Exam 12: Decision Making I: Need Recognition and Search

Initial search includes the retrieval of knowledge about products, services, and experiences that are stored in memory.

Compare and contrast the three decision-making approaches and describe which one you used when making a recent purchase.

COFFEE MAKER SCENARIO Jane was visiting her friend and was served a coffee drink similar to one she's had at coffee shops like Starbucks and Seattle's Best. Her friend told her that she can make coffee drinks like that with her single-serve pod coffee maker. Jane decided she'd like to buy one because she wanted to enjoy similar coffee drinks at home, but she didn't know much about them. She searched the Internet and went to Bed Bath & Beyond, Sur La Table, Williams Sonoma, and even Walmart. She realized there are several brands of this machine, such as Tassimo, Keurig, Breville, Cuisinart, Bunn, Senseo, and Mr. Coffee. They ranged in price from as low as $20 to several hundreds of dollars, making it difficult for her to decide which one to purchase. She was concerned about paying several hundred dollars for a coffee maker. She did notice that one brand, Tassimo, featured Starbucks coffee while none of the others did, and she ended up purchasing that one for $130 because that's her favorite brand of coffee. -Refer to Coffee Maker Scenario. Jane knew about some of the brands of coffee machines, such as Tassimo, Keurig, Cuisinart, and Mr. Coffee, but she didn't evaluate all of them in her decision making. These brands made up which set for Jane?

Consumers most often perform internal searches before any other type of search begins.

Tanya is considering purchasing a digital camera, so she searched "digital cameras" in Google and was overwhelmed with millions of results. There was so much information available that Tanya could not assimilate all of it, which is a phenomenon referred to as _____.

Which of the following influences a consumer's information search effort?

All of the following are decision-making approaches EXCEPT _____.

In general, consumers find that information from commercial sources is as credible as information from family and friends.

_____ refers to the situation in which consumers are presented with so much information that they cannot assimilate it all.

Which type of risk is associated with the likelihood of a product performing as expected?

Brand loyalty has benefits for both the consumer and the marketer.

The set of alternatives of which a consumer is aware is called the _____.

With limited decision making, no comparison between brands is done.

Brand loyalty involves deeply held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior.

Perceived risk refers to the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take.

When consumers engage in extended decision making, information primarily comes from external sources.

Describe the three major decision-making perspectives and describe a purchase decision you or your family made that illustrates each one.

Hal is considering purchasing a hybrid automobile because he wants better gas mileage and to help save the environment. However, he is concerned that the car might not perform as expected. Which type of risk is Hal considering?

Vince is really into cars and seeks out information on cars simply because he is interested in them. Which type of search does this represent?

COFFEE MAKER SCENARIO Jane was visiting her friend and was served a coffee drink similar to one she's had at coffee shops like Starbucks and Seattle's Best. Her friend told her that she can make coffee drinks like that with her single-serve pod coffee maker. Jane decided she'd like to buy one because she wanted to enjoy similar coffee drinks at home, but she didn't know much about them. She searched the Internet and went to Bed Bath & Beyond, Sur La Table, Williams Sonoma, and even Walmart. She realized there are several brands of this machine, such as Tassimo, Keurig, Breville, Cuisinart, Bunn, Senseo, and Mr. Coffee. They ranged in price from as low as $20 to several hundreds of dollars, making it difficult for her to decide which one to purchase. She was concerned about paying several hundred dollars for a coffee maker. She did notice that one brand, Tassimo, featured Starbucks coffee while none of the others did, and she ended up purchasing that one for $130 because that's her favorite brand of coffee. -Refer to Coffee Maker Scenario. Which approach to decision making did Jane use when she searched for information and compared alternatives?