Chapter 6 Flashcards
Economic Theory
- Based on rational economic behavior
- Assumes consumers know all of the facts and they logically compare choices
- a buyer will select the product that adds the most marginal utility (value) to his portfolio of products
Is economic theory viable?
No! People don’t think about all that stuff
Need Recognition
Result of an imbalance between actual and desired states.
Internal Information Search
Recall information in stored in the memory
External Information Search
Seek information in outside environment
Non-marketing controlled
Marketing controlled
Evoked Set
Group of brands, resulting from an information search, from which a buyer can choose
Cognitive Dissonance
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
High Involvement Purchase Decision Req:
Extensive and informative promotion to target market
Low Involvement Purchase Decision Req:
Eye-catching packaging Displays Coupons, discounts & offers
4 factors effecting consumer decision making?
1) Cultural
2) Social Factors
3) Individual Factors
4) Psychological Factors
Two types of reference groups?
Direct and indirect
Opinion Leaders
People you know
Celebrities
2 aspects of perception?
1) Selective exposure
2) Selective Distortion
3) Selective Retention
Maslows Hiearchy of Needs
Must meed self sustaining needs before getting to self acualization
Experential
An experience changes behavior
