Consumer Behavior Approaches

What is the cardinal approach in consumer behavior?

• Assigning numerical values to utility or satisfaction levels

• Ignoring consumer preferences in decision-making

• Using a barter system for transactions

• Measuring consumer behavior through qualitative analysis

Define the ordinal approach in consumer behavior.

• Ranking of preferences or choices by consumers based on relative importance or utility.

• It involves consumers randomly selecting products

• Ordinal approach refers to the use of even numbers in surveys

• Consumers ranking products based on color

Explain the key differences between cardinal and ordinal approaches.

• Cardinal approaches involve animals, while ordinal approaches involve plants.

• Cardinal approaches are used in music theory, while ordinal approaches are used in cooking recipes.

• Cardinal approaches deal with quantity and magnitude, whereas ordinal approaches deal with order and ranking.

• Cardinal approaches focus on colors, while ordinal approaches focus on shapes.

How do cardinal and ordinal approaches influence consumer decision-making?

• Cardinal approaches have no impact on consumer decision-making

• Ordinal approaches use numerical comparisons

• Cardinal approaches provide numerical comparisons, while ordinal approaches rank options based on preferences.

• Cardinal approaches rank options based on preferences

Explain the drawbacks of relying solely on individual preferences in the cardinal approach in the context of a group decision-making process.

• Assumption of perfect information, focus on individual preferences only, lack of mathematical rigor

• Assumption of transitivity, inability to handle ordinal preferences, lack of consideration for individual differences in utility functions

What are the advantages of the ordinal approach?

• Lengthy process, lack of clarity, random ordering

• Complexity, difficulty in interpretation, inability to rank items

• Confusion, subjective nature, lack of structure

• Simplicity, ease of interpretation, ability to rank items

How can marketers utilize cardinal and ordinal approaches in understanding consumer preferences?

• By using qualitative research methods

• By ignoring consumer feedback

• By assigning numerical values to attributes for cardinal approaches and ranking preferences for ordinal approaches.

• By randomly selecting attributes

Provide examples of products where cardinal approach is more applicable in the context of a grocery store.

• Fruits and vegetables

• Cleaning supplies

• Designer clothing and accessories

• Prescription medications

In what situations would the ordinal approach be more suitable for analyzing consumer behavior?

• When the data is qualitative and cannot be ordered

• When the data can be ranked or ordered, such as in surveys where respondents are asked to rate preferences or opinions on a scale.

• When the data is continuous and can be measured on a ratio scale

• When the data is categorical and cannot be ranked

How do cardinal and ordinal approaches contribute to market segmentation strategies?

• Cardinal and ordinal approaches contribute to market segmentation strategies by limiting the scope of customer analysis.

• Cardinal and ordinal approaches contribute to market segmentation strategies by ignoring customer preferences.

• Cardinal and ordinal approaches contribute to market segmentation strategies by providing a comprehensive view of customers' characteristics and preferences, allowing businesses to tailor their marketing efforts more effectively.

• Cardinal and ordinal approaches contribute to market segmentation strategies by focusing solely on demographic data.