MKT 400 Chapter Notes - Chapter 9: Mental Accounting, Sales Promotion, Loss Aversion

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Published on 15 Apr 2013
School
Ryerson University
Department
Marketing
Course
MKT 400
Professor
MKT400 Individual decision making Chapter 9
Consumer purchase may be a response to a perceive problem.
Consumers go through series of steps to purchase:
1) Problem recognition
2) Information search
3) Evaluation of alternatives
4) Product choice
Perspectives on decision making
Rational perspective is the view that people calmly and carefully integrate as much information
as possible with what they already know about a product, painstakingly weigh the pluses and
minuses of each alternative.
Purchase momentum occurs when these initial impulses actually increase the likelihood that we
will buy even more almost as if we get revved up and plunge into a spending spree. A consumer
evaluates the effort required to make a particular choice and then he or she chooses a strategy
best suited to the level of effort required.
Types of consumer decisions
Consumer researcher have found it convenient to thin in terms of a continuum, which is anchored at
one end by habitual decision making and at the other by extended problem solving. Many decisions fall
somewhere in the middle and are characterized by limited problem solving.
Extended problem solving
Correspond most closely to the traditional decision making perspective. It is usually initiated by
a motive that is fairly central to the self-concept and the eventual decision is perceived to carry
a fair degree of risk. Customer collects much information as possible both from memory
(internal) and from outside (external). Each alternative is carefully evaluated.
Limited problem solving
More straightforward and simple. Buyers are not as motivated to search for information or to
evaluate each alternative carefully. People instead use simple decision rules to choose among
alternatives.
Habitual decision making
Both extended and limited problem solving modes involve some degree of information search
and deliberation, varying in the degree to which activities are undertaken. Development of
habitual repetitive behaviour allows consumers to minimize the time and energy spent on
mundane purchase decisions.
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Document Summary

Consumer purchase may be a response to a perceive problem. Consumers go through series of steps to purchase: problem recognition, information search, evaluation of alternatives, product choice. Rational perspective is the view that people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weigh the pluses and minuses of each alternative. Purchase momentum occurs when these initial impulses actually increase the likelihood that we will buy even more almost as if we get revved up and plunge into a spending spree. A consumer evaluates the effort required to make a particular choice and then he or she chooses a strategy best suited to the level of effort required. Consumer researcher have found it convenient to thin in terms of a continuum, which is anchored at one end by habitual decision making and at the other by extended problem solving.

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