MKT 100 Lecture 5: Chapter 5

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Khalil Rohani

Document Summary

Consumer behaviour: use principals & theories form sociology, anthropology, & psychology, understand consumer actions, develop basic strategies to deal with those actions, understand why people buy products or services. The consumer decision process: need recognition, functional needs, psychological needs. Internal search of information: external search of information, alternative evaluation, purchases, post-purchases evaluation (post-purchase dissonance, firm"s attempt to reduce dissonance by reinforcing the decision, thank you letters, congratulation letters, quality ratings. Internal locus of control = more search activities: external locus of control fate, external factors = why bother. Actual vs perceived risk: performance risk, financial risk, social risk, physiological risk, psychological risk. Strategies to reduce perceived risk: obtain seals of approval, secure endorsements, provides free trails / samples, gives extensive instructions, provide warranties / guarantees. Type of product or service: specialty goods / services, convenience goods / services, shopping goods / services. Evaluation of alternatives: consumer decision rules******: compensatory decision rule, non-compensatory decision rule.