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BUS 343 (122)
Chapter 4

Chapter 4.docx

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Department
Business Administration
Course Code
BUS 343
Professor
Zaheer Jiwani

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Chapter 4 The consumer decision-making process Consumer behavior: the process involved when individuals or groups select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.  Not all decisions are the same Involvement: the relative importance of perceived consequences of the purchase to a consumer. Perceived risk: the belief that choice of a product has potentially negative consequences, whether financial, physical, and/or social.  Step1: problem recognition Problem recognition: the process that occurs whenever the consumer sees a significant difference between his current state of affairs and some desired or ideal state; this recognition initiates that decision-making process. Step2: Information search Information search: the process whereby a consumer searches for appropriate information to make a reasonable decision.  The internet as a search tool Search marketing: marketing strategies that involve the use of internet search engines. Search engine optimization (SEO): a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business. Search engine marketing (SEM): search marketing strategy in which marketers pay for ads or better positioning. Sponsored search ads: paid ads that appear at the top or beside the internet search engine results. Comparison shopping agents (shopbots): web applications that help online shoppers find what they are looking for at the lowest price and provide customer reviews and ratings of products and sellers.  Behavioral targeting Behavioral targeting: the marketing practice by which marketers deliver advertisements for products a consumer is looking for by watching what the consumer does online.  Step3: evaluation of alternatives Evaluative criteria: the dimensions consumers use to compare competing product alternatives.  Step4: Product choice Heuristics: a mental rule of thumb that leads to a speedy decision by simplifying the process. (Price=quality) Brand loyalty: a pattern of repeat product purchases, accompanies by an underlying positive attitude toward the brand, based on the belief that the brand makes products superior to those of its competition.  Step5: Post purchase evaluation Consumer satisfaction/dissatisfaction: the overall feelings, or attitude, a person has about a product after she purchases it. Cognitive dissonance: the anxiety or regret a consumer may feel after choosing from among several similar attractive choices. Internal influences on consumers’ decisions  Perception Perception: the process by which people select, organize, and interpret information from the outside world. Exposure: the extent to which a stimulus is capable of being registered by a person’s sensory receptors. Subliminal advertising: supposedly hidden messages in marketer’s’ communications. Consideration set: the set of alternative brands the consumer is considering for the decision process. Clickstream analysis: a means of measuring a web site’s success by tracking customers’ movement around the site.  Attention Attention: the extent to which a person devotes mental processing to a particular stimulus.  interpretation Interpretation: the process of assigning meaning to a stimulus based on prior associations a person has with it and assumptions he or she makes about it.  Motivation Motivation: an internal state that derives us to satisfy needs by activating goal- oriented behavior stimulus. Hierarchy of needs: an approach that categorizes motives according to five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top.  Learning Learning: a relatively permanent change in behavior caused by acquired information or experience.  Behavioural learning Behavioural learning theories: theories of learning that focus on how consumer behavior is changed by external events or stimuli. Classical conditioning: the learning that occurs when a stimulus eliciting a response is paired with another stimulus that initially does not elicit a response on its own but will cause a similar response over time because of its association with the first stimulus. (dog+f
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