Exam 4: Analyzing the Market Environment

Correct Answer:

Verified

Student answers will vary.Students should include the following points in their answers. Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.These rules take several different forms: compensatory,noncompensatory,or decision heuristics.A compensatory decision rule assumes that a consumer,when evaluating alternatives,trades off one characteristic against another,such that good characteristics compensate for bad characteristics.Sometimes,however,consumers use a noncompensatory decision rule,in which they choose a product or service on the basis of a subset of its characteristics,regardless of the values of its other attributes.Not everyone uses compensatory or noncompensatory decision rules.Some people use decision heuristics,which are mental shortcuts that help them narrow down their choices.Some examples are price,brand,and product presentation.

Correct Answer:

Verified

People have several types of motives.One of the best-known paradigms for explaining these motive types was developed by Abraham Maslow more than 30 years ago.Maslow categorized five groups of needs,namely,physiological (e.g.,food,water,shelter),safety (e.g.,secure employment,health),love (e.g.,friendship,family),esteem (e.g.,confidence,respect),and self-actualization (people engage in personal growth activities and attempt to meet their intellectual,aesthetic,creative,and other such needs). • Physiological needs deal with the basic biological necessities of life: food,drink,rest,and shelter.Although for most people in developed countries these basic needs are generally met,there are those in both developed and less-developed countries who are less fortunate. • Safety needs pertain to protection and physical well-being.The marketplace is full of products and services that are designed to make you safer,such as airbags in cars and burglar alarms in homes,or healthier,such as vitamins and organic meats and vegetables. • Love or social needs relate to our interactions with others.Haircuts and makeup make you look more attractive,and deodorants prevent odour.Greeting cards help you express your feelings toward others. • Esteem needs allow people to satisfy their inner desires.Yoga,meditation,health clubs,and many books appeal to people's desires to grow or maintain a happy,satisfied outlook on life. • Finally,self-actualization occurs when you feel completely satisfied with your life and how you live.You don't care what others think.You drive a Prius because it suits the person you are,not because some celebrity endorses it or because you want others to think better of you.