1.

ANALYZE THE THREE STAGES OF THE CONSUMPTION PROCESS AND

PROVIDE AN EXAMPLE.

The consumption process is an important process for marketing and sales. It is the process of
describing the journey a customer goes through before they buy the product. Understanding a
customer's buying process is not only important to a salesperson, but also helps businesses adjust
their business and marketing strategies accordingly.

The consumption process has three stages: Pre-purchase, purchase and postpurchase under
perspective of consumers and marketers.

A. Pre – purchase stage:

At the PRE - PURCHASE stage, it is necessary to identify the problem or need, then seek
information and evaluate alternatives. From the consumer perspective, the buying process
begins when the customer realizes the need. Needs can be driven by internal stimuli (kích thích
bên trong), for example, hunger or thirst - rises high enough to become a motivation. A need can
also be triggered by external stimuli. For example, an advertisement or a chat with a friend might
cause a customer to think about buying a new car. At this stage, under marketer's perspective
should research consumers to find out the types of needs or problems (pain-points), touch-points,
... from there to find the customer insights to conquer customers.
Once a need is identified, potential consumers can seek information to help identify and
evaluate the alternative products, services, experiences, and stores that will meet that need..
Consumers can get information from any of the many sources they have access to. These
sources include personal sources, commercial sources, public sources, sources of
experience...Which sources are most important depends on the individual and the type of
purchase he or she is considering. For example, when you've decided you need a new car, you'll
likely pay more attention to car ads, friend-owned cars, and car chats. Or you can actively search
online, talk to your friends, and gather information in other ways. A.s more information becomes
available, consumers' awareness and knowledge of the brands and features available will
increase.

Next, marketers need to know about the alternative choices of consumers, how consumers
process information to choose between alternative brands, “if there is no…., Then use / buy….".
When a consumer finds and processes information about a problem she's trying to solve, they
identifies alternative products, services, and stores as viable options. Evaluation criteria vary
from consumer to consumer and from purchase to purchase, as needs and sources of information
vary. One consumer may consider price most important while another places more emphasis on
quality or convenience.

B. Purchase stage:

After lots of searches and reviews, consumers must at some point decide whether they will buy .
In the PURCHASE stage, this is acquiring a product is a stressful or pleasant experience rate the
brand. There is a difference between buying intent and buying decisions. , . Anything a
marketer can do to simplify a purchase will appeal to a buyer. For example, in advertisements,
marketers can recommend the best product size for a particular use, or example, travel agents
often pack tours and equipment stores try to sell them with additional warranties.

Consumers can form buying intent based on factors such as expected earnings, expected prices
and expected product returns. However, unexpected events can change buying intent. For
example, the economy could go badly, a close competitor might drop the price, or a friend might
report frustration about the car you like and plan to buy. Therefore, preference and even buying
intent do not always lead to the actual buying choice.

C. Postpurchase stage:

Finally, AFTER PURCHASING a product, the consumer will be either satisfied or dissatisfied
and will engage in post-purchase behavior that is of interest to the business. The final stage in the
customer decision process is the company or product must satisfy customers if they want them to
continue buying for the next time and introduce people around about the company's brand and
products.

If the product is not as expected, consumers will be disappointed; if it meets expectations, the
consumer is satisfied; If it exceeds expectations, consumers are delighted. The larger the
negative gap between expectations and performance, the greater consumer dissatisfaction.
However, almost all major buys lead to cognitive dissonance or discomfort due to conflict after
buying.

Marketers can take specific steps to reduce post-purchase discord. One obvious way is to help
ensure delivery of a quality solution that will satisfy customers. Another step is to develop new
advertising and customer communications, emphasizing many positive attributes or confirming
product popularity. Provides personal reinforcement that has proven effective with major ticket
items like cars and major equipment. Salespeople in these regions can send cards or even make
personal calls to reassure customers of their purchases.

Recommendation:

Customer satisfaction is the key to building beneficial relationships with consumers - to retain
and grow consumers and to reap lasting value for their customers. Marketers need to note that
the product must solve the needs of the customer, the problem of the customer is the most
important. To be able to solve customer needs and make them satisfied is nothing like
"understanding" who your customers are? What are they have problems? How does the
company's products solve the problems / needs of the company, ... Which channels of
information access, touch-points should be used to let customers know about the company's
products? Enterprises need to spend time and effort on researching the market, researching their
customers better, understanding them better, thereby responding to and satisfied them. Change
the customer-centric mindset, how the company needs to create products to meet the needs /
problems of customers instead of how to deliver the company's products to customers.

Understanding the consumption process, the marketer should focus on the factors that influence
the customers during the consumption process and create an effective marketing strategy, that
will make the customers more willing to make buying decision

2. "PEOPLE OFTEN BUY PRODUCTS NOT FOR WHAT THEY DO BUT FOR
WHAT THEY MEAN." EXPLAIN THE MEANING OF THIS STATEMENT AND
PROVIDE AN EXAMPLE.

Today, people pay more attention to the deep meanings of the products. This does not mean that
the basic functions of the product are unimportant, but that the product's role in our lives goes far
beyond the tasks they perform. The profound value that a product offers will help them stand out
from most alternatives that function like them.

There are two different types of consumption, between utilitarian consumption and hedonic
consumption. Utilitarian consumption, as the name suggests, is the consumption of goods that
are important for the consumer's general life this includes goods such as food, home, utilities and
medication. For example, Since ancient times, wars happened continuously, people's lives were
very miserable, then for them, rice was only bought to eat, no matter whether it was good or bad,
it only needed to be used. All of these are focused on the consumers’ well-being within basic
factors of life. Next, Hedonic consumption is focused on the consumer’s satisfaction and
happiness as these products are generally based on bringing joy and pleasure to the consumers’
lives. Many people spend 920,000 vnđ just to eat a bowl of Pho in the tallest building in Vietnam
instead of just spending 50,000 vnđ for a special Pho full of topping at the popular street stalls.
Nowadays, the commune is developing day by day, the quality of human life is also improved,
people not only spend money to buy things just to serve daily needs, but they also spending to
satisfy personal emotions, to attain states of pleasure.

A product is not only a material in

life, it has significance, reflects a
value, and represents a place.
Furthermore, they will typically
purchase an object based on what
it means to us rather than what it
does. For example, high-end
handbags such as Dior, Michael
Kors, and others are items for the
upper
class; they don't buy them for daily
use, but rather to flaunt their
wealth and sophistication. It's an
interesting hobby in real life. For
the wealthy, buying luxury goods
are the way they live. In the eyes
of
the average consumer, it's just a
waste of money that isn't worth the
high price tag because they aren't
in the position to fully comprehend
the product's value.
In conclusion, consumers will buy
a product not for what it does but
not for what it means, and they can
evaluate the significance of that
particular item to them rather than
what it can do for them, as they
will
see in the market a product with
the same features, but the
importance that it has only in
certain
products of a specific brand
A product is not only a material in life, it has significance, reflects a value, and represents a
place. Furthermore, they will typically purchase an object based on what it means to us rather
than what it does.
For example, high-end handbags such as Dior, Michael Kors, and others are items for the upper
class; they don't buy them for daily use, but rather to flaunt their wealth and sophistication. It's an
interesting hobby in real life. For the wealthy, buying luxury goods are the way they live. In the
eyes of the average consumer, it's just a waste of money that isn't worth the high price tag
because they aren't in the position to fully comprehend the product's value. In conclusion,
consumers will buy a product not for what it does but not for what it means, and they can
evaluate the significance of that particular item to them rather than what it can do for them, as
they will see in the market a product with the same features, but the importance that it has only in
certain products of a specific brand

Through periods of changing people's perceptions become more and more complex and consumer behavior
encompasses everything from buying a simple candy to buying giant homes. Consumers buy products that don't just
cater to their basic needs. Examples are Coca-Cola and Pepsi. Coca-Cola did a taste experiment. Through an
experiment that required people to blindfold and check their senses, people would taste a cup filled with Coke and a
cup filled with Pepsi. A large percentage said they preferred the taste of Pepsi over Coke. However, when Coca-
Cola tried to alter its taste, they received a backlash from consumers. A big lesson for the Coca-Cola Marketing
team is that customers don't just choose to buy Coke based on its taste. Most of the people who choose Coca-Cola
are extremely loyal guests. They choose Coca-Cola products, mostly influenced by the brand image, the power to
connect emotions and evoke the memories that Coca-Cola brings to them. So when a customer chooses to buy Coca-
Cola they want more than choosing a regular beverage. Rather, they are making a statement about the way of life,
the type of person or the aspirations they lead towards.

To avoid false strategies like Coca-Cola, marketers need to be really serious about carefully analyzing consumer
behavior in order to find existing or latent desires in them and analyzing them based on big impact factors such as
cultural, traditional, or family structures. And it takes some ingenuity to create some connections with customers to
position the brand before being overwhelmed by competing brands.

3. DEFINE HEDONIC CONSUMPTION AND PROVIDE AN EXAMPLE.

Hedonic consumption refers to buying goods and services for pleasure and enjoyment, rather than for practical
reasons. It is a form of consumption that has increasingly become popular in recent years as people seek to find
more meaning and pleasure in their purchases. Hedonic consumption involves buying goods and services for
reasons other than those that are considered practical. For example, people might buy a product because it makes
them feel good, because it is fashionable, or because it is associated with a certain lifestyle or status.

One example of hedonic consumption is buying designer clothing. People may buy designer clothes because they
provide an emotional reward, such as a feeling of increased self-confidence, or because they are associated with a
certain social status. Another example is buying luxury cars. People may buy luxury cars because they enjoy the
feeling of luxury and power that they provide, or because they want to project a certain image. Other examples of
hedonic consumption include buying tickets to concerts or sporting events, buying art, and going on vacation. All of
these activities provide an emotional reward and can be seen as a form of hedonic consumption.
Nowadays, the commune is developing day by day, the quality of human life is also improved,
people not only spend money to buy things just to serve daily needs, but they also spending to
satisfy personal emotions, to attain states of pleasure. There needs to be a differentiation between
two types of consumption, utilitarian consumption and hedonic consumption.

Utilitarian consumption, as the name suggests, is the consumption of goods that are important for
the consumer's general life this includes goods such as food, home, utilities and medication. All
of these are focused on the consumers’ well-being within basic factors of life. After satisfying
utilitarian needs if individual is left with resources they can spend it on enhancing emotional
pleasure which is known as hedonic consumption in consumer behaviour theory. Hedonic
consumption is focused on the consumer’s satisfaction and happiness as these products are
generally based on bringing joy and pleasure to the consumers’ lives. Consumption of hedonic
products is highly motivated by the meaning that they can have for the consumer as “People buy
products not only for that they can do but also for what they mean”. For example, many of us
would buy tickets to festivals or concerts to go and watch the artists that we love when we could
easily just download their album for a much smaller price and be satisfied. However, this is not
the same experience as attending the concert or festival as the atmosphere of seeing the artist live
is significantly better than listening on your computer. Another example is going for a vacation
or camping trip by taking some time from daily routine. This gives an individual opportunity to
explore nature and gives mental pleasure thus enhancing need of hedonic consumption.

Will all individuals express the same feeling with the hedonic goods ? The emotional pleasure
generated can vary with every individual unlike in utilitarian consumption where satisfaction
level is same for every individuals as they are basic needs. An example is if an employee was
given a work vehicle to perform his or her duties, it is a seen as a utilitarian good. However, if
the employee then uses it for recreational use, it then becomes a hedonic good.
In today’s marketing, consumer understanding became extremely important. The marketers
should try to recognize consumer behaviour to make products and marketing programs according
to consumer’s needs so they can make consumers more satisfied. For successful marketing plan,
the targeting audience should be examined and analysed because consumers not only do
shopping to satisfy their needs but they also try to enjoy the shopping act.

4. PERCEPTUAL PROCESS.

Perception is the process of selecting, organizing, and interpreting information. This process
includes the perception of select stimuli that pass through our perceptual filters, are organized
into our existing structures and patterns, and are then interpreted based on previous experiences.
The perceptual process begins when our sensory receptors (eyes, ears, nose, mouse and skin)
come in contact with sensory stimuli (sights, sounds, smells, taste and textiles) around us.

The Figure above shows how as consumers we are exposed to sensory stimuli through our
sensory receptors. This figure also emphasizes the three key stages of perception: exposure,
attention, and interpretation.

Exposure occurs when a stimulus comes within the range of someone's sensory receptors. We
take in information through all five of our senses, but our perceptual field (the world around us)
includes so many stimuli that it is impossible for our brains to process and make sense of it all
so, they concentrate on some stimuli, but are unaware of others. The choice of the stimulus
would depend on what they feel is relevant to or appropriate for them. In the field of marketing,
stimuli could include the product, the brand name, the features and attributes, the packaging, and
the advertisement. For example, Milo Nestle operates its advertising campaigns through TV,
billboard ads and many other tools to increase its exposure to consumers. Brands should base on
the fact that with higher degrees of exposure, at some point their message is going to “stick” and
capture consumers’ attention at just the right moment.

Attention- The next part of the perceptual process is the extent to which processing activity is
devoted to a particular stimulus. We are more likely to notice stimuli that differ from others or
meet our needs. Several characteristics can aid in enhancing the chances of a stimulus for being
noticed including size, color, position, and novelty. Marketer need to understand these factors so
they can create messages and packages that will have a better chance of cutting through the
clutter.

The final process in the perceptual process is referred to as perceptual interpretation. Consumers
are likely to process the ‘message’ to some extent, if the consumer pays close attention to this
brands. The individual will prefer to interpret the sensory inputs received by him or her, such as
to fulfill their personal needs, interests. Because, the individual do it themself based on their
experience so that there are chances of misinterpretation. For example, In the US, KFC has been
very successful with the slogan: “Finger lickin’ good.” But the company stuck with this when
moving its campaign into China, where unfortunately this phrase translates to “We’ll eat your
fingers off.” Individuals may have different perceptions about the stimuli that brands bring, so
marketers should carefully learn about the characteristics of the customer to design the right
marketing campaign.

Critical discussion: Will consumers be aware of all the information that brands convey through a
product or an advertisement? The answer depends on the characteristics and experience of the
consumer. Therefore, marketers should carefully research the audience to which the brand wants
to convey information, analyze their needs, preferences, and personal characteristics to map out
marketing strategies.
Understanding the perceptual process, so the marketers should focus on the factors that create a
positive stimulus for consumers. From there they will have good brand awareness, that will make
the customers more willing to make buying decisions.

5. ANALYZE THE MODEL OF COGNITIVE DECISION MAKING AND PROVIDE

AN EXAMPLE
INTRODUCTION:
In 1968, researchers Engel, Blackwell, and Kollat developed a five-step model of the consumer
buying decision process (known as the Engel-Blackwell-Kollat or EBK model), and that model
is still useful for marketers today.
BODY:
Definition and Model
The consumer decision-making process is a complex process that involves everything starting
from recognizing the problem to the activities related to the product or service after it has been
purchased by the consumer.

Figure 8.1 STAGES IN CONSUMER DECISION MAKING (p.296)

Explanation
The first step of the decision making process is Problem Regconition, means the consumer
recognizes a problem which needs to be solved, or a need which needs to be satisfied. At this
point, the customer may or may not know what will solve their problem. They may only be
aware that they want to change their reality or situation. Or they may have an idea about what
will help them but are not quite sure which brand, product, service, or solution will provide the
best option.
Example
A consumer buying process example at this phase could be a college freshman, An, who has a
computer that is starting to run slowly. She is getting ready to start the semester and needs a
computer that will efficiently help her with her assignments.
Explanation
Information Search - The next phase of the buying decision process begins when the customer
starts looking for information that will help them solve their problem. They know they need
something to fix their situation but aren’t sure which solution is best for them. The customer
starts searching for information that will help him or her better understand their situation and
identify what will fix their issues. At this point, the customer frequently turns to online research
and conducts searches to find solutions.
Example
An, the college student may start seeking information to help resolve her immediate problem,
which is speeding up her computer. Depending on what she finds, she may also begin searching
for options for purchasing a new computer.
Explanation
Evaluation of Alternatives – Once the initial information search is complete, customers start
reflecting on what they learned or discovered. They begin to evaluate their options to determine
which is the best solution for their problem. Customers at this point in the buying decision
process have a lot to consider. They must determine what solution is the most trustworthy,
affordable, highest quality, and highest performing. They look for reasons to believe why one
solution has more benefits than the other.
Example
In this phase, An might be making a comparison list of multiple computers. The list may
include prices, features, and reviews.
Explanation
Product Choice - At this point of the buying decision process, the customer is ready to pull the
trigger and make a purchase. They have made their decision about which product, service,
brand, or solution is best for them, and they are ready to buy.
Example
Now that the college student, An, has decided to buy, she is likely eager to make the purchase
and get her computer. She may, therefore, be more likely to buy the computer if she gets free
and expedited shipping.
Explanation
 Outcomes - At the last step of the five-stage consumer decision-making process, the path to
buying is complete. The customer has made a purchase. But that doesn’t mean the customer
journey is complete. Now is the time when the customer reflects on whether they made the
right decision. The customer will consider if the solution accurately and fully meets their needs.
They will decide if it was worth the cost and if the brand delivered on their promises. They will
feel either satisfaction or buyer’s remorse. If it’s the former, the customer could come back to
make another purchase. But if it’s the latter, the customer could reject the brand, never make
another purchase, and even share their negative experience with others.
Example
When An makes it to this phase of her buying decision process, she is using the computer and
discovering what she likes and doesn’t like. Reading resources that show her how to better
utilize the computer could make her like it more.
Critical Discussion
This traditional five-step consumer decision-making model is widely used, however, over the
years, there have been several studies suggesting gaps in the traditional model (EBK model).
There have been several opposing views on the consumer decision model. Consumers do not
follow the entire model approach from end to end also, for a daily purchase product or service
it is extremely complicated to arrive at a decision, the consumers are usually faster to arrive at a
decision. Besides, the model still do not relate well to products like financial services. The main
criticism over the years was by Bozinoff (1982), stating that in the consumer decision-making
model the consumers are considered to be rational, who always follow a logical pattern and a
calculated approach to evaluate a product or service which serve their need. Furthermore, the
model does not address the impulse buying behaviour of consumers.
Recommendation
Consumer behaviour is evolving with the new trends of digitisation and the availability of
resources on the internet. With the new digital trend, personalization is the key and for this, a
study with a larger sample size should be conducted refining and confirming the models
working, also there is need to do further research in the factors impacting the motivation of the
consumers. And the service industry is growing rapidly with online revolution where customers
have easy access to information hence, it becomes critical to conduct further research.
CONCLUSION:
In conclusion, consumer behavior is a dynamic ongoing process. So, the enterprises should
study consumer behavior for meeting the consumer demand completely. The EKB model is a
way to solve this problem. This model indicates the steps of consumer behavior and what every
step refers to. From the enterprises point of view, studying consumer behavior can help the
enterprises more understanding consumer consumption habit. And then, because the
satisfaction of consumers can make them come again and introduce the product to their friends,
the enterprises can profit from it.

*Note:
- Đầu tiên lật trang 347 chép hết ý của bảng 9.2 vào bài ( Do các ý trong bảng quá nhiều nên
chúng ta chỉ phân tích một số ý chính trong đó ở bài essay bên dưới )
- Lưu ý cả nhà không ghi tên tiêu đề vào bài làm ( Các mục A,B,C là để cả nhà biết topic của
đoạn đó là gì )
- Giải thích phần Advantages :
 Đoạn 1: giới thiệu về advantage
 Các đoạn còn lại:
 Câu đầu tiên không highlight => topic sentence
 Highlight vàng: Giải thích cho câu toipc sentence
 Highlight xanh: Cho ví dụ
- Giải thích phần Disadvantages: như trên
- Trong hai phần advantages vs disadvantages, mình có đưa ra nhiều đoạn, cả nhà không cần
chép hết nha. Chọn ra đoạn cả nhà thích thôi nha !!!!!

6. WHAT ARE SOME IMPORTANT PROS AND CONS OF E – COMMERCE ?

PROVIDE AN EXAMPLE.
I. Introduction:
1. Negative and positives are the two sides of the same coin. When someone thinks about
starting an Ecommerce store, they assume both these effects on their business. While
Ecommerce stores have benefits, they also have some unique challenges and for any
entrepreneur, it is important to be aware of both sides before putting their head in the big
Ecommerce world.
2. In 2020, e-commerce sales reached $861.12 billion in the US alone. That presents a huge
opportunity for e-commerce businesses, but online sales pose some unique challenges that brick-
and-mortar shops don’t. Before decide how best to run the business, the owners should consider
the e-commerce advantages and disadvantages.
3. The invention of faster internet connectivity and powerful online tools has resulted in a
new commerce arena – Ecommerce. Ecommerce offered many advantages to companies and
customers but it also caused many problems.
4. Many small business owners venture into the land of online sales without fully
understanding all of the advantages and disadvantages of pursuing eCommerce. Quantifying the
value of adding eCommerce to your brick-and-mortar business can be challenging.
5. In today’s economy, business moves at a rapid pace and shows no sign of slowing down.
Many of the revolutionary changes that have taken place and supplied this economic engine with
fuel are due to electronic commerce. The introduction of the computer into the workplace has
brought about manifold changes and seemingly unlimited possibilities for merchants. This new
technology offers many advantages for businesses but there are disadvantages as well.
II. Body:
A. What is E-commerce:
E-commerce is the buying and selling of good or services via the internet, and the transfer of
money and data to complete the sales. It’s also known as electronic commerce or internet
commerce. There are five the most traditional types of e-commerce models such as business to
consumer (B2C), business to business (B2B), direct to consumer (D2C), consumer to consumer
(C2C), consumer to business (C2B). Everyone from independent freelancers to small businesses
to the largest of corporations can benefit from the ability to sell their goods and services online at
scale.
 B. Advantages:

The internet might be the single most important facet of modern society. It plays a primary
role in everything from political discourse and higher education to the way we conduct ourselves
and our businesses. It's no wonder, then, that switching to an e-commerce model comes with
significant advantages.
For customers, they don’t need a physical store. E-commerce eliminates the need for physical
stores and allows businesses to expand their customer base. On top of eliminating the possibility
of long lines, e-commerce sites offer a huge advantage to both shoppers and stores that aren't
located in major urban areas. Even if you are located in a big city, e-commerce opens up new
markets, allowing you to develop a new business model geared toward your expanding consumer
base. Many businesses have found particular success in developing good e-commerce Search
Engine Optimization, which drives more traffic to the site. For example, Shoppee, Lazada ,… are
the e-commerce sites in which users don’t need to go to physical stores to buy products. No
matter who you are, any country, as long as you have a smart phone with e-commerce installed,
you can enter the e-commerce market in the simple way.
Digital products can be sold online with little-to-no overhead cost. By e-commerce,
consumers can purchase music, videos, or books instantaneously. Stores can now sell unlimited
copies of these digital items, without having to worry about where they'll store the inventory. For
example, Nextflix with its storage of millions of movie online, has changed the film distribution
industry – consumers don’t need to go to the rental store of media tapes to take home every
single reel or CD. With Nextflix, users can use devices at home such as TV, smartphones and
enjoy their endless movie store.

The benefits consumers enjoy are shared by e-commerce companies when it comes to the
supply chain. Consumers like online shopping because they don't have to deal with cash, worry
about schedules, or wait in long lines. Those benefits also apply to entire supply chains
interlinked with business-to-business e-commerce systems. Procurement becomes faster,
transparent, and there's no need to handle currency notes or cash. The result is cheaper, easier
transactions with fewer opportunities for accounting errors. For example, when you use TiKi,
you can choose from a variety of payment options instead of just cash.

For business, they can also save money on rent, utilities, maintenance, and other costs
associated with physical stores. Your e-commerce store can essentially remain open 24/7 without
hiring employees to watch over the store and protect items. Since you aren't confined to a set
amount of shelf space, there is no limit to the number of items that can be sold online, and your
store's stock can expand exponentially. Physical products will still have to be stored somewhere,
but storage spaces are often cheaper than retail spaces, and you won't have to worry about factors
like foot traffic and parking spaces. For example, according to “E-commerce helps businesses
reduce costs” article of Vnexpress, mr Nguyen Manh Ha – CEO of online sales website Lingo.vn
said that in the context of fierce competition, the need to introduce and promote products,
corporate image is increasing and becoming more urgent. The e-commerce will be the
appropriate solution to reduce costs and increase efficiency.
E-commerce also allow business to scale up easier than physical retailers. When a brick-and-
mortar store grows, it needs to consider how it will serve more customers in the same small
space. More employees are needed to expedite check-outs, more of the floor gets dedicated to
forming lines, shoppers feel more crowded as customer base and inventory grows. Of course,
logistics always get tougher as a business grows, no matter how the business operates. With the
right choice of a third-party logistics provider, however, e-commerce companies can manage this
growth without worrying about the physical store aspects. For example, SaiGon food – the
company specializes in trading foodstuff in VietNam. 2020 is a very special year not only for
SaiGon food, but also for the business community of VietNam, because of suffering heavy losses
from the Covid-19 pandemic. However, thanks to the application of TiKi, Shopee, Lazada,
SaiGon food still recorded revenue of 2,700 billion VND, an increase of 10 % compared to 2019.
In particular, e – commerce channel, recorded growth up to 750 %.
Keeping in contact with customers is often easier for e-commerce businesses. Since the e-
commerce merchant captures contact information in the form of email, sending out both
automated and customized emails is simple. Let customers know about a sale, promote a new
product, or just check in with customers for a personal touch—all with minimal effort.
Additionally, web tools like cookies allow for superior store customization and consumer
behavior analysis. For example, using data insights, Tiki, Lazada,.. can email potential customers
who have abandoned their carts, motivating and reminding them to check out their purchase, and
can even use retargeting advertising to nurture leads that have not yet purchased.

C. Disadvantages:

On the other hand, while it may initially seem like e-commerce will solve all your business
problems, there are disadvantages to switching from a physical location to an online store.

For customers, many of them still prefer the personal touch and relationships formed at a
brick-and-mortar shop. This can be especially valuable to customers shopping for specialized
products, as they may want to consult an expert about the best product for their needs. A solid
customer service hotline can't replace face-to-face interaction with a specialized sales rep.
Additionally, many customers want to experience the product before purchase, like when
shopping for clothes. For example, It’s easy to assume that the older generations (e.g. “Baby
Boomers” born 1946-1964) are more likely to shop in-store than online, because they aren’t
digital natives – they haven’t grown up with digital technology at the heart of their daily lives.
Especially, items such as furniture, cars . . have high value and need to be carefully considered
before buying, the majority of customers will choose to go directly to the store to buy rather than
buy online.

Security and credit card fraud are also huge risks when dealing with online
shopping. Consumers run the risk of identity fraud and similar hazards every time they enter
their details into a site. If your site doesn't convince shoppers that the check-out process is
secure, they could get scared out of buying. On the other hand, businesses run the risk of
phishing attacks and other forms of cyberattacks. If one of your employees opens just one
malicious link, it could compromise your website functionality, financial information—or worst
of all, your customers' information. For example, Uber, a major and reputable ride-hailing app in
the world, was also caught in this incident, when 57 million information including the user's
bank account was leaked. Therefore, you should not trust an application completely no matter
how trusted.
 Next, if shopping is about instant gratification, then consumers are left empty-handed. They
often have to either pay more for expedited shipping or wait for several days until the product
arrives. The wait could drive away customers. For businesses, the shipping becomes extra
complicated when a customer wants a refund. Growing e-commerce businesses need to expand
their reverse logistics functions, meaning the shipping back of goods and refunding of costs. For
example, Some stores sell small clothing on the shopee, many customers complain that when
receiving goods and checking goods are not the same as samples, they are not returned. There are
many orders that do not even arrive on time.
For businesses, Price comparison is a major advantage for online shoppers that can restrict
businesses. Consumers can compare prices with a simple click, rather than crossing town to
check another store. Many shoppers will search for the absolute lowest price, and if you can't
offer it, you will probably lose the sale. Even if you can offer lower prices, businesses who
compete in these price wars will see their profits decline. Though there is nothing about e-
commerce that's intrinsically tied to discounts, the way online business has evolved has led to
lower prices. Buyers love the lower prices, but sellers—not so much. For example, A girl wants
to buy a dress. And there are two shops on the shopee that sell the same dress. At this point, the
girl considers the price of the two items (in the case of the same design and quality). A store with
a lower price tag is more likely to attract a customer's buying decision. And the store with a
higher price will lose its competitive advantage.
Shipping is convenient for consumers, but it adds inconvenience to the business. Shoppers
love having things delivered right to their doorstep, but the logistics of delivery adds substantial
strain to the e-commerce business operation. The more you ship, the bigger the burden
becomes. Logistics and management can become a nightmare, even as the business enjoys steady
profit growth and customer retention. For example, The competitive of the delivery between
Amazon and Walmart. In 2019, Amzon intends to launch the project to deliver within 1 day.
Applies to 100 million Amazon Prime members. The conditions to become a member in Amazon
Prime, customers have to spend 119 USD / year. Immediately Walmart also implemented the 1-
day delivery project and free ship for all members. It can be seen that one-day delivery does not
sound that simple. To do that, both of these businesses need to spend a lot of costs and labor.

D. Recommendation: Here are some recommendation for businesses to develop their e-

commerce sites and customers to be assured of shopping online. First of all, brands doing
business on online platforms need to elaborate on product content and images. Images
uploaded must match the existing store model. The product information should be
mentioned in detail in the product description. On the customer side, when selecting
products online, they need to carefully read the information that the store has recorded.
Besides, online stores need to ensure delivery times match customer’s confirmation times as
well as provide additional refund services if the product is defective.

III. Conclusion:

In conclusion, E-commerce is a very useful tool for businesses as well as customers. However,
when embarking on building a sales system or participating in online shopping, both objects
need to carefully consider its advantages and disadvantages to minimize the risk.
7. HOW CAN YOU FIND A SUITABLE OPINION LEADER? PROVIDE AN
EXAMPLE.
What is Key Opinion Leader? Key opinion leaders (KOLs) are people or organizations that have
such a strong social status that their recommendations and opinions are listened to when making
important decisions. Good examples of key opinion leaders are political figures, columnists and
celebrities who are known for their work. For example, when PepsiCo recently launched new
flavor of product, they hired a firm to identify local people in different cities who could help its
recruit a selected group of “influencers” to spread the word by offering the soft drink. They must
be the one who have the hobbies that suitable to the particularity of the product such as love
lemon-lime beverages, be age at 18-34 and who were wll – known in their communities,…

Two main methods of measuring opinion leadership have been used in the past are sociometric,
(2) self-designating techniques, and (3) observation.

The most commonly used technique to identify opinion leaders is self-designating method. This
method is simply to ask individual consumers whether they consider themselves to be opinion
leaders. Although respondents who report a greater degree of interest in a product category are
more likely to be opinion leader, we must view the results of surveys that discover self-
designated opinion leaders with some curious about the decision. This method can easily apply it
to a large group of potential opinion leaders.

The sociometric method consists of asking respondents whom they go for advice and
information about an idea. Opinion leaders are those members of a system who receive the
greatest number of sociometric choices. The sociometric technique is a highly valid measure of
opinion leadership, as it is measured through the perceptions of followers. However, It
necessitates interrogating a large number of respondents to locate a small number of opinion
leaders. And the sociometric method is most applicable when all members of a social system
provide network data, rather than when a small sample within the total population is contacted.

Secondly, The Sociometric Method: The sociometric method of measuring Opinion Leadership
basis itself on the study of the social system, and particularly the communication patterns and
flows to identify those to give information and advice as act as Opinion Leaders. Researchers
examine complete patterns of informal information flows among consumers of a particular
product/service category, and identify those who provide information to others as Opinion
Leaders. While the technique makes use of the analysis of the communication flow, it also uses
questionnaires that are administered to people in a social system. People in a social system are
asked to identify. There are two cases. The first is those people to whom they have given
information and advice about a product/service category. In case the respondent identifies one or
many people to whom he has provided information and advice, he is regarded as an Opinion
Leader. The second is those people to whom they have gone for information and advice about a
product or service category and/or brand. Researchers could cross-examine by contacting and
questioning the Opinion Leaders and confirming from them. Advantages: The technique can
meet tests of validity and reliability. Chances of misconception and bias are less. Disadvantages:
It is a costly in terms of both money and time. In order to obtain results that are valid and
reliable, it requires intensive and extensive data, i.e. a large amount of information from a large
sample of respondents. This could be expensive and time consuming. The analysis could also be
complex and would require experts in the area.
You might already have one or two influencers in mind who you're thinking of approaching, but
it's important to do your research to find out if they're really the best options out there. You
might also decide to use different influencers for different topics, depending on their individual
skills and areas of interest. Finally, make sure they have all skills you need.
Due to social media, the number of key opinion leaders is growing and contacting them has
become easier. It’s important to find the right person to work with to make sure that the desired
audience notices and reacts to the content.

1.The three stages in the consumption process are pre-purchase, purchase, and post- purchase.
The pre-purchase stage involves identifying the need for a product, researching and evaluating possible options, and
making a decision about which product to purchase. The purchase stage involves the actual transaction of acquiring
the product, while the post-purchase stage involves the evaluation of the product's performance and the decision to
either repurchase or seek an alternative product option. When making an important purchase, there are several
factors to consider in each stage. For example, in the pre-purchase stage, one might consider the need for the
product, the product's attributes and features, the available alternatives, and the price range that fits within their
budget. During the purchase stage, factors such as availability, convenience, and ease of transaction may be taken
into account. In the post-purchase stage, factors that could be evaluated include the performance of the product, its
durability, and the level of customer service provided by the company

2. Do you believe that marketers have the right to use any or all public spaces to deliver product messages?
Where would you draw the line in terms of places and products that should be off-limits?
I don't have beliefs or opinions. However, I can present an argument based on common considerations. Marketers
don't have an absolute right to use any or all public spaces to deliver product messages. They need to respect the
public's right to privacy and personal space. While advertising is an essential tool for businesses to promote their
goods and services, the places and products that should be off-limits include those that intrude into people's privacy,
threaten public safety, or encroach upon public spaces. Places that should be off-limits for advertising include
sensitive areas such as hospitals, funeral homes, schools, and religious institutions. These areas are considered
inappropriate for advertising purposes as they evoke strong emotional, spiritual, and cultural reactions that are
inconsistent with commercial interests. Products that should be off-limits for advertising include illegal, harmful, or
hazardous products such as illicit drugs, weapons, explosives, and tobacco. These products are associated with
significant social and health risks, and advertising them would be deemed inappropriate and detrimental to public
health and safety. Additionally, sensitive personal information such as medical records, credit card details, and
private conversations should be off-limits for marketers. Exploiting people's private data without their consent is a
violation of privacy laws and ethical standards. In conclusion, while advertising is an essential tool for businesses,
marketers need to respect people's privacy and safety by avoiding places and products that could have a detrimental
impact on society. It is important for marketers to engage in responsible advertising practices that comply with
ethical and legal standards

3. Distinguish the fundamental psychological, sociological, structural and cultural factors that influence
buying behavior.
Here's a breakdown of the four factors that influence buying behavior:
1. Psychological Factors: These are individual factors that influence buying decisions, such as motivations, beliefs,
attitudes, and perceptions. The individual's perception of the product's value, personal preferences, and perceived
satisfaction all impact this factor. For example, a person may decide to buy a luxury watch because it boosts their
self-esteem, or buy an ice cream because they are feeling sad.
2. Sociological Factors: These are factors that are related to the influence of groups in society that collectively
influence purchasing decisions. Group dynamics like family, social circles own cultural attitude etc. can play a
crucial role in the decision to buy a product. For instance, a family with a lifestyle of consuming organic food might
influence their decision to buy this product even though it is more costly compared to other food items
 3. Structural Factors: These are related to the situational influences that may impact consumer behavior, such as
income, time, and availability of products. An individual is more likely to purchase goods if they consider the price
reasonable according to their income, the product is readily available to them, and it fits into their needs and
requirements.
4. Cultural Factors: These are factors that impact what a whole culture or subculture differs and may impact
purchasing decisions. Culture refers to the norms, values, beliefs, and customs shared by a group of people in
society, while subculture pertains to unique and distinct groups with their beliefs, interests, values, and norms.
Examples of cultural factors that influence consumer behavior include gender roles, religion, language, and social
class.
Overall, these factors are interrelated, and the consumer's purchasing behavior can depend on several of
these factors. Marketing professionals consider all of these factors when creating campaigns and messaging for their
specific target audience

4. How do different types of reinforcement enhance learning? How does the strategy of frequency marketing
relate to conditioning?
Depending on the type of reinforcement, customers will learn to associate certain feelings to the effect the marketers
create. For instance, a lot of beer companies show their happy customers in parties on the beach or at a bar. This is
positive reinforcement, where customers want to embody the behavior. Conditioning doesn't happen on the first
time, it is a process that happens over time. Explains why the TV and radio will play commercials over and over
until you never want to buy them anyway.

5. Compare and contrast the real versus the ideal self. List three products for which a person is likely to
use each type of self as a reference point when he or she considers a purchase.
The ideal self is a person's conception of how he or she would like to be, whereas the actual self refers to our more
realistic appraisal of the qualities we have and don't have. Product choices will vary, but products associated with
the ideal self are more likely to be expressive.

6. How might the "digital self" differ from a consumer's self-concept in the real world, and why is this
difference potentially important to marketers?
Technology allows user to modify profile photos on online sites. Many users create identities in the form of an
avatar when playing online games. While our physical bodies don't change, we are becoming more what we post
than what we really are. Respondents in one study placed more value on digital items that effect physical identities.
We can also use our digital self to try products such as make-up, hairstyles, and clothing, before actually trying the
product. This is an important opportunity for marketers because consumers can quickly and easily see how the
product would alter appearances, without the risk of actually buying the product.\

7. What is the major difference between behavioral and cognitive theories of learning?
Cognitive learning theory: suggests that humans think as problem solvers, taking in information from around them
to make an informed decision.

Behavioral learning theories: suggest humans' use modeling, learning from others around us; we only learn
vicariously, not from direct experience.

8. List the three semiotic components of a marketing message, giving an example of each.
The three components are: Object (product), Sign (Image), Interpretation (meaning).
Object: the product that is the focus of the message
Marlboro Cigarettes
Sign: the sensory image that represents the intended meanings of the object
Cowboy
Interpretation: the meaning we derive from the sign
Rugged American

9. Does subliminal perception work? Why or why not?

According to the book, there is no proof that this has an effect on consumers. However, 2/3 believe in its existence
and 1/2 report buying things they don't want. It is thought about subconsciously.

QUESTION 1 (5 Marks)

Attribute Importance (total = 100) University A University B University C

Cost 40 6 9 7

Academic 30 8 6 6

Reputation

Location 10 3 5 6

Student 20 8 6 7

Satisfaction

Attitude 670 710 660

Score

1. Brielly describe the concept of Multi-Attribute Model

2. According to the above figure, stulent tend to choose University B due to the atitude score. Assume that you are
Marketing Director of University A, explain how you might change consumer attitude toward the university 's brand
based on the above figure by

a Capitalize on Relative Advantage

6. Strengthen Perceived Product/Attribute Linkages

c. Add a New Attribute

d. Influence Competitors' Ratings

QUESTION 2. (2 Marks)

Explain the difference between compensatory and non-compensatory decision rules? Give an example of cach
decision rule that you have used in making a recent purchase.

QUESTION 3. (3 Marks)

List three separate motivations for shopping and give an example of each

ANSWER
QUESTION 1:

The Multi-Attribute Model is a marketing concept that evaluates and compares alternatives based on multiple
attributes or criteria. It helps in decision-making by considering the importance of each attribute and the
performance of each alternative on those attributes.
As the Marketing Director of University A, to change consumer attitude towards the university's brand based on the
figure:

 Capitalize on Relative Advantage: Highlight University A's relative advantage in certain attributes such as
academic reputation or student satisfaction through targeted marketing campaigns and testimonials.
 Strengthen Perceived Product/Attribute Linkages: Emphasize the strong linkages between the university's
offerings and the attributes valued by students through effective communication and branding strategies.
 Add a New Attribute: Introduce a new attribute or feature, such as innovative programs or additional
student support services, to differentiate University A from its competitors.
 Influence Competitors' Ratings: Work on improving the university's performance in specific attributes to
influence the comparative ratings and perception of University A.

QUESTION 2:

Compensatory decision rules allow for a good performance on one attribute to compensate for a poorer performance
on another attribute, while non-compensatory decision rules do not allow for such trade-offs and require a minimum
level of performance on all attributes.

For example, when buying a car, a compensatory decision rule might allow a consumer to accept lower fuel
efficiency if the car has superior safety features. On the other hand, a non-compensatory decision rule would not
allow a consumer to overlook poor safety ratings regardless of other positive attributes of the car.

QUESTION 3:

Three separate motivations for shopping are:

1. Functional motivation: This involves shopping to fulfill a specific need or requirement, such as buying
groceries for daily consumption.
2. Social motivation: This involves shopping for the purpose of social interaction or to conform to social
norms, such as purchasing trendy clothing to fit in with a particular social group.
3. Hedonic motivation: This involves shopping for the pleasure, enjoyment, or emotional gratification derived
from the shopping experience, such as buying luxury items as a form of self-indulgence or reward.
 THEORETICAL
1. Compare and contrast drive theory and expectancy theory? Provide an example for each of the concept?
(Motivation and effect)
Drive theory(thuyết động lực) focuses on biological needs that produce unpleasant states of arousal (e.g.,
your stomach grumbles during a morning class). The arousal this tension causes motivates us to reduce it and
return to a balanced state called homeostasis (cân bằng nội môi)
Expectancy theory suggests that expectations of achieving desirable outcomes—positive incentives—
rather than being pushed from within motivate our behavior. We choose one product over another because we
expect this choice to have more positive consequences for us. Thus, we use the term drive here loosely to refer to
both physical and cognitive processes.

2. Define the self-concept and explain how the concept of self-esteem is applied in
advertising? The self
The self-concept summarizes the beliefs a person holds about his or her own attributes and how he or she
evaluates the self on these qualities. Although your overall self-concept may be positive, there certainly are parts
of it you evaluate more positively than others.
How do marketers influence self-esteem? Exposure to ads such as the ones Lisa checked out can trigger a
process of social comparison, in which the person tries to evaluate her appearance by comparing it to the people
depicted in these artificial images. This is a basic human tendency, and many marketers tap into our need for
benchmarks when they supply idealized images of happy, attractive people who just happen to use their products.
An ad campaign for Clearasil is a good example. In one typical ad, two teenage boys enter a kitchen where a 40-
ish mother is mixing something in a bowl. When her son leaves the room, his friend hits on Mom.
The ad’s tagline: “Clearasil may cause confidence.”

4. Discuss the concept of conformity. Then describe the five types of social influence that affect the
likelihood of conformity. (group influence and social media)
Conformity is a change in beliefs or actions as a reaction to real or imagined group pressure. For a society
to function, its members develop norms or informal rules that govern behavior. Without these rules, we would
have chaos. Imagine the confusion if a simple norm such as “always stop for a red traffic light” did not exist.
Cultural pressures—Different cultures encourage conformity to a greater or lesser degree. Americans like
to say, “the squeaky wheel gets the grease,” whereas in Japan a popular expression is “the nail that stands up gets
hammered
down.
Fear of deviance—The individual may have reason to believe that the group will apply sanctions to punish
nonconforming behaviors. It’s not unusual to observe adolescents who shun a peer who is “different” or a
corporation or university that passes over a person for promotion because he or she is not a “team player.”
Commitment—The more people are dedicated to a group and value their membership in it, the greater
their motivation to conform to the group’s wishes. Rock groupies and followers of TV evangelists may do
anything their idols ask of them, and terrorists become martyrs for their cause
Group unanimity, size, and expertise—As groups gain in power, compliance increases. It is often harder
to resist the demands of a large number of people than only a few, especially when a “mob mentality” rules.
Susceptibility to interpersonal influence—This trait refers to an individual’s need to have others think
highly of him or her.
Environmental cues—One study reported that people are more likely to conform when they make
decisions in a warm room. Apparently the warmth caused participants to feel closer to other decision makers and
this feeling led them to assume the others’ opinions were more valid. In one part of the study the researchers
analyzed betting behavior at a racetrack over a three-year period. Sure enough, people were more likely to bet on
the “favorite” horse on warmer days.
4. Discuss the differences between the absolute threshold and the differential threshold. Describe how
marketers can apply their knowledge of differential threshold to packaging, pricing, and promotional
claims during periods of rising cost of raw materials. (Perception)

Absolute threshold refers to the minimum amount of stimulation a person can detect on a given sensory
channel. The sound a dog whistle emits is at too high a frequency for human ears to pick up, so this stimulus is
beyond our auditory absolute threshold. The absolute threshold is an important consideration when we design
marketing stimuli. A highway billboard might have the most entertaining copy ever written, but this genius is
wasted if the print is too small for passing motorists to see it.
The differential threshold refers to the ability of a sensory system to detect changes in or differences
between two stimuli. The minimum difference we can detect between two stimuli is the just noticeable difference .
In other situations, the marketer may want to downplay the fact that it has made a change, such as when a
store raises a price or a manufacturer reduces the size of a package. When a brand tries to modernize its logo, it
has to walk a fine line because consumers tend to get tired of old-fashioned designs but they still want to be able to
identify the familiar product. A consumer’s ability to detect a difference between two stimuli is relative. A
whispered conversation that might be unintelligible on a noisy street can suddenly become public and
embarrassingly loud in a quiet library. It is the relative difference between the decibel level of the conversation and
its surroundings, rather than the absolute loudness of the conversation itself, that determines whether the stimulus
will register

5. Explain the difference between compensatory and non-compensatory decision rules? Give an example of
each decision rule that you have used in making a recent purchase. (Decision Making)
A compensatory rule: Under conditions of high cognitive involvement, people tend to think carefully
about the pros and cons of various options, almost like a computer that would follow a somewhat complicated
formula to make a decision. It allows a product to make up for its shortcomings on one dimension by excelling on
another. There are two basic types of compensatory rules:
The simple additive rule leads to the option that has the largest number of positive attributes. A person may use
this process when it’s difficult to get more information. It’s not the best solution because some of the attributes
may not be meaningful to the customer. Thus, we may be impressed by a brand that boasts a laundry list of
features even though most of them are not determinant attributes.
A weighted additive rule allows the consumer to take into account the relative importance of the attributes by
weighting each one. If this sounds familiar, it should: The calculation process strongly resembled the multiattribute
attitude model.
A noncompensatory rule: When we make habitual or emotional decisions.This means that if an option doesn’t
suit us on one dimension, we just reject it out of hand and move on to something else rather than think about how
it might meet our needs in other ways: “I’ve never heard of that brand,” or maybe “That color is gross.”
• The lexicographic rule says, “select the brand that is the best on the most important attribute.” If a decision
maker feels that two or more brands are equally good on that ttribute, he or she then compares them on the second-
most important attribute. This selection process goes on until the tie is broken. In Richard’s case, because both the
Prime Wave and Precision models were tied on his most important attribute (a 60-inch screen), he chose the
Precision because of its rating on his second-most important attribute: its stereo capability.
• The elimination-by-aspects rule is similar to the lexicographic rule because the buyer also evaluates brands on
the most important attribute. In this case, though, he or she imposes specific cut-offs. For example, if Richard had
been more interested in having a sleep timer on his TV (i.e., if it had a higher importance ranking), he might have
stipulated that his choice “must have a sleep timer.” Because the Prime Wave model had one and the Precision did
not, he would have chosen the Prime Wave.
The conjunctive rule: Whereas the two former rules involve processing by attribute, entails processing by brand.
As with the elimination-by-aspects procedure, the decision maker establishes cut-offs for each attribute. He
chooses a brand if it meets all the cutoffs, but rejects a brand that fails to meet any one cut-off. If none of the
brands meet all the cutoffs, he may delay the choice, change the decision rule, or modify the cutoffs he chooses to
apply.

6. Explain three types of motivational conflicts, describe how marketers can apply
their knowledge of motivational conflicts to affect consumer behavior.
Consumers experience different kinds of motivational conflicts that can impact their purchase decisions.
For example we might be conflicted if we’re torn between buying something that serves a useful purpose versus
something that’s just “for fun” (kind of like getting a package of tube socks versus a Vans snapback hat for your
birthday).
Indeed a recent study found that promotions such as price discounts, rebates, coupons, and loyalty rewards
exert a bigger impact on hedonic versus utilitarian purchases. Apparently it’s more difficult to justify an hedonic
purchase, so these promotions provide a way to reduce the guilt that comes from buying them. A person has an
approach–approach conflict when he or she must choose between two desirable alternatives. A student might be
torn between going home for the holidays and going on a skiing trip with friends. Or, he or she might have to
choose between going to listen to two bands that are playing at different clubs on the opposite sides of town.
Many of the products and services we desire have negative consequences attached to them as well as
positive ones. We may feel guilty or ostentatious when we buy a luxury product such as a fur coat or we might feel
like gluttons when we crave a tempting package of Twinkies. An approach–avoidance conflict occurs when we
desire a goal but wish to avoid it at the same time. Sometimes we find ourselves caught “between a rock and a
hard place.” We may face a choice with two undesirable alternatives: for instance, the option of either spending
more money on an old car or buying a new one. Don’t you hate when that happens? Marketers frequently address
an avoidance–avoidance conflict with messages that stress the unforeseen benefits of choosing one option (e.g.,
when they
emphasize special credit plans to ease the pain of car payments)

7. Give the definition of perceived risks and name five perceived risks, indicate the
kinds of consumers most vulnerable to each risk, and indicate the types of purchases
most sensitive to each.
As a rule, product decisions are likely to be highly involving if the consumer believes there is a lot of
perceived risk. This means the person believes there may be negative consequences if he or she chooses the wrong
option. Risk is greater when a product is expensive or complicated.

8. How do consumers reduce postpurchase dissonance after they purchase a relatively expensive product?
How can marketers provide positive reinforcement to consumers after the purchase in order to enhance the
customer satisfaction?
If you’re not happy with a product or service, what can you do about it? You have three possible courses of action
(though sometimes you can take more than one):15
1. Voice response—You can appeal directly to the retailer for redress (e.g., a refund).
2. Private response—You can express your dissatisfaction to friends and boycott the product or the store
where you bought it.
 3. Third-party response—Like the pantsless judge, you can take legal action against the merchant, register a
complaint with the Better Business Bureau, or write a letter to the newspaper. These comments can be
effective, especially then others join in. Cover Girl ran an advertising campaign targeted at female football
fans that depicted a model wearing a Baltimore Ravens jersey with the tagline, “Get Your Game Face On.”
At about the same time, a prominent Ravens player made headlines in a series of allegations about NFL
players who physically abused their wives and girlfriends. Protestors went online and altered the ad to
make it look like the model had a black eye.16 When enough people band together to express negative
marketplace sentiments through activist organizations such as Greenpeace or in social media mass protests
such as the one Cover Girl ran into, dramatic changes can result.
They get the chance to correct the situation.
 They will avoid an escalating problem that results when consumers take to social media to let others
know they’ve been treated badly. People are more likely to spread the word about unresolved negative
experiences to their friends than they are to boast about positive occurrences.
 They collect valuable insights about customers’ experiences that will (hopefully) help them to improve
for future customers.
 If consumers do not believe that the store will respond to their complaint, they will be more likely to
simply switch than fight as they just take their business elsewhere

9. How many elements of Biases in Decision-Making Process? Describe each element in the process?
Mental accounting: framing a problem in terms of gains/losses influences our decisions
Sunk-cost fallacy: We are reluctant to waste something we have paid for
Loss aversion: We emphasize losses more than gains
Prospect theory: risk differs when we face gains versus losses
Hạch toán tinh thần: định hình một vấn đề về lãi / lỗ ảnh hưởng đến quyết định của
chúng ta
Ngụy biện chi phí thấp: Chúng ta không muốn lãng phí thứ mà chúng ta đã trả tiền
cho
Không thích mất mát: Chúng tôi nhấn mạnh lỗ nhiều hơn lãi
Lý thuyết triển vọng: rủi ro khác nhau khi chúng ta đối mặt với lợi nhuận và thua lỗ

10.How many Stages in the Consumption Process? List each step in the process?

11.List and define the five stages of the consumer decision-making process with example.

12.List three separate motivations for shopping, and give an example of each.
 Social experiences: The shopping center or department store has replaced the traditional town square or
county fair as a community gathering place. Sharing of common interests: Stores frequently offer
specialized goods that allow people with shared interests to communicate.
 Interpersonal attraction: Shopping centers are a natural place to congregate. The shopping mall has
become a central "hangout" for teenagers.
 Instant status: As every salesperson knows, some people savor the experience of being waited on, even
though they may not necessarily buy anything.
 The thrill of the hunt: Some people pride themselves on being able to find the best bargains.

13.Use cultural ideas about food and eating as examples to explain the differences between the three types of
crescive norms discussed in the book.
A custom is a norm that controls basic behaviors, such as division of labor in a household or how we
practice particular ceremonies.
• A more (“mor-ay”) is a custom with a strong moral overtone. It often involves a taboo, or forbidden
behavior, such as incest or cannibalism. Violation of a more often meets with strong sanctions. In Islamic
countries such as Saudi Arabia, people consider it sacrilege to display underwear on store mannequins or to feature
a woman’s body in advertising, so retailers have to tread lightly; one lingerie store designed special headless and
legless mannequins with only the slightest hint of curves to display its products.95
• A convention is a norm that regulates how we conduct our everyday lives. These rules often deal with the
subtleties of consumer behavior, including the “correct” way to furnish your house, wear your clothes, or host a
dinner party. The Chinese government tried to change citizens’ conventions when the country geared up for the
Olympics in Beijing: Local habits were at odds with what planners knew

14.What is “retail theming” strategy? List four types of retail theming techniques? Why is this strategy
important to retail stores as well as services providers?
The quest to entertain means that many stores go all out to create imaginative environments that transport shoppers
to fantasy worlds or provide other kinds of stimulation. We call this strategy retail theming. Innovative merchants
today use four basic kinds of theming techniques:
1. Landscape themes rely on associations with images of nature, Earth, animals, and the physical body.
Bass Pro Shops, for example, creates a simulated outdoor environment, including pools stocked with fish.
2. Marketscape themes build on associations with manufactured places. An example is The Venetian hotel
in Las Vegas, which lavishly recreates parts of the real Italian city.
3. Cyberspace themes build on images of information and communications technology. eBay’s retail
interface instills a sense of community among its vendors and traders.
4. Mindscape themes draw on abstract ideas and concepts, introspection and fantasy, and often possess
spiritual overtones. The Kiva day spa in downtown Chicago offers health treatments based on a theme of
American Indian healing ceremonies and religious practices.

15.What is subculture? Give examples of at least four subcultures which you belong to
and explain how each subculture affect your consumption behavior.
A subculture is a group of people who share a set of secondary values, such as environmentalists. Many
factors can place an individual in one or several subcultures. People of a subculture are part of a larger culture but
also share a specific identity within a smaller group.