Chapter 3

Question 1

Define purchase decision process

Answer 1

Stages that a buyer passes through when making choices about which products or services to buy.

Question 2

What are the 5 stages of the purchase decision process

Answer 2

1. problem recognition
2. information search
3. evaluation of alternatives
4. purchase decision
5. post purchase behavior

Question 3

Describe the problem recognition stage of the purchase decision process

Answer 3

• the initial step in the purchase decision, occurs when a person realizes that the difference between what they have and what they would like is big enough to actually do something about it

Question 4

Describe the information search stage of the purchase decision process

Answer 4

• after recognizing a problem, customers begin to search for information about what product or service might satisfy the Newley discovered need
• May do an internal search: where they scan their own memory for knowledge or previous experiences, or they may do an external search (look at personal sources like friends, public sources like product rating organizations, and marketer dominated sources like information from sellers)

Question 5

Describe the evaluation of alternatives stage of the purchase decision process

Answer 5

• looking at a customers evaluative criteria: the objective and subjective attributes used to compare different products and brands
• an evoked set is the group of brands that a customer would consider acceptable from among all the brands in the product class of which the customer is aware

Question 6

Describe the purchase decision stage of the purchase decision process

Answer 6

Need to choose brand. from whom to buy, and when to buy

Question 7

Describe post purchase behaviour

Answer 7

• after buying a product, the customer compares it with their expectations and is either satisfied or dissatisfied

Question 8

Describe cognitive dissonace

Answer 8

bought one thing but thinking should i have purchased the other - post purchase tension or anxiety

• customers may seek information to confirm their choice by asking friends questions like what do you think of my new smartphone or reading ads of brands you chose, or look for negative features about the brand you didn’t buy

Question 9

Describe involvement

Answer 9

Personal, social, and economic significance of a purchase to the consumer.

–> depending on the involvement a customer has they may or may not engage in the five step purchase decision process
- ex. choosing toothpaste is low involvement, choosing car is high involvement

Question 10

High involvement purchases have one of what 3 characteristics

Answer 10

1. expensive
2. Bought infrequently
3. reflects one social image

Question 11

Describe routine problem solving

Answer 11

• for products like salt and milk - customers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives

Question 12

Describe limited problem solving

Answer 12

• low customer involvement but significant percieved differences among brands
• rely more on past experiences

Question 13

Describe extended problem solving

Answer 13

• each of the 5 stages of the customer purchase decision process is used in the purchase, including considerable time and effort spent on an external information search and identifying and evaluating alternatives.
• several brands are in the evoked set, and these are evaluated on many attributes

Question 14

Define customer touchpoints

Answer 14

A marketer’s product, service, or brand points of contact with a customer from start to finish in the purchase decision process.

Question 15

Define a customer journey map

Answer 15

A visual representation of all the touchpoints a customer comes into contact with before, during, and after a purchase.

Question 16

What are the 5 situational influences that can impact the purchase decision process

Answer 16

1. the purchase task - the reason for engaging in the decision in the first place (ex. whether it is a gift, or for own use)
2. Social surroundings - people present when a decision is made
3. Physical surroundings - decor, music, etc

4.Temporal effects - such as time of day or the amount of time available

5. Antecedent states - consumers mood or amount of cash in hand

Question 17

Define motivation

Answer 17

Energizing force that stimulates behavior to satisfy a need

Question 18

What is Maslow’s hierarchy of needs - he argues that people take care of lower level needs first and then are motivated to satisfy their higher level needs

Answer 18

1. physiological needs - basic to survival and must be satisfied first
2. safety needs - involves self preservation and physical well being
3. social needs - concerned with love and friendships
4. esteem needs - need for achievement, status, prestige, and self respect
   4.self actualization needs - involve personal fulfillment

Question 19

Define personality

Answer 19

A person’s character traits that influence behavioral responses.

• personality characteristics are often revealed in a persons self concept, which is the way people see themselves and the way they believe others see them (self concept vs, ideal self concept)

Question 20

Define perception

Answer 20

Process by which someone selects, organizes, and interprets information to create a meaningful picture of the world

Question 21

Define selective perception

Answer 21

Filters the information so that only some of it is understood or remembered or even available to the conscious mind

Question 22

Define selective exposure

Answer 22

This occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent

–> often occurs in the post purchase stage of the customer decision process, when customers read advertisements for the brand they just bought

–> also occurs when a need exists, you are more likely to see a McDonalds advertisement when you are hungry rather than after you ate pizza

Question 23

Define selective comprehension

Answer 23

involves interpreting information so that it is consistent with your attitudes and beliefs

ex. believing snow pup is a toy and not a good snow blower

Question 24

Describe selective retention

Answer 24

Customers do not remember all the information they see, read, or hear, even minutes after exposure to it

Question 25

Define percieved risk

Answer 25

Anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase. - but believes that there may be negative consequences - the greater the percieved risk, the more extensive the external search is likely to be

Question 26

Define learning

Answer 26

Behaviors that result from repeated experience or reasoning. - customers learn which sources to use for information about products or services etc.

Question 27

Describe behavioral learning

Answer 27

process of developing automatic responses to a type of situation built up through repeated exposure to it --> 4 variables central to how people learn from repeated experiences: 1. drive = need such as hunger that moves individual to action 2. cue = stimulus or symbol that one perceives 3. response - action taken to satisfy the drive 4. reinforcement = the reward (if don't like then that is negative reinforcement)

Question 28

Describe stimulus generalization

Answer 28

This is when a response brought about by one stimulus is generalized to another stimulus. ex. using the same brand name to launch new products is a common application. Customers familiar with one product will transfer their feelings to others that seem similar, whether similarity is in a brand name or in the shape and color of the packaging

Question 29

Describe stimulus discrimination

Answer 29

The ability to perceive differences among similar products. - customers may do this easily with cars, but in many cases like low involvement purchases, advertisers work to point out the differences

Question 30

Describe cognitive learning

Answer 30

- learning without direct experience - through thinking, reasoning, and mental problem solving --> involves making connections between two or more ideas or simply observing the outcomes of others behaviors and adjusting your own accordingly

Question 31

Brand loyalty is the result of what type of enforcement

Answer 31

Positive enforcement

Question 32

Define an attitude

Answer 32

- Tendency to respond to something in a consistently favourable or unfavourable way. - learned predisposition to respond to an object or class of objects in a consistently favourable or unfavourable way

Question 33

How do personal values affect attitudes

Answer 33

By influencing the importance assigned to specific product attributes or features

Question 34

define beliefs

Answer 34

Consumer’s perceptions of how a product or brand performs. - based on personal experience, advertising, and discussions with other people.

Question 35

Marketers use what three approaches to try to change customer attitudes towards brands and products

Answer 35

1. Changing beliefs about the extent to which a brand has a certain attribute 2. Changing the percieved importance of attributes 3. Adding new attributes to the product

Question 36

Define psychographics

Answer 36

The analysis of customer lifestyles

Question 37

What is lifestyle

Answer 37

A way of living that reflects how people spend their time and resources, what they consider important in their environment, and how they think of themselves and the world around them

Question 38

Define customer behaviour

Answer 38

Actions a person takes when purchasing and using products and services

Question 39

What is VALS

Answer 39

A psychographic system that identifies eight categories of adult lifestyles based on a persons self orientation and resources

Question 40

What is self orientation

Answer 40

The patterns of attitudes and activities that help a person reinforce their social self image

Question 41

What are the psychological influences on customer behavior

Answer 41

motivation and personality, perception, learning, values, beliefs, and attitudes, and lifestyle

Question 42

What are socio cultural influences on customer behavior

Answer 42

- evolve from a customers formal and informal relationships with other people, --> include personal influence, reference groups, family, culture, and subculture

Question 43

Describe opinion leaders

Answer 43

Individuals who have social influence over others.

Question 44

Define buzz marketing

Answer 44

brand becoming popular as a result of people talking about it to friends and neighbors

Question 45

What is product seeding

Answer 45

This is hiring people to talk up a brand to others

Question 46

what is viral marketing

Answer 46

The online version of word of mouth - includes the use of messages that customers pass along to others through online forums, social networks, etc.

Question 47

Sociologist Thorsten Veblen used what term to describe the acquisition of luxury goods and services

Answer 47

Conspicuous consumption - a way to publicly display wealth and economic power to others

Question 48

What is a reference group

Answer 48

A group of people who influence a person’s attitudes, values, and behaviour. --> they have important influence on the purchase of luxury products but not of necessitates!

Question 49

What is a membership group

Answer 49

A group to which a person actually belongs

Question 50

What is an aspiration group

Answer 50

One that a person wishes to be a member of or wishes to be identified with

Question 51

What is a dissociative group

Answer 51

One that a person wishes to maintain a distance from because of differences in values or behaviors

Question 52

What is consumer socialization

Answer 52

the process by which people acquire the skills, knowledge, and attitudes necessary to function as a customer ex. children learn how to purchase by interacting with adults in purchasing situations

Question 53

Describe the family life cycle

Answer 53

A family’s progression from formation to retirement, with each phase bringing distinct needs and purchasing behaviours.

Question 54

Describe culture

Answer 54

A set of values, ideas, and attitudes that are learned and shared among the members of a group.

Question 55

Define subcultures

Answer 55

Subgroups within a larger culture that have unique values, ideas, and attitudes.

Question 56

Describe cross cultural analysis

Answer 56

Study of similarities and differences among consumers in two or more societies.

Question 57

A societies values represent what

Answer 57

socially preferable modes of conduct or states of existence that tend to persist over time ex. McDonalds not selling cow meat because cow is sacred

Question 58

Describe customs

Answer 58

Norms and expectations about the way people do things in a specific country or culture. ex. Japanese consider slurping their food good

Question 59

Define cultural symbols

Answer 59

Objects, ideas, or processes that represent a particular group of people or society

Question 60

Define back translation

Answer 60

Retranslating a word or phrase back into the original language by a different interpreter to catch errors.