What is "single option aversion" in the context of consumer choices?
"Single option aversion" refers to a phenomenon where consumers are more likely to choose a product when competing alternatives are available in the choice set, as opposed to when only one option is presented.
What is a practical implication of the single option aversion research for businesses?
A good practice for businesses, based on the single option aversion research, is to offer consumers at least two options.
How does single option aversion relate to the choice overload theory?
Single-option aversion is not inconsistent with the choice overload theory. While the former suggests that offering multiple options can be beneficial, choice overload means that providing too many options can overwhelm consumers.
When might the choice overload occur for consumers?
Choice overload generally occurs when consumers are exposed to many options. The number of options consumers can comfortably evaluate depends on their level of involvement and the attractiveness of the alternatives. However, consumers generally can handle at least three options without feeling overwhelmed.
Who tend to be more loyal to companies, men or women?
Men tend to be more loyal to companies compared to women.
When it comes to loyalty to individuals within companies, such as salespeople or service providers, who tends to exhibit more loyalty?
Women are more loyal than men to individuals within companies, such as salespeople or service providers.
How can we characterize men's loyalty in terms of group dynamics?
Men are more loyal to groups, indicating a stronger affinity or commitment to collective entities like companies.
In terms of personal relationships and individual interactions within a corporate setting, which gender tends to show more loyalty?
Women tend to show more loyalty to individuals, emphasizing their connection and commitment to personal relationships.
How do most consumers navigate the supermarket?
Very few consumers traverse all the aisles in the supermarket. Instead, they typically go around the supermarket perimeter and only enter a few specific aisles where they need to pick an item.
How does consumers' behavior in navigating supermarkets impact product placement, especially for familiar versus unfamiliar items?
Familiar items, better remembered from memory (recall), should be placed in the middle of the aisles to motivate consumers to explore more of the store. On the other hand, unfamiliar items, which are better recognized by seeing them, should be positioned at the end of the aisles where consumers are more likely to pass by.
Why should unfamiliar items be placed at the end of the aisles?
Unfamiliar items should be placed at the end of the aisles because consumers are more likely to go there and recognize that they need to purchase them.
What memory mechanism aids consumers in remembering familiar items in a supermarket?
Consumers better remember familiar items through recall.
And what memory mechanism assists consumers in recognizing unfamiliar items in a supermarket?
Consumers better recognize unfamiliar items by seeing them, known as recognition.
Why should companies emphasize one primary characteristic or value they represent?
Companies should emphasize one primary characteristic due to the halo effect and the associative network theory. Focusing on a singular strength allows positive associations to be created and reinforced, overshadowing other possible associations.
Provide examples of companies and their primary focus or characteristic.
Apple focuses on creativity, Porsche is centered around luxury cars, and L’Oreal emphasizes precision.
What is the halo effect in the context of branding?
The halo effect refers to the tendency of people to attribute positive characteristics in one domain to other domains based on a single positive trait. In branding, if consumers positively associated with a brand, they will likely form positive impressions about new products from the same brand.
How does the associative network theory relate to branding?
The associative network theory suggests that our minds store related information in connected nodes. When one association (or node) is reinforced, it strengthens and can suppress other associations. In terms of branding, consistently emphasizing a singular brand attribute strengthens that association in the consumer's mind.
How can the halo effect benefit the introduction of new products?
The halo effect aids in introducing new products because if consumers have positive associations with a brand, they will likely form positive impressions about the latest product even before trying it, based on the brand's reputation.
What are the two primary considerations when evaluating brand extensions?
The two primary considerations are category fit (the perceived fit between product categories) and association fit (the relevance of existing brand associations in the new category).
How does category fit impact brand extensions?
Transfers of the perceived quality of a brand are enhanced when there's a good fit between the two product categories. If there's a poor fit, it can detract from the brand's positive associations and might even lead to undesirable associations.
What are the potential consequences of a poor category fit in brand extensions?
A poor category fit can reduce the transfer of positive associations and stimulate undesirable associations about the brand in the new category.
What does PWYW stand for and why does it work?
PWYW stands for "Pay What You Want." It works primarily because of self-signaling, where people aim to be fair to themselves, and social signaling, where individuals want to appear reasonable in the eyes of others.
How do self-signaling and social signaling contribute to the effectiveness of the PWYW strategy?
Self-signaling involves individuals' desire to see themselves in a positive light, leading them to pay a fair price. On the other hand, social signaling is driven by the desire to be seen positively by others. These factors encourage consumers to pay an amount they believe is fair and just, making the PWYW strategy effective.
Last changeda year ago