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Marketing Chapter 5 Notes

Marketing Chapter 5 Notes - Chapter 5 Consumer Behavior I...

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Chapter 5 – Consumer Behavior I. The Consumer Decision Process a. Need Recognition i. Consumer decision process begins when consumers recognize that they have an unsatisfied need and want to go from their actual state to a desired state 1. Functional needs : the performance of a product or service 2. Psychological Needs: personal gratification consumers associate with a product or service b. Search for Information i. The second step is to search for information about the various options that exist to satisfy that need 1. Internal search for information: buyer examines his or her own memory and knowledge about the product or services—past experience 2. External search for information: buyer seeks information outside his or her knowledge to help make decision 3. Factors that affect consumers’ search processes: a. The perceived benefit versus perceived cost of search b. The Locus of control: i. Internal locus of control: people believe they have some control over the outcomes of their actions and engage in more search activities ii. External locus of control: consumers believe that fate or other external factors control all outcomes—believe it doesn’t matter how much information they gather iii. Actual or perceived risk: Three types of risk associated with purchase decisions can delay or discourage a purchase: performance, financial, and psychological—the more risk, the more likely a consumer will engage in an extended search 1. Performance risk: perceived danger inherent in poorly performing products or services 2. Financial risk: risk associated with a monetary outlay—initial cost of purchase and using the item
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3. Psychological risk: risks associated with the way people will feel if the product or service does not convey the right image iv. Type of product or service: 1. Specialty goods/services: products or services which the consumer shows a strong preference and will expend effort to search for the best suppliers 2. Shopping goods/services: products or services for which
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