Practise decision models, system 1 and system 2, choice heuristics, choice blindness and advertising-memory interference through applied consumer evidence.
Outline 'satisficing' as a model of consumer decision-making.
Award 2 marks for an outline of the term/concept in context.
Award 1 mark for a basic outline of the term/concept.
Example:
This is where the consumer satisfies their needs and searches amongst available products until they find an
acceptable product. (1) This product is then purchased. (1)
They get approximately where they want to go and then stop and decide to purchase the product. (1) If you were shopping for a new dress you would try on a few and then
buy the one that seems 'good enough'. (2)
Other appropriate responses should also be credited.
2
Max 1 mark if no link made to consumer decision-making.
Explain how satisficing as a model of consumer decision-making is reductionist.
Award 2 marks for a detailed explanation.
Award 1 mark for a basic explanation.
Likely answers:
- Just considers the cognitive level of explanation - the
consumer decides what is 'good enough' based on their
attitude about the product and the comparison to a few other similar alternatives.
- Does not take into account other levels such as environmental (store environment).
- The cognitive level of explanation of being 'good
enough' does not explain why customers will spend
extensive amount of time researching alternative products, read reviews, etc. especially when it is a high
value item that the customer might have for a long time e.g. car.
- Does not consider environmental explanation/influences
- a good marketing campaign will increase sales of the products.
- Does not explain why consumers purchase products that are luxury, high end, branded products that are
expensive and are more than 'good enough'.
- Does not consider societal and cultural explanations -products that are endorsed by 'influencers' who are
convincing the customers that they want a product as
the influencer is 'selling' a lifestyle' rather than fulfilling a
need in the consumer. Consumers want these products as they are marketed as being more than good enough.
2
6(b)
For example,
This model is reductionist as it does not consider other levels of explanation such as environmental factors. (1) Some consumers may decide to purchase a product due to the layout and atmosphere of the store. (1)
The model does not explain impulse purchases where the consumer doesn't consider any alternatives so there is no opportunity for them to believe that the product they are about to purchase is good enough as there is no product to compare it to. (2)
Other appropriate responses should also be credited.
7
Zahra works in a large store that sells a wide range of goods. She notices that customers in the store spend a long time
looking at the computers, comparing prices and asking questions. She also notices that when customers select grocery
items they only briefly look at what they put into their shopping trolley.
Customers at a supermarket frequently purchase one tin of tomatoes at a time. The manager of the supermarket wants to encourage customers to buy multiple tins of tomatoes.
Suggest one way the manager could use her understanding of 'point of purchase decisions' to encourage customers to purchase multiple tins of tomatoes.
Award 2 marks for an outline of the suggestion with relation to the context.
Award 1 mark for a basic outline of the suggestion.
Likely suggestions:
- Point of purchase promotion/multiple-unit promotion - e.g. ‘Tomatoes on sale - buy 5 cans for £2.00
- Purchase quantity limit - 'Tomatoes - limit 5 per customer'
- Explicit product quantity anchor in advertising 'Tins of tomatoes - buy 5 for your cupboard'
- Suggestive selling - customer has something suggested to them to encourage sales e.g. suggest a meal for dinner tonight that requires multiple tins of tomatoes.
Example:
The manager could encourage their customers to buy multiple tins of tomatoes by putting signs up near the tins of tomatoes advertising multiple-unit promotion. (1) The signs would say 'Tomatoes on sale - buy 5 cans for £ 2.00 '
Other appropriate responses should also be credited.
2
Context = encouraging purchase of
multiple tins of tomatoes.
Point of purchase promotion - 'Buy 5
and save £1'
Just state offering discount = 0 marks 1 mark identifying way e.g. purchase quantity limit or outlining it. 1 mark link to tomatoes as an example.
Do not credit explaining why this will
lead to purchasing multiple tins -answers b(i).
For the suggestion you gave in part (a):
Explain how this could change the customers' thinking so that they purchase multiple tins of tomatoes.
Award 2 marks for an explanation of why this suggestion would change customers' thinking so they purchase multiple tins/cans of tomatoes.
Award 1 mark for a basic explanation of why this suggestion would change customers' thinking so they purchase multiple tins/cans of tomatoes.
Likely explanations:
- Multiple-unit promotion - customers believe that the only way to get the discount is by purchasing multiple units or the promotion makes the customers see a larger than normal purchase as attractive.
- Purchase quantity limit - This gives the impression that the tins of tomatoes are scarce and that is why the store has set a limit. The customer may believe that it could be difficult to purchase tomatoes in the future so purchases more tins than they need.
- Product quantity anchor - This is suggestive selling and suggests to the customer that they should consider purchasing more for their cupboard in order to stock up. It is giving the customer a specific number of tins to purchase which will anchor this cognition in the mind of the customer and encourage some to purchase this number of tins.
Example
Multiple-unit promotion would encourage customers to purchase more tins of tomatoes as it is suggesting to the customer that a larger than normal purchase is attractive. (1) The customer believes they are getting a discount by purchasing 5 tins rather than 1 so many of the customers will want this discount and purchase more tins. (1)
Other appropriate responses should also be credited.
2
Credit responses that outline the results of Wansink's study as evidence to show that the suggestion will work.
Needs to be linked to suggestion from part (a) for 2 marks.
Need to include what customer is thinking and
why would this lead to purchase of multiple tins for 2 marks.
For the suggestion you gave in part (a):
Explain one problem with this suggestion.
For the suggestion you gave in part (a):
Explain one problem with this suggestion.
Award 2 marks for an explanation of the problem with suggestion from 7(a).
Award 1 mark for a basic explanation of the problem with suggestion from 7(a).
Likely problems:
- Customers may feel manipulated/tricked by the supermarket and shop elsewhere.
- In order to afford the multiple tins, the customer may not purchase other items so the overall sales at the supermarket will not increase.
- Customers can use self-generated (internal) anchors such as having a fixed budget/shopping list for the shopping and no promotion/suggestive selling will convince the customer to purchase more tins of tomatoes.
- The customer will look at the individual price of a tins of tomatoes and realise they are not saving any money so they do not purchase multiple tins.
Example:
One problem with multiple unit promotions is it is not possible to know if the customer was confused by the promotion and thought they had to purchase 5 tins in order to get the discount. (1) If this isn't true and the discount is available when purchasing 1 tin, the customer may realise this when they are next shopping. They may feel manipulated by the supermarket and start shopping elsewhere. (1)
Other appropriate responses should also be credited.
2
Individual differences/may not work for everyone is creditworthy.
Zahra works in a large store that sells a wide range of goods. She notices that customers in the store spend a long time looking at the computers, comparing prices and asking questions. She also notices that when customers select grocery items they only briefly look at what they put into their shopping trolley.
Explain one reason why the customers shopping for computers are using system 2 for decision-making.
Award 2 marks for an explanation with relation to the context. Award 1 mark for a basic explanation with relation to the context.
Example:
Definition system 2 (can be contextualised definition or not): The customers shopping for computers are using system 2 thinking as it involves effort and is thoughtful. (1)
Why using system 2 for decision-making for computer: Computers are an expensive purchase so the customer will want to spend time thinking about their purchase and comparing prices. (1) There are a lot of different types of computers and the customer will want to put in effort to make sure the computer they purchase meets their needs (e.g. has sufficient storage, software the customer needs). (1)
Other appropriate responses should also be credited.
2
Context = large store, shopping for computer versus shopping for groceries.
What is system 2 thinking = 1 mark
Link to why use system 2 for computers decision = 1 mark
Explain one reason why the customers shopping for groceries are using system 1 for decision-making.
Award 2 marks for an explanation with relation to the context. Award 1 mark for a basic explanation with relation to the context.
Example:
Definition system 1 (can be contextualised definition or not): The customers selecting their groceries are using thinking fast/system 1 as it is automatic and unconscious. (1)
Why using system 1 for decision-making for groceries: The customer doesn't need to put effort into choosing groceries as these are items they frequently purchase so they know which groceries they want. (1)
Other appropriate responses should also be credited.
2
Context = large store, shopping for computer versus shopping for groceries.
What is system 1 thinking = 1 mark Link to why use system 1 for groceries decision = 1 mark
Explain one problem with identifying whether a customer is using system 1 or system 2 for decision-making.
Award 2 marks for an explanation of one problem with
identifying system 1 / system 2 used by a customer.
Award 1 mark for a basic explanation of one problem with
Likely problems:
- Intuitive thinking/system 1 and 2 are cognitive processes so cannot be seen and have to be inferred.
- If the customer is observed to determine intuitive thinking, the behaviour of the customer may not match their type of thinking (e.g. they may be spending a long time looking at a product, but they are distracted and are thinking about something other than whether to buy the product).
- Customers can be asked in either an interview or questionnaire about their thinking about a product prior to purchase but this is subjective data and open to social desirability (might not want to admit system 1 thinking for an expensive product).
- If the responses are qualitative, it is open to bias/misunderstanding/difficulties with explaining
thoughts.
- All lower the validity of identifying the correct type.
2
7(b)
Example:
One problem with identifying whether the customer is using system 1 or 2 is that these thoughts are private and to access them inferences must be made from what the customer says and/or does. (1) Responses from customers as well as their behaviour can be misinterpreted, and the incorrect thinking style applied. (1) For example, a customer is seen to spend a long time looking at similar products before purchasing one but in fact they were distracted while browsing and just selected the first product that looked good to them. (1)
Other appropriate responses should also be credited.