ADM 2320 Lecture Notes - Lecture 5: Personal Knowledge Base, Determinant, Decision Rule

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Marketers who can recognize customers’ needs even before customers articulate those
needs could acquire strategic competitive advantage over competitors.
The Consumer Decision Process
The consumer decision process model represents the steps that consumers go
through before, during, and after making purchases.
Step 1: Need Recognition
Need recognition is the beginning of the consumer decision process; occurs when
consumers recognize they have an unsatisfied need and want to go from their
actual, needy state to a different, desired state.
o Functional Needs
Functional needs pertain to the performance of a product or
o Psychological Needs
Psychological needs pertain to the personal gratification
consumers associate with a product or service.
A key to successful marketing is determining the correct balance of functional and
psychological needs that best appeals to the firm's target markets.
Step 2: Information Search
The second step, after a consumer recognizes a need, is to search for information
about the various options that exist to satisfy that need.
Regardless of the required search level, there are two key types of information:
internal and external.
o Internal search for information occurs when the buyer examines his or her
own memory and knowledge about the product or service, gathered
through past experiences.
o External search for information occurs when the buyer seeks information
outside his or her personal knowledge base to help make the buying
Factors Affecting Consumers’ Search Processes
The perceived benefits versus perceived costs of search.
Is it worth the time and effort to search for information
about a product or service?
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