Reference no: EM131803738

Problem: Identify the types of consumer buying decisions and discuss the significance of consumer involvement. Consumer decision making falls into three broad categories. First, consumers exhibit routine response behavior for frequently purchased, low-cost items that require very little decision effort; routine response behavior is typically characterized by brand loyalty. Second, consumers engage in limited decision making for occasional purchases or for unfamiliar brands in familiar product categories. Third, consumers practice extensive decision making when making unfamiliar, expensive, or infrequent purchases. High-involvement decisions usually include an extensive information search and a thorough evaluation of alternatives. In contrast, low-involvement decisions are characterized by brand loyalty and a lack of personal identification with the product. The main factors affecting the level of consumer involvement are previous experience, interest, perceived risk of negative consequences (financial, social, and psychological), situation, and social visibility.

Questions: 1. Describe the three categories of consumer decision-making behavior. Name typical products for which each type of consumer behavior is used.

2. Describe the level of involvement and the involvement factors likely to be associated with buying a new computer. Do you think Apple's Web site simplifies or complicates the process for the average consumer? Explain.