considering choices

Question: evaluative criteria

Answer: consist of a set of salient, or important, attributes about a particular productFor example, when Katie is looking for her dress, she might consider things like the selling price, fit, materials and construction quality, etc.

Question: determinant attributes

Answer: product or service features that are important to the buyer and on which competing brands or stores are perceived to differBecause many important and desirable criteria are equal among the various choices, consumers look for something special--a determinant attribute--to differentiate one brand or store from another

Question: consumer decision rules

Answer: the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternativesthese rules take on several different forms:1) compensatory2) noncompensatory3) decision heuristics

Question: compensatory decision rule

Answer: at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones.For example, Morgan Jackson is looking to buy a laptop and is considering several factors such as speed, weight, screen size, price, and accessories; but even is the laptop is priced a little higher than Morgan was planning to spend, a superb overall rating offsets, or compensates for, the higher price

Question: multi-attribute model

Answer: A compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues(an example is provided on pg 103 top paragraph of the text)

Question: noncompensatory decision rule

Answer: At work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.

Question: decision heuristics

Answer: mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation(examples are listed on pg 103 bottom half of the page)

Question: conversion rate

Answer: percentage of consumers who buy a product after viewing itOne method of measuring the conversion rate is the number of real or virtual abandoned carts in the retailer's store or on its website

Question: Postpurchase behavior

Answer: Marketers are particularly interested in postpurchase behavior because it entails actual rather than potential customers. Satisfied customers, whom marketers hope to create, become loyal, purchase again, and spread positive word of mouth, so they are quite important.There are three possible positive purchase outcomes: 1) customer satisfaction2) postpurchase cognitive dissonance3) customer loyalty (or disloyalty)

Question: postpurchase cognitive dissonance

Answer: The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers' remorse.Postpurchase cognitive dissonance generally occurs when a consumer questions the appropriateness of a purchase after his or her decision has been madeIt's especially likely for products that are expensive, are infrequently purchased, do not work as intended, and are associated with high levels of risk

Question: Undesirable consumer behavior [negative word of mouth]

Answer: occurs when consumers spread negative information about a product, service, or store to others.When customers' expectations are met or even exceeded, they often don't tell anyone about it. But when consumers believe that they have been treated unfairly in some way, they usually want to bitch, often to many people

Question: psychological factors [that influence the consumer decision process]

Answer: among these are :1) Motives2) attitudes3) perception4) learning5) lifestyle

Question: motive

Answer: a need or want that is strong enough to cause the person to seek satisfaction

Question: Maslow's Hierarchy of Needs

Answer: theory developed by Abraham Maslow to explain human behavior; includes five stages of needs: self-actualization, esteem, love, safety, and physiological needs; requires that the lower needs to be met before one can move onto higher needs

Question: physiological needs

Answer: those relating to the basic biological necessities of life: food, drink, rest, and shelter

Question: safety needs

Answer: one of the needs in the PSSP hierarchy of needs; pertain to protection and physical well-being

Question: love needs

Answer: needs expressed through interactions with others

Question: esteem needs

Answer: needs that enable people to fulfill inner desires

Question: self-actualization

Answer: when a person is completely satisfied with his/her lifethat person doesn't care what anyone else thinks

Question: attitude

Answer: a person's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea; consists of three components:1) cognitive2) affective3) behavioral

Question: cognitive component

Answer: a component of attitude that reflects what a person believes to be true

Question: affective component

Answer: involves emotions, or what we feel about the issue at hand, including our like or dislike of something

Question: behavioral component

Answer: a component of attitude that comprises the actions a person takes with regard to the issue at hand.

Question: perception

Answer: the process by which people select, organize, and interpret information to form a meaningful picture of the world

Question: learning

Answer: refers to a change in a person's though process or behavior that arises from experience and takes place throughout the consumer decision process

Question: lifestyle

Answer: a component of psychographics; refers to the way a person lives his or her life to achieve goals

Question: reference group

Answer: one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors

Question: culture

Answer: the set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (e.g., behavior, dress, symbols, physical settings, ceremonies) and underlying values (though processes, beliefs, and assumptions)

Question: situational factors

Answer: factor affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issuesThese situational factors are related to the purchase and shopping situation, as well as to temporal states

Question: purchase situation

Answer: customers may be predisposed to purchase certain products or services because of some underlying psychological trait or social factor, but these factors may change in certain purchase situations.(Buying an expensive outfit to attend a wedding)

Question: Shopping situation

Answer: consumers might be ready to purchase a product or service but be completely derailed once they arrive in the store.Different techniques are employed to spur this process:1) Store atmosphere (atmospherics) - research as shown that, if used in concert with other aspects of a retailer's strategy, music, scent, lighting, and even color can positively influence the decision process2) Salespeople - Well-trained sales personnel can influence the sale at the point of purchase by educating consumers about product attributes, pointing out the advantages of one item over another, and encouraging multiple purchases3) Crowding - If there are too many people in a store, some people become distracted and may even leave4) In-store demonstrations - the taste and smell of new food items may attract people to try something they normally wouldn't.5) Promotions - Retailers employ various promotional vehicles to influence customers once they have arrived in the store. Multi-item discounts, such as "buy 1, get 1 free" sales, are popular means to get people to buy more than they normally would.6) Packaging - Marketers spend millions of dollars designing and updating their packages to be more appealing and eye catching

Question: involvement

Answer: a consumer's interest in a product or service

Question: Temporal state

Answer: our state of mind at any particular time can alter our preconceived notions of what we are going to purchase.A purchase situation may thus have different appeal levels depending on the time of day and the type of person the consumer is. Mood swings can alter consumer behavior.

Question: The elaboration likelihood model

Answer: proposes that high and low-involvement consumers process different aspects of a marketing message or advertisement

Question: extended problem solving

Answer: a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer percieves that the purchase decision entails a lot of risk

Question: limited problem solving

Answer: occurs during a purchase decision that calls for, at most, a moderate amount of effort and timecustomers 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.

Question: impulse buying

Answer: a buying decision made by customers on the spot when they see the merchandise

Question: habitual decision making

Answer: characterizes a purchase decision process in which consumers engage in little conscious effort