Author: Neftaly Malatjie

• • Define Enterprise Analysis and
  • Requirements Analysis in order to obtain a clear, accurate understanding of the problems affecting a client’s business

  What is Direct observation (6 marks)

.     To acquire and maintain products that satisfy their current and future needs, consumers engage in different types of problem-solving processes depending on the nature of the products involved. The amount of effort, both mental and physical, that buyers expend in solving problems also varies considerably.

1. A major determinant of the type of problem-solving process employed depends on the customer’s level of involvement,the degree of interest in a product and the importance the individual places on that product.
2. Levels of involvement may be classified as low, high, enduring, and situational.
3. a)     High-involvement products tend to be those that are visible to others (e.g., clothing, furniture, or automobiles) and expensive, as well as issues of high importance, such as health care.
4. b)     Low-involvement products tend to be less expensive and have less associated social risk, such as many grocery items.
5. c)     A person’s ongoing and long-term interest in a product or product category is referred to as “enduring involvement.”
6. d)     “Situational involvement” is temporary and dynamic, and results from a particular set of circumstances, such as the need to buy a new car after being involved in an accident.
7. e)     Consumer involvement may be attached to product categories (e.g., sports), loyalty to a specific brand, interest in a specific advertisement (e.g., a funny commercial) or a medium (such as a particular television show), or to certain decisions and behaviors (e.g., a love of shopping).
8. Involvement level, as well as other factors, affects a person’s selection of one of three types of consumer problem solving: routinized response behavior, limited problem solving, or extended problem solving.
9. a)     Routinized response behavior is the type of consumer problem-solving process which requires very little search-and-decision effort; it is used for low-priced, frequently-purchased products.
10. b)     Limited problem solving is a type of consumer problem-solving process buyers use when they occasionally purchase products or need information about unfamiliar brands in a familiar product category; it requires a moderate amount of time for information gathering and deliberation.
11. c)     Extended problem solving is the consumer problem-solving process employed with unfamiliar, expensive, or infrequently purchased products, such as a car, home, and college education; buyers use many criteria to evaluate brands and spend time searching for information and deciding on the purchase.
12. d)     Impulse buying, in contrast, is an unplanned buying behavior involving a powerful urge to immediately buy something.