Download Understanding Consumer Decision Making: Terms and Concepts and more Quizzes Consumer Behaviour in PDF only on Docsity! TERM 1 decision process DEFINITION 1 need recognition information search evaluation of alternatives purchase decision post-purchase satisfaction TERM 2 need recognition DEFINITION 2 individual becomes aware of a difference between a desired state and an actual conditionwhen unaware, tool for marketers TERM 3 information search DEFINITION 3 internal searchexternal search TERM 4 internal search DEFINITION 4 learning, memory, attitudesevoked setinvolvement TERM 5 external search DEFINITION 5 personalexperientialcommercialpublicproduct knowledge TERM 6 types of decision making DEFINITION 6 routine = low info low involvementlimited = variety seeking, brand loyalty (high info process, low involvement and switch respectfully)extensive = problem solving - high involvment and info processtype of decision made dictates amount of information search TERM 7 information search leads to.. DEFINITION 7 consideration set: the products or brands that consumers evaluate when pruchacing TERM 8 evaluation of alternatives DEFINITION 8 choice and ranking depend on- the consumer- the product or type of purchase TERM 9 purchase decision DEFINITION 9 which one pickedpurchase intention turns into purchase decision when easy to justify and get others' approval and no unexpected situational event occurs TERM 10 post purchase evaluation DEFINITION 10 determinants of satisfactiondissatisfaction/complaints TERM 21 majority of confirming dimensions DEFINITION 21 choose 2 options, compare on each attribute, winner by majority, repeat TERM 22 frequency of good/bad features DEFINITION 22 count the number of good (winning) features, bad features, or bothadd wins/losses 1's and 0's TERM 23 heuristics DEFINITION 23 consumers often use simple rules of thumb, or heuristics, to make decisionsmental shortcutsoften lead to biases TERM 24 common purchasing heuristics DEFINITION 24 brand loyalty brand familiarity scarcity = desirability effort = quality high price = quality TERM 25 availability heuristic DEFINITION 25 used to evaluate the frequency or likelihood of an event based on how quickly examples come to mind- example brought to mind easily, consumers overestimate likelihood of this event.affected by vividness and accessibility TERM 26 representativeness heuristic DEFINITION 26 an event that has salient features related to its parent population is perceived as more likely10! vs. opposite written out TERM 27 prospect theory DEFINITION 27 consumers differentially value gains and losses- losses loom larger than gains = loss aversionframing helps consumers interpret choice as either a gain or a loss TERM 28 choice framing DEFINITION 28 risk averse in fain framesdont want to lose a "Sure gain"risk seeking in loss frameswant to avoid a "sure" loss TERM 29 traditional view of mental accounting DEFINITION 29 all income is integrated into net worth regardless of source:broadway ticket example TERM 30 mental accounting DEFINITION 30 money is not 100% fungiblewe put money into different "mental" accoundsimplications: we can frame purchases to fit inside peoples budgets TERM 31 mental accounting and marketing DEFINITION 31 segregate gains (cars features spread out individually) integrate losses (list price in one lump sum of car) silver lining effect (cash back) cancel losses against larger gains (paycheck deductions) TERM 32 base value neglect DEFINITION 32 people fail to consider the base value associated with a percentage, so they perfer the larger percentage in gains and smaller percentage in losses. TERM 33 base value neglect: boundaries DEFINITION 33 effect goes away at low percentages effect goes away when converting is easy when using moderate, hard to convert percentages, match quantity or price with gain or loss frame TERM 34 compromise effect DEFINITION 34 popcorn examplepeople choose middle option since don't want to be extreme, and compromiseconsumers typically willing to pay more for compromise TERM 35 endowment effect DEFINITION 35 have something, sell it for more since feel endowed
