Consumer Behaviour: Individual Decision Making

These flashcards cover key concepts related to consumer decision-making behaviors and processes as discussed in the lecture notes.

Rational Perspective

A viewpoint in decision-making where consumers integrate information with prior knowledge, weigh pros and cons, and make satisfactory choices.

Extended Problem Solving

A decision-making process that consists of several stages, typically involving high consumer involvement and perceived risk.

Habitual Decision Making

Choices made with little to no conscious effort, often based on routine.

Information Search

The process of seeking relevant data to make an informed decision, which can be internal (from memory) or external (from external sources).

Perceived Risk

The belief that a product choice may have negative consequences, manifesting in physical danger or social embarrassment.

Heuristics

Mental shortcuts or rules-of-thumb that facilitate speedy decision-making, often based on prior experiences.

Evoked Set

The small number of brands that a consumer seriously considers when making a purchase.

Mental Accounting

A cognitive process where consumers categorize and evaluate economic outcomes, influencing their decision-making.

Sunk-Cost Fallacy

The tendency to continue investing in a losing proposition because of what has already been invested.

Brand Loyalty vs Inertia

Brand loyalty implies a commitment to a brand, while inertia refers to purchasing the same brand out of habit with no real commitment.