Chapter 8: Individual Decision Making

Front 1

Consumer Hyperchoice

Back 1

a condition where the large number of available options forces us to make repeated choices that may drain psychological energy while decreasing our abilities to make smart decisions.

Front 2

Rational Perspective

Back 2

people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weight the pluses and minuses of each alternative, and arrive at a satisfactory decision.

Front 3

Purchase momentum

Back 3

occurs when initial impulses actually increase the likelihood that we will buy even more (instead of less as our needs are satisfied)

Front 4

Constructive processing

Back 4

a consumer evaluates the effort required to make a particular choice, then chooses a strategy best suited to the level of effort required.

Front 5

Behavioral Influence Perspective

Back 5

managers must concentrate on assessing the characteristics of the environment, such as the design of the retaul outlet or whether a package is enticing, that will influence members of a target market

Front 6

Experiential perspective

Back 6

stresses the Gestalt, or totality of the product or service. Focus on measuring consumers' affective responses to products or services and develop offerings that elicit appropriate subjective reactions.

Front 7

Extended problem solving

Back 7

Initiated by a motive that is fairly central to the self concept and the consumer feels that the eventual decision carries a fair degree of risk. Tries to collect as much information as possible, both from memory (internal search) and from outside sources (external search)

Front 8

Limited problem solving

Back 8

buyers are not as motivated to search for information or to evaluate each alternative rigorously.

Front 9

habitual decision making

Back 9

choices made with little to no conscious effort. characterized by automaticity with minimal effort and without sonscious control.

Front 10

Problem recognition

Back 10

occurs whenever the consumer sees a significant difference between his current state of affairs and some desired or ideal stated. He perceives there is a problem to be solved, which may be small or large, simple or complex.

Front 11

Need recognition

Back 11

the quality of the consumer's actual state can move downward

Front 12

Opportunity recognition

Back 12

the consumer's ideal state can move upward. Occurs when a consumer is exposed to different or better-quality products. The person's circumstances have somehow changed, as when an individual goes to college or gets a new job.

Front 13

Primary demand

Back 13

encourage customers to use a product or service regardless of the brand they choose.

Front 14

Secondary demand

Back 14

marketers try to build this by persuading consumers to select a specific brand over competitors

Front 15

Silent commerce

Back 15

enables transactions and information gathering to occur in the background without any direct intervention by consumers or managers.

Front 16

Information search

Back 16

the process by which the consumer surveys the environment for appropriate data to make a reasonable decision.

Front 17

Prepurchase search

Back 17

when a consumer recognizes a need and then searches the marketplace for specific information

Front 18

Ongoing search

Back 18

consumers enjoy browsing just for the fun of it, or because they like to stay up to date on what's happening in the marketplace.

Front 19

RFIP

Back 19

(response frequency identification service). Tag that holds a very inexpensive computer chip capable of storing a small amount of information along with a tiny antenna that lets the chop communicate with a computer network.

Front 20

Internal search

Back 20

scanning our own memory banks to assemble information about different product alternatives

Front 21

external search

Back 21

we obtain information from advertisements, friends, or just plain people watching.

Front 22

economics of information approach

Back 22

assumes that consumers will gather as much data as needed to make an informed decision. the person will collect the most valuable units of information first. additional pieces will be absorbed only to the extent that he thinks they will add to what he already knows.

Front 23

variety seeking

Back 23

the desire to choose new alternatives over more familiar ones can influence consumers to switch from their favorite product to a less pleasurable item.

Front 24

sensory specific satiety

Back 24

the pleasantness of an item drops while the pleasantness of an unconsumed item remains unchanged. Even though we have favorites, we still like to sample other possibilities.

Front 25

mental accounting

Back 25

the way a problem is posed (called framing) and whether it is put in terms of gains or losses influences our decisions. People are more likely to risk their personal safety in the storm if they paid for the football ticket.

Front 26

sunk cost fallacy

Back 26

having paid for something makes us reluctant to waste it

Front 27

loss aversion

Back 27

people place much more emphasis on loss than they do on gain

Front 28

prospect theory

Back 28

a descriptive model of how people make choices, finds that utility is a function of gains and losses, and risk differs when the consumer faces options involving gains versus those involving losses.

Front 29

selective search

Back 29

efforts are more focused and efficient

Front 30

perceived risk

Back 30

purchase decisions that involve extensive search. The belief that the product has potentially negative consequences.

Front 31

neuromarketing

Back 31

uses a brain scanning device called functional magnetic resonance imaging (or FMRI), a machine that tracks blood flow as people perform mental tasks. Scientists know that specific regions of the rain light up in these scans to show increased blood flow when a person recognizes a face, hears a song, makes a decision, senses deception etc...

Front 32

Evoked set

Back 32

the alternatives a consumer knows about. Likely to be those that share some similar features. This process can either help or hurt a product.

Front 33

Consideration set

Back 33

the alternatives a consumer actually includes in deliberations about which to choose.

Front 34

Basic level category

Back 34

the most useful in classifying products because items grouped together tend to have a lot in common with each other but still permit a range of alternatives to be considered.

Front 35

positioning strategy

Back 35

hinges on the market's ability to convince the consumer that its product should be considered within a given category

Front 36

evaluative criteria

Back 36

the dimensions used to judge the merits of competing options. Criteria on which products differ from one another carry more weight in the decision process than do those where the alternatives are similar

Front 37

Determinant attributes

Back 37

the features we actually use to differentiate among our choices.

Front 38

Procedural learning

Back 38

a person undergoes a series of cognitive steps before making a choice.

Front 39

Cybermediary

Back 39

an intermediary that helps to filter and organize online marketing information so that customers can identify and evaluate alternatives more efficiently.

Front 40

Intelligent agents

Back 40

sophisticated software programs that use collaborative filtering technologies to learn from past user behavior in order to recommend new purchases.

Front 41

Electronic recommendation agent

Back 41

a software tool that tries to understand a human decision maker's multiattribute preferences for a product category by asking the user to communicate his or her preferences.

Front 42

Heuristics

Back 42

mental rules of thumb that lead to a speedy decision.

Front 43

product signal

Back 43

communicates some underlying quality. When product information is incomplete, consumers base their judgments on their beliefs about covariation, or perceived associated among events that may or may not actually influence on another.

Front 44

market beliefs

Back 44

assumptions about companies, products, and stores that become the shortcuts that guide consumers decisions whether or not they are accurate.

Front 45

Price quality relationship

Back 45

novice consumers consider price as the only relevant product attribute.

Front 46

Nationalists

Back 46

feel close to their own culture and their key personal values include duty, respect for ancestors, status, and social stability

Front 47

internationalists

Back 47

feel close to three or more outside cultures, their key personal values include open mindedness, learning, creativity, and freedom. More likely to be male, well educated and upscale

Front 48

disengaged

Back 48

do not feel great attachment to any culture including their own

Front 49

Country of Orgiin

Back 49

an important piece of information in the decision making process

Front 50

Stereotype

Back 50

a knowledge structure based on inferences across process.

Front 51

ethnocentrism

Back 51

the tendency to prefer products or people of one's own culture to those of other countries. Ethnocentric consumers are likely to feel it is wrong to buy products from other countries, particularly because of the negative effect this may have on the domestic economy.

Front 52

Inertia

Back 52

buying a brand out of habit merely because it requires less effort.

Front 53

Brand loyalty

Back 53

a form of repeat purchasing behavior reflecting in a conscious decision to continue buying the same brand.

Front 54

Brand parity

Back 54

refers to consumers' beliefs that there are no significant differences among brands.

Front 55

Noncompensatory decision rules

Back 55

choice shortcuts where a product with a low standing on one attribute cannot make up for this position by being better on another attribute. People simply eliminate all options that do not meet some basic standards.

Front 56

Lexicographic rule

Back 56

selects the brand that is the best on the most important attribute. If he sees two or more brands as equally good on that attribute, he then compares them on the next most important attribute, and so on..

Front 57

elimination by aspects rule

Back 57

the buyer also evaluates brands on the most important attribute but imposes specific cut offs.

Front 58

conjunctive rule

Back 58

processing by brand. The decision maker establishes cut offs for each attribute. He chooses a brand if it meets all of the cutoffs but failure to meet any one cut off means he will reject it.

Front 59

Compensatory decision rules

Back 59

give a product a chance to make up for its shortcomings.

Front 60

Simple additive rule

Back 60

the consumer merely chooses the alternative that has the largest number of positive attributes

Front 61

weighted additive rule

Back 61

the consumer also takes into account the relative importance of positively rated attributes, essentially multiplying brand ratings by importance weights.