Chapter 4 Flashcards
Consumer Decision Process
Step 1: Need Recognition Step 2: Information Search Step 3: Alternative Evaluation Step 4: Purchase Decision Step 5: Postpurchase
Need Recognition
The beginning of the decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their needy state to a different, desired state
Step 1: Need Recognition
- functional needs
- psychological needs
Functional Needs
Pertain to the performance of a product or service
Psychological Neds
Pertain to the personal gratification consumers associate with a product or service
Step 2: Information Search
- internal search for information
- external search for information
- internal locus of control
- external locus of control
- performance risk
- financial risk
- social risk
- physiological risk
- psychological risk
Internal Search for Information
Occurs when the buyer examine his or her own memory and knowledge about the profit 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
Internal Locus of Control
Refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities
External Locus of Control
Refers to when consumers believe that fate or other external factors control all outcomes
Performance Risk
Involves that perceived danger inherent in a 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 the item of service
Social Risk
Involves the fears that consumers suffer when they worry that others might not regard their purchases positively
Physiological Risk
Risk associated with the fear of an actual gain should the product not perform properly
Psychological Risk
Associated with the way people will feel if the product or service does not convey the right image
Step 3: Alternative Evaluation
- universal sets
- retrieval sets
- evoked set
- evaluative criteria
- determinant attributes
- consumer decision rules
- compensatory decision rule
- non compensatory decision rule
- decision heuristics
Universal sets
Consist of all possible choices for a product category
Retrieval sets
Consist of those brands or stores that can be readily brought forth from memory
Evoked Set
Comprises the alternative brands or stores that the consumer states would be considered when making a purchase decision
Evaluative Criteria
Consist of a set of salient, or important, attributes about a particular product that are used to compare alternative products
Determinant Attributes
Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ
Consumer Decision Rules
The set of criteria consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives
Compensatory Decision Rule
Is at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones
Noncompensatory Decision Rule
Is at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values or its other attributes
Decision Heuristics
Mental shortcuts that help consumers narrow down choices;
Ex: Price, Brand, Product Presentation
Step 4: Purchase Decision
- ritual consumption
Ritual Consumption
Refers to a pattern of behaviours tied to life evens that affect what and how people consume
Step 5: Postpurchase
- post purchase dissonance
- negative word-of-mouth
Postpurchase Dissonance
An internal conflict the arises from an inconsistency between 2 beliefs, or between beliefs and behaviour;
BUYERS REMORSE
Negative Word-of-mouth
Occurs when consumers spread negative information about a product, service, or store to others
Motive
A need or want that is strong enough to cause the person to seek satisfaction
Physiological Needs
Relate to the basis biological necessities of life (food, drink, rest and shelter)
Safety Needs
Pertain to protection and physical well-being
Love (social) Needs
Relate to our interactions with others
Esteem needs
Allow people to satisfy their inner desires
Self-actualization
Occurs when you feel completely satisfied with your life and how you live
Attitude
A person’s enduring evaluation of his or her feelings about and behavioural tendencies toward an object or idea; consists of 3 components (cognitive, affective, behavioural)
Psychological Factors
- motives
- attitude
- perception
- learning
- lifestyle
Cognitive Component
A component of attitude that reflects what a person believes to be true
Affective Component
A component of attitude that reflects what a person feels about the issue at hand - his or her like or dislike of something
Behavioural Component
A component of attitude that comprises the actions a person takes with regard to the issue at hand
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world
Learning
Refers to a change in a person’s thought process or behaviour that arises from experience and takes place throughout the consumer decision process
Lifestyle
Refers to the way consumers spend their time and money
Social Factors
- family
- reference groups
- culture
Reference group
One or more persons an individual uses as a basis for comparison regarding beliefs, feelings and behaviours
Situational Factors
Factors affecting consumer decision process; those that are specific to the purchase and shopping situation and temporal state that may override or at least influence, psychological and social issues
Involvement
The consumer’s degree of interest in or concern about the product or service
Extended Problem Solving
A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a great deal of risk
Limited Problem Solving
Occurs during a purchase decision that calls for, at most, a moderate amount of effort and time
Impulse Buying
A buying decision made by customers on the spot when they see the merchandise
Habitual Decision Making
A purchase decision process in which consumers engage with little conscious effort
