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
Buyer
The person who does the transaction, usually the person who has the money
user
Someone that uses the product
Life cycles: classic
Classic Single All your income Young married Consumer durables - the necessities to setup a household Full nest 1 Kid-related necessities and expenses Women usually quit working Household income decrease Larger living space/house Full nest 2 You had all the kids you are going to have and they are all attending school Kids around the age of 6 to 18 years Empty nest 1 All the kids are gone No more kid related expenses Empty nest 2 Both adults are retired and are living Sole survivor Likely a women - men die earlier usually The original family ceases to exist once the sole survivor is no longer alive
Life cycles: modern
Modern Young adults No kids could be married or not New full nest You have kids living under the same rood New empty nest All the kids are gone Retired Both parents have stopped working
