Management and Organizational Studies 2320A/B Chapter Notes - Chapter 4: Relate, Cognitive Dissonance, Personal Knowledge Base

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: John White

Document Summary

Creating awareness about a new product and capabilities. Actual or perceived risk: performance risk: involves the perceived danger inherent in poorly performing product or service. Financial risk: risk associated with a monetary outlay; includes the initial cost of the purchase as well as the costs of using it: alleviate with extended warranties. Can be very rational or psychologically based: consumer decision rules: the set of criteria consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. Compensatory rule: when evaluating alternatives and trade off one characteristic against another such that good characteristics compensate for bad ones. Noncompensatory decision rule: when consumers choose a product or services on the bias of a subset of its characteristics regardless of the values of other attributes. Decision heuristics: mental shortcut that help consumers narrow down choices: price, brand, product presentation, purchase decision, conversion rate - to measure how well a business as converted purchase intention into actual purchases.