S12%20MKTG%203104%205%20Consumer%20Behavior%20Part%202 -...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1/24/2012 1 Is consumer decision making rational? Economic rationality, which assumes perfect information and utility maximization? Bounded rationality, which assumes the process is adapted to create an acceptable choice given the consumer’s constraints ? Consumers use __________ , simple rules of thumb that simplify the decision Consumers have predictable, systematic ________ in how they process information and then make decisions The Endowment Effect Consumers tend to place higher value on something … Sellers focus on the Buyers focus on other Example What is the most you would you pay for a ticket to the NCAA Final Four basketball tournament? Suppose that you have a ticket to the NCAA Final Four basketball tournament. What is the lowest price you would sell it for?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1/24/2012 2 The Compromise Effect Consumers have a tendency to choose an option Which would you choose? Copier A Copier BC o p i e r C $800 $1000 $1200 3 functions 6 functions 9 functions A or B? 70% 30% A, B, or C? % % 10% Perception Process The process of selecting, organizing, and interpreting
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/29/2012 for the course MKGT 3104 taught by Professor Dr.klein during the Spring '12 term at Virginia Tech.

Page1 / 7

S12%20MKTG%203104%205%20Consumer%20Behavior%20Part%202 -...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online