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Consumer
Decision
Process
• Adeline Moore
• MRK.2100
• Dr. Brar
• July 22, 2020
The Consumer Decision Process
Need
Recognition
Information
Search
Alternative
Evaluation
Purchase Consumption Post-Purchase
Grewal et al. 176
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
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
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
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

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Consumer behavior

  • 1. Consumer Decision Process • Adeline Moore • MRK.2100 • Dr. Brar • July 22, 2020
  • 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