Rational decision making Flashcards
Extended Parallel Process Model
Expands on fear arousal, explains how people respond to fear-inducing messages. Proposes two primary responses: danger control and fear control
Rational Choice Theory
Proposes that Consumers make purchase decisions by logically weighing costs and benefits of their options to maximize personal advantage
Theory of planned Behaviour
Proposes that consumers decision to engage in an activity is influenced by factors like intention, attitude, subjective norm and perceived control
Fishbein Model
Proposes that consumer behaviour is driven by attitudes and beliefs about product attributes. Consumer evaluates characteristics (such as cost, craftsmanship and design) and develop opinion about it shaping their decision
Self-Determination Theory
Highlights importance of intrinsic drive, individuality and personal development in decision making. Consumers are more motivated to satisfy their core demands for autonomy, competence and relatedness than external factors like rewards
Diffusion of Innovations Theory
People adopt innovations at different rates (innovators, early adopters, early majority, late majority and laggards). Speed of diffusion depends on factors like perceived advantage, ease of use and how well it fits into existing values
Maslow’s hierarchy of Needs
Basic needs (like food and safety) need to be met before higher needs (like love, esteem and self-actualization) . Explains why people prioritize certain purchase decisions based on where they are in the hierarchy at any given time
Means-End Chain Theory
Explains that consumers choose products not just for their functional attributes but for the deeper value they help achieve. Buying organic food (means) leads to better health (consequence) which satisfies desire for well being (end)
Social Exchange Theory
Explains social interactions where individuals weigh costs and benefits of engaging with others. People make decisions based on rewards (satisfaction or prestige) weighing against costs (money or time spent)
Signaling theory
Focuses on how companies convey product quality or reliability when consumers have limited information. Decision making to reduce uncertainty based on signals like warranty, or prestigious endorsements
Theory of perceived risk
Consumers decision making is influenced by their perception of risk. If risk is high, consumer may seek more information or stick with familiar brands
Technology Acceptance Model
Explores how users adopt new technologies by focusing on two key factors: perceived usefulness and perceived ease of use.
