BADM 320 Exam 2 – Business Administration Study Guide, Key Concepts and Practice Review

BADM 320 Exam 2 – Business Administration Study Guide, Key Concepts and
Practice Review


Complex Buying Behavior - ANS ✔✔A purchase where you need to do research before making
the decision because it is expensive, risky and personal; brand differentiation is important



I.e. house, car, etc.



Variety Seeking Buying Behavior - ANS ✔✔Switching brands for the sake of variety; i.e. picking a
different restaurant on a different night



Dissonance Reducing Buying Behavior - ANS ✔✔Expensive, risky purchases but there are no big
differences between brands



I.e. mobile phones



Habitual Buying Behavior - ANS ✔✔Purchases that we do not think through because they are
low cost and high frequency of necessity; i.e. gas, sugar, toilet paper



High involvement by buyer, major differences between brands: - ANS ✔✔Complex buying
behavior



High involvement by buyer, few differences between brands: - ANS ✔✔Dissonance reducing
buying behavior



Low involvement by buyer, major differences between brands: - ANS ✔✔Variety seeking buying
behavior

, Low involvement by buyer, few differences between brands: - ANS ✔✔Habitual buying behavior



Consumer decision process (5 steps) - ANS ✔✔1. Need recognition

2. Search

3. Alternative evaluation

4. Purchase

5. Post-purchase



Consumer decision process: Need recognition - ANS ✔✔Step 1;



Consumers need to realize they have an unsatisfied need



Functional needs - ANS ✔✔The need of a product to fulfill its function



I.e. I expect my rain coat to keep me dry because thats its function



Consumer decision process: Information search - ANS ✔✔Internal and external searches to
determine what consumers want



Internal search - ANS ✔✔Using your own knowledge and memory in order to make consumer
decisions



External search - ANS ✔✔Search in other locations for information on purchases, reviews,
internet etc



Performance Risk - ANS ✔✔Information search, step 2;