Consumer Behavior Exam 2

How important is "affordability" to James for making this decision? Provide the importance weight. James is interested in making an online reservation for a getaway vacation and there are several resort options under consideration. He will choose a resort based on four criteria: beach, facilities, nightlife, and affordability. Suppose that for James, the following information is available. Importance weights for the four criteria: Beach: 0.4 Facilities: 0.2 Nightlife: 0.3 Affordability: _________ a. 0.1 b. 0.3 c. 0.2 d. 0.4 e. It is missing and cannot be determined

0.1

Five Steps to Cognitive Decision Making

1. Problem Recognition 2. Information Search 3. Evaluate Alternatives 4. Purchase Decision 5. Post-Purchase

According to the expectancy disconfirmation model, how to improve customer satisfaction? (Choose all that apply) a. Improve customers' perceived product performance b. Improve customers' product expectations c. Decrease customers' product expectations d. Decrease customers' perceived product performance

A and C Improve customers' perceived product performance and decrease customers' product expectations

Reward Power

a person or group with the means to provide positive reinforcement (tangible or intangible)

Assuming that importance weights don't matter and all attributes are equally important to the individual, what would the individual be LEAST likely to select based off a compensatory rule? (look at study guide for chart) a. Calypso Resort b. Haven Resort c. Jardin Resort d. Sunset Resort e. Cannot be determined

a. Calypso Resort

During shopping, the presence of other shoppers can influence your behavior in different aspects. Which one of the following is NOT an influence of the presence of other shoppers on consumption behaviors? a. You will have more contact with products b. You become more variety-seeking c. You will rush your decisions d. You will be more likely to buy name brands

a. You will have more contact with product

The first iPhone, launched in 2007, came with a $600 price tag. Two months later, Apple lowered the price to $400; in June 2009, the price fell again to $200 and the phone offered twice the storage. Nonetheless, there was a group of consumers camped out in front of Apple stores and other retailers in 2007 to get their hands on the first version. They can be identified as the ___________ according to the diffusion of innovation theory. a. early adopters b. gatekeepers c. early majority d. late majority e. laggards

a. early adopters

When we discuss subcultures, we are talking about culture at the ___________ level. a. group b. national c. continent d. supranational e. all of the options

a. group

Angela belongs to a film club that selects and views classic movies once a month. Angela won't watch scary movies on her own, but agrees to watch the classic vampire film with the club because all of the other club members voted to see it. This example demonstrates which factor of conformity? __________ a. group unanimity b. fear of deviance c. commitment to group membership d. individual difference e. cultural pressure

a. group unanimity

If the government asks people to evacuate because of a hurricane, people would comply because the government has ________ power. a. legitimate b. information c. expert d. referent e. reward

a. legitimate

________ refers to the passage of individuals from one social class to another. a. social mobility b. social class c. social affinity d. social prestige e. social anxiety

a. social mobility

Situational Influence

all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior

Which of the following is an unpleasant psychological state? a. Density b. Crowding c. Arousal d. None of the above

b. Crowding

A customer buying an unfamiliar product that carries a fair degree of risk would most likely engage in ________ decision making? a. limited b. cognitive c. habitual d. all of the above

b. cognitive

Sandra decided to become a doctor after several years as a lawyer. She still wanted to help people but in a different manner. Sandra's case is an example of which of the following? __________ a. upward mobility b. horizontal mobility c. social anxiety d. social inequality e. downward mobility

b. horizontal mobility

The ___________ class is more oriented toward conspicuous consumption. a. upper-upper b. lower-upper c. middle d. working e. none of the above

b. lower-upper

Which group prefers the quiet signals when buying? a. proletarian b. patrician c. poseur d. parvenu

b. patrician

When consumers are buying gifts for others, they make purchase decisions differently compared to when they are buying things for themselves. Which type of situational factor is this about? a. Temporal perspective b. Physical surroundings c. Task definition d. Atmospherics e. Social surroundings

c. Task definition

Julie Morgan loves to go into Springer's Old Country Gifts. It always smells like a field of spring flowers. The lighting gives all the products a warm glow, and the mood music is just perfect for casual browsing. After her visit to the store, Julie is always in a better mood. Springer's Old Country Gifts has attracted Julie with its ________. a. social surroundings b. temporal perspective c. atmospherics d. task definition e. store density

c. atmospherics

Jack tends to be an impatient shopper and frequently buys the first item that he encounters that will just satisfy his needs. This is an example of: a. using a conjunctive rule b. experiential hierarchy c. habitual decision making d. using a compensatory rule

c. habitual decision making

Prior knowledge of a product influences the degree to which consumers will search information externally. Which of the following consumers search most? a. people who have a lot of knowledge b. people who have only a little knowledge c. people who have a moderate amount of knowledge

c. people who have a moderate amount of knowledge

What type of group power does the following print ad use in its ad message? (smoking ad) a. referent power b. reward power c. expert power d. coercive power e. legitimate power

d. coercive power

In Japan, people tend to infer meanings that go beyond the spoken word. This classifies Japan as a ________________ a. individualist culture b. low-context culture c. indulgent culture d. high-context culture

d. high-context culture

Which functional area of culture is most closely related to the idea of a common worldview? a. social structure b. anthropology c. socio-psychology d. ideology e. ecology

d. ideology

Expert Power

derives from knowledge one possesses about a content area

Which of the following statements explains Red Sneakers Effect? a. Unintentional violations of normative codes can increase perceptions of status and competence. b. We build a part of our identity on the basis of our membership of the groups and enforce boundaries with other groups. c. The people who is least committed to staying in a relationship has the most power because that he or she doesn't care as much if the other person rejects him or her. d. When facing real or imagined group pressures, people tend to alter their beliefs or behaviors to follow the group norms. e. Intentionally standing out from the crowd can send a positive message conveying status, confidence, and power.

e. Intentionally standing out from the crowd can send a positive message conveying status, confidence, and power.

James Otis wants to be "just like Mike" (basketball star Michael Jordan) and has for many years. James has purchased Jordan-gear, follows Jordan's career, and he has often thought about how to give back to his community the way MJ has. Which of the following reference group terms would apply to James Otis and his relationship with Michael Jordan? __________ a. primary group b. normative group c. membership group d. avoidance group e. aspirational group

e. aspirational group

Gen enjoys owning a micro-refrigerator, which is small enough to fit almost anywhere. Gen believes that the efficient use of space is one of the characteristics that any good product should have. With respect to the functional areas of a cultural system, Gen is focusing on ________ as a variable in selecting products. a. anthropology b. ideology c. social structure d. social-psychology e. ecology

e. ecology

The ____________ class purchases are for social acceptability and seek out the best buys. a. working b. lower c. lower-upper d. upper-upper e. middle

e. middle

Lexicographic Rule

noncompensatory decision rule where the option selected is thought to perform best on the most important attribute

Conjunctive Rule

noncompensatory decision rule where the option selected must surpass a minimum cutoff across all relevant attributes

Atmospherics

o the conscious designing of space and its various dimensions to evoke a specific psychological response in consumers o Includes décor, sounds, aromas, lighting, temperature, and configurations o Atmospherics create customer expectations and communicates brand image

Temporal perspective

situational characteristics that deal with the effect of time on consumer behavior

Expectancy disconfirmation model

suggests that consumers form expectations about product performance prior to purchasing a brand · Part of "Post-Purchase" · Compares product expectations to how it actually performs · Satisfaction = perceived performance = product expectation o Perceived Performance < expectations = dissatisfied o Perceived Performance = expectations = satisfied o Perceived Performance > expectations = very satisfied · Perceived performance is subjective ... reality doesn't matter · We want to improve customer's perceived performance · We also want to manage expectations (don't give unrealistic expectations)

Coercive Power

when we influence someone because of social or physical intimidation

Heuristics used in consumer decisions

· Country of Origin · Familiar Brand Name · Higher Prices · Incentives · Scarcity of Product

What encourages Conformity?

· Cultural pressures - different cultures encourage conformity to a greater/lesser degree · Fear of deviance - a fear that the group will apply punishments to nonconforming behaviors · Commitment - the more people are dedicated to a group and value their membership, the greater the motivation to conform to the group's wishes · Groups unanimity, size and expertise - as groups gain in power, compliance increases · Susceptibility to interpersonal influence - one's need to have others think highly of him/her · Environmental cues - warmer, more likely to conform

Information search: determinants of search

· Expertise/knowledge - our personal understanding level on a category or brand o If you don't know a lot, you don't search a lot because you don't know what information is important o If you know a lot, you also don't search a lot because there is no need to o People search the most when they don't know a lot, but also know a little · Risk of Decision - if the perceived risk of purchase is higher, then you will search more

Referent Power

· If a person admires the qualities of a group, people will voluntarily modify what they do and buy something to identify with the referent

Information Power

· If one knows something others would like to know, he or she possesses power

Brand inertia vs. brand loyalty

· Inertia: When people buy the same product/brand, product bought out of habit · Loyalty: Inertia is NOT the same as brand loyalty; brand loyalty is a form of repeat purchasing behavior that reflects a conscious decision to continue buying the same thing (active involvement with emotions). Inertia you not a conscious decision

Habitual Decision making

· Low-cost products · Frequent purchasing · Low consumer involvement · Familiar product class and brands · Little thought, search, time given to purchase · Little to no conscious effort · Find a satisfying/good enough solution

membership reference group vs. aspirational reference group

· Membership - consists of people we actually know · Aspirational - people we don't know, but we admire

Evoked set vs. consideration set vs/ inept set

· Part of "Evaluate Alternatives" part of Cognitive Decision Making · Evoked Set - all the brands you can name from memory · Consideration Set - those brands that you would consider buying o Take brands found accidentally, found through search, and recalled from memory o Get rid of inept and inert set (unacceptable and indifferent opinions) to form your consideration set o Inept Set - the things that you think of or find, but are unacceptable

Actual State vs. Desired State

· Part of "Problem Recognition" in Cognitive Decision making · When our actual state does not equal our desired state, a need will emerge

Decision rules: compensatory rules

· Part of "Product Choice" · Allows the product to be evaluated on multiple dimensions; positives can offset negatives · Simply Additive Rule · Weighted Additive Rule

Decision rules: non-compensatory rules

· Part of "Product Choice" in Cognitive Decision Making · If a product does NOT meet a minimum criterion, the item is not chosen · Lexicographic Rule - select the brand that is the best on the MOST important attribute (winner takes all) · Conjunctive Rule - eliminate options based on not meeting several criteria

Red sneakers effect

· People intentionally break social norms to stand out from the crowd... can sometimes lead to positive impressions

Task definition

· Reason the consumption activity is occurring · Motivation · Gift giving vs. own use

Limited decision making

· Rely on heuristics - making mental shortcuts in decision making · It is in-between habitual and cognitive decision making · Can be judgements, best practices

Legitimate Power

· We grant power by virtue of social agreements o Police, army, doctors, uniforms, elected government

Cognitive Decision Making

· When we make decisions rationally and deliberately · Looking for information with high involvement · More expensive products · Infrequent purchasing · Unfamiliar product class · Active and effortful problem solving · Maximizing solution - finding a solution that will be perfect

Crowding Effect

· a negative psychological state that occurs because of an overly large store density · In the presence of other shoppers, we are more likely to: o Try brand names o Variety seeking (may buy things we don't need) o Rush the process