© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 12Decision Making I: Need Recognition and

Search

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Outcomes

• Understand the activities involved in the consumer decision-making process

• Describe the three major decision-making research perspectives

• Explain the three major types of decision-making approaches

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Outcomes

• Understand the importance of the consideration set in the decision-making process

• Understand the factors that influence the type and amount of search performed by consumers

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Decision Making and Choice

Decision Making and Value

Decision Making and Motivation

Decision Making and Emotion

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Decision-Making Approaches

• Perceived risk - Perception of the negative consequences that are likely to result from a course of action

• Types of risk– Financial– Social– Performance– Physical– Time

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Need Recognition

• Actual state - A consumer’s perceived current state

• Desired state - A perceived state for which a consumer strives

• Consumer search behavior - The behaviors that consumers engage in as they seek information that can be used to satisfy needs

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Search Behavior

Information Overload

Ongoing

Prepurchase

Internal

External

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

External Search

• Includes the gathering of information from external sources

• Factors considered– Ease of obtaining information from the source– Objectivity of the source– Trustworthiness of the source– The speed with which the information can be

obtained

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

External Search and Emerging Technologies

Lowers Search Costs

Provides Hedonic Value

Information Control

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Amount of Search

• Product experience• Involvement• Perceived risk• Value of search effort• Time availability• Attitude toward shopping• Personal factors• Situational influencers

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning.  All Rights Reserved.  May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Search Regret

• Refers to the negative emotions that come from failed search processes

• Regret is related to:– The amount of search effort– The emotions felt during the process– The use of unfamiliar search techniques