Ans. 1 – Consideration set is the sub-categorization of brands that consumers assess when making a buying decision. A consumer most often, has limited data processing capacities and limits the comparison to a sub-categorization of brands, known as a consideration set. The consideration set is composed of only those brands that are seriously considered by the consumer in his or her buying decision. In my personal experience as a consumer, I usually have a large consideration set of approx. 5-7 brands. My consideration set also depends on the type of product I am willing to buy and the time frame within which I require that product.
Ans. 2 – A manger can determine whether any product in his line has controlled alternatives in the marketplace (example, the two products are identical on all traits, except that his product is lower priced, or his product has a benefit on one significant trait.
He/she can evaluate any distances (temporal, mental, physical or spatial) linked with obtaining his product. For example, does the consumer necessarily drive to your store to buy the product? Or does a long duration of time need to pass before the consumer can use your product?
Ans. 3- A sunk cost is a cost that has been paid already and cannot be retrieved. The sunk cost error is an error in reasoning in which the sunk costs of a task, in place of the future costs and benefits, are measured whilst taking a decision whether to go on with it or not. For example, A bunch of students were offered a $50 trip to Wisconsin and a $100 ski trip to Michigan. The students were communicated that the $100 trip would be more fun rather than the $50 trip to Wisconsin. Afterwards, they were to choose only one of the trips and let the ticket for the other trip sacrificed.
Ans. 4 – Nick can either purchase bike A or bike C as both have the same expected utility theory of repair costs i.e. 60. But, since bike A costs less as compared to bike C, it should be chosen.
Ans. 5 – Need For Humor (NFH) represents an individual’s tendency to crave, seek out and enjoy humor. The domain of NFH includes amusement, nonsense and wit. Those consumers high in NFH, not only form more favorable attitudes towards humorous ads, but also turn off by understated and weak humor.
Ans. 6 – Brand personification is a projective technique in the study of consumer behavior that asks consumers to perceive about brands as if they were humans and to describe them based on their feelings. For example, a Harley Davidson motorcyclist roams in groups looking to explore a need for the manly sound the bike makes on the road, for independence and unity with other members.
The process of humanization of brands is termed as anthropomorphism of a brand and includes its human-like presence, elevating it with stories and attaching with customers who have compatible characteristics. For example, the Michelin man was its symbol for a long time. Moreover, the McDonald’s clown and the owl of Tripadvisor are examples of anthropomorphism of brands.
Ans. 7 – For the smooth functioning of an organization, the managers have authority to order its employees. But, with this authority there is the associated responsibility. According to Henri Fayol, the associated authority gives the managers the right to delegate orders to their subordinates (Kardes and Cronley and Cline 2014). This responsibility can be traced back to performance and it is therefore necessary to make agreements. More clearly, authority and responsibility go hand-in-hand and are two sides of the same coin.
Ans. 8 – The ad campaign for Target Stores could look like this: A new retail store by the name of Spencer’s has opened a new store near the main Target departmental store in New Jersey. There are very few people visiting the new Spencer’s and a plethora of customers going inside Target. So, the new store representatives (Spencer’s) try to disguise the crowd by sending their own people inside and faking a hypothetical situation that more people are going to them. However, just in a few days the truth comes out, and the larger crowd has returned to the Target stores.
Ans. 9 – A product attribute is that distinctive feature of a product that it and that is going to affect a consumer's buying decision. Product attributes are tangible or physical in nature. Alternatively, they can be intangible or not in physical form. For example, a consumer who wants to buy a new car, might consider tangible features such as the size, material and color.
Conversely, a consumer looking to buy a car might also consider the intangible attributes like its price, safety and quality scores.
Ans. 10 – Crescive norms are those norms in consumer behavior which are ingested in a culture. These typically include the following:
- Customs: the norms drawn about from the past which control the consumer’s basic behavior.
- Mores: the customs with a robust moral nuance.
- Conventions: the norms concerning the conduct in everyday life.