Management and Organizational Studies 1021A/B Lecture Notes - Lecture 6: Problem Solving, Decision-Making, Daniel Mcfadden

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1021A/B
• Professor: Barry Hawn

Document Summary

The purchase decision process is at the heart of consumer behaviour. It requires that we understand that it is the result of a series of steps, made either over a long behaviour of time or a very short period of time. For marketers, it is important to know how consumers make these decisions in order to influence the purchasing decisions. Involvement: how important is this purchase to the customer (personal, economic, social) Expensive (via the consumer"s income, time, resources) Tied to our sense of self or social standing. Involvement can also increase perceived risk and perceived differences between brands or products. More investment in terms of money/time, speaks more to you as a person: extended problem solving: significant time and effort spent; lots of alternatives and information evaluated. The amount of alternatives (many, few) are all relative to the problem at hand. Heuristics can shorten the distance between problems/needs recognition and a purchase decision.