BU352 Chapter Notes - Chapter 4: Decision Rule, Determinant
BU-352 Chapter 4: Consumer Behaviour
Consumer Decision Process
1. Need Recognition
a. Consumers recognize an unsatisfied need
b. 2 Needs
b.i. Functional: Performance of a Product
b.ii. Psychological: Personal gratification of the product
2. Information Search
a. Now consumers search for how to solve the need
b. Internal Search: Buyer examines own memory or experiences to solve problem
c. External Search: Buyer seeks external knowledge to help with decision
d. Internal Locus of Control: When consumers believe they have control over the
outcomes of their actions
e. External Locus of Control: Fate or other factors control outcomes
f. 5 Risk Types
f.i. Performance Risk: Product doesn’t perform
f.ii. Financial Risk: Risks associated with monetary outlay
f.iii. Social Risk: Fear others may not like their product
f.iv. Physiological Risk: Safety risk
f.v. Psychological Risk: the way people feel if their product doesn’t convey the right
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3. Alternative Evaluation
a. Evaluative Criteria is used to identify and rule out choices
b. Determinant Attributes: Important features of products/services that are important to
buyers
c. Compensatory decision rule: Trade-off between good characteristics and bad ones,
good price but bad condition
d. Noncompensatory decision rule: Consumers choose a product on the basis of a subset
of characteristics regardless of other attributes
e. Decision Heuristics: Mental shortcuts that help them narrow down their choices
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