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Decision Making: Need Recognition and Search

The document discusses consumer decision making processes. It begins with need recognition and research, where consumers identify their needs and gather information from various sources. They then evaluate alternatives and make a purchase decision. After purchasing, consumers may evaluate if they made the right choice. The decision making process considers rational, experiential, and behavioral perspectives. Consumers face various risks in their decisions. Their approach may be extensive research, limited comparison, or habitual purchases. The document also outlines consumer search behavior and how consumers evaluate alternatives.

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Danica Justo
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34 views

Decision Making: Need Recognition and Search

The document discusses consumer decision making processes. It begins with need recognition and research, where consumers identify their needs and gather information from various sources. They then evaluate alternatives and make a purchase decision. After purchasing, consumers may evaluate if they made the right choice. The decision making process considers rational, experiential, and behavioral perspectives. Consumers face various risks in their decisions. Their approach may be extensive research, limited comparison, or habitual purchases. The document also outlines consumer search behavior and how consumers evaluate alternatives.

Uploaded by

Danica Justo
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Decision Making 1:

Need Recognition and


Research
Decision Making Process
• Consumer decision making process involves the consumers to identify their
needs, gather information, evaluate alternatives and then make their buying
decision.
Need • First step is to realize/recognize the
Recognition need. • Influenced by environmental factors like social and cultural values.

• Check what kind of products can be


used to satisfy the need.
Search for
• Commercial sources, Personal
Information sources, Public sources, Experiential
sources.

Evaluation for • The consumer now evaluates all products


Alternatives and brands which satisfy his need.

Purchase • Make the appropriate


Decision purchase.

Post-choice • After the purchase is made, consumer


analyzes if he has made the right
Evaluation decision.
Consumers diligently gather information about purchases, compare alternatives, and
RATIONAL make informed decisions.
- Fits well with the concept of utilitarian value

DECISION- EXPERIENTAL
Assumes that consumers make decision on their purchasing behaviors based on
their experience and feeling attached to the products.

MAKING
- Focus on hedonic value

PERSPECTIVE
BEHAVIORAL Assumes that many decisions are learned responses to environmental influences.
Risk Faced by Consumers

TIME PHYSICAL PERFORMANCE SOCIAL FINANCIAL

Search time and time Safety of the Product Like hood of product How others view the Cost of the product.
to be serviced or performing as purchase.
maintained. expected.
DECISION MAKING
APPROACHES

Extended
Decision Is the response to a very high
Making level of purchase.
Management
Objectives

It requires a moderate amount


DECISION Limited of time and effort to compare
Implementation
Decision products before making
Plan a
MAKING
APPROACHES
Making choice.
.
Customer
Objectives A problem solving requiring only
Habitual minimal search for and
Decision evaluation of alternatives before
Making purchasing.
CONSUMER SEARCH
NEED RECOGNITION
BEHAVIOR
• Is the first step in • Is the most general
consumer buying category of studies
behavior and is also related to consumers. It
called problem helps companies look at
identification. It occurs their products and
when a consumer services from the
discovers an unmet consumer's point of
need that must be view. What are the
fulfilled. needs of my customers?
Categories in Consumer
Search Behavior

ONGOING SEARCH PREPURCHASE SEARCH

EXTERNAL SEARCH INTERNAL SEARCH


EVALUATION OF ALTERNATIVES
Acceptable
Alternatives

Consideration Set
BRANDS/PRODUCT OPPO SAMSUNG
WHICH KNOWN VERY
WELL APPLE VIVO
LENOVO HUAWEI
ALL POTENTIAL
ALTERNATIVES Awareness
set/Evoked SONY LG
Universal Set Inert Set NOKIA
ASUS
ACER

OPPO
OPPO SAMSUNG SAMSUNG
APPLE VIVO APPLE CHERRY MOBILE
LENOVO HUAWEI
CHERRY MOBILE MY PHONE
VIVO
LENOVO
Inept Set My Phone
STAR MOBILE
SONY LG HUAWEI
NOKIA HTC CHERRY MOBILE
ASUS ALCATEL MY PHONE
WIKO ACER SONY
STAR MOBILE KATA LG
NOKIA Which are not
FIREFLY CLOUDFONE
ASUS known/unworthy
ACER
STAR MOBILE Which are known but not the
performance
SELECTING THE BEST SOURCE
OF INFORMATION

Ease of obtaining the information


Objectivity of the source
From the source

Speed with which the information


Trustworthiness of the source FACTORS can be obtained.
PRICE AND QUALITY IN THE
SEARCH PROCESS

corporate features that have a capacity to meet


consumer needs (wants) and gives customer
QUALITY satisfaction by improving products (goods) and
making them free from any deficiencies or defects

GOOD
How much potential value are QUALITY,
PRICE you willing to give from consuming HIGH
something. PRICE
SMARTPHONE APP THAT
IMPACT CONSUMER SEARCH

MOBILE
QR CODES VISUAL
SEARCH

GPS-BASED
AUGMENTED
TECHNOLOGI
REALITY
ES
FACTORS THAT INFLUENCE
INFORMATION SEARCH EFFORT

Previous
Involvem
Product
ent
Experience

Value of
Perceived
Risk search
effort

Attitudes
Time
towards
availability
shopping

Personal Situational
Factors Influencers
Negative emotions that come from a failed search process.
SEARCH When consumers are unable to find solution to their problems,
REGRET The decision making process halts. As a results, consumers may
feel the process was a wasted effort.
Thank You

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