MKT400 Individual decision making Chapter 9
Consumer purchase may be a response to a perceive problem.
Consumers go through series of steps to purchase:
1) Problem recognition
2) Information search
3) Evaluation of alternatives
4) Product choice
Perspectives on decision making
Rational perspective is the view that people calmly and carefully integrate as much information
as possible with what they already know about a product, painstakingly weigh the pluses and
minuses of each alternative.
Purchase momentum occurs when these initial impulses actually increase the likelihood that we
will buy even more almost as if we get revved up and plunge into a spending spree. A consumer
evaluates the effort required to make a particular choice and then he or she chooses a strategy
best suited to the level of effort required.
Types of consumer decisions
Consumer researcher have found it convenient to thin in terms of a continuum, which is anchored at
one end by habitual decision making and at the other by extended problem solving. Many decisions fall
somewhere in the middle and are characterized by limited problem solving.
Extended problem solving
Correspond most closely to the traditional decision making perspective. It is usually initiated by
a motive that is fairly central to the self-concept and the eventual decision is perceived to carry
a fair degree of risk. Customer collects much information as possible both from memory
(internal) and from outside (external). Each alternative is carefully evaluated.
Limited problem solving
More straightforward and simple. Buyers are not as motivated to search for information or to
evaluate each alternative carefully. People instead use simple decision rules to choose among
Habitual decision making
Both extended and limited problem solving modes involve some degree of information search
and deliberation, varying in the degree to which activities are undertaken. Development of
habitual repetitive behaviour allows consumers to minimize the time and energy spent on
mundane purchase decisions. MKT400 Individual decision making Chapter 9
1. Problem recognition
Problem recognition occurs whenever the consumer sees a significant difference between his or her
current state of affairs and some desired or ideal state. Problem can arise two ways: need recognition
or opportunity recognition. Need can be diminished by simply running out if a product by buying a
product that turns out not to satisfy needs as wanted or creates new needs. Opportunity occurs when a
consumer is exposed to different or better quality products which in turn can occur because the persons
circumstances have somehow changed.
2. Information recognition
Information search is the process in which the consumer surveys his or her environment for approp