DM 272 1st Edition Lecture 27Outline of Last Lecture I. Post-Consumption EvaluationII. Divestment III. Types of Decision MakingIV. Factors Influencing the Extent of Problem-solving Outline of Current LectureI. Factors Influencing the Extent of Problem Solving (cont.)II. Chapter 9: Why do people shop?III. To Buy or not to Buy?IV. The Purchase Decision ProcessCurrent LectureFactors Influencing the Extent of Problem Solving (Cont.)- Percieved Risko Uncertainty about potential positive/negative consequences of the pruchse decision Social- Fear related to self image Financial - Fear related to loss of money Functional- Fear related to product performance Psychological - Fear related to affiliations and statusThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Physical- Fear related to health/physical conditionsChapter 9: Buying and DisposingWhy Do People Shop?- Personal motiveso Role playingo Diversiono Self-gratificationo Learning about new trendso Physical activityo Sensory stimulation- Social Motiveso Social experiences outside the homeo Communication with others o Status and authority “Master-servant” relationshipo Pleasure of bargaining The thrill of the bargain- What is bargainingo A.k.a, haggling, negotiationo Intricate behavior of give and take between a buy are a sellero Only on price? The question: why do consumers bargain?- To seek better deals- To feel satisfied when having a say in price setting- To obtain excitement- Because of prior experience/ WOM- To establish long term relationships, in some countries People from all income levels search for bargains Gender effect? Cultural difference Market factorsTo Buy or Not to Buy?- Whether to buy?- What to buy?- When to buy?- Where to buy?- How much to pay?- How to pay?The Purchase Decision Process- Decide where to buyo Which type of retail channel E.g., Internet, in-store, catalogueo Which type of store E.g., department store vs. specialty storeo Which specific retailer E.g., Kohl’s, JCPenny- Decide where to buy (evaluative criteria)o Location Distance Nearby storeso Nature and quality of assortmento Priceo Advertising and Promotion Point-of-purchase (POP) materials and signso Customer Service Offered E.g., acceptance of credit cards; return policyo The type of store clienteleo Sales/service
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