BU352 Chapter Notes - Chapter 5: Tim Hortons, Chinese Canadians, Elaboration Likelihood Model
Document Summary
To understand consumer behaviour, we must ask why people buy products/services/specific brands. People buy one product or service instead of another because they perceive it to be the better value for them but benefits can be subtle and far from rationally conceived. Consumer needs like these can be classified as functional, psychological, or both. Functional needs: the performance of a product or service. Psychological needs: personal gratification consumers associate with a product/service. Shoes provide a functional need: to keep protected. Because that consumer is seeking a way to satisfy psychological needs. Products/services are likely to satisfy both functional and psychological needs, in different degrees. A key to successful marketing is determining the correct balance of functional and psychological needs that best appeals to the firm"s target markets. Marketers use numerous tactics to either remind customers of a need or create new needs. Search for info about the various options that exist to satisfy that need.
