ADM 2320 Chapter Notes - Chapter 4: Personal Knowledge Base, Financial Risk
6 Oct 2017
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Document Summary
*key to successful marketing is determining the correct balance of functional and psychological needs that best appeals to the firm"s target market. Internal search- buyer"s own memory and knowledge about the product. External search- buy seeks information outside their personal knowledge base. Factors affecting consumer"s search process: perceived benefit vs. perceived cost of search, locus of control [internal= more search activities, external= why bother, fate, actual vs. perceived risk (5 types of risk) Performance- perceived danger inherent in a poor performing product. Financial- risk associated with money outlay, both initial and ongoing. Social- fear of what others may negatively think of their purchases. Physiological- fear of actual harm should the product not perform properly. Psychological- fear of the way the buyer will fear if the product does not convey the right image. When evaluating/comparing different alternatives, evaluative criteria is developed: features of importance in which competing brands differ (also known as determinant attributes)
