There will be a Unit 2 Test on Thursday April 17

Are there steps to when we make a big ticket item purchase?

Psychologists have proven that generally, consumers go through five (sometimes six) steps when making a purchase.

This study goes hand in hand with understanding consumer psychology of WHY WE BUY.

Processes a consumer uses to

make purchase decisions, as

well as to use and dispose of

purchased goods or services;

also includes factors that

influence purchase decisions

and the product use.

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information Search (internet or visiting stores)

Information Search (internet or visiting stores)

Criteria is SetCriteria is Set

NEED Recognition – The Consumer has a WANT

NEED Recognition – The Consumer has a WANT

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological Factors Factors affect affect all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological Factors Factors affect affect all stepsall steps

When a current product isn’t performing properly. E.g. Your laptop is broken.

This drives the entire buying decision cycle.

When the consumer is running out of a product. E.g. You run out of food.

When another product seems superior to the one currently used. For example vaccum

• Are there ever times when we second guess our purchase decision?

•The sixth and final step (in some cases) is….. REGRET!

Chapter 5 Version 6e 7

Can minimize regret through:Effective Communication - Follow-up - Guarantees - Warranties

Cognitive DissonanceCognitive Dissonance

??Did I make a good decision?Did I make a good decision?

Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?

I will hand back the product life cycle back to you today. You should type it and improve it and then hand it in today again.

You can help each other in a group, but everyone has to hand in their own copy.

Title it: Buying Decision – your name, ex: Buying Decision – Mr. Park

Place yourself in the buying decision hotseat. Select an item that you would like to purchase (ie: car, vacation, donation, house).

Go through the six steps of the Buying Decision process. In each step, include information necessary, ie: criteria for buying a car (colour, 4 door, low mileage, etc)

When going shopping, do so online and include at least 2-3 links of items that fulfill your criteria!

When selecting your final purchase, include a link and rationale as to why you selected this product in the end.

This activity with the product life cycle are to be handed in by Friday, April 11.

If you did not hand it in by Friday without any valid reason (such as doctor’s note your parent’s email), you will get zero on this assignment.

Again, this assignment was created to punish skippers.