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study guide test 2 - Decision Making: Introduction, Stages...

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Decision Making: Introduction, Stages and Consumer Judgment Decision (def): Choice between two or more alternative actions/items/behaviors. Basic stages of decision making - Problem recognition - Search for alternatives - Evaluate alternatives - Select from among the alternatives - Post-selection evaluation - May not go through each stage, depending on: o Expense o Frequency of decision (habits) o Involvement o Cognitive resources / ability - Certain stages can co-occur (e.g., search and evaluation) - Small decisions don’t always go through each step I. Problem Recognition - Discrepancy between current state of affairs and ideal state of affairs. o Simple as “I need a pack of gum.” o Complex as “I need to make more money” - Triggers action to resolve that discrepancy. - Those actions require decisions. How do current-ideal discrepancies arise? - Perceived current state may get worse (“need recognition”). o Ex: losing your job, product could break, run out of a product, getting hungry or sick - Perceived ideal state may improve (and more further from current; “opportunity recognition”) o New circumstances (life changes) o New desires (new social groups, new products) How do marketers encourage current-ideal discrepancies? - (Carefully) downgrade perceptions of current state o “4 out of 5 women don’t get enough calcium” - Augment the ideal state- (make them want something more than they did before) o Primary demand – as a whole (milk) o Secondary demand – Specific brand - Most ads are secondary demand - Need to use primary demand if you are trying to get people excited about a new product (ex: TiVo)
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Problem Recognition - Perceived discrepancy is one trigger. - Awareness of future potential discrepancy is another. o “Pre-need goods” o Got Milk? They did research to figure out how to get people to buy more milk. They decided to advertize GOT MILK instead of it being healthy because people already knew it was healthy. - Once them problem is recognized, consumers then try to solve it. II. Search for Alternatives - What information do we need? o Available alternatives o Quality o Price - How might we find it? o Internal search o External search Internal Search “searching your mind” - Retrieve information from long-term memory about products or services to help with problem solving. - Two “musts” o Correct categorization-be in right place in mind o Correct retrieval o (Good to also have positive associations, etc.) Categorization and Retrieval - Is your product a member of the right category? o Encourage alternative categorization for your product. “It’s not just for breakfast anymore” – Orange Juice Waffle House- Consumer like waffle house but may not categorize it as dinner. -
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study guide test 2 - Decision Making: Introduction, Stages...

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