COMM 296 Study Guide - Comprehensive Midterm Guide: Personal Knowledge Base, Impulse Purchase, Root Mean Square

430 views12 pages
Published on 5 Oct 2016
School
Department
Course
UBC
COMM 296
MIDTERM EXAM
STUDY GUIDE
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 12 pages and 3 million more documents.

Already have an account? Log in
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 12 pages and 3 million more documents.

Already have an account? Log in
Chapter 6 - Consumer Behaviour
The Consumer Decision Process
1) Need Recognition
-the consumer recognizes they have a need to be fulfilled
-Functional need: Pertains to performance of a product or service
-Needs vs Wants (not necessarily needed, but desired)
-Psychological Needs - personal gratification consumers associate with a product or service
2) Search for Information
-search for info about the various options that exist to satisfy the needs
-Internal Search for Information
-when the buyer examines his or her own memory and knowledge about the product or
service, gathered through past experiences
-External Search for Information
-Occurs when the buyer seeks information outside his or her personal knowledge base to
help make the buying decision.
-Factors Affecting Consumers’ Search Processes
-Perceived Benefits vs Costs: Is it worth the time and effort to search for info about a
product or service
-The Locus of Control
-Internal Locus of Control: refers to when consumers believe they have some control over
the outcomes of their actions, in which case they generally engage in more search
activities.
-External Locus of Control: refers to when consumers believe that fate or other external
factors control all outcomes
-Actual or Perceived Risk: 5 types: Performance,financial,social,physiological and
psychological
-Performance Risk: involves perceived danger inherent in a poorly performing product or
service
-Financial Risk: risk associated with a monetary outlay: includes the initial cost of the
purchase, as well as the costs of using the item or service
-Social Risk: The fear of an actual harm should a product not perform properly
-Psychological risk/Safety risk: Associated with the way people will feel if the product or
service does not convey the right image.
3) Evaluation of Alternatives
-Attribute Sets: Research has shown consumers mind organizes and categorizes alternatives
to aid his or her decision process.
-Universal Sets: includes all possible choices for a product category
-Retrieval Set: Includes those brands or stores that the consumer can readily bring forth
from memory.
-Evoked Set: Comprises the alternative brands or stores that the consumer states he or she
would consider when making a purchase decision.
-When consumers begin to evaluate different alternatives they base evaluations on a set of
important attributes or evaluative criteria.
-Evaluative criteria: consist of a set of salient,or important,attributes about a particular
product.
-Determinant Attributes:product of service features that are important to the buyer on which
competing brands or stores are perceived to differ (Shortcut to simplify the potentially
complicated decision process.”
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 12 pages and 3 million more documents.

Already have an account? Log in
-Consumer decision rules
-The set of criteria that consumers use consciously or subconsciously to quick and
efficiently select from among several alternatives
-Compensatory Decision Rule: at work when the consumer is evaluating alternatives and
trades off one characteristic against another, such that good characteristics compensate
for bad ones.
-Non compensatory Decision Rule: at work when consumers choose a product or service
on the basis of subset of its characteristics, regardless of the values of its other
attributes.
-Multi-attribute model: a compensatory model of customer decision making based on the
notion that customers see a product as a collection of attributes or characteristics. The model
uses a weighted average score based on the importance of various attributes and
performance on those issues. (this is a more formal process)
4) Purchase and Consumption
-after evaluating the alternatives, customers are ready to buy
-They don't always end up buying the item they had originally decided
-Retailers have a Conversion Rate to measure how well they have converted intentions to
purchase into purchases.
5) Postpurchase
-final step is post purchase behaviour.
-Entails actual rather than potential customers
-satisfied customers become loyal,purchase again, and spread positive word of mouth so
they are quite important.
-3 Possible outcomes
-A) Customer Satisfaction
-Setting high consumer expectations will lead to dissatisfaction if the product fails to achieve
a high performance expectations… failure = dissatisfied customers
-bBuild realistic expectations, demonstrate correct product use, stand behind the product
or service (money-back and warranties), encourage customer feedback, periodically
contact customers and thank them for their support
-B) Postpurchase Cognitive Dissonance - the psychologically uncomfortable state produced
by an inconsistency between beliefs and behaviours that in turn evokes a motivation to
reduce the dissonance; buyers remorse.
-Can reduce dissonance by: Return item, pay attention to positive info, seek more positive
feedback, seek negative info about item not selected
-C) Customer Loyalty
-solidify relations with customer
-Undesirable Consumer Behavior
-Negative word of mouth (consumer spreads negativity)
Psychological Factors
Motives
-A motive is need or what that is strong enough to cause a consumer to seek satisfaction
-reference Maslow’s hierarchy of needs.
-Physiological (Basic biological needs)
-Safety needs (protection and physical well being)
-Love needs (Interactions with others)
-Esteem needs (fulfill inner desires)
-Self-Actualization (satisfied with his or her life)
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 12 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Grade+

Unlimited access to all notes and study guides.

Grade+All Inclusive
$10 USD/m
This Study Guide
$25 USD
You will be charged $120 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.