Class05_HW_Assignment - 1. Consumers use internal and/or...

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1. Consumers use internal and/or external information sources when making purchase decisions. An internal search entails the recollection of past information stored in one’s memory and is based largely upon past experience with a product. For example, I ate at Waffle House two years ago while on vacation. I can recall that the restaurant was filthy and the food made me ill. An external information search, on the other hand, involves seeking information in the outside environment. An external information search can be broken down into two types: nonmarketing- controlled and marketing-controlled. A nonmarketing-controlled information source is not associated with marketers’ promotion of a product. Instead, sources include personal experiences trying out or observing new products, personal recommendations from friends and family, and public resources such as Consumer Reports or online reviews. Marketers will sometimes use this information to their advantage by creating enthusiasm for their products via word of mouth. In contrast, a marketing-controlled information source originates from the marketers promoting a product and thus, the information provided is biased towards the product. Sources include mass-media advertising (e.g. TV commercials), sales promotions (e.g. product displays, rebates), salespeople, product packaging, and the internet. Consumers tend to be skeptical of information that originates from such sources, and rightfully so. The extent to which a consumer will seek out and utilize external information depends on a variety of factors including the perceived risk of the purchase, product knowledge,
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This note was uploaded on 08/21/2011 for the course BUSA 131 taught by Professor Mcenroe,celia during the Summer '11 term at Northampton Community College.

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Class05_HW_Assignment - 1. Consumers use internal and/or...

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