BA 317 Chapter 6

distinguish between functional and psychological needs

Functional needs pertain to the performance of a product or service. Psychological needs pertain to the personal gratification consumers associate with a product or service.

what is the difference between extended vs limited problem solving

limited problem solving occurs during a purchase decision that calls for a moderate amount of effort and time. consumers with prior experience will engage In this type of buying process extended problem solving occurs when little prior knowledge and higher risk can be perceived

what is the difference between a need and a want?

Needs are goods and services needed for survival, while Wants are goods and services people consume beyond what is needed for survival.

need recognition

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.

what are the five types of actual or perceived risk that can delay or discourage a purchase?

performance, financial, social, physiological, and psychological

psychological needs

pertain to the personal gratification consumers associate with a product or service

______ occurs when consumers spread negative information about a product, service, or store to others. love needs physiological needs safety needs expressed through interactions with others

physiological needs

determinant attributes

product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

_____ is the fear that consumer suffer when they worry others might not regard their purchase positively. financial risk safety risk social risk performance risk

social risk

List some of the tactics stores can use to influence consumers' decision processes.

store atmosphere, crowding, in-store demos, promotions, and packaging

__________ is a component if attitude that comprises the actions a person takes with regards to the issue at hand. the behavioral component self actualization the affective component the cognitive component

the behavioral component

physiological risk

the fear of an actual harm should a product not perform properly

social risk

the fears that consumers suffer when they worry others might not regard their purchases positively

performance risk

the perceived danger inherent in a poorly performing product or service

perception

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events

consumer decision rules

the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives

lifestyle

the way a person lives his or her life to achieve goals

retrieval set

those brands or stores that can be readily brought forth from memory

physiological needs

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

Which social factors likely have the most influence on (a) the purchase of a new outfit for a job interview and (b) the choice of a college to attend?

(a) reference groups and culture (b) family

what are the differences between compensatory and non-compensatory decision rules

A compensatory decision rule assumes that the consumer, when evaluating alternatives, trades off one characteristic against another A non-compensatory decision rule assume the consumer chooses a product or service on the basis of one or a subset of its characteristics, regardless of the values of its other attributes

multi-attribute model

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.

affective component

A component of attitude that reflects what a person feels about the issue at hand—his or her like or dislike of something.

Maslow's Hierarchy of Needs

A paradigm for classifying people's motives. It argues that when lower-level, more basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (social and personal)

attitude

A person's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea; consists of three components: cognitive, affective, and behavioral.

culture

Beliefs, customs, and traditions of a specific group of people.

love needs

Part of Maslow's hierarchy, needs are expressed through interactions with others.

esteem needs

Part of Maslow's hierarchy, these are needs that enable people to fulfill inner desires.

what are some examples of specific needs suggested by Maslow's hierarchy of needs

Physiological (food, water, shelter) safety (secure, employment, health) love (friends, family) esteem (confidence, respect) self actualization (people engage in personal growth activities and attempt to meet their needs)

functional needs

The performance of a product or service

post purchase cognitive dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers' remorse.

behavioral component

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

cognitive component

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

what is an example of perceived benefits vs perceived costs of search

a home owner taking a lot of time researching the housing market before making a purchase on a new house vs a mother spending very little time researching an inexpensive doll house for her daughter

motive

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

learning

a persons thought process or behavior that arises from experience and takes place throughout the consumer decision process

extended problem solving

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

habitual decision making

a purchase decision process in which consumers engage with little conscious effort

self-actualization

according to Maslow, one of the ultimate psychological needs that arises after basic physical and psychological needs are met and self-esteem is achieved; the motivation to fulfill one's potential

universal set

all possible choices for a product category

psychological risk

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

noncompensatory decision rule

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

compensatory decision rule

at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones

marketers can take several steps to ensure post purchase satisfaction (list 5 examples)

build realistic expectations demonstrate correct product use stand behind the product with money back guarantees encourage customer feedback periodically make contact with customers and thank them for their support

evoked set

comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision

evaluative criteria

consist of a set of salient, or important, attributes about a particular product

what are the post purchase outcomes

consumer satisfaction, post purchase cognitive dissonance, customer loyalty

involvement

consumer's interest in a product or service

situational factors

factors affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issues

the final stage of the consumer decision process is purchase and consumption true false

false

_________ pertain to the performance of a product or a service functional need internal search for info psychological need external search for info

functional need

How do low versus high involvement consumers process information in an advertisement?

high involvement- scrutinizes all info and processes the key elements of the message more deeply

what are the two types of locus of control

internal and external

describe how involvement influences the consumer decision process

more involved consumer, who are more interested or invested in the product or service they are considering (engage in extended problem solving) they gather info, scrutinize it then make carful decisions to minimize risk

what are the steps of the consumer decision process

need recognition, information search, alternative evaluation, purchase, post purchase

______ occurs when consumers spread negative information about a product, service, or store to others. internal locus control cognitive dissonance negative word of mouth external locus control

negative word of mouth

limited problem solving

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time

negative word of mouth

occurs when consumers spread negative information about a product, service, or store to others

internal search for information

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

external search for information

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

safety needs

one of the needs in maslow's hierarchy of needs; pertain to protection and physical well-being

reference group

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

describe the factors that affect information search

perceived benefits vs perceived costs of search, the locus of control, and the actual or perceived risk

conversion rate

percentage of consumers who buy a product after viewing it

external locus of control

refers to when consumers believe that fate or other external factors control all outcomes

internal 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 activities

financial risk

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

safety risk

see physiological risk