Textbook Notes (363,507)
Canada (158,391)
Business (2,364)
BU352 (267)
Chapter 5

Chapter 5 - Consumer Behaviour.docx

3 Pages
Unlock Document

Wilfrid Laurier University
Deborah Reyner

Consumer Decision Process Step 1: Need Recognition  Greater need recognition results when consumer gap from actual needy state to desired state is large o Functional needs – pertain to the performance of a product or service (warm woolly boots) o Psychological needs – pertain to the personal gratification consumers associate with a product or service (Louis Vuitton, Guess, Armani, Gucci, etc)  Needs are likely to satisfy both of these needs (buying adidas shoes)  Marketers can use reminder advertising (placing eggs near bread) Step 2: Information Search - Hair is important, you might go search for the best salon - If not, a close and cheap barber is good enough for you  internal search for information – buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences (I like shopping online for movies so when I want to watch a movie, I go buy it from online)  external search for information – buyer seeks out information outside their personal knowledge base to help make buying decision  social media is increasingly used to make decisions when purchasing products  factors affecting consumers’ search processes o perceived benefits vs. perceived costs of search  is it worth the time and effort o internal locus of control – consumers believe they have control over outcomes  external locus of control – fate or external factors control outcomes o actual or perceived risk; the higher risk, the more consumer is likely to engage in extensive research  performance risk – perceived danger of product/service  financial risk – cost of the item, and cost of using the item  social risk – fear that consumers worry about what others think about their purchase  physiological risk – fear of an actual harm from the product  psychological risk – way people feel if product or service doesn’t convey the right image (if it looks good) o type of product or service  specialty goods – customer shows strong preference and for which they will expend considerable effort to search for the best suppliers (Audi, BMW)  shopping goods – consumers will spend a fair amount of time comparing alternatives (clothes,
More Less

Related notes for BU352

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.