Decision-Making I: Need Recognition & Search

Decision-Making I:Need Recognition & Search Chapter 11

Consumer Decision-Making Process Need Recognition Information Search Evaluation of Alternatives Choice Postpurchase evaluation

Decision-Making • Can be influenced by: • Choice • Value • Motivation • Emotion

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

Decision-Making Approaches • Depends upon: • Involvement • Perceived risk • Financial • Social • Performance • Physical • Time

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

Step 1: Problem Recognition • Compare actual v. ideal state • What if they are equal?

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

Universal Set Unawareness Set Awareness Set Consideration Set Inert Set Inept Set

Step 2: Information Search • Internal Search • External Search • Evaluative criteria • Price? • Quality?

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

Step 2: Information Search • Search Regret

Decision-Making I: Need Recognition & Search