Chapter 12 Decision Making I: Need Recognition and Search

1. Chapter 12Decision Making I: Need Recognition and Search

2. 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

3. 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

6. Decision Making and Choice

8. 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

10. 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

11. Search Behavior

13. 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

14. External Search and Emerging Technologies

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

17. 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