Term
| Problem Recognition (Nature of) |
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Definition
| Discrepancy between desired state and actual state, sufficient enough to activate the decision process |
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Term
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Definition
| Way an individual perceives his or her feelings/situation at the present time |
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Term
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Definition
| Way an individual wants to feel or be at the present time |
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Term
| Consumer decision model purpose |
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Definition
| Road map of consumers mind that marketers/managers can use to help guide the marketing mix |
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Term
| 7 steps in Consumer Decision Model |
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Definition
1. Problem Recognition
2. Information Search
3. Alternative Evaluation
4. Outlet Selection & Purchase
5. Consumption
6. Post Consumption Evaluation
7. Disinvestment |
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Term
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Definition
| Stage 1: Occurs when an individual senses a discrepancy between what he/she perceives to the desired state VS actual state |
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Term
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Definition
| Stage 2: Consumer begins search for info/solutions to satisfy unmet needs; Begins internally and moves Externally |
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Term
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Definition
| search of long term memory to determine if a satisfactory solution is known; potential solutions; and ways to compare solutions |
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Term
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Definition
| Search of market/non-market sources; process is focused on relevant external information |
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Term
| Alternative Evaluation and Selection |
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Definition
| Eval Criteria (Standards used to compare different brands/products) Has to do with level of involvement |
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Term
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Definition
| Characteristics or features of a given product |
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Term
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Definition
| Motivation/interest in a specific product category (can be temporary or enduring |
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Term
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Definition
| Level of concern for purchase process (temporary) |
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Term
| Outlet Selection & Purchase |
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Definition
| Consumer selects a product, where to purchase it, and completes the exchange (NOT SAME AS CONSUMPTION) |
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Term
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Definition
| After the purchase, this is the actual point at which the consumer USES the product |
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Term
| Post Consumption Evaluation |
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Definition
Satisfaction: Consumer expectations are matched by performance
Dissatisfaction: Experience or performance falls short of expectations |
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Term
| Divestment (And 3 options) |
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Definition
When consumer is finished with product, they can
1. Dispose of it
2. Recycle
3. Remarket |
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Term
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Definition
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Term
| Three types of Consumer Decision |
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Definition
1. Nominal (habit/no decision making)
2. Limited (Middle Ground)
3. Extended (HIGH involvement) |
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Term
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Definition
1. Problem is recognized
2. Internal search yields single solution (brand)
3. Brand is purchased
4. Evaluation occurs only if brand fails to perform as expected
Brand loyal purchase: Commitment to brand because consumer has emotional attachment |
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Term
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Definition
1. Problem is recognized
2. Internal / limited external search
3. Selection is based on simple decision rules on a few attributes
4. Little post-purchase evaluation, involves problem with many solutions |
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Term
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Definition
1. Problem is recognized
2. Extensive internal/external info search
3. Complex eval. on multiple alternatives on many attributes
4. Selection
5. Extensive post-purchase evaluation (buyers remorse, cognitive dissonance) |
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Term
| Active Consumer Problem/Strategy |
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Definition
Consumer is aware/will become aware of problem in normal course of events
Strategy: Require marketers to convince consumers that its brand is the superior solution |
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Term
| Inactive Consumer Problem/Strategy |
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Definition
Consumer is NOT aware of Problem
Strategy: Marketer must convince consumers there is a problem AND their brand is a superior situation |
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Term
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Definition
| Once a consumer recognizes a problem, they begin a process of searching internally for a solution and externally (if needed) |
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Term
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Definition
| to acquire additional information and because the process itself is interesting/pleasing (NO problem recognition) |
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Term
| 4 Categories of Decision Alternatives |
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Definition
1. Awareness Set
2. Inert Set
3. Inept Set
4. Evoked Set |
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Term
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Definition
| Composed of brands the consumer is aware of |
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Term
| Inert Decision Alternative |
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Definition
| Brands consumer is aware of/feels neutral to (accepts alternative if primary brand isn't available and open to pos. info even if not searching for |
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Term
| Inept Decision Alternative |
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Definition
| Brands aware of and view negatively |
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Term
| Evoked Decision Alternative |
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Definition
| Consideration; brands/products one will evaluate as a solution to a problem |
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Term
| 3 Market Strategies that affect Info Search on the internet |
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Definition
1. Driving Info to Consumer
2. Driving Consumers to info
3. Online Selling utilized/integrated with existing channels |
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Term
| Driving Info to Consumer (Internet Info search) |
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Definition
- Web advertising (Banner Ads)
- Permission-based E-mail (PBE): consumer “opts in” to receive email
- Social Media: Facebook ads, promoted tweets |
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Term
| 3 Driving Consumer to Info (Internet Info Search) |
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Definition
- Print media/Broadcast media
- Behavioral targeting
- Search engine optimization (SEO) |
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Term
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Definition
| Evoked sets for some categories are due largely to variety seeking (no one wants to eat T-bell everyday |
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Term
| Factors that influence external search? |
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Definition
| Alternatives, Prices, Info available, risks, time, life cycle, product involvement, physical energy |
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Term
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Definition
| tracking consumer click patterns and using information to decide on banner ad placement |
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Term
| Search Engine Optimization |
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Definition
| Techniques to ensure a company’s web pages are accessible to search engines and improve odds of being found |
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Term
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Definition
| consumer decisions are not rational, not optimal due to cognitive/time limitations, and can change based on the situation |
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Term
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Definition
Consumers seek one optimal solution to a problem
Reality: Consumers have all sorts of metagoals (General nature of the outcome being sought) |
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Term
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Definition
Consumers have the skill/motivation to find the optimal solution
- Reality: Consumer often lack both skill/motivation to do so due to bounded rationality: limited capacity for processing info. |
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Term
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Definition
Optimal solution doesn't change as a function of situational factors such as time pressure, task definition, or competitive context
- Reality: Context effects are common |
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Term
| 3 Types of Consumer Choice Processes |
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Definition
1. Affective
2. Attitude Based
3. Attributive Based |
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Term
| Affective Consumer Choice Process |
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Definition
| purchase determined by how the product makes the user feel “how do I feel about it?” |
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Term
| Attitude-Based Consumer Choice Process |
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Definition
| use of general attitudes, summary impressions, intuitions, and past knowledge (used especially when constrained on time or information is difficult to find) |
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Term
| Attribute-Based Consumer Choice Process |
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Definition
| requires knowledge of specific attributes at the time the choice is made and compares every attribute across brands |
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Term
| Projective Technique Eval Criteria |
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Definition
| allow the respondent to indicate the criteria “someone else” may use |
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Term
| Direct Method of Eval criteria |
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Definition
| asking consumer what criteria they use in a particular purchase |
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Term
| Indirect Method of Evaluation Criteria |
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Definition
| Assume consumers will not/can’t state their evaluation criteria, use perceptual mapping or projective technique |
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Term
| Perceptual Mapping Eval Criteria |
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Definition
| Researcher uses judgment to determine dimensions underlying consumer evaluations of brand similarity (consumer judges similarity between brands and scientists map characteristics) |
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Term
| How do marketing researchers determine consumer judgments of brand performance on specific evaluative criteria? (3) |
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Definition
1. Rank Order Scale (Rate 1-5)
2. Semantic Differential Scale (Used most)
3. Likert Scale |
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Term
| How does individual judgment affect evaluative criteria? |
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Definition
The features or characteristics required to meet the consumer’s needs; desired characteristics
- Depending on what consumer knows about product, may need to seek outside sources to determine the proper evaluative criteria to use. |
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Term
| 5 Decision rules for attribute based work? |
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Definition
1. Conjunctive
2. Disjunctive
3. Elimination by Aspects
4. Lexicographic Rule
5. Compensatory Rule |
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Term
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Definition
| Establishes a min. required performance for each important attribute; all brands must meet/exceed the performance level of at least one key attribute to be acceptable |
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Term
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Definition
| Establishes minimum required performance for each evaluative criterion; must meet minimum standard |
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Term
| Elimination by Aspects Rule |
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Definition
| Evaluative criteria is ranked in terms of importance, second cutoff point is established, finally brands are eliminated if they fail to meet the cut off |
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Term
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Definition
| rank criteria in order of importance, select brand that performs best on the most important attribute, if they tie the second most important attribute is evaluate |
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Term
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Definition
| the brand that rates highest on the sum of the consumers judgments of the relevant evaluative criteria will be chosen |
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Term
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Definition
| Utilize multiple retail channels such as physical stores, Internet and catalogs; browse/purchase with more than one channel (search online and buy at physical store) have higher incomes and spend more than single channel shoppers |
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Term
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Definition
| consumers who browse and/or purchase in more than one channel simultaneously. Ex: while in a store, scan bar code into mobile app that takes them to Internet to find more info or compare prices; Spend most compared to other shoppers, digital and tech savvy |
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Term
| 3 decisions retailers face when using price advertising |
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Definition
1. How large a price discount should be used?
2. Should comparison or reference price be used?
3. What verbal statements should accompany the price information? |
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Term
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Definition
| A price with which other prices are compared (regular price is $9.95 now only $6.45) |
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Term
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Definition
| Price presented by a marketer for the consumer to sue to compare with current price |
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Term
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Definition
| Price range that a consumer retrieves from memory |
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Term
| Consumer characteristics that affect outlet choice? |
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Definition
- Perceived Risk
- Shopping Orientation: shopping style that puts particular emphasis on certain activities/motivations |
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Term
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Definition
| Indifferent towards shopping |
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Term
| Enthusiastic Shopping Style |
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Definition
| Enjoy shopping and receive physical/social benefit from shopping |
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Term
| Destination Shopping Style |
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Definition
| motivated by anticipated utility of obtaining brand names and other image control primary groups |
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Term
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Definition
| Motivated to get exactly what they want in the littlest time |
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Term
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Definition
| perceived role as a shopper who gets good deals and the lowest prices |
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Term
| Nature of Unplanned Purchase and 2 types |
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Definition
| Purchases made in a retail outlet that differ from those the consumer planned to make prior to entering the store |
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Term
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Definition
| consumer sees a product in store and remembers they are out of that product |
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Term
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Definition
| Consumer sees a product in store and purchases it with little or no deliberation as the result of a sudden, powerful urge to have it. |
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Term
| 3 outlet atmospheres that affect shopping behavior |
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Definition
1. Store Atmosphere
2. Servicescape
3. Atmospheric |
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Term
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Definition
| influenced by attributes such as lighting, layout, presentation of merchandise, fixtures, color, sound and service personal |
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Term
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Definition
| atmosphere of service/employees of business such as a hospital, bank or restaurant |
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Term
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Definition
| Process managers use to manipulate the physical retail or service environment to create a specific mood responses in shoppers |
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Term
| 4 Post-purchase dissonance functions |
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Definition
Occurs when consumer has doubts/ anxiety on wisdom of a purchase
- Degree of commitment or irreversibility of the decision
- Importance of the decision to the consumer
- Difficulty of choosing among the alternatives
- Individual’s tendency to experience anxiety |
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Term
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Definition
Most consumer purchases involve nominal/limited decision making, arouse little or no post-purchase dissonance; Leads to better product design and marketing campaigns
- Helps with innovation and re-purchase |
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Term
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Definition
| Occurs when a consumer actively acquires a product and doesn’t use it; wasted money, no repeat purchase of product (Online/catalog purchases usually) |
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Term
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Definition
| Continue to buy same brand though there is no emotional attachment |
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Term
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Definition
| Satisfaction is important to consumer loyalty; satisfaction is necessary but NOT sufficient to produce loyalty |
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Term
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Definition
| costs of finding, evaluating and adopting another solution |
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Term
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Definition
| Involves commitment to the brand, biased behavioral response expressed over time |
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Term
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Definition
| Loyal to a brand, store, or service due to an emotional attachment to the brand or firm |
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Term
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Definition
| An attempt to develop an ongoing, expanding exchange relationship with a firm’s customers |
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Term
| 5 Elements of Relationship Marketing |
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Definition
1. Developing a core service or product around which to build a customer relationship
2. Customizing the relationship to the individual customer
3. Augmenting the core service or product with benefits
4. Pricing in a manner to encourage loyalty
5. Market to employees to perform well for customers |
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Term
| Expectancy Dis-confirmation Model |
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Definition
| Satisfaction depends on a comparison of pre-purchase expectations to consumption outcomes; important for company to set and manager consumer expectations |
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Term
| What to do when you provide bad service |
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Definition
1. Complaint mechanism
2. Acknowledge and own it
3. Apologize
4. Attribute-shortly explain |
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Term
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Definition
| Satisfaction (Positive confirmation) |
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Term
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Definition
| Expectation is greater than Performance: Dissatisfaction (negative disconfirmation) |
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Term
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Definition
| Expectation is less than performance: Delight (Confirmation) |
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