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Marketing Final Exam

Decision making is the most complex type of consumer

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Unformatted text preview: ch as chips), would take place. Some effort would have to be expended on evaluating alternatives or comparing prices if the consumer were price sensitive. PTS: 1 REF: 82 Communication KEY: CB&E Model Customer OBJ: 06-4 TOP: AACSB MSC: BLOOMS Synthesis 6. What is extensive decision making? Discuss the purchase of a product in which you would use extensive decision making when purchased for the first time and would require limited decision making in subsequent purchases. ANS: Extensive decision making is the most complex type of consumer decision making and is used when buying an unfamiliar, expensive product or an infrequently bought item. Such decision making requires the use of several criteria for evaluating options and much time for seeking information. Buying a car, an appliance, a stereo system, or other expensive, durable item would require extensive decision making for the first purchase. However, as the purchase is repeated, the buyer may feel experienced in decision making and may step back to limited decision making. For example, a person who has bought several cars may resort to the heuristic, “I have always bought Fords and have been satisfied, so my next car will be a Ford.” PTS: 1 REF: 82 Communication KEY: CB&E Model Customer OBJ: 06-4 TOP: AACSB MSC: BLOOMS Synthesis 7. Assume that you have been invited to join a social club whose members typically wear leather bombardier jackets. You have never bought or worn a leather jacket before. List and briefly describe four factors that could influence your level of involvement in the purchase of the leather jacket. How involved will you be in this purchase and why? ANS: The factors that affect involvement level are previous experience, interest, perceived risk of negative consequences, situation, and social visibility. PREVIOUS EXPERIENCE. Because there is no previous experience with the product, the level of involvement will be higher because of unfamiliarity with the product. INTEREST. Areas of interest vary by individual. The student may or may not be interested in leather jackets. However, purchasing the leather jacket indicates an interest in the social group and probably a high level of involvement. PERCEIVED RISK OF NEGATIVE CONSEQUENCES. Several types of risks are involved in the purchase. With an expensive jacket, loss of purchasing power and opportunity costs result in financial risk. A social risk is taken because wearing a leather jacket may cause a positive or negative reaction from other peer groups. For example, animal rights activists might criticize the purchase of a leather jacket, or other peer groups might view the purchase as frivolous. Finally, there is a psychological risk involved in the form of anxiety or concern about whether the “right” jacket has been purchased and is acceptable to other members of the social club. SITUATION. The circumstances of the social club make the leather jacket a high-involvement purchase. SOCIAL VISIBILITY. Because a leather ja...
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