Consumer Behavior Final Exam

Evoked Set

Alternatives given consideration.

Unawareness Set

Alternatives the consumer does not know about

Awareness Set

Alternatives the consumer is aware of

Firms need to satisfy consumer expectations by

Creating reasonable expectations through promotional efforts, and Maintaining consistent quality so the reasonable expectations are fulfilled.

Four types of situations:

The Communications Situation The Purchase Situation The Usage Situation, and The Disposition Situation

Moods

Transient feeling states that are generally not tied to a specific event of object.

Switching costs

are the costs of finding, evaluating, and adopting another solution.

Giving out candy to children on Halloween, giving chocolate and roses to sweethearts on Valentine's Day, and wearing green and drinking green beer on St. Patrick's Day are all examples of _____.

Rituals

Internal Search

Search of long-term memory to determine if 1. a satisfactory solution is known 2. what are types of potential solutions, and 3. ways to compare the possible solutions.

Reasons why consumers give gifts

Social expectations, Ritualized situations, To elicit return favors

Momentary Conditions

Temporary states of being (tired, ill, having extra money, being broke, etc.)

Affective Choices

Tend to be more holistic. Brand not decomposed into distinct components for separate evaluation.

Consumer decisions require information about:

- Appropriate evaluative criteria - The existence of various alternatives - Performance of each alternative on each evaluative criterion

Strategies to reduce postpurchase dissonance:

- Increase the desirability of the brand purchased - Decrease the desirability of rejected alternatives - Decrease the importance of the purchase decision - Reverse the purchase decision (return before use)

Postpurchase dissonance is a function of:

- The degree of commitment or irrevocability of the decision - The importance of the decision to the consumer - The difficulty of choosing among the alternatives - The individual's tendency to experience anxiety

when elasticity is between 0 and -1

demand is inelastic

Three major strategic issues for firms:

1. How can they drive their information to consumers? 2. How can they drive consumers to their information? 3. How (if at all) can online selling be utilized or integrated with existing channels?

Ritual Situation

A socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning.

Net Promoter Score (NPS)

An indirect word-of-mouth (WOM) measure of true attitudinal loyalty.

Inept Set

Avoided alternatives

Lexicographic Decision Rule

Consumer ranks the criteria in order of importance then selects brand that performs best on the most important attribute.

Inert Set

Backup alternatives

Ongoing Search

Done to acquire info and because the process is pleasurable.

Disjunctive Rule

Establishes a minimum required performance for each important attribute (often a high level). (Must meet at least one criterion)

Conjunctive Rule

Establishes minimum required performance for each evaluative criterion. (Must meet all criterion)

The desired features or characteristics required to meet a consumer's needs are his or her _____.

Evaluative criteria

External Search

If a resolution is not reached through internal search, then the search process is focused on relevant external information.

Attitude-Based Choice

Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice.

How does music influence consumer behavior

It influences mood

Given what was said in class, when would Best Buy be better able to sell product warranties?

Much crowd in the store.

Endowment Effect

People value a thing more once it becomes theirs.

Five characteristics of situations

Physical surroundings Social surroundings Temporal perspectives Task definition Antecedent states

NPS =

Promoters minus Detractors

Three Categories of Consumers

Promoters, Passively Satisfied, and Detractors

Attribute-Based Choice

Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands.

The level of search is influenced by

The type of decision

Consider the study involving coffee mugs. In one case, students were given a coffee mug as theirs to keep, and later asked for what price they would sell the coffee mug. In another case, students were asked what price they would pay for this same coffee mug. One group gave their average price as $2.25, and one group gave an average price as $4.50. Which group gave the lower average price ($2.25)?

The group that was not given a coffee mug, but was asked if they wanted one

The direction of search is influenced by

The nature of the evoked set

Task Definition

The reason the consumption activity is occurring.

Rebecca is a single woman in her 40s. She sold her Honda Civic and bought an Acura CSX, which is considerably more expensive, but she really liked it. She was going to her brother's house with her mother, and she asked that her mother drive. She didn't want her brother to see that she had purchased an expensive car for herself. Rebecca was experiencing _____.

consumption guilt

Repeat purchasers

continue to buy the same brand though they do not have an emotional attachment to it.

Temporal Perspectives

deal with the effect of time on consumer behavior

when elasticity is between -1 and -infinity

demand is elastic

Ad and brand attitudes are often influenced...

in a mood-congruent manner

Situational Influence

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

Atmospherics

influences consumer judgments of the quality of the store and the store's image.

Brand loyalty

involves commitment to the brand - it is a biased behavioral response expressed over time.

Atmosphere

is referred to as servicescape when describing a service business such as a hospital, bank or restaurant.

The greatest proportion of consumers perform ______ immediately prior to purchase.

little external search

Postpurchase Dissonance

occurs when a consumer has doubts or anxiety regarding the wisdom of a purchase made.

Which of the following occurs when a consumer actively acquires a product that is not used or used only sparingly relative to its potential use?

product nonuse

Karl and his wife are considering putting a built-in pool in their backyard. They were discussing who they could get to do it for them, and they realized they knew of five good pool contractors in their city. These five pool contractors that they thought of as potential contractors for them...

represent their awareness set

Compensatory Decision Rule

states that the brand that rates highest on the sum of the consumer's judgments of the relevant evaluative criteria will be chosen.

Attribute-based choice requires _____.

the knowledge of specific attributes at the time the choice is made. & attribute-by-attribute comparisons across brands.

Even if a dissatisfied consumer takes no external action, which of the following is likely?

will have a less favorable attitude toward the store or brand