Business Administration 3301K Chapter Notes - Chapter 5: Problem Solving, Cognitive Dissonance, Impulse Purchase

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Because they expect it to have more value than the other options. But this value, or benefit, can be very irrational. Aka people just buy shit even when it makes no sense to buy it. Step 1: need recognition: decision process begins when consumer has an unsatisfied need they must go from unsatisfied to satisfied. The greater discrepancy between these 2 states, the greater is the need recognition and youll go to more extreme measures to satisfy yourself. Consumer needs can be classified as functional or psychological: functional needs. These pertains to the functionality, performance of a product. North face or patagonia make very good functional outdoor products, having a. 100% waterproof jacket from north face is better than the 20% jacket from walmart: psychological needs. This is the personal gratification someone associates with a product. Step 2: information search: when a consumer recognizes the need, they search for info about the product.

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