ECON344 Chapter Notes - Chapter 4: Cognitive Dissonance
11 Jun 2016
School
Department
Course
Professor
Document Summary
Functional need: pertaining to the performance of a product/service. Psychological need: personal gratification associated with a product (prada shoes vs. cheap shoes) Need recognition: when consumers recognize that there is something they need. Information search: when consumers search for the various options they have to satisfy the need. Internal search: examine your own personal memory and knowledge about the product/service. External search: look to the internet, friends, salespeople, etc. for more information. Alternative evaluation: use evaluation criteria to compare the alternatives. Consumers focus on determinant attributes, which are important to them and differ between alternatives (something special). Mental shortcuts to narrow down decision (price, brand, presentation) Purchase decision: the consumer decides on which product they want, but the decision does not always convert into sale. To increase this conversion rate, you can create urgency, make the sale easy, and have adequate quantity on hand. Family (products for the whole family are influenced by all)
