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Chapter 4

MKT 100 Chapter Notes - Chapter 4: Personal Knowledge Base, Cognitive Dissonance, Decision Rule

Course Code
MKT 100
Janice Rudkowski

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Chapter 4: Consumer Behaviour
Represents the steps that consumers go through before, during, and aer making purchases
Need recognion is the beginning of the consumer decision process; occurs when consumers
recognize they have an unsased need and want to go from their needy state to a dierent
desired state
The key to successful markeng is determining the correct balance of funconal and
psychological needs that best appeals to the rm's target markets
Marketer's use numerous taccs to either remind customers of a need or create new needs
Funconal Needs
Funconal needs pertain to the performance of a product or service
oEx. Gore-tex, Polartec, and Thinsulate have been viewed as funconally superior to
others that might be used in rugged, high-performance outerwear
Psychological Needs
Psychological needs pertain to the personal gracaon consumers associate with a product or
oEx. Louboun shoes
Second step, is to search for informaon about the various opons that exist to sasfy the need
The length and intensity of the search are based on several factors, including the degree of
perceived risk associated with purchasing the product or service and the importance of the
product to the consumer
Internal Search for Informaon
Internal search for informaon occurs when the buyer examines his or her own memory and
knowledge about the product or service, gathered through past experiences
External Search for Informaon
External search for informaon occurs when the buyer seeks informaon outside his or her
personal knowledge base to help make the buying decision
Might ll personal knowledge gaps by talking with friends, family, or a salesperson
Commercials and social media can be way as well
Factors Aecng Consumer's Search Processes
The perceived benets versus perceived costs of search.
The locus of control.
oInternal locus of control refers to when consumers believe they have some control over
the outcomes of their acons, in which case they generally engage in more search acvies
oExternal locus of control refers to when consumers believe that fate or other external
factors control all outcomes

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Actual or perceived risk. There are 5 types of risk associated with purchase decisions which can
delay or discourage a purchase: performance, nancial, social, physiological, and psychological.
oPerformance risk involves the perceived danger inherent in a poorly performing product
or service
oFinancial risk is associated with a monetary outlay; includes the inial cost of the
purchase, as well as the costs of using the item or service
oSocial risk involves the fears that consumers suer when they worry others might not
regard their purchases posively
oPhysiological risk is associated with the fear of an actual harm should the product not
perform properly
oPsychological risk is associated with the way people will feel if the product or service
does not convey the right image
Oen occurs when consumers are engaged in the process of informaon search
Evaluaon criteria consists of a set of salient, or important, a0ributes about a parcular product
that are used to compare alternave products
Determinant a-ributes are product or service features that are important to the buyer and on
which compeng brands or stores are perceived to dier
Consumer decision rules are the set of criteria consumers use consciously or subconsciously to
quickly and e2ciently select from among several alternaves
Compensatory decision rule is at work when the consumer is evaluang alternaves and trades
o one characterisc against another, such that good characteriscs compensate for the bad ones
Noncompensatory decision rule is at work when consumers choose a product or service on the
basis of subset of its characteriscs, regardless of the values of its other a0ributes
Decision Heuriscs
Decision heuriscs are mental shortcuts that help consumers narrow down choices; examples
include price, brand, and product presentaon
oPrice. Consumers can choose more expensive opon as they might think they are ge3ng
be0er quality along with the higher price or buy the product priced in the middle of the
alternaves, neither the most expensive nor cheapest, thinking its the best
oBrand. Always buying brand name things makes consumers feel safe with their choices.
Buying a naonal brand, even if it's more expensive, gives many the sense that they are
buying higher quality items
oProduct presentaon. The manner in which products are presented can in7uence the
decision process. Consumers want to see that some eort has been put into the selling
process and just the way the product is presented can make or break a sale
Retailers should have plenty of merchandise on hand so customers can pick and choose as they
Aer the product is purchased, people consume it or put it to the test.
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