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