The document outlines the consumer decision making process. It begins with need recognition, either functional or psychological. This leads to an information search internally from memory or externally by asking others or online research. Alternatives are then evaluated before a purchase decision. After purchasing, a consumer may experience satisfaction, dissonance, or develop loyalty depending on if their expectations were met. The level of involvement in the decision process can range from extensive problem solving for high involvement purchases to limited problem solving for low involvement or habitual purchases.

1. Consumer Behavior
“People don’t buy for logical reasons. They buy for emotional reasons.”
Zig Ziglar, Motivational Speaker and Author

2. Consumer Decision Process
Needs/Problem Recognition is when a
person realizes they have an unsatisfied
need. Functional need or psychological need
Information searching begins with
internal (own memory) search and can
extend to external (asking people, looking on
the internet, etc.) search.
Once a parson has completed their
information search, they sort through the
options and make a decision.
The next step is purchase and
consumption
Post purchase- are they happy with
their purchase? Unhappy?
This Photo by Unknown Author is licensed under CC BY-SA-NC

3. Need Recognition
 Functional Needs
 Functional needs are the
performance of a product or
service.
 Is this something you need to get
to work, to use at school, maintain
your home or car?
 Psychological Needs
 This is a need that refers to
personal gratification a person
associates with the service or
product.
 Did you buy a certain brand name
over another for status?
This Photo by Unknown Author is
licensed under CC BY-NC
This Photo by
Unknown Author is
licensed under CC
BY-SA

4. Search for Information
 Internal Search for Information
 A person examines their own
memory and knowledge about a
product.
 Where have they seen it? Have
they tried it before?
 External Search for Information
 Asking family and friends
 Looking online for information
 Consumer reviews
 Other forms of media
This Photo by Unknown Author is licensed

5. Search for Information
What factors affect the search process?
 Personal Benefits vs. Perceived Cost of Search- Is it worth the time and effort?
 The Locus of Control
 Internal Locus of Control- people believe they have some control over their
actions, these people do a lot of research.
 External Locus of Control- people who believe its fate, these people believe that if
it was meant to be, then it will be.
 Actual or Perceived Risk- 5 types of risk include performance, financial,
social, physiological and psychological.

6. Consumer Decision Process
This Photo by Unknown Author is licensed under CC BY-SA-NC

7. Evaluation of Alternatives
Attribute Sets and Consumer Decision Rules
 Universal Sets- all possible choices
 Retrieval Set- stores, brands,
items, that can be easily
remembered
 Evoked Set- alternative brands or
stores that a person would consider
 Compensatory Decision Rule-
assumes that a person trades of
one characteristic for another
 Noncompensatory Decision Rule- a
person is choosing based on one
characteristic.
 Choice Architecture
 Impulse products-purchased
without planning
 Nudge-alters behavior in a
predictable way
 Default-a choice is imposed

8. Purchase and Consumption
 This is the point the consumer is ready to buy a product.

9. Post Purchase
 Customer Satisfaction- Is the consumer happy? Why or why not?
 Postpurchase Cognitive Dissonance- Internal conflict arising from
inconsistency between two beliefs or a belief and a behavior, AKA buyers
remorse.
 Customer Loyalty- the person is so happy with the purchase and the service
that they continue to purchase the product or service
 Undersirable Consumer Behavior- negative word of mouth can take place in
conversations, online (reviews or social media)

10. Involvement and Consumer Buying
Decisions
Extended Problem Solving
 Happens when a consumer feels
there is a lot of risk involved with
the purchase
 Financial, Did I pay too much?
 Social, What will my friends think?
Limited Problem Solving
 Little effort in the decision
 Has prior experience with the
product or service
 Examples-Impulse buying and
habitual buying