Need Recognition,

Search, Prepurchase
Alternative
Evaluation, Purchase

Need Recognition
Depends on how much
discrepancy exists between the
actual state and the desired state

Need Recognition Process

Desired
State

Below
Threshold

Actual
State

Degree of
Discrepancy

No Need
Recognition

At or above
Threshold

Need
Recognition

Need must first be

activated before it can
be recognised
Such factors operate by altering
the persons actual / desired
states

Need activation factors

Time
Changed circumstances
Product acquisition
Product consumption
Individual differences
Marketing Influences

Search
Motivated activation of
knowledge stored in memory or
acquisition of information from
the environment

Search can be

Internal memory, knowledge, habit,

purchase, degree of satisfaction

External when internal search is

inadequate. External search could be prepurchase search or on-going search

Dimensions of Search

Degree

Direction

Sequence

Degree of Search

How many
brands?

How many
stores?

How many
attributes?

No. of
informatio
n sources?

How much
time?

Direction of Search
Which brands?
Which stores?
Which attributes?
Which information sources?

Sequence of Search

In what
order of
brands
considered?

In what
order of
stores
visited?

In what
order of
attributes
considered?

In what
order of
information
sources
processed?

Determinants of Search
Situational
Product
Retail
Consumer

Consumers Engage in more

search as their attitude
towards shopping become
more favourable
Age and income is often
negatively related to search

Prepurchase
Alternative
Evaluation
The process by which a choice
alternative gets evaluated and
selected

Evaluative Criteria
Price
Brand name
Country of origin
Situational influence
Similarity of choice alternatives
Motivation
Knowledge

Decision Rules
Non-compensatory methods
Compensatory methods

Non-compensatory Decision
Rules

Elimination
by aspects

Lexicographic

Compensatory Decision
Rules

Simple additive

Weighted additive

Some Learnings

Consumers typically have some determinant

attributes that are salient to actually influence the
evaluation process

Consumers use some cut-offs on attribute values.

A brand that fails to meet a cut-off may be
rejected regardless of how well it performs on the
other attributes

Consumers make trade-offs between quality of

their choice and the amount of time and effort
necessary to reach a decision

Purchase
Not all purchase intentions are fulfilled.
Reasons could be
Changed motivations
Changed circumstances
New information
Desired alternatives are no longer
available

Choice of Alternative
Fully planned
purchase
Both product and
brand are chosen in
advance, Extended
problem solving and
high involvement
(61%)

Partially
planned
purchase
Intention to buy
product but brand
chosen at the time
of purchase

Unplanned
purchase
Both product and
brand are chosen at
point of sale.(50%)

Shopping motivations
Information acquisition
Alleviating loneliness
Dispelling boredom
Escape
Fantasy fulfillment
Relieving depression

Shoppers are a dwindling

species
Reasons
Less leisure time
Buying less
Shopping has ceased to be a pleasure
Spending less time at shops
Prefer to buy from home

Enhancing Relationship
Marketing
Consumer
value addition
Personal
Selling

Quality, Consistency, EDLP

Perceived Knowledge And Expertise,

Perceived Trustworthiness, Customer
Knowledge, Adaptability

Sales
Promotion

To avoid the rigour of EPS

Databased
Marketing

Ongoing personalized contact, Loyalty

programmes, Direct mailers