9-12 study guide

9-12 study guide - Problem Recognition and Information...

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Problem Recognition and Information Search Fall 2010 Dr. Caglar Irmak
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DECISION MAKING AS PROBLEM SOLVING Problem Recognition (articulation of need, want or desire) Search for Alternative Solutions (information search) Evaluation of Alternatives Purchase Post-purchase Use & Revaluation of Chosen Alternative
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Types of Consumer Decisions Continuum of Decision Making
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Perceived Risk Extent to which a consumer is uncertain about the consequences of buying, using, or disposing of a product Performance risk Physical risk Social risk Psychological risk Time risk
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Problem Recognition Occurs when consumer notices difference between current state and ideal state Two Ways Need recognition: actual state moves downward Running out of a product, buying a deficient product, or creating new needs Opportunity recognition: ideal state moves upward Exposed to different/better quality products (standard of comparison)
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How Can Marketers Create Problems? Change/Establish Ideal Ideals are not constant Bring Awareness of the Actual Inform consumers of the way things really are Create Dissatisfaction with the Actual Make a New Actual Possible
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SEARCH FOR ALTERNATIVE SOLUTIONS Motivated retrieval of knowledge from memory or acquisition of information from the environment Internal Search Scan for decision-relevant knowledge in LTM. If sufficient, external search not necessary External Search Pre-purchase: Motivated by desire to make better choices Ongoing: Motivated by desire to develop expertise for fun or use in future decision-making
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The Economics of Information Do consumers get full information and then optimize their decision? Consumers will gather as much data as needed to make informed decisions We will collect most valuable information first We continue to search until costs exceed utility of information search
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Influence of Consumer’s Prior Expertise on Search
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For How Much & How Long Do We Search? Depends on: Importance of task Involvement Perceived costs/benefits Discrepancy of information Expertise Availability of information Time Motivation Ability Opportunity
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Do People Search Enough? Generally people under search Look at only 1-2 sources before buying a car or major appliance Why? Is it because of a lack of information?
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Is Searching Accurate? Availability bias Recall information that is more accessible, but not necessarily more diagnostic Confirmation bias Find information that is consistent with attitudes Find information that proves , but do not usually try to falsify
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Judgment and Decision Making Fall 2010 Dr. Caglar Irmak
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DECISION MAKING AS PROBLEM SOLVING Problem Recognition (articulation of need, want or desire) Search for Alternative Solutions (information search) Evaluation of Alternatives Purchase Post-purchase Use & Revaluation of Chosen Alternative
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This note was uploaded on 02/22/2011 for the course MKTG 351 taught by Professor Ashwani during the Fall '10 term at South Carolina.

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9-12 study guide - Problem Recognition and Information...

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