MARK 305 Chapter Notes - Chapter 9: Search Engine Optimization, Loss Aversion, Customer Switching
28 Oct 2016
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Purchase steps info search: problem recognition. Ecision process: how consumers recognize problem or need for product, search for info about product choices, ways in which they evaluate alternatives to arrive at a decision. Consumer hyperchoice - condition where large number of available options forces us to make repeated choices that may drain psychological energy while decreasing our abilities to make smart decisions. Rational perspective - view of the consumer as a careful, analytical decision maker who tries to maximize utility in purchase decisions. Relates the economics of information approach to the search process. Assumes that we collect just as much data as we need to make an informed decision. We form expectations of the value of additional information and continue to search to the extent that the rewards of doing so (utility) exceed the costs. This utilitarian assumption also implies that we collect the most valuable units of information (cid:1833)rst.
