MARK217 Lecture Notes - Lecture 3: Financial Risk, Cognitive Dissonance, Decision Rule
Document Summary
A decision is the selection of an action from two or more alternative choices: this includes the decision of whether or not to make the purchase, and which brand to purchase. A forced decision is known as hobson"s choice > thomas hobson was an english stable owner. In order to rotate the use of his horses, he o ered customers the choice of either taking the horse in the stall nearest to the door or taking none at all. A basic model of consumer confusion: environment, mind, reaction. Purchase involvement and types of decision making: habitual decision making, limited decision making, extended decision making. Three levels of consumer decision making: extensive problem solving. Consumers have not established criteria for evaluating the product. Have not narrowed the number of brands to be considered as part of an evoked set: limited problem solving. Consumers have established basic criteria for evaluating the product. Have not fully established preferences: routinised response behaviour.
