MBA 706 Exam 2 Study Guide Questions and Answers.

MBA 706 Exam 2 Study Guide Questions and Answers. 1. What is the difference between a want and a need from the consumer buying process’ perspective? o Need  Occurs when the consumer’s existing level of satisfaction and desired level of satisfaction are not the same  Based on internal (e.g., hunger, thirst, and fatigue) or external (e.g., advertising, window shopping, interacting with salespeople) stimuli  Consumers can "recognize needs" in a variety of settings and situations based on internal and external stimuli. Interestingly, external stimuli can also arouse internal responses, such as the hunger you might feel when watching an advertisement for Burger King. o Want  Consumer’s desire for a specific product that will satisfy the need 2. What are outcomes consumers experience in the post purchase stage, and how are they different? o Delight o Satisfaction o Dissatisfaction o Cognitive dissonance (post-purchase doubt) 3. What are issues in the buying process? o Decision-making complexity  Primary reason for variations in the buying process o Individual influences  Demographics, perceptions, motives, interests, attitudes, opinions, or lifestyles o Social influences  Culture, subculture, social class, reference groups, and opinion leaders o Situational influences  Affect amount of time and effort devoted to the purchase task 4. When does “need recognition” mean in the consumer buying process? 5. What are the characteristics of information search in the consumer buying process? o Marketing activities can stimulate a desire for information  Passive information search – consumer becomes more attentive and receptive to information  Active information search – consumer purposely seeks additional information o Sources of information  Internal sources – personal experiences and memories  External sources – advertising, websites, packaging, display, and salespeople o Amount of time, effort, and expense dedicated to information search depends on:  Degree of risk involved in the purchase  Amount of expertise with the product category  Actual cost of the search (time and money) 6. What does ‘evoke set’ mean? o Narrowing down potential product choices to a few products that can meet consumer needs o Represents the outcome of information search and the beginning of the next stage of the buying process o Throughout the information search, consumers learn about different products or brands and begin to remove some from further consideration 7. What are factors affecting the consumer buying process o Decision-making complexity  Primary reason for variations in the buying process  the primary reason why the buying process will vary across consumers and with the same consumer in different situations. Level of risk and complexity will often determine whether a consumer spends a long time deciding to purchase a product (e.g., house, car) or only a small amount of time (e.g., groceries). It is important for marketers to manage decision-making complexity. For instance, with complex products entailing much risk, marketers should provide access to high-quality and useful information. o Individual influences  Demographics, perceptions, motives, interested, attitudes, opinions, or lifestyles  many individual influences (age, life cycle, occupation, and socioeconomic status) are fairly easy to understand and incorporate into the marketing strategy. Other factors (perceptions, motives, interests, attitudes, opinions, or lifestyles) are much harder to understand because they do not clearly coincide with demographic characteristics. o Social influences  Culture, subculture, social class, reference groups, and opinion leaders  Reference groups and opinion leaders have an important impact on consumers’ buying processes. Reference groups act as a point of comparison and source of product information. A consumer’s purchase decisions tend to fall in line with the advice, beliefs, and actions of one or more reference groups. Opinion leaders can be part of a reference group or may be specific individuals that exist outside of a reference group. When consumers feel like they lack personal expertise, they seek the advice of opinion leaders, who they view as being well informed in a particular field of knowledge. o Situational influences  Affect amount of time and effort devoted to the purchase task.