Understanding Organizational Markets and Consumer Buying Behavior

Chapter 4 and 5 Essay Questions
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February 4, 2023
Chapter 4 (Odd Number) Questions:
71.) What is perception? Explain the perceptual process.
The process through which a person chooses, arranges, and interprets sensory data to produce a meaningful experience of the world is called perception. It concerns how our senses help us comprehend information. Customers' perceptions can be thought of as their exposure to certain advertisements, attention, interpretation of specific product names, retention of the brand in their minds, evaluation, and action that occurs when they act to purchase the product.
73.) Describe the categories of information sources that are used in the purchase of products.
Customers consult these many sources of information before making purchases. Depending on the product, the consumer's wants and preferences, and their decision-making process, the relative value of each source may change. Many resources are used in the decision-making process of a person, such as (1) personal resources, such as recommendations from close family members, (2) commercial sources, such as advertisements that persuade consumers to purchase a product, (3) public sources, such as reviews of products, and (4) even free samples at neighborhood grocery stores.
75.) Discuss the several ways in which a consumer can evaluate alternatives.
When making purchases at the grocery store, consumers can assess alternatives by comparing several brands of the same item. When a given product's price is too high, people frequently hunt for cheaper options that offer the same benefit and substance. When other customers learned that a product's reviews were negative, they frequently decided not to buy it. When customers are looking for substitutes for a particular product, brand reputation plays a significant role.
77.) Distinguish between a compensatory and non-compensatory model of consumer decision-making.
Two types of models can be used to describe how consumers make decisions while weighing their options: compensatory and non-compensatory models. Compensatory models presuppose that customers weigh all essential characteristics of each choice and decide using a weighted total or an additive procedure. For instance, despite having a shorter warranty, customers can opt for a more expensive product because it offers superior features. On the other hand, non-compensatory models presuppose that consumers use a threshold or cutoff approach to evaluate alternatives. For instance, a consumer may select only highly rated goods for reliability and reject all other alternatives, even if they have better features or are more affordable.
79.) Mention the factors that are influenced by demographics.
The consumer's age significantly impacts their purchasing decisions; younger people are often less likely than older people to consider expensive purchases. Due to the fact that some products are only marketed to women, and others are much more fashionable for the opposite gender, gender is also a significant factor in purchasing decisions. Because some products are out of the reach of most consumers and therefore have upper-class target m...