SPMT 370 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
Perceived Risk
the perception of the negative consequences that are likely to result from a course of
action (a choice) and the uncertainty of which course of action is best to take
Financial Risk
The risk associated with the cost of the product.
Social Risk
The risk associated with how other consumers will view the purchase
Functional Risk
The risk associated with the likelihood of a product not performing as expected.
Physical Risk
The risk associated with the safety of the product and the likelihood that physical harm
will result from its consumption
Time Risk
The risk associated with the time required to search for the product and the time
necessary for the product to be serviced or maintained.
Steps in the decision making process
need recognition, information search, evaluation of alternatives, choice/purchase, post
purchase behavior
Alternative Consideration Set
, the brands left after considering all alternatives for a product/service
Rational (cognitive/utilitarian) decision making approach
Consumers are rational and they carefully arrive at decisions. Based on data and
information
Experimental (affective/hedonic) decision making approach
Decision making is often influenced by the feelings associated with
consumption/experiences
Behavioral Influence (impulsive/situational) decision making approach
Decisions are responses to environmental influences
Internal Consumer Search Source
Recall - Searching for information from memory
Internal Consumer information that may be recalled or influence recall
- Brands:habitual (familiarity, preference), common
- Attributes: specific elements which are important to the consumer
- Evaluations: easier to remember than specific attributes
- Experiences: specific images and events...vivid and/or frequent
External Consumer Search Source
the gathering of information from sources external to the consumer
External Consumer information that may be recalled or influence recall
- Significant Others (family, friends)
- Retailers (Advertising, Salespeople, Websites)
- Online Reviews and Social Media
Evaluative Criteria
COMPLETE SOLUTIONS GRADED A++
Perceived Risk
the perception of the negative consequences that are likely to result from a course of
action (a choice) and the uncertainty of which course of action is best to take
Financial Risk
The risk associated with the cost of the product.
Social Risk
The risk associated with how other consumers will view the purchase
Functional Risk
The risk associated with the likelihood of a product not performing as expected.
Physical Risk
The risk associated with the safety of the product and the likelihood that physical harm
will result from its consumption
Time Risk
The risk associated with the time required to search for the product and the time
necessary for the product to be serviced or maintained.
Steps in the decision making process
need recognition, information search, evaluation of alternatives, choice/purchase, post
purchase behavior
Alternative Consideration Set
, the brands left after considering all alternatives for a product/service
Rational (cognitive/utilitarian) decision making approach
Consumers are rational and they carefully arrive at decisions. Based on data and
information
Experimental (affective/hedonic) decision making approach
Decision making is often influenced by the feelings associated with
consumption/experiences
Behavioral Influence (impulsive/situational) decision making approach
Decisions are responses to environmental influences
Internal Consumer Search Source
Recall - Searching for information from memory
Internal Consumer information that may be recalled or influence recall
- Brands:habitual (familiarity, preference), common
- Attributes: specific elements which are important to the consumer
- Evaluations: easier to remember than specific attributes
- Experiences: specific images and events...vivid and/or frequent
External Consumer Search Source
the gathering of information from sources external to the consumer
External Consumer information that may be recalled or influence recall
- Significant Others (family, friends)
- Retailers (Advertising, Salespeople, Websites)
- Online Reviews and Social Media
Evaluative Criteria
