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Tutorial 11 Ans R

The document discusses consumer behavior and decision-making processes through two case studies: Mrs. Wong's purchase of a 32” SQNY LCD TV and Andy's search for a massage chair as a gift. It outlines the five stages of consumer purchase decision, identifies consumer buying decisions and levels of involvement, and explores psychological responses like cognitive dissonance. Additionally, it examines information sources, evaluative criteria, and reference groups that influence consumer decisions.

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0% found this document useful (0 votes)
7 views4 pages

Tutorial 11 Ans R

The document discusses consumer behavior and decision-making processes through two case studies: Mrs. Wong's purchase of a 32” SQNY LCD TV and Andy's search for a massage chair as a gift. It outlines the five stages of consumer purchase decision, identifies consumer buying decisions and levels of involvement, and explores psychological responses like cognitive dissonance. Additionally, it examines information sources, evaluative criteria, and reference groups that influence consumer decisions.

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sjzsdb9jpd
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

BHMH2003

BHMH2003 Introduction to Marketing


Topic Eleven – Consumer Behaviour and Business Decision-making
(Take-home Exercise)

Questions

Mrs. Wong is a housewife living in a public housing estate. She bought a 32’ LCD TV last
month. In order to buy a high quality LCD TV at reasonable price, she collected a lot of
information from TV and newspaper advertisements and sought advices from her friends and
relatives. Finally, she bought a 32” SQNY LCD TV at HK$4,888 and she was proud that she
could make such a smart purchase decision. She expected this TV could be durable for at least 6
years.

Unfortunately, the television was out of order two weeks after Mrs. Wong’s purchase. More
importantly, she learnt from her neighbours that they could buy this 32” SQNY LCD TV at
HK$4,388 and their televisions are still functioning properly. Learning this news, Mrs. Wong
was dissatisfied and upset.

(a) Discuss the FIVE stages of consumer purchase decision process. Illustrate each stage with
a possible example of Mrs. Wong’s purchase of 32” SQNY LCD TV.

(b) Identify the Consumer Buying Decisions and the level of Consumer Involvement in Mrs.
Wong’s purchase of 32” SQNY LCD TV. Justify your identification.

(c) Identify the type of psychological response Mrs. Wong experienced after learning that her
neighbours could buy a cheaper and better LCD TV. Explain why Mrs. Wong has this
psychological response.
BHMH2003

Questions (past exam question from semester 1, 2020/21)

Andy planned to buy a special gift to celebrate his father’s 70th birthday. One day he was attracted
by a TV advertisement which promoted massage chair. The benefits of a massage chair include
deep relaxation, reduced blood pressure, a lowering of the pulse rate, and increased metabolism.
He therefore considers that a massage chair should be an ideal birthday gift which is good for his
father’s health.

Before he goes shopping, Andy has read advertisements placed in health magazines. He has found
that the prices and functions of massage chair vary a lot. He is prepared to spend this weekend to
visit several retail shops with his wife and a church member, Sam, for their opinions. He will also
seek advice from the salespeople on the popularity of different models before making his purchase
decision. He wants to buy a beautiful massage chair within his budget of $50,000.

(a) Identify with justifications the THREE types of information sources Andy used in his external
information search in the consumer decision making process.

(b) Identify the TWO evaluative criteria in the stage of evaluation of alternatives. Illustrate
ONE example of each criterion based on the above case.

(c) Identify and explain the FOUR types of reference groups. Identify with justifications the
TWO types of reference groups which might influence Andy’s purchase decision.
BHMH2003

Suggested Answers

(a) Discuss the FIVE stages of consumer purchase decision process. Illustrate each stage with
a possible example of Mrs. Wong’s purchase of 32” SQNY LCD TV.

⚫ The five stages are: (1) problem recognition, (2) information search, (3) alternative
evaluation, (4) purchase, (5) post-purchase behaviour
⚫ Students are required explain the concept of each stage.
⚫ Then, apply the concept of each stage into the case of Mrs. Wong’s purchase of 32”
SQNY LCD TV.

(b) Identify the Consumer Buying Decisions and the level of Consumer Involvement in Mrs.
Wong’s purchase of 32” SQNY LCD TV. Justify your identification.

⚫ High level of involvement - Extended problem solving


⚫ Students are required to explain the concept of extended problem solving
⚫ Mrs. Wong has high level of involvement and engaged in extended problem solving
process in buying the LCD TV because she collected a lot of information from TV and
newspaper advertisements and sought advices from her friends and relatives.

(c) Identify the type of psychological response Mrs. Wong experienced after learning that her
neighbours could buy a cheaper and better LCD TV. Explain why Mrs. Wong has this
psychological response.

⚫ Cognitive dissonance, which is a post-purchase anxiety.


⚫ Students are required to explain the term of Cognitive dissonance first.
⚫ Mrs. Wong experienced a post-purchase anxiety as
▪ she had already invested a lot of efforts in searching for a high quality LCD
TV at reasonable price.
▪ she expected this TV could be durable for at least 6 years.
▪ she was originally proud of her decision but her TV was out of order 2 weeks
after her purchase.
▪ she learnt from her neighbours that they could buy this 32” SQNY LCD TV
at HK$4,388 and their televisions are still functioning properly.
BHMH2003

Suggested Answers (past exam question from semester 1, 2023/24)

(a) THREE types of information sources

• personal source – visit several retail shops with his wife and a church member,
Sam, for their opinions.
• Mass media advertising - Andy has read advertisements placed in health
magazines.
• Sales people - He will also seek advice from the salespeople on the popularity
of different models before making his purchase decision.

(b) TWO evaluative criteria

• Objective attributes of a product


Example of Objective attributes: price his budget of $50,000
• Subjective attributes of a product
example of Subjective attributes: beautiful massage chair

(c) FOUR types of reference group

Primary membership groups – include all groups with which people interact
regularly in an informal way.
Secondary membership groups – people associate with these groups less
consistently and more formally.
Aspirational reference group – includes a group that someone would like to join.
Nonaspirational reference group – is one that someone wants to avoid being
identified with.

TWO types of reference group which might influence Andy’s purchase decision

Primary membership group


• Andy’s purchase decision might be influenced by his wife who will go
shopping with him.
Secondary membership group
• Andy’s purchase decision might also be influenced by his church member who
will also go shopping with him.

Common questions

Powered by AI

In consumer behavior, "problem recognition" occurs when there is a perceived difference between the current state and a desired state. For Mrs. Wong, the trigger was the need for a durable and quality TV, while for Andy, it was the desire to find a health-beneficial birthday gift for his father, initiated by an ad about the massage chair’s benefits .

Mrs. Wong exhibited a high level of consumer involvement, categorized as extended problem solving. This is because she engaged deeply in collecting information from various sources and sought advice before making her TV purchase, indicating a significant perceived risk and a careful decision-making process .

Information sources influence the consumer decision making process by providing essential details for evaluation and comparison. Andy used three types of information sources: personal sources, by consulting his wife and church member; mass media advertising, by reading health magazine ads; and salespeople, by planning to discuss popular models with them .

Mrs. Wong experienced cognitive dissonance, a form of post-purchase anxiety. Contributing factors include her investment in the perceived quality and price research, her expectation of durability, initial pride in her decision, the malfunctioning of her TV, and discovering that her neighbors obtained a better deal .

The five stages of the consumer purchase decision process are problem recognition, information search, alternative evaluation, purchase, and post-purchase behavior. For Mrs. Wong: 1) Problem recognition occurred when she decided to buy a new TV; 2) Information search happened as she collected data from ads and friends; 3) Alternative evaluation was her comparing different TV brands and models; 4) Purchase was made when she bought a 32” SQNY LCD TV; 5) Post-purchase behavior was her dissatisfaction when she learned about better deals and experienced the product malfunctioning .

Cognitive dissonance refers to the mental discomfort experienced after making a purchase due to conflicting beliefs or information. Marketers can address this by offering reassurance and follow-up support, such as warranties, clear return policies, and customer service outreach, as these measures reinforce consumer confidence and satisfaction post-purchase .

Reference groups that influence Andy's purchase include primary membership groups, like his wife, who shops with him, and secondary membership groups, such as his church member who accompanies them. The primary membership group is likely to have the most significant impact as Andy interacts regularly and informally with his wife, affecting his decision-making the most .

Post-purchase behavior significantly impacts consumer satisfaction and brand perception. Mrs. Wong's dissatisfaction due to product malfunctioning and better deals discovered through her neighbors led to negative brand perception and regret, illustrating how post-purchase experiences can affect overall brand loyalty and customer retention .

Aspirational reference groups, which individuals aspire to join, may motivate Andy to purchase a high-status item to align with his desired group. Nonaspirational reference groups, which individuals seek to avoid, may influence him to avoid purchasing items perceived as unsuitable by such groups. In Andy's case, the desire to be seen as considerate and health-conscious for his father's wellbeing could align with an aspirational group, while avoiding products that don't match his budgetary expectations might reflect his avoidance of a nonaspirational group .

The two evaluative criteria in the evaluation of alternatives are objective attributes and subjective attributes. In Andy's case, objective attributes are represented by the price limit of $50,000, and subjective attributes are reflected in the aesthetic appeal of a beautiful massage chair .

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