MARK 1115 - CH 5

consumer decision-making process

vocab: consumer behaviour

how consumers make purchase decisions and how they use and dispose of purchased goods or services

vocab: belief

an organized pattern of knowledge that an individual holds as true about their world

vocab: attitude

a learned tendency to respond consistently toward a given object, such as a brand

need recognition

when consumers are faced with an imbalance between actual and desired states

vocab: stimulus

any unit of input affecting one or more of the five senses: sight, smell, taste, touch, or hearing

vocab: internal information search

the process of recalling information stored in one’s memory.

vocab: external information search

process of seeking information in the outside environment

marketing vs nonmarketing controlled information source

• marketing: originate from marketers promoting the product (advertisments)

• nonmarketing: one that doesn’t originate from the organization making the product (from family/friends recommondations)

Vocab: evoked set

• evoked set: the brands that come to mind when thinking of a product category

vocab: cognitive dissonance

• buyers remorse

• when your expecations are not met

exhibit 5.1: consumer buying decisions

• involvement - time and effort you spend

vocab: routine response behaviour

• frequently purchased, requires little to no involvement on the search and decision making

→ toothpaste, pens

vocab: limited decision making

• moderate amount of information gathering

→ previous product experience but not current brands

vocab: extensive decision making

• requires lots of involvement in researching and decision making

factors determining the level of consumer involvement

• previous experience - good experience before = more likely to buy again

• interest - ↑ interest = ↑ chance of going

• perceived risk of negative consequences - financial/social/psychological

• situation - e.g. buying fruits for yourself vs dinner parties (higher quality)

• social visibility - makes a statement of the buyer (has social risk)

cultural influences on consumer buying decisions

• pervasive - what they do without conscious choice

• functional - human interaction create values

• learned -

• dynamic - culture adapts to changing needs and an evolving environment

exhibit 5.5 types of reference groups

groups that influence the purchasing behaviour of the buyer

psychological factors

perception, motivation, learning, beliefs, and attitudes

vocab: opinion leader

those who influence others

vocab: selective exposure

a process whereby a consumer decides which stimuli to notice and which to ignore

vocab: selective distortion

occurs when consumers change or distort information that conflicts with their feelings or beliefs

→ person who smokes and doesn’t want to quit will ignore warning labels

vocab: selective retention

a process whereby consumers remember only information that supports their personal feelings or beliefs

maslow’s hierarchy of needs