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Chapter 11 Decision Making Need Recognition & Search Annie Denenberg, Ana Curcija, Sara Day February 1, 2010 Consumer Behavior

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Consumer Decision Making Process Need Recognition Search for Information Evaluation of Alternatives Choice Post-Choice Evaluation

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Planning Purchases <ul><li>Cars </li></ul><ul><li>College </li></ul><ul><li>Computers </li></ul><ul><li>Houses </li></ul><ul><li>Jobs </li></ul><ul><li>Engagement rings </li></ul><ul><li>Gum </li></ul><ul><li>Fast food </li></ul><ul><li>Socks </li></ul><ul><li>School supplies </li></ul><ul><li>Hair accessories </li></ul><ul><li>Deodorant </li></ul>Note: It depends on the person!

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Internal Search <ul><li>The retrieval of knowledge about products, services, and experiences that is stored in memory. </li></ul><ul><li>Related directly to consumers’ experiences with products and services, from own memory and knowledge. </li></ul>

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Consideration Set A part of the Internal Search Universal Set Awareness Set Inert Set Inept Set Consideration Set

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Consumer Problem I need a device that allows me to conveniently call others.

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Universal Set Total collection of all possible solutions to a consumer problem ? AT&T Verizon T-Mobile Sprint Virgin Boost Mobile Nextel Amp’d Metro PCS Vodafone LG Apple Motorola Samsung Sony Ericsson Nokia Pantech Blackberry Palm Nexus HTC Sidekick HP Nuvifone Kyocera Mitsubishi iPhone Curve Pearl Bold Pearl Storm Tour EnV Jack Alias Insight Solstice Shine Pure Rugby Glisten Impression Tilt Dare Moto Neon Ozone Omina Saga Diamond ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

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Awareness Set Set of alternatives of which a consumer is aware iPhone Razr Pay phone Blackberry Google Nexus One LG Alias Land line Skype Borrow a phone Pager

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Consideration Set Alternatives that are considered acceptable for further consideration and decision making <ul><li>iPhone </li></ul><ul><li>Blackberry </li></ul><ul><li>Google Nexus One </li></ul>Inert Set Alternatives to which consumers are indifferent, or for which strong feelings are not held Inept Set Alternatives in the awareness set that are deemed to be unacceptable for further consideration <ul><li>Pay phone </li></ul><ul><li>Land line </li></ul><ul><li>Skype </li></ul><ul><li>Borrow a phone </li></ul><ul><li>Pager </li></ul><ul><li>Razr </li></ul><ul><li>LG </li></ul><ul><li>Alias </li></ul>

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External Search <ul><li>The gathering of information from sources external to the consumer </li></ul><ul><li>Possible sources: </li></ul><ul><ul><li>Friends </li></ul></ul><ul><ul><li>Family </li></ul></ul><ul><ul><li>Salespeople </li></ul></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Independent research reports </li></ul></ul><ul><ul><li>Internet </li></ul></ul>

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What external sources do you use and why?

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Choosing an External Source <ul><li>Ease of obtaining information </li></ul><ul><li>Objectivity of the source </li></ul><ul><li>Trustworthiness of the source </li></ul><ul><li>Speed with which the information can be obtained </li></ul><ul><li>Example: </li></ul><ul><ul><li>You trust your friends’ opinions </li></ul></ul><ul><ul><li>An internet search is faster than going to a store to speak with a salesperson </li></ul></ul>Why do people choose certain sources?