Management and Organizational Studies 2320A/B Chapter Notes - Chapter 4: Decision Rule, Impulse Purchase, Reference Group

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

Document Summary

Step 1: need recognition state to a desired state. They have an unsatisfied need and want to go from their needy. The greater discrepancy between these two states, the greater the need recognition will be. Functional needs pertain to the performance of a product or service. Psychological needs pertain to the personal gratification consumers associate with a product or service (ex. When you pay higher price for shoes that have the same function) Search for info about various options that exist. Perceived risk and importance of the product is important to the length and intensity of the search. Internal search for information occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences. External search for information occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision.