Decision-Making I: Need Recognition & Search

1
Decision-Making INeed Recognition Search

• Chapter 11

2
Consumer Decision-Making Process

• Need Recognition
• Information Search
• Evaluation of Alternatives
• Choice
• Postpurchase evaluation

3
Decision-Making

• Can be influenced by
• Choice
• Value
• Motivation
• Emotion

4
Decision-Making Perspectives

• Rational Decision-Making
• Consumers think logically
• Experiential Decision-Making
• Feel Do Think
• Behavioral Influence Decision-Making
• Environmental influences

5
Decision-Making Approaches

• Depends upon
• Involvement
• Perceived risk
• Financial
• Social
• Performance
• Physical
• Time

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Decision-Making Approaches

• Three types
• Extended decision-making
• Information sources
• Types of products
• Limited decision-making
• Prior beliefs
• Habitual decision-making
• AKA Routine AKA Nominal
• Brand loyalty
• Brand inertia
• Effects of brand loyalty

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Step 1 Problem Recognition

• Compare actual v. ideal state
• What if they are equal?

8
Step 2 Information Search

• Search behavior
• Behaviors that consumers engage in as they seek
  information that can be used to resolve a problem
• Ongoing searches
• Prepurchase search
• Information overload

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Universal Set
Unawareness Set
Awareness Set
Consideration Set
Inert Set
Inept Set
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Step 2 Information Search

• Internal Search
• External Search
• Evaluative criteria
• Price?
• Quality?

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Step 2 Information Search

• How long to search?
• Product experience
• Involvement
• Perceived risk
• Value of search efforts
• Time availability
• Shopping attitude
• Personal factors
• Situational influencers

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Step 2 Information Search

• Search Regret