Ch 4 Flashcards
Consumer Decision Process
Need recognition -> information search - > alternative evaluation -> purchase decisions -> post purchase
Factors affecting consumers’ search processes
- Perceived Benefit vs. Perceived Costs
- Actual or Perceived Risk
- Locus of Control
Actual or Perceived Risk
- Performancerisk
- financial risk
- social risk
- physiological risk
- psychological risk
Alternative Evaluation: Decision Rules
- compensatory
- decision heuristics
- noncompensatory
compensatory decision rule
when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones
noncompensatory decision rule
when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
decision heuristics
Mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation
Purchase & Consumption
Retailers use the conversion rate to measure how well they convert purchase intentions into actual purchases
Purchase & Consumption Tactics
- Reduce real or virtual abandoned carts
- Merchandise in stock
- Reduce the actual wait time
Postpurchase outcomes
- customer satisfaction
- post purchase dissonance
- customer loyalty
Customer satisfaction
marketers can take the following steps to ensure postpurchase customer satisfaction:
build realistic expectations, demonstrate correct product use, stand behind your product or service, encourage customer feedback, periodically make contact with customers & thank them
Postpurchase cognitive dissonance
buyer’s remorse – an internal conflict that arises from an inconsistency between two beliefs, or between beliefs & behaviours
Customer loyalty
this develops over time with multiple repeat purchases of the product or brand from the same firm
Factors Influencing Consumer Buying decisions
- psychological
- social
- situational
Psychological Factors Influencing Consumer Buying decisions
influences internal to the consumer: motives, attitudes, perceptions, learning & lifestyles