ADM 2320 Lecture Notes - Lecture 5: Financial Risk

• School: University of Ottawa
• Department: Administration
• Course: ADM 2320
• Professor: Gurprit Kindra

Document Summary

Explanations of consumer behavior: economic, social, psychoanalytic, behavioral. Internal in uences on consumer decisions: motivation, personality, perception, learning, values/beliefs/attitudes, lifestyle. Decision making process: activation, search & evaluation, intention, decision, Decision making processes: there are three of them: extensive problem solving: high risk, high involvement, expensive, much information needed, infrequently purchased, limited problem solving, routine response behavior: low involvement, low risk, inexpensive, little information needed, frequently purchased. Problem recognition: the trigger that prompts a consumer yo seek a product or service. Information search: seek facts to make a reasonable decision. Alternative evaluation: narrow down choices, use evaluative criteria to compare competing alternatives. Purchase decision: select product that best suits needs and/or wants, choice may be complicated and involve di cult tradeo s, consumers may use heuristic rules of thumb to simplify the decision (brand loyalty, country of origin, salesperson recommended). Post-purchase behavior: re ect on how good choice was, feel satis ed or dissatis ed, may in uence future behavior.