Exam 1: Chapter 5 Flashcards
Five step process for decisions
- Problem recognition
- Information search and shopping - Risk, involvement
- Information processions and decisions models
- Making a decision
- Post-Decision
Problem recognition
- General decision situation, doesn’t have to be specific
- Can be internally generated, or generated by marketers by advertising
- You identify you have a problem that you have to address
Information search and shopping - Risk, involvement
- Information gathering through shopping
- Cost-benefit analysis
- Risk: $, technological, obsolescence, safety, social
- Involvement: Significance, impact on identity
Information processions and decisions models
a. Decision Models
i. Multi-Attribute/Compensatory choice Models
ii. Importance x Rating = Score
Making a decision
a decision
Post-Decision
- Evaluate your purchase
- Make a judgment whether you made a good or bad decision
- Buyer’s remorse → Mental discomfort → Cognitive dissonance
- When you think you made a wrong decision
- Sometimes people go back to Stage 2 of this process even though they just bought something (tries to justify their purchase)
Another name for buyer’s remorse
Cognitive dissonance
(class and text), family influences including life cycles
Word-of mouth Through personal contacts Trusted relatives or friends Spread like wildfire… like rumors Unhappy customers generate negative word of mouth.
Reference group influences
Sociological variables : Opinion leadership
People who you look up to
Sociological variables : Word-of mouth
- Through personal contacts
- Trusted relatives or
friends - Spread like wildfire… like rumors
- Unhappy customers generate negative word of mouth.
Sociological variables: :Reference group influences
- Groups that you may be associated with
- Co-workers, peers
- Other people put pressure on you to act a certain way
Aspirational Groups - Groups you want to be a part of
iii. Disassociate group - Groups you want to get away from
5 Family influences:
- Researcher
- Influencer
- Decider
- Buyer
- user
Researcher
Someone that gathers information
Influencer
People that exert pressure on another
Decider
Someone who makes the decision