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MKT 100 (488)
Chapter 5

Marketing Chapter 5 Notes.docx

5 Pages
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Department
Marketing
Course Code
MKT 100
Professor
Laila Rohani

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Description
Chapter 5 THE CONSUMER DECISION PROCESS Need recognition : beginning of consumer decision process. Consumers realize they have an unsatisfied need and want it to go from actual too desired state. • Functional needs: pertains to the performance of a product or service • Psychological needs: pertains to personal gratification consumer associates with a product or service Information search • Internal search for information: buy examines his own memory and knowledge about the product or service they have gathered through past experience • External search for information: buy seeks information outside his or her personal knowledge Factors Affecting Consumers’ Search Process Perceived Benefits Vs Perceived Cost • Internal locus of control: Consumers believe they have control over the outcome of their actions, which leads to more searching activities • External locus of control: consumer believe the outcomes are on faith or other external factors • Performance risk: the danger inherited by a poorly performing produce or service • Financial risk: cost of purchasing and using the product or service • Social risk: others might not regard the purchase positively • Physiological (safety) risk: fear of actual harm if the product doesn’t perform properly • Psychological risk: the way people may feel if the product or service doesn’t convey the right image • Specialty goods/services: product or service a customer shows preference towards and they will search for the best supplier • Shopping goods/services: products or services, such as fragrances, and appliances. They will spend time comparing alternatives. • Convenience goods/ services: product or service for which a consumer is not willing to spend any effort evaluating before buying Alternative Evaluation • Evaluation criteria: consist of important attributes about a product that consumers use to compare alternatives • Determinant attributes: features of products and services that are important to the buyer and this is where brands differ • Consumer decision rules: set of criteria consumers use consciously or subconsciously and effectively select among several alternatives • Compensatory decision rules: Consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristic make up for the bad ones. Eg: mileage efficiently over price • Non-compensatory : consumers choose a product or service on a basis of a subset of its characteristic, not caring about other valuable attributes Eg: reject a car because of its price. One weakness makes the person pick the other car. • Decision heuristic: mental short cut consumers take to narrow down choices. Eg: price: buying something more expensive because they think higher price = better quality Brand: buying a brand name good allows some consumers to feel safe with their choice Product presentation: the manner the product is presented influences the decision Purchase decision • Ritual consumptions: pattern of behaviours tied to life events that affect what and how people consume. These behaviours may have a symbolic meaning and vary greatly by culture Eg: stock what customers want, offer multiple payment options, have many checkout lanes, offer price-match guaranteed, a warranty or a simple return policy. Post purchase Customer Satisfaction: • Build realistic expectations:
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