What is a consumer purchase? - ✔✔Response to a problem: can be automatic or very
complicated
What are the steps to a consumer purchase? - ✔✔1. Recognition
2. Search
3. Evaluation of alternatives
4. Choosing one
5. Evaluate purchased product
What are the two theories of decision making? - ✔✔Rational decision makers
Irrational decision makers - Bounded Rationality
What is the recognition step of consumer purchase? - ✔✔1. Use stored knowledge to come to
decisions.
2. If we don't have the knowledge, we use heuristics (this behaviour is called "satisficing")
3. If there are many options, we evaluate them sequentially and may not evaluate all options if
we come to one we are satisfied with.
What is Satisficing? - ✔✔Make the best decision we can with what we have to satisfy our
current needs.
What is the Rational Perspective of consumers? - ✔✔1. Integrate as much information as
possible with what you already know
2. Weigh pluses and minuses of each alternative
3. Arrive at a satisfactory decision
,One's goals are clear, compatible with whatever decision situation one is in, and that everyone
agrees on these goals. (in reality: hard to decide which goals take precedent)
Shopping/ Purchase Momentum - ✔✔Occurs when consumers buy beyond needs, particularly
things that are unrelated.
Short-lived experience (versus foot-in-the-door effect).
Metaphorically, the doors are swung open for the first purchase, and then get stuck open.
Built environment - ✔✔Somewhere where environmental factors have been controlled by the
store, for example an exit having to go through a gift shop. Or physical characteristics of an item
making them easy to see.
Behavioural influence perspective - ✔✔Consumers buy based on environmental cues, such as
a sale
Experiential Perspective - ✔✔Consumers buy based on totality of product's appeal
Experiential influences - ✔✔Irrational or emotional elements of shopping that are associated
with decision-making.
ie. impulse buying and variety seeking behaviours
Department store versus grocery store impulse sales percentages? - ✔✔40% versus 67%
What are the types of buying decision behaviour on the continuum? What types of purchases
are on either side? - ✔✔Routine Response Behaviour --> Limited problem solving --> extensive
problem solving
, Low cost, frequent purchase, low involvement --> high cost, high involvement, infrequent
purchase.
Habitual decision making /Routine Response Behaviour - ✔✔Choices made with little or no
conscious effort
Extended problem solving - ✔✔1. Initiated by a motive that is central to self-concept
2. Eventual purchase decision perceived as a risk
3. Collect extensive information
4. Careful evaluation of brand attributes (one at a time)
Internal Search - ✔✔A review of memory & experiences
External Search - ✔✔the collection of data from an array of sources
ie. search the internet
What does the type of search one does when buying, hinge on? - ✔✔hinges on one's
perceived expertise in relation to one's actual expertise
ie. one may think one knows all there is to know so they won't engage in any kind of search.
or
One may recognize one's limited knowledge in the area and engage in a search.
Limited Problem Solving - ✔✔Buyers not as motivated to search for information or to evaluate
rigorously
Buyers use simple decision rules to choose
Problem Recognition - ✔✔Occurs when consumer sees difference between current state and
ideal state