Unit 6 - Problem recognition and information search Flashcards
Consumer hyper-choice:
condition where the large number of available options forces us to make repeated choices than may drain our psychological energy while, at the same time, decreasing our abilities to make smart decisions.
Constructive processing:
Thought process where, we evaluate the effort we’ll need to make a particular choice and then tailor the amount of cognitive ‘effort’ we expend to get the job done.
Mental budget
helps us to estimate what we will consume over time so that we can regulate what we do in the present.
People differ in terms of their
cognitive processing style.
Some → rational system of cognition
Others → experiential system of cognition
3 buckets of consumer decision-making
COGNITIVE → deliberate, rational, sequential
HABITUAL → behavioural, unconscious, automatic
AFFECTIVE → emotional, instantaneous
Self-regulation:
if we have a self regulatory strategy, we specify in advance how we want to respond to certain situations.
Feedback-loop:
These applications provide people with information about their actions in real time, and then give them a chance to change those actions so that you push them to improve.
Morning Morality Effect:
shows that people are more likely to cheat, lie or even commit fraud in the afternoon than in the morning.
Executive Control Centre:
part of the brain which is used for important decision-making, including moral judgements. It can be worn down or distracted by even simple task such as memorising numbers.
Habitual problem solving:
decisions are made as many times as they are internalized.
Extended problem solving:
Process which starts when the decision we have to make relates to our self- concept.
- we try to collect as much information as possible both from our memory and outside sources
Limited problem-solving:
is usually more straightforward and simple.
- in this case we are not nearly as motivated to search for information or to evaluate each alternative rigorously
- we use simple decision rules to choose among alternatives
Steps in the Cognitive Decision-Making Process
They can be described as:
- Problem recognition
- Information search
- Evaluation of alternatives
- Product choice
- Post-purchase evaluation
Problem Recognition:
it occurs when consumer sees differences between current state and ideal state.
Opportunity recognition
consumer ’s ideal state can move upward
Need recognition/identification:
consumer’s actual state declines
primary demand:
consumers are encouraged to use a product or service regardless of the brand they choose
example: from mobile phones to smartphones
secondary demand:
consumers are prompted to prefer a specific brand instead of others.
example: iPhone
Information search is
the process by which the consumer surveys their environment for appropriate data to make a reasonable decision.
types of information search
- PRE-PURCHASE search: a consumer recognises a need and then searches the marketplace for specific information
- ONGOING search: veteran consumers who enjoy browsing just for the fun of it, or because they like to say up-to-date on what’s happening in the marketplace
internal VS external information search
each consumer has some degree of knowledge already in memory about many products either as a result of prior experience or simply from living in a consumer culture
internal search
scanning our own memory bank to assemble information about different product alternatives
external search
we obtain the information from advertisements, friends or just plain people-watching
Cybermediary:
Website or app that helps to filter and organise online market information so that customers can identify and evaluate alternatives more efficiently.
skyscanner
Intelligent agents:
Are sophisticated software programs that use collaborative filtering technologies to learn from past user behaviour in order to recommend new purchases.
Search engine optimisation (SEO):
This term refers to the procedures companies use to design the content of websites and posts to maximise the likelihood that their content will show up when someone searches for a relevant term. The main goal is to persuade people to access their content.
long tail
a business strategy that allows companies to realise significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items
perceived risk
Belief that the product has potentially negative consequences from using or not using the product or service. Perceived risk may be present if the product is expensive or is complex and difficult to understand, or if the brand is unfamiliar.
