Individual Decision Making Flashcards
What is the rational perspective for decision making
Integrate as much information as possible with what they already know about product
Weigh pluses and minuses
Arrive at satisfaction decision
What are other models of decision making (without rational)
Purchase momentum: occurs when consumers buy beyond needs
Behavioural influence perspective: consumer buy based on environmental cues, such as sale
Experiential perspective: consumer buy based on totality of product’s appeal
What is habitual decision making
Automaticity: choices made with little/ no conscious effort
Challenge for marketers: consumer must be convinced to “unfreeze” their former habit and replace it with new one
What is limited problem solving
Straightforward choice
Simple decision rules to choose among alternatives
What is extended problem solving
Initiated by self-concept motive
Eventual purchase decision is perceived a risk
Consumer collects extensive information
Careful evaluation of b4and attributes
What is the consumer-depiction making process
Need recognition, information search, evaluation of alternatives, purchase, post purchase behaviour
What is internal vs external search?
Internal:
- recollection of information in memory
External:
- seek information in outside environment (non-marketing controlled)
- marketing controlled
What is directed learning?
Existing product knowledge obtained from previous experience of alternatives
What is incidental learning
Mere exposure over time to conditioned stimuli and observation of others
When is the search activity greater?
Important purchase
Relevant info is easily obtained and utilized
Female
One is younger
One place greater value on own style and image
What are biases in the decision making process
Mental accounting: decisions are influenced by the way a problem is posed, and by wether it is put in terms of gains or losses
Sunk cost fallacy: tendency for people to continue an endeavour, or continue consuming or pursuing an option, if they’ve invested time money or some resource in it. Becomes fallacy if it’s pushing you to do things that make you unhappy
Loss aversion: risk differs when consumers face options involving gains versus those involving losses
What is identifying alternatives?
Extended problem solving, occurs when choice conflict arouse negative emotions
What is a challenge to marketers when the consumer consider alternatives
Focus on getting their brands in consumer’s evoked set
Consumer often do not give rejected brands a second chance
What is product categorization?
We evaluate products in terms of what we already know about a similar product
Evoked-set products usually charge similar features
A crucial determinant of how a product is evaluated
What is a product position
The place a product, brand, or group of products occupies in the consumer’s minds relative to competing offerings
