MKT 100 Chapter 5: MKT 100 – Principles of Marketing Chapter 5 Notes .docx

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Laila Rohani

Document Summary

Psychological needs pertain to the personal gratification consumers associate with a product or service: one person might value getting a really good deal; another might enjoy the extra attention and amenities associated with a fancy salon, a key to successful marketing is determining the correct balance of functional and psychological needs that best appeals to the firm"s target markets, marketers use reminder advertising for their products, creating awareness about a new product and its capabilities, showing how a product could enhance consumers" image, and even altering the physical layout of the store. Compensatory decision rule assumes that the consumer, when evaluating alternatives, trade off one characteristic against another, such that good characteristics compensate for bad characteristics: mileage compensates the higher price for the new car, non compensatory is at work when consumers choose a product or service on the basis of a subset of its characteristics, regarding of the values of its other attributes.