Consumer hyperchoice- a condition where the large number of available options forces us to make repeated choices that may drain psychological energy while decreasing our abilities to make smart decisions.
Rational perspective- integrating as much info as possible with what is already known about product, and evaluating alternatives, and choosing a satisfactory decision
Economics of informations- consumers will gather as much data as they need to make an informed decision.
Problem Recognition. Info Search. Evaluation of Alternatives. Product Choice. Outcomes
Purchase momentum– occurs when these initial impulses actually increase the likelihood that we will buy even more.
Behavioral influence perspective- the role the environment plays on purchase behavior
Experiential perspective-the totality of the product or service.
Extended problem solving- traditional decision-making perspective.
Limited Problem Solving- straightforward and simple, simple decision rules.
Habitual decision making- choices we make with little to no conscious effort – Automaticity
Problem recognition- When we see a significant difference between our current state and some statue.
Standard of comparison/ Opportunity recognition
Info Search- the process in which we survey the environment for appropriate data to make a reasonable decision
Prepurchase v Ongoing search
Internal search- scanning own memory
External Search- looking outside for things not known
Directed learning- learning through a previous different search
Incidental learning- learning through what we are exposed to
Variety seeking- the desire to choose new alternatives over more familiar ones.
Mental accounting- analysis of ppls responses to the decision making process.
Framing- how a problem is posed.
Prospect theory- describes how people make choices
Sunk-cost fallacy- paying for it makes us reluctant to waste it.
Loss aversion- we emphasize our losses more than our gains.
Percieved risk- belief that there may be negative consequences from using or not using a product or service
Monetary risk- risk of losing money
Functional risk-risk of not performing the function. Practical consumer ideology
Physical Risk- risk of physical injury.
Social Risk-risk of seeming weak. Those who are insecure
Psychological Risk- those lacking self respect or attractivemness to peers
Consideration set- alternatives a consumer knows about his evoked set and the ones that he actually considers
Knowledge structure- a set of beliefs and the way we organize these beliefs in our minds.
Basic level category- most useful to classify products because at this level, the items we group together tend to have a lot in common, but stil permit us to consider a broad enough range of alternatives.
Superordinate category– more abstact and broader
Subordinate category- specific and includes brands
Positioning strategy- how the product will be seen by the consumer
People with moderate search knowledge will search for the most info
Feature creep- proliferation of gizmos counterproductive.
Evaluative Criteria- dimensions we use to judge the mereits of competing options.
Determinant attributes- features we actually use to differentiate among our choises.
Neuromarketing- functional magnetic resonance imaging, brainscanning as we perform tasks.
Cybermediaries- helps filter and organize online market info so that customers can evaluate alternatives easier.
intelligent agents- sophisticated software programs that use collaborative filtering technologies to learn from past user behavior in order to recommend new purchases
heuristics- mental rules of thumb that lead to speedy decision.
Product signal- communicates an underlying quality of the product.
Covariation- the associations we have among events that may or may not actually influence one another.
Market beliefs- formed assumptions about companies, products, and stores.
Zipf’s Law- tendancy to prefer number one product
brand loyalty- repeat purchasing behavior of same brand.
Brand slut- a variety seeking customer with no brand loyalty >>>>>
Noncompensatory decision rules-when we feel that a product with low standing on 1 attribute cant compensate for this flaw by doing better on another attribute.
Lexicographic- selecting the brand that is best on most important attribute
Elimination-by-Aspects Rule- the buyer evaluates brands on most important attribute, but imposes cutoffs.
McDougal Littell Chapter 1
Conjunctive Rule-establishes cutoffs, and will choose a brand that meets all, but failure to meet, means cutoff.
Compensatory decision rules- no set cutoffs, lets products make up for shortcomings.
McDougal Littell Chapter 2
Simple additive rule- consumer chooses that has larges number of positive attributes.
Weighted additive rule- weights attributes based on relative importance, than rates attributes.