expectancy-chapter 6 confusing part

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Expectancy-Value Model

The consumer arrives at attitudes toward various brands through an attribute evaluation procedure,developing a set of beliefs about where each brand stands on each attribute.

The expectancy-value model of attitude formation posits that consumers evaluate products andservices by combining their brand beliefs—the positives and negatives—according to importance.

A) Most consumers consider several attributes in their purchase decisions.

Purchase Decision

n the evaluation stage, the consumer forms preferences among the brands in the choice set and may

also form an intention to buy the most preferred brand.

n executing a purchase intention, the consumer may ma!e up to five sub-decisions"brands

Non-Compensatory Models of Consumer Choice

The expectancy-value model is a compensatory model, in that perceived good things about a product can help to overcome perceived bad things. #ut consumers often ta!e $mental shortcuts%

called heuristics or rules of thumb in the decision process.

&ith noncompensatory models of consumer choice, positive and negative attribute considerations do

not necessarily net out.

A) &ith con'unctive heuristic method, the consumer sets a minimum acceptable cutoff level for

each attribute and chooses the first alternative that meets this minimum.

#) &ith the lexicographic heuristic method, the consumer chooses the best brand on the basis of

its perceived most important attribute.

() &ith the elimination-by-aspects heuristic method, the consumer compares brands on a

attribute selected and eliminates brands that do not meet minimum acceptable cutoffs.) (onsumers do not adopt only one type of choice rule and may combine two or more decision

rules.

Intervening Factors

*ven if consumers form brand evaluations, two general factors can intervene between the purchaseintention and the purchase decision.

A) The first factor is the attitudes of others.

+) The intensity of the other persons negative attitude toward the consumers preferred

alternative.

) The consumers motivation to comply with the other persons wishes.

#) The second factor is unanticipated situational factors that may erupt to change the purchase

intention.

() A consumers decision to modify, postpone, or avoid a purchase decision is heavily influenced

by perceived ris!. There are many types of ris!s that consumers may perceive in buying and

consuming a product"


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) Mar!eters must understand the factors that provo!e a feeling of ris! in consumers and provide

information and support to reduce it.

Post-Purchase ehavior

After the purchase, the consumer might experience dissonance about their purchase and be alert to

information that supports their decision. Mar!eting communications should supply beliefs andevaluations that reinforce the consumers choice and help him or her feel good about the brand.

A) Mar!eters must monitor post-purchase satisfaction, post-purchase actions, and post-purchase

uses.

Post-Purchase !atisfaction

atisfaction is a function of the closeness between expectations and the products perceived performance.

A) f the performance falls short of expectations the consumer is disappointed.

#) f the performance meets expectations the consumer is satisfied.

() f the performance exceeds expectations the consumer is delighted.

Post-Purchase "ctions

atisfaction or dissatisfaction with the product will influence subse/uent behavior. A dissatisfiedconsumer may abandon or return the product.

Post-Purchase #se and Disposal

Mar!eters should also monitor how buyers use and dispose of the product. A !ey driver of sales

fre/uency is product consumption rate.

A) 0ne potential opportunity to increase fre/uency of product use is when consumers

perceptions of their usage differ from reality.

#) Mar!eters also need to !now how the consumer disposes of the product once it is used.

Moderating Effects on Consumer Decision-Ma$ing

The manner or path by which a consumer moves through the decision-ma!ing stages depends on

several factors, including the level of involvement and extent of variety-see!ing, as follows.

%o&-Involvement Consumer Decision-Ma$ing

The expectancy-value model assumes a high level of consumer involvement' or engagement and

active processing the consumer underta!es in responding to a mar!eting stimulus.

*laboration 1i!elihood Model

A) escribes how consumers ma!e evaluations in both low and high involvement circumstances.

+) (entral route.

) 2eripheral route.


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3) (onsumers follow the central route only if they possess sufficient motivation, ability, and

opportunity. f any of these are lac!ing then the consumers tend to follow the peripheral

route.

Mar!eters use four techni/ues to try to convert a low-involvement product into one of higher

involvement.

A) They can lin! the product to some involving issue.

#) They can lin! the product to some involving personal situation.

() They might design advertising to trigger strong emotions related to personal values or ego

defenses.

) They might add important features.

Variety-!ee$ing uying ehavior

ome buying situations are characteri4ed by low involvement but significant brand differences. #rand

switching occurs for the sa!e of variety rather than dissatisfaction.

ecision 5euristics and #iases

5euristics come into play when consumers forecast the li!elihood of future outcomes or events.

A) Availability heuristics

#) 6epresentativeness heuristics

() Anchoring and ad'ustment heuristics

E("VI)*"% DECI!I)N +(E)*, "ND E("VI)*"% EC)N)MIC!

As you might guess from low-involvement decision ma!ing and variety-see!ing, consumers dont

always process information or ma!e decisions in a deliberate, rational manner.

0ne of the most active academic research areas in mar!eting over the past three decades has been

behavioral decision theory 7#T). #ehavioral decision theorists have identified many situations inwhich consumers ma!e seemingly irrational choices.

Decision (euristics

Above we reviewed some common heuristics that occur with noncompensatory decision-ma!ing.

0ther heuristics similarly come into play in everyday decision ma!ing when consumers forecastthe li!elihood of future outcomes or events.+

A) The availability heuristic 8 (onsumers base their predictions on the /uic!ness and ease

with which a particular example of an outcome comes to mind.

#) The representativeness heuristic 8 (onsumers base their predictions on how

representative or similar the outcome is to other examples.

() The anchoring and ad'ustment heuristic 8 (onsumers arrive at an initial 'udgment and

1Footnotes 1 & 2


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then ad'ust it based on additional information.

9ote that mar!eting managers may also use heuristics and be sub'ect to biases in their own

decision ma!ing.

Framing

ecision framing is the manner in which choices are presented to and seen by a decision-ma!er.

Mental Accounting

6esearchers have found that consumers use mental accounting when they handle their money.

Mental accounting refers to the way consumers code, categori4e, and evaluate financialoutcomes of choices.

:ormally, it is $the tendency to categori4e funds or items of value even though there is no logical

basis for the categori4ation, e.g., individuals often segregate their savings into separate accounts

to meet different goals even though funds from any of the accounts can be applied to any of thegoals.%

According to (hicagos Thaler, mental accounting is based on a set of core principles"

+.(onsumers tend to segregate gains. &hen a seller has a product with more than one positive

dimension, its desirable to have the consumer evaluate each dimension separately. 1istingmultiple benefits of a large industrial product, for example, can ma!e the sum of the parts

seem greater than the whole.

. (onsumers tend to integrate losses. Mar!eters have a distinct advantage in selling something

if its cost can be added to another large purchase. 5ouse buyers are more inclined to viewadditional expenditures favorably given the high price of buying a house.

3. (onsumers tend to integrate smaller losses with larger gains. The $cancellation% principlemight explain why withholding taxes from monthly paychec!s is less aversive than large,

lump-sum tax payments—the smaller withholdings are more li!ely to be absorbed by thelarger pay amount.

;. (onsumers tend to segregate small gains from large losses. The $silver lining% principle

might explain the popularity of rebates on big-tic!et purchases such as cars.

The principles of mental accounting are derived in part from prospect theory.

2rospect theory maintains that consumers frame their decision alternatives in terms of gains andlosses according to a value function. (onsumers are generally loss-averse. They tend to

overweight very low probabilities and underweight very high probabilities.

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