From Test #2 Flashcards
Define ideal vs actual state.
Ideal state: the state you want to get to, the desired state
Actual state: state you find yourself in at that moment
What does “keeping up with the Joneses” mean?
Creates dissatisfactions with the state you are in. Means you are always striving to have the next best thing, coolest gear, trendy item.
Ex: Kardashians buy lip color then you must too.
Internal search. 2 types of information recalled.
Internal search: process of retrieving information from memory
Info recalled:
1-Brands
2-Experiences
Confirmation bias and example.
Confirmation bias: tendency to recall information that further validates what you already know/believe
ex: recalling article about religion being good a year ago vs the headline about it being bad that you saw today
Pre-purchase search vs ongoing search.
Pre-purchase search: Usually a well thought out, bigger purchase. Search that aids a specific buying decision. Ex: all the Googling you do on a type of car before you buy it.
Ongoing search: Items you are passionate about so you never stop searching for them. Ex: Tom’s wedges
Anchoring.
We rely too much on the first piece of information that we are given and it clouds up everything else that is told to us. It becomes the “anchor” then of the decisions
Multiple Unit Pricing
MUP: the sale value is the same either way but you think you are getting “more” because it is lumped together
Ex: 2 for $4 vs 1 for $2 = same thing
Framing
Initial reference point or anchor in making decision. All about how the situation/product is presented to you.
Ex; Drug will kill 200 people vs 400 people will survive with this new drug (both situations out of 600 people)
Compensatory vs noncompensatory
Compensatory: consumer compensates one characteristic for another
Ex: may be expensive BUT newest technology
Noncompensatory: consumer selects a product because ONE characteristic outweighs all the others
Ex: Made in the USA
Prospect theory
Losses have more of an impact on customers than gains. We tend to notice price increases (us losing money) vs price decreases.
Post decision dissonance
Feeling of anxiety over whether correct/right decision was made.
Post-decision dissonance vs post-decision regret?
Post decision dissonance: Did I make the right choice?
Post decision regret: Should I have purchased a different product instead? (comparison aspect)
2 things consumer might do to relieve cognitive (post-purchase) dissonance?
1-Take item back
2-Seek out positive feedback from others.
