COM 362 Chapter Notes - Chapter 9: Information Search Process, Mental Accounting, Loss Aversion

• School: University of Victoria
• Department: Commerce
• Course: COM 362
• Professor: H A R D I S T Y, D A V I D

Document Summary

Problem recogniion -> informaion search -> evaluaion of alternaives -> product choice -> consumpion and learning (not all: lack of raional arguments, no advance planning ). Consumers evaluate the efort required for a decision and then choose a strategy (construcive processing). Economics of informaion: raional perspecive (people collect enough data to make an informed decision -> collect most valuable units of informaion irst and only add other pieces if they give us more informaion). Purchase momentum: although we already have bought something, which should saisfy our needs, we buy more. Behavioural inluence perspecive: low involvement + impulse buying. Experienial perspecive: gestalt, totalitarity of product or service. Problem recogniion if the gap between actual and ideal state is big enough (either a decline in actual state-need recogniion or an increase in ideal state-opportunity recogniion). Informaion search = process in which the consumer surveys his or her environment to ind appropriate data to make a reasonable decision.