Term
| What is the rational perspective of decision making? |
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Definition
| People calmly and carefully integrate as much information as possible with what they already know about a product and weigh up the pros and cons of each before making a decision. |
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Term
| What is the Behavioural Influence Perspective of decision-making? |
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Definition
| (in conditions of low involvement) where decisions are made as a result of a learned response to environmental cues, e.g. buying on impulse as a result of a ‘special offer’ |
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Term
| What is the Experiential Perspective of Decision Making? |
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Definition
| in conditions of high involvement but where the selection made cannot be entirely rational |
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Term
| What is Habitual Decision Making? |
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Definition
Those that are made routinely
and with little or no conscious effort |
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Term
| What is Extended Decision making? |
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Definition
usually initiated by a motive that is fairly central to self-concept and the final decision is perceived to carry a fair degree of risk |
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Term
| What is Limited Decision Making? |
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Definition
Usually straightforward and simple. There is no real motivation to search for information and evaluate each alternative rigorously |
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Term
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Definition
| When marketers attempt to encourage consumers to use products regardless of the brand they choose |
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Term
| What is secondary demand? |
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Definition
| When marketer attempt to encourage consumers to prefer one brand over another |
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Term
| What are the 5 types of perceived risk? |
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Definition
•Monetary risk
•Functional risk
•Physical risk
•Social risk
•Psychological risk |
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Term
| What are the factors of Monetary risk? |
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Definition
Buyers with relatively little income and wealth are most at risk
High price items requiring substantial expenditure are most risky
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Term
| What are functional risks? |
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Definition
Practical consumers are most at risk
Prods/services requiring buyer’s exclusive commitment and precluding redundancy are products most subject to risk |
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Term
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Definition
Those who are elderly, frail or in ill health
Mechanical or electrical goods, drugs food and beverages are purchases most subject to risk |
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Term
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Definition
Those are insecure & uncertain are buyers most sensitive to this risk
Socially visible & symbolic goods, e.g. clothes & cars
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Term
| What are the dimensions of self-concept? |
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Definition
•Actual self
•Ideal self
•Social self
•Ideal social self
•Expected self
•Situational self
•Global self-attitude |
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Term
| What is psychological risk? |
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Definition
Those lacking self-respect or attractiveness to peers
Expensive personal luxuries may engender guilt, services demanding self-discipline |
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Term
When evaluating alternatives, what is meant by the evoked set? |
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Definition
These comprise those products already in memory (the retrieval set) plus those prominent in the retail environment |
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Term
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Definition
•Mental rule of thumbs that are used to simplify decision-making and lead to speedy decisions.
•The rules vary from the very general to very specific.
•Shortcuts include - relying on a product signal, relying on well known brand names as a signal of quality and believing market beliefs. |
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Term
What are the 3 examples of consumer heuristics?
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Definition
•Search heuristics
•Evaluation heuristics
•Choice heuristics |
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