*Individual Decision Making Flashcards
What attributes make a buying decision extended problem solving
- risky decision
- extensive information collection
- careful evaluation of alternatives
- compensatory rule
What attributes make a buying decision limited problem solving
- straightforward choices
- simple decision rules
- little search
- non compensatory rule
what attributes make a buying decision habitual?
- automatic choices made
- minimal time/ energy
What happens in need recognition?
when your actual state moves downward, so you recognize a need to bring you back to your previous, ideal, state
what happens in opportunity recognition?
your ideal state moves above your actual state
What is evaluative criteria?
the features that people use to differentiate among alternatives
What is the non-compensatory decision rule?
eliminating options that do not meet certain standards
what is the compensatory rule
the product can make up for its weaknesses (good vs. bad)
what are product signals?
observable product attributes that communicate underlying qualities
What is a perceived risk?
the belief that a product has negative consequences
what is a functional risk?
risks associated with the exclusive commitment of purchasing a product
what is monetary risk?
risks to money and property; high for high-ticket items
what is physical risk?
the risks towards health and well-being
what is social risk?
the risk that happens when self-esteem and self-confidence is concerned
what are the 4 strategic implications of product categorization?
- product positioning
- identifying competitors
- exemplar products
- locating products in the retail setting
