MKT 100 Chapter Notes - Chapter 5: Impulse Purchase, Purch Group, Financial Risk

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Asif Salam

Document Summary

Step 1: need recognition: functional needs pertain to performace of prod/serv, psychological needs pertain to personal gratification consumers associate w/ prod/serv. Internal search for information buyer examines own knowledge about product through past experiences. External search for information buyer seeks info outside personal knowledge to make buy decision: factors affecting consumers" search processes. Internal locus of control = more search activities. External locus of control = why bother due to fate/external factors. Performance risk perceived danger inherent in poorly performing prod. Financial risk initial cost of purchase/cost of using item/service. Social risk fears of consumers that others may not regard their purch. positively. Psychological risk fear of actual harm should prod. Step 3: alternative evaluation: compensatory consumer trades off one characteristic to another, noncompensatory choose prod. Based on characteristics: decision heuristics mental shortcut to help consumer narrow down decision (price/brand/looks) Ritual consumption pattern of behaviors tied to life events that affect what/how people consume (tangible/intangible)