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RMG 302 (10)

Decision Making

Retail Management
Course Code
RMG 302
Donna Smith

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Rational Perspective Calmly & carefully integrate as much info as possible with what
they already know about a product, weigh the pros/cons of each alternative and arrive at a
Traditional Perspective relates the economics of information approach to the search
process; assuming we collect just as much data as we need to make an informed decision
Consumer Decision Making:
1.Problem Recognition When a consumer sees a difference between his/her current
state and the desired state
2. Information Search The process in which the consumer surveys his/her
environment for appropriate data to make reasonable decisions. Information sources
can be internal (memory) or external (environment). Directed learning is where
information had already been research previously, while incidental learning is the
exposure to packaging, sales promotion, and advertising. New info shoppers are
people who look for info online before buying.
Prepurchase Search Searching the marketplace for specific information
Browsing Seeking information for the fun of it
Ongoing search Maintaining information for future use
3.Evaluation of Alternatives Actively considered alternatives are called the evoked
4.Product Choice
5.Consumption and Learning
Purchase Momentum When initial impulses increase the likelihood that well buy more
Rational System of Cognition Processes information analytically and sequentially
using rules of logic
Experiential System of Cognition Processes information holistically and in parallel
Constructive Processing Consumer evaluates best effort required to make a choice,
then (s)he chooses a strategy
Behavioural Influence Perspective When a person decided to buy something on
impulse, marketed as a surprise special
Experimental Perspective Stresses the totality of the product, no one quality is the
determining factor
Customer Decisions:
1.Habitual Decision Making
Decisions made with no/little effort. Purchase decisions are routine
2.Limited Problem Solving
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