MAR4480 EXAM 2 QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
market
collection of buyers and sellers
firms can attempt to reach
-all buyers in a market
-smaller groups or segments of the market
-specific buyers on an individual level
power of defaults
the tendency for people to accept the status quo rather than choosing something other
than the default
compromise effect
a consumer is more likely to choose the middle option of a selection set rather than the
extreme options
licensing effect
evident when people allow themselves to do something bad after doing something good
first
perception
Assigning meaning to stimuli
country of origin effect
,Consumers may associate certain countries with a reputation for producing high-quality
or low-quality products in specific categories
These perceptions can influence consumers willingness to pay for a product
need recognition
• Starts the purchase process
• The recognition that one's current state is not their desired state
• Needs and wants are not the same
• To segment markets, understand wants
initial consideration set
• Translate needs into specific products/brands
• Evaluate portfolio's ability to satisfy needs
• Keep your product in consumers' "evoked set"
• Know consumers' choice criteria
• How important are specific attributes
consumer products
Purchased to satisfy personal and family needs and are classified according to how
buyers generally behave when purchasing them
convenience products
relatively inexpensive, frequent
shopping products
more effort in planning/purchasing
specialty products
unique characteristics
,Unsought Products
items that the consumer does not know about or knows about but does not initially want
active evaluation
• Consumers trust personal sources of information and other consumer reviews
• More than firm provided information
• Search for alternatives: time and effort expended vary
• Risk involved in the purchase
• Experience with the product category
• Actual cost of search and product (time and money)
• Consumers narrow the potential "evoked set"
• To add products (or remove competitors' products) to this set... marketers must
capture attention
moment of purchase
• Even if a product is selected for purchase, several factors can change the decision
• Product is not in stock
• Does not qualify for financing (large $ items)
• Something goes wrong in purchase experience
• Illness, job loss, national disaster...
• Marketers must assure product availability and increase the probability of purchase
post purchase experience
• How connected is the buying process and a long-term customer relationship
• Marketers should monitor consumers' feedback on the product's performance to
assess if it met/exceeded expectations
, • Delight
• Satisfaction
• Dissatisfaction
• Cognitive dissonance
why consider the journey
Because it's different across industries, countries, brands, and because it matters.
The number of brands added for consideration in different stages differs by industry
Factors That Affect the Consumer Purchase Decision Journey
• Decision-making complexity
• Individual differences
• Social influences
• Situational influences
decision making complexity
• Highly complex decisions
• High personal, social, or financial risk
• Coupled with a lack of experience
• Excessive time, effort, and money to ensure "right decision"
• Marketers provide information to help in process
individual differences
• Age, life cycle, occupation, socioeconomic status affect marketing strategies and
tactics
• Perceptions, motives, interests, attitudes, opinions, or lifestyle(much more
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
market
collection of buyers and sellers
firms can attempt to reach
-all buyers in a market
-smaller groups or segments of the market
-specific buyers on an individual level
power of defaults
the tendency for people to accept the status quo rather than choosing something other
than the default
compromise effect
a consumer is more likely to choose the middle option of a selection set rather than the
extreme options
licensing effect
evident when people allow themselves to do something bad after doing something good
first
perception
Assigning meaning to stimuli
country of origin effect
,Consumers may associate certain countries with a reputation for producing high-quality
or low-quality products in specific categories
These perceptions can influence consumers willingness to pay for a product
need recognition
• Starts the purchase process
• The recognition that one's current state is not their desired state
• Needs and wants are not the same
• To segment markets, understand wants
initial consideration set
• Translate needs into specific products/brands
• Evaluate portfolio's ability to satisfy needs
• Keep your product in consumers' "evoked set"
• Know consumers' choice criteria
• How important are specific attributes
consumer products
Purchased to satisfy personal and family needs and are classified according to how
buyers generally behave when purchasing them
convenience products
relatively inexpensive, frequent
shopping products
more effort in planning/purchasing
specialty products
unique characteristics
,Unsought Products
items that the consumer does not know about or knows about but does not initially want
active evaluation
• Consumers trust personal sources of information and other consumer reviews
• More than firm provided information
• Search for alternatives: time and effort expended vary
• Risk involved in the purchase
• Experience with the product category
• Actual cost of search and product (time and money)
• Consumers narrow the potential "evoked set"
• To add products (or remove competitors' products) to this set... marketers must
capture attention
moment of purchase
• Even if a product is selected for purchase, several factors can change the decision
• Product is not in stock
• Does not qualify for financing (large $ items)
• Something goes wrong in purchase experience
• Illness, job loss, national disaster...
• Marketers must assure product availability and increase the probability of purchase
post purchase experience
• How connected is the buying process and a long-term customer relationship
• Marketers should monitor consumers' feedback on the product's performance to
assess if it met/exceeded expectations
, • Delight
• Satisfaction
• Dissatisfaction
• Cognitive dissonance
why consider the journey
Because it's different across industries, countries, brands, and because it matters.
The number of brands added for consideration in different stages differs by industry
Factors That Affect the Consumer Purchase Decision Journey
• Decision-making complexity
• Individual differences
• Social influences
• Situational influences
decision making complexity
• Highly complex decisions
• High personal, social, or financial risk
• Coupled with a lack of experience
• Excessive time, effort, and money to ensure "right decision"
• Marketers provide information to help in process
individual differences
• Age, life cycle, occupation, socioeconomic status affect marketing strategies and
tactics
• Perceptions, motives, interests, attitudes, opinions, or lifestyle(much more
