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MKTG 435 Final Exam Questions with
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stages of problem recognition & info search - Solution 1. Problem Recognition
- Information Search
- Options Assessment
- Purchase Decision
- Post-Purchase Evaluation
- Feedback Stimulating Problem Recognition - Solution 1. Create a new ideal state
- Create dissatisfaction with actual state
- Position as solution to problem EX: the "snuggie" infomercial internal search for information - Solution buyer examines her own memory and knowledge about the product/service, gathered through past experiences *kinds of info recalled: brands, attributes, evaluations, experiences brand recall - Solution consumers' ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue brand recall varies in terms of... - Solution Size Stability Variety Preference dispersion Prototypicality Familiarity Goals/Usage Situation Preference Retrieval Cues Attribute Recall - Solution Accessibility/Availability
Diagnosticity Salience Vividness Goals internal search accuracy is affected by... - Solution confirmation bias, mood, and inhibition confirmation bias - Solution a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence *draw attention to negatives of competition inhibition - Solution Consumers don't always consider key aspects and recall other, more accessible attributes external search - Solution searching for information from the environment Sources of External Information - Solution Retailer Media Interpersonal Independent Experiential Internet High Effort Judgement and Decision Making processes - Solution - Estimation of likelihood -Goodness/badness (Anchoring/adjustment & Imagery) -Conjunctive probability assessment -Illusory correlation estimation of likelihood - Solution the determination of the probability that something will occur goodness/badness (based on anchoring, adjustment, and imagery) - Solution evaluation of the desirability of the product's features anchoring and adjustment - Solution the tendency to judge the frequency or likelihood of an event by using a starting point (called an anchor) and then making adjustments up or down
EX: "I want to get a brand that does best on attribute(s) most important to me" elimination by aspects model - Solution (noncompensatory) similar to the lexicographic model but adds the notion of acceptable cutoffs EX: "I will eliminate any brands with a value of 3 or below, beginning with the most important attribute" Prospect theory - Solution people take on risk when evaluating potential losses and avoid risks when evaluating potential gains *Losses have more influence than gains *Consumers have stronger reaction to price increases than price decreases EX: losing $1,000 causes a greater emotional reaction than gaining $1, affective decision making - Solution decisions based on feelings and emotions affective forecasting - Solution efforts to predict one's emotional reactions to future events. depends on... -valence (attractiveness or desirability) -intensity -duration representativeness heuristic - Solution judging the likelihood of things in terms of how well they seem to represent particular prototypes; may lead us to ignore other relevant information Low Effort Judgement and Decision Making - Solution -representativeness heuristics -availability heuristics (base-rate info, law of small numbers) -simplifying strategies availability heuristic - Solution making a decision based on the answer that most easily comes to mind EX: base-rate info, law of small numbers base rate information - Solution information about the relative frequency of events of different categories in a population
law of small numbers - Solution the expectation that information obtained from a small number of people represents the larger population FAMILIAR PRODUCT choice heuristics for low-effort decision making - Solution •Performance-related tactics •Habit tactics Performance-related tactics (low effort) - Solution tactics based on benefits, features, or evaluations of the brand. E.g. buying a certain toothpaste because it promises you the 'whitest teeth' EX: select one you think works best, provides best performance Habit tactics (low effort) - Solution repeating past behavior EX: select one you typically buy as long as it is satisfactory UNFAMILIAR PRODUCT choice heuristics for low-effort decision making - Solution -Variety seeking tactics -Normative tactics -Price tactics Variety seeking tactics - Solution buying behaviour occurs when the consumer is not involved with the purchase, yet there are significant brand differences. The cost of switching products is low so the consumer may out of boredom, move from one brand to another EX: Choose something different. Live a little! normative tactics - Solution based on others' opinions. EX: daughter buying the same detergent as mother Price tactics - Solution buy least expensive (or most expensive) depending on your beliefs about relationship between price and quality the learning process - Solution - choice tactic -> choice -> usage -> outcome (reinforcement/no reinforcement) Low effort simplifying strategy: performance - Solution -quality -important features/benefits -sales promotions Low effort simplifying strategy: habit - Solution -repeat purchase
post-decision regret - Solution a feeling that one should have purchased another option
- Unfavorable comparison
- Consumer anticipation Dimensions of satisfaction and dissatisfaction - Solution -Utilitarian: how well the product functions -Hedonic: how the product makes you feel customer dissatisfaction - Solution -dissatisfied customers stop purchasing, complain, spread negative word-of-mouth -average business does not hear from 96% of its unhappy customers -average person with problems tells 9 or 10 people -95% of complainers will do business with you if complaint is resolved quickly Satisfaction/Dissatisfaction Based on Thoughts - Solution -Disconfirmation: discrepancy between expectations and performance -Expectations: beliefs about how product/service will perform -Performance: measurement of whether the product fulfills consumers' needs ->objective: based on actual performance, fairly constant across consumers ->subjective: based on individual feelings, can vary attribution theory - Solution the theory that we explain someone's behavior by crediting either the situation or the person's disposition EX: get a poor grade on a quiz, you blame the teacher for not explaining the material Equity Theory - Solution a theory that states that people will be motivated when they perceive that they are being treated fairly EX: employee learns that a peer doing exactly the same job is earning more money, they will do less work, thus creating fairness Responses to Dissatisfaction - Solution -Take no action -Discontinue purchasing -Complain or return item -Negative word-of-mouth
complainer tendencies - Solution younger, higher income, less brand loyal, cultural differences types of complainers - Solution -Passive: least likely to complain bc they doubt anything will happen if complain -Voicers: active complainers, believe they're orgs best friend and they will give them a 2nd chance, view complaining as a positive. -Irates: likely to engage in negative WOM, tend to be angrier, won't give 2nd chance, switch to alternative -Activists: likely to complain, engage in negative WOM, may complain Options for Post-Acquisition Disposition - Solution give away, trade, recycle, sell, use up, throw away, abandon, destroy Sources of Influence table/matrix (in terms of credibility, reach, and 2-way communication) - Solution marketing vs. non-marketing and mass-media vs. delivered personally opinion leaders - Solution individuals who exert direct or indirect social influence over others and are: -Knowledgeable about products -Heavy users of mass media -Buy new products when introduced -Perceived as credible marketing maven - Solution type of opinion leader, someone who seems to have a lot of information about the marketplace in general. e.g. best products, best deals, best stores. aspirational reference group - Solution a group that we admire and desire to be like, and associate products with EX: high school student aspires to be a college student associative reference group - Solution a group to which we currently belong, accurately represent, brand communities ex: currently a college student dissociative reference group - Solution a group we do not want to emulate ex: don't want to be associated with OSU students
conspicuous consumption - Solution Buying and using products because of the "statement" they make about social position ex: logos on clothes that signal luxury conspicuous waste - Solution the disposal of valuable goods to demonstrate wealth ex: pouring out champagne bottles compensatory consumption - Solution the consumer behavior of buying products or services to offset frustrations or difficulties in life Marketing Implications of Social Class - Solution -Product/service should reflect social class motives & values -Marketing messages should focus on groups' distinctiveness -Media usage differs between classes -Different social classes shop at different stores Changing trends in household structure - Solution -Delayed Marriage -Cohabitation -Dual Career Families -Divorce -Smaller Families Age vs. Generation - Solution everyone goes through the same ages, but generation is defined by common lived experiences in society difference between sex and gender - Solution -Sex refers to sex organs (M/F) -Gender describes masculine or feminine Agentic Sex Roles - Solution self assertion, mastery, associated with men Communal Sex Roles - Solution affiliation, relationships, associated with women Differences in Acquisition and Consumption Behaviors - Solution -Women: Deliberate, thorough research -Men: Driven by themes, simple heuristics
Power Distance Index (PDI) - Solution the degree of inequality that exists and is accepted between people with and without power high PDI = accept everybody has a place and needs no further justification low PDI = people strive to equalise the distribution of power Individualism vs. Collectivism (IDV) - Solution The extent to which a culture emphasizes the individual vs. the group Masculinity versus Femininity (MAS) - Solution -Masculinity side represents preference in society for achievement, heroism, assertiveness and material rewards for success. -Femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Uncertainty Avoidance Index (UAI) - Solution measures the tolerance of uncertainty and ambiguity among members of a society -high UAI = rigid codes of belief and behavior, intolerant of unorthodox behavior and ideas -low UAI = more relaxed attitude in which practice counts more than principles long term orientation vs short term orientation (LTO) - Solution the dimension of a society's value orientation that reflects its attitude toward virtue or truth -low LTO = maintain time-honored traditions and norms while viewing societal change with suspicion.
- high LTO = encourage efforts in modern education as a way to prepare for the future Indulgence vs. Restraint - Solution -Indulgent societies allow relatively free gratification to enjoy life -Restraint societies suppress gratification of needs and regulate it by means of strict social norms using local language - Solution -yields better evaluations when the product is a necessity (e.g., detergent) -feelings of belonging cause the evaluations using non-local language - Solution -yields better evaluations when the product is a luxury (e.g. chocolate) -feelings of sophistication cause the evaluations
emblematic function - Solution use products as symbols of our membership in various social groups, derives from culture and defines consumer as a group member ex: oregon sticker role acquisition function - Solution products can help us feel more comfortable in our new roles, derives from culture and defines a consumer as an individual ex: necklace given to new mother connectedness function - Solution the use of products as symbols of our personal connections to significant people, events, or experiences, derives from individual and defines a consumer as a group member ex: best friend necklaces expressiveness function - Solution using products as symbols to demonstrate our uniqueness, derives from individual and defines a consumer as an individual ex: your personal style Motives for Gift Giving - Solution altruistic, instrumental, obligatory, compensatory, antagonistic
