Internal search for information - consumer's memory or recollection of a product, oftentimes triggered

or guided by personal experience

External search for information - buyer seeks information beyond her personal knowledge base to help
make a buying decision
 
Internal locus of control - consumers believe they have some control over the outcomes of their actions
External locus of control - consumer belief that fate or other external factors control all outcomes
 
Ritual consumption - pattern of behaviours tied to life events that affect what and how people consume
 
Post purchase dissonance - sense of regret after having made a purchase.
Decision heuristics - mental shortcuts that help consumers narrow down choices
Compensatory decision rule - when a consumer is evaluating product or service alternatives, trade-off
one characteristic for another, so that good characteristics compensate for bad ones

Non compensatory decision rule – positive evaluation of a brand attribute does not compensate for a
negative evaluation of the same brand on some other attribute

Determinant attribute - aspects about products and services that determine why consumers buy
products
 
Affective - emotional or feeling segment of an attitude (feelings)
Behavioral - tendency to behavior a particular way (attitude)
Cognitive - based on information or knowledge (knowledge)
 
Cognitive component - It refers to a part of attitude that reflects what a person believes to be true
 
Reference group - It refers to one or more persons an individual uses as a basis for comparison
regarding beliefs, feelings, and behaviours
 
Augmented product - nonphysical attributes of the product
 
Product mix - complete set of all products offered by a firm
 
Consumer products - products and services used by people for their personal use
 
Product categories - assortment of items that the customer sees as reasonable substitutes for one
another
 
Product line - groups of associated items, such as those that consumers use together
 
Product mix breadth - refers to the number of product lines, or variety, offered by the firm

After midterm
Innovation – ideas are transformed into new products and services that help firms grow
Innovators – buyers who want to be the first to have a new product or service, enjoy taking risks and are
knowledgeable, try to make the firm more efficient
Diffusion of innovation – process by which a product or service spreads throughout a market group over
time. Help firms develop effective promotion, pricing, and other marketing strategies

Early adopters – category of buyers who wait and purchase a product after carefully reviewing it, known
as the opinion leaders
Early majority – are crucial because very few products or services can be profitable until this group buys
them
Late majority - group of buyers who enter a new product market when the product has achieved its full
market potential

Laggards - category of buyers who tend to avoid change and rely on traditional products until they are
no longer available

Relative advantage – a product's degree of superiority and attractiveness to customers over similar
existing products
Observability –results or benefit of using an innovation are visible to potential adopters

Internal research & development – pioneer in new product development most likely use to generate
ideas for products

Reverse engineering - method of idea generation that involves the analysis of a competitor's product

Customer input - Information coming directly from customers about the satisfaction or dissatisfaction

Lead users - Innovative product users who modify existing products according to their own ideas to suit
their specific needs

Concept testing - when the product design team of a firm takes ideas with potential, develops them into
visual images, and presents them to potential buyers to get their reactions

Concept - a brief written description of a product or service; its technology, working principles, and
forms; and what customer needs it satisfies