© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 12 Decision Making I: Need Recognition and Search

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Decision Making and Choice Decision Making and ValueDecision Making and MotivationDecision Making and Emotion

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Search Behavior Information Overload Ongoing Prepurchase Internal External

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. External Search and Emerging Technologies Lowers Search CostsProvides Hedonic ValueInformation Control

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Amount of Search Product experience Involvement Perceived risk Value of search effort Time availability Attitude toward shopping Personal factors Situational influencers

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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