How Consumers Choose Brands

NAME_______ ___________

MK222

Class Discussion of Assigned Reading: Chapter 3

Assigned Reading: Creating Powerful Brands, Chapter 3: “How Consumers Choose Brands”

1. Summarize the Typology of Consumer Decision Process and be prepared to review the importance of differentiation and consumer involvement in this model.

The model we use is to show “the consumer decision process occurring as a result of consumers’ seeking and evaluating small amounts of information to make a purchase. Consumers rely upon a few pieces of selective information which…. help them decide how the brand might perform” (72). The importance of differentiation is that it allows the customer to understand what makes other brands different from one another.

2. Define and provide examples of the four (4) major sectors of consumer decision making: a) Extended problem solving, b) Dissonance reduction, c) Tendency to limited problem solving, and d) Limited problem solving.

A) extent of their investment in the brand purchase,

B) perception of any differences between competing brands (showing interest in one- high involvement),

C) When brands are of little personal importance and evoke little interest

D) Causing them to make a quicker decision

The different examples differentiate one customer from the other.

3. Briefly discuss the implications of “need-state” regarding the selection of brands.

The three different categories of needs that brands address are Functional, Symbolic and Experiential. Wendy Gordon introduced the term “need-state” in order to describe how brands are bought to reflect consumers’ needs. Our need-states change throughout our day, week, month, year, and life because things change. There are three different types of needs that each customer has.

4. What is perceptual selectivity and why is it important in the context of consumer decision-making?

By interpreting the personality of a brand and choosing a brand, they are choosing the reflecting traits that align with their own personality. There are also four diverse types of added values to brands, which include 1) added values from experience, 2) added values from reference group effects, 3) placebo effect, 4) added values from the appearance of the brand.

5. Describe the textbook discussion of Differential Brand Marketing and how does this understanding affect communication