Marketing Chapter 6, Grewal

need recognition
the beginning of the consumer decision; occurs when consumers recognize they have an unsatisfied need and want to go form their actual, needy state to a different desired state
functional needs
pertain to the performance of a product or service
psychological needs
pertain to the personal gratification consumers associate with a product or service
internal search for information
occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences
external search for information
occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision
internal locus of control
refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities
external locus of control
refers to when consumers believe that fate or other external factors control all outcomes
Factors affect consumers’ search processes
1. the perceived benefits vs. perceived costs of search
2. the locus of control
3. actual or perceived risk
performance risk
involves the perceived danger inherent in a poorly performing product or service
financial risk
risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service
social risk
the fears that conusmers suffer when they worry others might not regard their purchases postively
physiological risk
the fear of an actual harm should a product not perform properly
safety risk
psychological risk
psychological risks
associated with the way people will feel if the product or service does nnot convey the right image
universal sets
includes all possible choices for a product-category
retrieval sets
includes those brands or stores that the consumer can readily bring forth from memory
evoked set
comprises the alternative brands or stores that consumer states he or she would consider when making a purchase decision
evaluative criteria
consist of a set of salient, or important, attributes about a particular product
determinant attributes
product or service features that are important to the buyer and on which competing brands or stores are perceived to differ
consumer decision rules
the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select form among several alternatives
compensatory decision rule
at work when the consumer is evalauting alternatives and trades off one characteristic against another, such that good characteristics compensate for bade one
multi-attribute model
a compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. the model uses a weighted average score based on the importance of various attributes and performance on those issues.
noncompensatory decision rule
at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attribute
conversion rate
percentage of consumers who buy a product after viewing it
postpurchase cognitive dissonance
the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers’ remorse
components of postpurchase outcomes
customer satisfaction, postpurchase dissonance, customer loyaltyh
negative word of mouth
occurs when consumers spread negative information about a product, service, or store to others
motive
a need or want that is strong enough to cause the person to seek satisfaction
maslow’s hierarchy of needs
a paradigm for classifying people’s for classifying people’s motives. It argues that when lower-level, more basic needs; see physiological, safety, social, and personal needs
physiological needs
those relating to the basic biological necessities of life, food, drink, rest, and shelter
safety needs
one of the needs in the PSSP hierarchy of needs; pertain to protection and physical well-being
love needs
needs expressed through interactions with others
esteem needs
needs that enable people to fulfill inner desires
self-actualization
when a person is completely satisfied with his or her life
factors affecting the consumer decision process
marketing mix, psychological factors, social factors, situational factors
marketing mix
product, price, place, promotion
social factor
family, reference groups, culture
situational factors
purchase situation, shopping situation, temporal state
psychological factors
motives, attitudes, perceptions, learning, lifestyle
maslow’s hierarchy of needs
1. self-actualization
2. esteem
3. love
4. safety
5. physiological
attitude
a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea; consists of three components: cognitive, affective, and behavioral
cognitive component
a component of attitude that eglects what a person believes to be true
affective component
a component of attitude that reflects what a person feels about the issue at hand, his or her like or dislike of somethingperception
behavioral component
a component of attitude that comprises the actions a persona takes with regard to the issue at hand
perception
the process by which people select, organize, and interpret information to form a meaningful picture of the world
learning
refers to a change in a person’s thought process or behavior that arises from experience and takes place throughout the consumer decision process
lifestyle
a component of psychographics; refers to the way a person lives his or her life to achieve goals
reference group
one or more persons whom an individual uses as a basis or comparison regarding beliefs, feelings and behaviors
culture
the set of value, guiding beliefs, understanding, and ways of doing things shared by members of a society
situational factors
factors affecting the consumer decision process
involvement
consumer’s interest in a product or service
extended problem solving
a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives
limited problem solving
occurs during a purchase decision that calls for, at most, a moderate amount of effort and time
impulse buying
a buying decision made by customers on the spot when they see the merchandise
habitual decision making
a purchase decision process in which consumers engage with little conscious effort