Chapter 6 - BA 370

When Glen is thirsty, he always buys a Coke. Like many consumers, Glen engages in considerable alternative evaluation when buying habitual products like his Coke. True False

false

A reference group may have direct or indirect influence on your attitude toward a particular clothing store. True False

true

After purchasing an expensive pair of shoes, you may question whether or not the shoes are any better than the less expensive shoes you could have purchased instead. This is an example of postpurchase cognitive dissonance. True False

true

As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchasers with strong store loyalty are great customers. True False

true

Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs. True False

true

Consumers involved in habitual decision making engage in little conscious decision making. True False

true

Frazier is out of milk and bread and needs to decide what is for dinner. He will be stopping at the grocery store on the way home. Frazier will likely engage in limited problem solving. True False

true

Generally, people buy one product or service instead of another because they perceive it to be a better value. True False

true

Mary will not consider purchasing an "American" car brand based on negative comments made by her parents therefore, she has developed a negative attitude toward "American" brand cars. True False

true

One benefit of having satisfied customers is that they may spread positive word of mouth. True False

true

The greater the difference between a consumer's unsatisfied need and the desired state, the greater the need recognition will be. True False

true

When making an important purchase, consumers often consult friends and family. This is considered an external search for information. True False

true

Customers are more likely to talk about service that exceeded their expectation than about service that did not meet their expectation. True False

false

Maslow's Hierarchy of Needs is an interesting concept for psychology, but it has little relevance for marketing. True False

false

Rachael is visiting colleges before applying to schools. Rachael is likely to be involved in an impulse buying process. True False

false

Setting high customer expectations is a good strategy that will help to avoid customer dissatisfaction in the long run. True False

false

Situational factors sometimes override psychological and social factors in the consumer decision process. True False

false

The buying process begins with a comparison of available alternatives. True False

false

For specialty goods like Rolex watches or Ferrari automobiles, marketers often use to influence consumers' purchase decisions. crowding in-store demonstrations well-trained salespeople promotions packaging

well-trained salespeople

attributes are product or service features that are important to buyers and that are used to differentiate among choices. Retrieval Financial Social Determinant Safety/performance

Determinant

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process? Need recognition Postpurchase evaluation Information search Situational analysis Evaluation of alternatives

Evaluation of alternatives

Vacation, restaurant, and entertainment choices require marketers to consider which of the following social factors? Purchase anxiety Learning Lifestyle adaptation Family influences Temporal state

Family influences

Which of the following is NOT one of the four factors affecting consumers' search processes? Perceived benefits versus perceived costs of search Locus of control Actual or perceived risk Type of product or service Functional versus psychological need

Functional versus psychological need

Consumers use and process different aspects of advertising or messages. yields greater attention and deeper processing, and leads to strong attitudes and purchase intentions. An external locus of control High involvement Low involvement Differential content Internet advertising

High involvement

After Sharon graduated from college, she found a steady and good-paying job, got married and began to raise a family, and began to receive recognition at work and in the community. Eventually, she began to devote more time and effort to intellectual and aesthetic pursuits. Sharon is moving up the conventional morality life cycle. the Lifestyle Achievement Matrix. the Consumer Validation Model. Maslow's Hierarchy of Needs. from an internal to an external locus of control.

Maslow's Hierarchy of Needs.

refer(s) to the process by which consumers select, organize, and interpret information. Attitude Learning Perception Cultural norms Post purchase dissonance

Perception

American visitors to the Indonesian island of Bali are often aghast when they see the sign for the Swastika resort. Americans associate the Swastika symbol with Nazi Germany while Indonesians associate the symbol with the four major elements on Earth. The two groups have different attitudes. risk factors. perceptions. factual norms. postpurchase dissonance.

Perceptions

Dawn flies regularly between Atlanta and Los Angeles. She almost always uses Delta Airlines and has lots of Delta Sky Miles credit (Delta's frequent flyer program). Still, she uses an online fare comparison website each time to see if a competitor has a better price or a more convenient schedule. Dawn uses to decide which airline to fly. a compensatory decision rule a noncompensatory decision rule habitual decision making social factors temporal factors

a compensatory decision rule

Jonathan prefers shirts made with a 50-50 cotton blend, but he will sometimes buy shirts with less cotton if they are less expensive. Jonathan uses to decide which shirts to buy. a compensatory decision rule a noncompensatory decision rule habitual decision making social factors temporal factors

a compensatory decision rule

The consumer buying process begins when a consumer enters a store. consumers' functional needs are greater than their psychological needs. a consumer's performance risk is minimized. a consumer recognizes an unsatisfied need. learning follows perception.

a consumer recognizes an unsatisfied need.

Jordana is buying a laptop computer to take on trips. Although she has looked at several brands, she refuses to buy a computer that weighs more than five pounds. Jordana is basing her decision on a compensatory decision rule. a noncompensatory decision rule. habitual decision making. social factors. temporal factors.

a noncompensatory decision rule.

Apple computer users tend to like the company and love its products. Apple has nurtured this component of their customers' attitudes. social affective psychological cognitive physiological

affective

When Brandon decided he needed a new car, he immediately called his old college roommate who owns a BMW dealership to ask questions about options and financing. Brandon was searching for information from an external source. an internal locus of control. a decision rule. an internal source. a situational factor group.

an external source.

When Karen realized her dog had fleas, Karen had a social-perceptual incongruence. a psychological need. a cognitive learning failure. a universal shopping need. an unsatisfied need.

an unsatisfied need.

Negative attitudes are typically difficult for marketers to change because most consumers' attitudes depend on prices. consumers weigh performance risk against functional needs when assessing their attitudes. attitudes are learned and long lasting. attitudes shift consumers from limited to extended problem solving situations. consumers' attitudes are derived from unchanging decision rules.

attitudes are learned and long lasting

Firms hope that helping consumers to learn more about a company and its products will affect consumers' universal sets. social sensitivity. impulse buying rates. attitudes. evoked memories.

attitudes.

Sometimes consumers have second thoughts after buying goods that are expensive, infrequently purchased, or associated with a high level of risk. This is an especially critical time for marketers, as their customers are dealing with criteria reevaluation. buyer's remorse. competitive leverage. purchase uncertainty. consumer vulnerability.

buyer's remorse.

Though he has never owned a Jaguar, Jerry thinks they are poorly made and have many mechanical problems. For Jaguar to sell Jerry a car, the company would need to change the component of Jerry's attitude. social affective functional cognitive physiological

cognitive

Before going on his first business trip to China, Brad asked his Chinese-American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Brad is trying to avoid business blunders. reference group situational cultural cognitive evoked

cultural

Where Caroline grew up, everyone knew everyone else, no one locked the doors on their house, and a person's word could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Caroline had to adjust to differences. reference group situational cognitive cultural evoked

cultural

The shared meanings, beliefs, morals, values, and customs of a group of people constitute its reference group. family. culture. cognitive frame. evoked set.

culture.

Setting unrealistically high consumer expectation often leads to ritual reversion. customer dissatisfaction. postpurchase harmony. financial risk. perceptual learning.

customer dissatisfaction.

Andrea and Karl got married a year ago and are ready to move out of their apartment and into a new home. After looking at several houses, they have developed a list of features that are important to them and that are different among the homes they have visited. The features on their list are called . an evoked set determinant attributes short lists perceived risk factors trade-off elements

determinant attributes

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with an evoked set. psychological needs. social concerns. evaluative criteria. biased information.

evaluative criteria.

Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her set. universal retrieval immediate evoked focus

evoked

Marketers particularly want their brands and products to be in consumers' sets. universal retrieval evoked deterministic behavioral

evoked

When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands she could buy at her local Best Buy electronics store. This represents Maya's set. universal retrieval evoked deterministic behavioral

evoked

Once consumers have recognized a need, they begin to search for ways to satisfy that need. The internal search is characterized by looking through the internal records of a firm, often found on the company website. examining personal memories and knowledge. using the Internet to find what other consumers feel about a specific product or service. consulting close friends and families before expanding the search to a wider, external group. the influence of advertising.

examining personal memories and knowledge.

Postpurchase cognitive dissonance is especially likely for products that are cheap, poorly made, and made of plastic. personally valuable, antique, or foreign-made. simple, easily copied, and new. psychologically soothing, purchased impulsively, and part of a consumer's evoked set. expensive, infrequently purchased, and associated with high levels of risk.

expensive, infrequently purchased, and associated with high levels of risk.

Learning refers to a change in a person's thought process or behavior that arises from attitudes. experience. risk analysis. cultural norms. postpurchase dissonance.

experience.

Thanh has to decide which college to attend. This is the most important, riskiest and most expensive decision she has ever made. She will be engaged in low involvement decision making. extended problem solving. habitual decision making. prepurchase dissonance. limited problem solving.

extended problem solving.

The consumer's level of involvement can lead to two types of decision-making processes: and . extended problem solving; limited problem solving culturally influenced; autonomous economic; social physiological/safety; esteem/self-actualization historic;aspirational

extended problem solving; limited problem solving

A consumer's external social environment includes impulse, habitual, and limited problem solving processes. functional and psychological needs. universal, retrieval, and evoked sets. cognitive, affective, and behavioral environments. family, reference groups, and culture.

family, reference groups, and culture

Natalie and her fiancée Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are influenced by impulse, habitual, and limited problem solving process. functional and psychological profit. universal, retrieval, and evoked sets. cognitive, affective, and behavioral environment. family, reference groups, and culture.

family, reference groups, and culture.

Jordana is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Jordana is trying to reduce her customers' risk. psychological financial performance social physiological

financial

When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing needs. functional prepurchase social psychological functional and psychological

functional

A key to successful marketing is determining how to meet the correct balance of needs that best appeals to the firm's target markets. functional and social postpurchase and prepurchase safety and situational psychological and physiological functional and psychological

functional and psychological

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers' needs. functional and social postpurchase and prepurchase safety and situational psychological and physiological functional and psychological

functional and psychological

Most "big box" retailers regularly move products from one aisle to another. They also put personal care products in the pharmacy area, many aisles away from the grocery products. They do this because consumers who spend more time walking through the store are likely to make impulse purchases. limited problem solving decisions. extended problem solving decisions. ritual consumption purchases. affective alternative decisions.

impulse purchases.

Steve wasn't sure what kind of salsa he wanted to get for his upcoming Super Bowl party. It seemed like there were dozens of varieties to choose from. He noticed that he could sample a few at a station in the store. He tried four, rejected two, and bought several jars of the two he really liked. He also ended up buying a different—and more expensive—kind of tortilla chip after tasting it. Marketers identify this as a success story of learning. decision rules. social factors. advertisements. in-store demonstrations.

in-store demonstrations.

Brenda was planning a small dinner party, and had gone to a new specialty food store with coupons she'd found in the food section of the paper. At the store she also found a "buy one, get one free" deal, and a gift offered with the purchase of a particular dessert. She altered the menu as a result of the and ended up spending less than she'd planned. in-store demonstrations packaging in-store promotion product placement store atmosphere

in-store promotion

When Kelly began searching for a new car to replace her old, rusty one, she probably relied on sources of information. interpersonal and sensual compensatory and noncompensatory ritual and spiritual specialty and ordinary internal and external

internal and external

Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is, "Whatever." In marketing terms, Ryan is said to have a(n) and Michael, a(n) . obsessive personality; laissez-fair approach formal search function; casual search function increased search anxiety;decreased search anxiety internal locus of control; external locus of control focused sense of information; unfocused sense of information

internal locus of control; external locus of control

Marketers are particularly interested in postpurchase behavior because it involves both compensatory and noncompensatory consumers. offers insights into information search methods. avoids situational conflicts. involves actual rather than potential customers. it involves both actual and potential customers.

involves actual rather than potential customers.

Stuart wanted to impress Janet with the perfect engagement ring. He had been saving money for months, and he noticed his attitudes and perceptions about diamond rings changing as he began paying attention to ads for rings. Marketers call this process consumer confidence building. self-actualization. a decision rule. reducing prepurchase dissonance. learning.

learning.

Among the factors affecting the consumer decision-making process is/are , the way consumers spend their time and money to live. lifestyle conspicuous consumption the demonstration effect external validation life standards

lifestyle

Christopher bought Timberland boots because he felt they were perfect for his outdoor activities. Patrick bought the same kind of boots because he felt they were stylish, especially with the logo clearly visible. The psychological factor driving Patrick's behavior is a functional need. lifestyle. brand association. learned behavior. his evoked set.

lifestyle

Last semester, Henri bought his textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and he needs to decide right away how and where to purchase his books. Henri will engage in a(n) process. impulse buying limited problem solving extended problem solving ritual consumption affective decision

limited problem solving

Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his postpurchase dissonance. locus of control. reference group identification. attribute sets. social risk.

locus of control.

Most firms maintain customer complaint services online, in the store, or over the telephone. Firms attempt to respond quickly to complaints, hoping to get themselves into the universal set. reduce the cost of postpurchase advertising. minimize negative word of mouth and rumors. extend decision rules to the customer complaint desk. offset performance risk with financial risk.

minimize negative word of mouth and rumors.

A is a need or want strong enough to cause the person to seek satisfaction. locus of control motive attitude perception learning curve

motive

The greater the discrepancy between a consumer's , the greater the consumer's need recognition will be. financial risk and performance risk search for alternatives and alternatives found needy state and desired state universal set and evoked set external and internal information search

needy state and desired state

Marketers fear negative word of mouth because when consumers are dissatisfied, they are less likely to say something than when they are satisfied. often want to complain to many people. buy more of the product to prove they were correct in their criticism. often file a lawsuit. don't buy any of the company's other products.

often want to complain to many people.

Limited problem solving usually relies on past experience more than on external information. situational stimuli and attitudes. external search for information. financial analysis of performance risk. evaluation of the universal set.

past experience more than on external information.

Generally, people buy one product or service instead of another because they get the lowest price possible. perceive it to be the better value for them. prefer to avoid doing extended problem solving. have conducted a thorough internal search for information. are unaware of key determinant attributes.

perceive it to be the better value for them.

Every year, before he puts his boat in the water, James has his mechanic put a new battery in the boat. James is probably concerned with risk. psychological financial performance social physiological

performance

Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the associated with her purchase decision. evoked set reference group physiological risk performance risk financial risk

performance risk

André was afraid his condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his risk. social financial performance psychological physiological

social

There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow's Hierarchy, most of the other 800 million Indian consumers are primarily addressing their needs. social personal psychological esteem physiological

physiological

Many teenagers, both male and female, have clothes they purchased in the past that they "would not be caught dead in" today. When they occasionally see those clothes hanging in the back of their closet, these teenagers probably feel cognitive bias. postpurchase cognitive dissonance. psychological risk. need recognition. physiological risk.

postpurchase cognitive dissonance.

Laura has a nearly new economy car, but she wants a Ford Mustang because she thinks it would be exciting to own one. If she decides to purchase a sports car such as the Mustang, she will be primarily fulfilling needs. functional postpurchase safety psychological functional and psychological

psychological

Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue primarily appeal to consumers' needs. functional postpurchase safety psychological situational

psychological

Beverage firms sometimes hire attractive young people to sit at fashionable bars, sipping the company's latest product offering. The firms hope these "models" will serve as a(n) and influence consumers. reference group risk avoider cultural determinant cognitive learning experiment evoked set

reference group

Many Hollywood movie stars were among the first to buy electric and hybrid vehicles. These stars often became , influencing other consumers' behavior. reference groups internal loci of control cultural icons cognitive parameters evoked images

reference groups

Marketers frequently design customer relationship management programs to retain loyal customers. attract consumers who have safety needs. reinforce postpurchase cognitive dissonance. increase internal information search. improve profit margins.

retain loyal customers.

When Alisa decided to buy a new computer, she considered all the brands she could recall seeing advertised. This represents Alisa's set. universal retrieval evoked deterministic behavioral

retrieval

Maslow's Hierarchy of Needs includes physiological needs at the lowest level and self-actualization at the top. The three levels in between are material goods, safety, and love. community, family, and self. safety, stability, and striving. health, wealth, and happiness. safety, love, and esteem.

safety, love, and esteem.

When the floor rusted through on her old car, Kelly knew she had a problem. Logically, Kelly's next step in the consumer decision process would be to identify her need. search for information. evaluate alternatives. purchase a new car. assess her satisfaction with the car she purchased.

search for information.

The traditional marketing strategy of selling umbrellas when it is raining is an example of how factors influence consumers' decisions. situational psychological shopping interpersonal economic

situational

factors, such as the purchase situation, often override or influence psychological and social issues influencing consumers' purchase decisions. Situational Extended habitual Postpurchase dissonance Interpersonal Economic

situational

Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these factors will influence consumers' purchase decisions. interpersonal extended habitual postpurchase dissonance store atmosphere social

store atmosphere

Darrell sells custom cabinets for upscale residential homes. Darrell hopes that satisfied customers will create word of mouth referrals for him. To make it more likely that his customers are satisfied, Darrell could do any of the following EXCEPT tell customers that he has the best quality cabinets available anywhere in the country. carefully demonstrate how to maintain the finish on his cabinets. provide a satisfaction guarantee policy. visit customers after they have moved into their homes. provide the proper cleaning fluid to use on the cabinets.

tell customers that he has the best quality cabinets available anywhere in the country.

Many states have laws regulating the prices businesses charge during emergencies like hurricanes. These laws are designed to protect consumers whose state may impair their ability to make sound purchase decisions. shopping social theoretical temporal ecclesiastical

temporal

There is an old saying, "Never go to the grocery store hungry." This saying suggests that a consumer's state may adversely affect purchasing decisions. shopping social theoretical external temporal

temporal

Peter wanted an unbiased source of information to help him decide what brand of appliances to buy for his new condominium. Peter would most likely search for information from the Sears catalog. the Consumer Reports website. the local Better Business Bureau. the website for Best Buy (an electronics retail chain). Psychology Today magazine.

the Consumer Reports website.

The greater the discrepancy between a consumer's needy state and the desired state, the greater time needed to satisfy the need. the effort consumers will invest in searching for alternatives. the consumer's need recognition will be. the size of the universal set will be. the amount of external information search.

the consumer's need recognition will be.

In the consumer decision process, we decide how much time and effort to expend searching for information based partly on postpurchase dissonance. the outcome of the alternative evaluation process. the degree of perceived risk associated with the product or service being considered. the results of habitual decision making. the results of the external search.

the degree of perceived risk associated with the product or service being considered.

Jennifer's spending decisions are heavily influenced by her family, her peers, and her religious education. These influences on her spending decisions are examples of assessment of psychological risk. the external social environment. physiological needs. cognitive needs. an evoked set.

the external social environment.

The consumer decision process model represents the concept of habitual decision making. the retrieval of an evoked set based on physiological needs. the steps that consumers go through before, during, and after making purchases. the shift from an internal to an external locus of control. the types of decisions all consumers must make.

the steps that consumers go through before, during, and after making purchases.

Marketers often use principles and theories from sociology and psychology to better understand consumers' actions and to develop basic strategies for dealing with their behavior. to contribute to the theoretical knowledge in those disciplines. to avoid cultural reference group problems. to maximize postpurchase cognitive dissonance. to satisfy ritual consumption needs while avoiding overconsumption.

to develop basic strategies for dealing with their behavior.