2. The Consumer Decision Process
Need
Recognition
Information
Search
Alternative
Evaluation
Purchase Consumption Post-Purchase
Grewal et al. 176
3. Types of Consumer Needs
Functional Needs:
Performance-related products or
services.
Example:
Buying a Ford F-150 because it fits your
specifications better than aToyota
Tacoma.
Psychological Needs:
Personal gratification from a product or
service.
Example:
Getting a Rolex watch instead of an off-
brand watch, because it feels nice to
have an expensive item, regardless of
superior quality.
Grewal et al. 177
4. Information Searches
External Search:
• Uses information outside of personal
experience
• Can be implemented in a variety of
ways; friends, family, internet,
television, etc.
Internal Search:
• Uses personal memory and
knowledge
• Has prior experience with
product or service
Grewal et al. 179
5. Factors Affecting
Information
Searches
Perceived Benefits vs. Costs
Locus of Control
Internal (people have control over their actions)
External (fate controls all outcomes)
Actual or Perceived Risk
Performance risk (Product/service does not
perform as expected)
Financial risk (Initial and continued costs of
product)
Social risk (Others might regard purchase
negatively)
Physiological/safety risk (Harm inflicted if
product fails)
Psychological risk (Emotions felt if product does
not convey the right image)
Grewal et al. 181-182
6. Attribute Sets
Universal sets: all possible choices in
a category
Retrieval sets: brands/stores that
are easy to recall
Evoked sets: potential alternative
brands
Consumer Decision Rules
Compensatory: trade between two
characteristics
Noncompensatory: choice based on
one characteristic, regardless of the
others
Choice Architecture: influencing
consumers through environmental
design
