individual decision making

• Decision making is the outcome of mental processes leading to a selection from one or more alternatives
• Consumer purchases are a response to a problem. We are interested in a purchase, and go through the process to accomplish it. this Can be automatic or very complicated
• a Rational perspective on decision-making involves consumers Integrating as much information as possible with what they already know about a product. consumers Weigh advantages and disadvantages of each option
• Purchase momentum is a type of decision making that Occurs when consumers buy beyond their needs
• Behavioural influence perspective is a decision-making model that leads a consumer to buy something impulsively that is promoted as a “surprise special” in a store
• Experiential perspective is a decision making model where Consumers buy based on the appeal or stimulation from a product
• Habitual decision making is when we make Choices with little to no conscious effort. these decisions are Efficient because they require minimal time & energy
• Extended problem solving is Initiated by a motive that is central to self-concept. the Consumer feels that eventual decision carries a fair degree of risk
• Limited problem solving consists of unmotivated Buyers to search for information and evaluate rigorously. they have simple decision rules when choosing
• Stages in Consumer Decision Making:

  1. problem recognition
  2. information search
  3. evaluation of alternatives
  4. product choice
  5. consumption & learning
• problem recognition happens When we experience a significant difference between our current state and our desired state
• when we move from our actual state to our ideal state, this is called opportunity recognition
• when we shift from our ideal state to our actual state, this is called need recognition
• Information search is a Process where consumers surveys the environment for appropriate data to make reasonable decisions
• an Internal information search involves Scanning your memory for product alternative information (learning, memory, attitudes)
• an External information search is the process of Obtaining information from ads, retailers, friends, Consumer Reports, etc.
• Existing knowledge of a product may be the result of directed learning or it may have been acquired more passively which is called incidental learning
• brand switching is when we decided to pick a familiar brand when decision situation is ambiguous
• Variety seeking is Desiring to choose new alternatives over familiar ones
• Mental accounting is when we Frame a problem in terms of gains/losses
• Hyperopia is a bias within people who are so obsessed with preparing for the future that they can’t enjoy the present
• Prospect theory tells us that Risk differs when consumers face options involving gains vs. those involving losses
• Moderately knowledgeable consumers tend to search more than product experts and novices
• Perceived risk is the Belief that product has negative consequences. Risks can be objective (physical danger), subjective (social embarrassment) and visible to others (embarrassment of wrong choice)
• when evaluating alternatives we end up creating an Evoked/consideration set (only a few). We often don't give rejected brands a second chance
• We evaluate products with information from similar products (Evoked-sets usually share similar features) and form new knowledge
• Product positioning is how we Convince consumers to consider our product within a given category (ie. Orange juice: “it is not just for breakfast anymore”)
• Evaluative criteria are the dimensions used to judge merits of competing options
• Determinant attributes are Features we use to differentiate among our choices; differing features cary more weight (ie. Pepsi freshness date stamps on cans)
• Neuromarketing Uses a brain-scanning technology (fmri) that tracks blood flow as we perform mental tasks. for example, Marketers using this to measure consumers’ reactions to movie trailers
• Cybermediaries are website or apps that help to filter and organize online market information to help customers
• the process of deciding whether the product we purchased meets or even exceeds our expectation is called called social scoring, (done by consumers and providers)
• a Non-compensatory product consists of Positive features of an alternative decision that cannot make up for negative features
• a Non-compensatory product consists of Positive features of an alternative decision that cannot make up for negative features
• a Compensatory product consists of Positive features that can make up for negative features
• Habitual decision making describes the choices we make with little or no conscious effort
• Heuristics are Mental rules-of-thumb that lead to a speedy decision (ie. buying the same brand your mother bought)
• Zipf’s Law states that we have a tendency to have a number one brand preference to the competition
• we tend to rate products from our country of origin and/or residence as better than people who live elsewhere. this is a heuristic
• Consumer inertia is the Tendency to buy a brand out of habit merely because it requires less effort. this isn't the same as brand loyalty