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Does knowing something about the product make it more or less likely that we will engage in search? The answer to this question isn’t as obvious as first appears: Product experts and novices use very different procedures during decision-making. Novices who know little about a product should be the most motivated to find out more about it. However, experts are more familiar with the product category—they should be better able to understand the meaning of any new product information they might acquire. So, who searches more? The answer is neither: Search tends to be greatest among those consumers who are moderately knowledgeable about the product. We find an inverted-U relationship between knowledge and external search effort. People with very limited expertise may not feel they are competent to search extensively. Because experts have a better sense of what information is relevant to the decision, they engage in selective search, which means their efforts are more focused and efficient. OBJECTIVE: It is important to understand Decision making is not always rational As a rule, purchase decisions that involve extensive search also entail perceived risk, or the belief that there may be negative consequences if you use or don’t use a product or service. This may occur when the product is expensive or is complex and hard to understand. Alternatively, perceived risk can be a factor when others can see what we choose, and we may be embarrassed if we make the wrong choice. Monetary risk occurs when making a poor choice will have a monetary consequence. Any purchase that costs a lot is subject to this risk. Functional risk is the risk that the product may not function as the consumer needs. Physical risk is the risk that the choice may physically threaten the consumer. Social risk is the risk that the choice will reflect poorly on the consumer and damage his or her self-esteem or confidence. Psychological risk is the risk that one may lose self-respect due to makin
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