Exam 9: Individual Decision Making

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How are online search engines and social media informing both consumers and marketers, as searches are made for product information?

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One type of deliberate search involves searching on the Internet for information. What's the most common way for us to conduct information search today? Google it, of course! Although there are other search engines out there, such as Bing, Yahoo!, or even YouTube, Google's software that examines the Web for matches to terms like "home theatre system" or "tattoo removal services" is so dominant-with 96 percent of the world's mobile search market-that the name has become a verb. However, even a giant like Google can't rest on its laurels, because changes in how we search will probably reduce our reliance on search engines. Increasingly, consumers bypass Google as they go directly on their smartphones or tablets to apps like Yelp to read and write product reviews. However, as anyone who's ever Googled knows, the Web delivers enormous amounts of product and retailer information in seconds. The biggest problem Web surfers face these days is to narrow down their choices, not to beef them up. In cyberspace, simplification is key. Still, the sad reality is that in many cases we simply don't search as much as we might. If we Google a term, most of us are only likely to look at the first few results at the top of the list. Indeed, that's one reason why search engine optimization (SEO) is so important today. This term refers to the procedures companies use to design the content of websites and posts to maximize the likelihood that their content will show up when someone searches for a relevant term.
Not surprisingly, social media platforms also play a major role in the search process.
Often a next step is to get more information on other social media platforms, such as blogs, YouTube, Twitter, and Facebook. The goal here is not to collect more technical or performance information, but to get other people's opinions about options in the product category-and to eliminate some brands from consideration. What's more, after they buy a brand, about three-quarters of shoppers who use social media in the process choose to follow it on the company's Facebook page so that they can continue to engage with it in the future.

Andrea goes shopping for some pants for her son at a clothing store. While she is there, after getting the pants she sees a number of other items. Before she knows it she has accumulated a shopping cart full of clothing to buy. What process is happening here?

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Andrea has likely succumbed to purchase momentum, which occurs when initial impulses actually increase the likelihood that we will buy even more (instead of less as our needs are satisfied), almost as if we get "revved up" and plunge into a spending spree.

Products that customers put on the subordinate level always have at least one thing in common.

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Although Greg had considered numerous factors when looking at several models of ten-speed bikes, the critical or deciding factors that led to an actual purchase are called:

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What is a decision-making heuristic? Describe three typical heuristics used in consumer decision-making situations.

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When shopping at the supermarket, Russ always unconsciously grabs a carton of milk. This is an example of an automatic purchase.

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When a consumer becomes satiated with a favourite product, he or she may trade enjoyment just to try a different product. This is termed variety seeking.

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Some researchers characterize the consumer decision-making process as a continuum according to how much effort goes into the decision. They say it is anchored at each end by ________ and ________.

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How is product categorization related to the notion of forming a positioning strategy? Give an example.

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Criteria on which products differ carry less weight in the decision process than do criteria that are similar.

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Explain how habitual decision making works.

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The practice of monitoring blood flow while we are exposed to various marketing stimuli illustrates the practice of:

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The economics of information approach to search states that consumers will continue to acquire as much information as they need to make a decision so long as the benefits from searching outweigh the costs.

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Susan is trying to select a tour. She is going to Scotland but can't make up her mind what she wants to do when she gets there. There are so many variables including the cost, the weather, and Susan's desire to see the village her grandmother called home. Susan's problem emphasizes the importance of the ________ in hospitality marketing.

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Sylvester is a financially poor college student. He tries to make every purchase decision a wise one because of his economic situation. Based on the types of risk mentioned in the text, Sylvester's primary risk when making decisions would appear to be a psychological risk.

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Craig had heard stories about toaster disasters from his friends. This brand blew up, that one shorted out, another had not lasted even a year, and so on. He knew he should not consider those brands. They were Craig's:

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Choosing a product on the basis of its having the largest number of positive attributes is typically the case when a consumer is using the:

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Bill could not tell the Argonauts from the Stampeders during CFL Football on his tiny, antiquated black-and-white TV set! After he watched the second half of the game on his neighbour's big TV set, he realized there was a significant difference between his current state of affairs and a desired or ideal state. His perception is labelled:

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A consumer's existing knowledge of a product may be the result of ________, wherein on a previous occasion the consumer had already searched for relevant information or experienced some of the alternatives.

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Information searches usually happen before we are aware of a problem.

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