Exam 7: Consumer Behaviour

Consumers are less likely to engage in extensive search for information and make weighty decisions about products or brands when they are in which type of purchase situation?

A belief is essentially a descriptive thought that a person holds about a stimulus object.

Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available. Bill is experiencing:

Cognitive dissonance is experienced in the information search phase of the buyer decision process when the prospective purchase receives conflicting information about the benefits of different brands.

The consumer will pass through all of the stages of the buyer decision process for even the most routine purchases.

When consumers make purchase decisions for products that are frequently purchased, low- cost or low- risk items such as fast moving consumer goods, consumers are said to be making which type of purchase decision?

A first- year business student is preparing to purchase her first computer. Since she knows little about either the product category or the various brands in that category, she is likely to be highly involved and engage in habitual response behaviour.

The influencer is BEST described by which of the following statements?

People are less upset by one larger loss than several smaller losses, even though there may be no difference in the dollar value of the two situations.

Julie read an article stating that accounting graduates are receiving the highest starting salary offers among all business students. The article also stated that marketing students start with lower salaries but surpass all other students' salaries within ten years. Julie doesn't remember reading this last part of the article, just the first part. Julie's experience is an example of:

When directed towards a particular stimulus object such as a product, a drive becomes a(n):

The principle that people have limited ability to collect and process information, to choose between their competing wants, and to work out the consequences of their actions is known as bounded rationality.

Advertising messages for low- involvement products typically use:

When introducing a new product, an innovating firm typically directs its marketing efforts toward innovators and the early adopters.

Jane has been shopping in the city all day for a special outfit to wear to her cousin's wedding next week. Although she just can't seem to find the "perfect outfit" she feels she is running out of time and purchases a dress that she feels will do. While standing at the register to pay for her outfit, Jane vaguely notices the store has a "No exchange" sign posted on the wall behind the cashier but does not give it much attention. As she heads homeward, Jane is dismayed to see a boutique displaying the "ideal outfit" in the shop window. Jane is feeling frustrated by the hasty purchase earlier in the day. Jane is experiencing:

The leading brand among a category of products is likely to encourage discrimination in order to maintain its position.

A mature couple, approaching retirement, is thinking about taking a luxury cruise around North America or Europe. Apply the buyer decision process to this couple's travel decision.

Dairy Australia is a marketing authority responsible for marketing dairy foods. One of its core objectives is to create primary demand for dairy foods in general rather than to promote any specific brand. A recent advertising campaign for the Australian Dairy Board encouraged young women aged 15- 45 to eat more dairy products including milk, cheese and yoghurt. The main thrust of the campaign was that women should include three servings of dairy in their daily diet in order to prevent osteoporosis from developing in later years. The campaign met with very limited success and was eventually withdrawn. Using the concept of motives or drives, explain why the campaign was not as successful as the Dairy Board had hoped.

Personal characteristics that influence consumer decision making and buying behaviour include psychological, personal, cultural and social factors. Describe each of these factors and the ways in which marketers deal with them in practice. Give examples of the practices that you would expect to find within (an) organisation(s) to illustrate your understanding of each of the factors.

Some marketers encourage consumers to have regular payments for things such as magazine subscriptions or insurance payments charged via monthly payments to a credit card. This is because consumers pay less attention to the monthly charge because it is just one of many charges that appear on a credit card statement. This phenomenon is BEST explained by which of the following concepts from behavioural economics?