Once a consumer has recognized a need the next step in the decision making process is
Need RecognitionNeed recognition occurs when a consumer identifies a need and thinks of a product that might meet this need. Show
Learning Objectives Identify need recognition as part of the consumer decision making process Key TakeawaysKey Points
Key Terms
Need Recognition The Consumer Decision Processes (also known as Buyer Decision Processes) refer to the decision-making stages that a
consumer undergoes before, during, and after they purchase a product or service.
Problem or Need RecognitionThis is the first stage of the Consumer Decision Process in which the consumer is able to recognize what the problem or need is and subsequently, what product or kind of product would be able to meet this need. It is oftentimes recognized as the first and most crucial step in the process because if consumers do not perceive a problem or need, they generally will not move forward with considering a product purchase. Making a Decision: When making a decision, a person first needs to identify and define the problem or need recognition. A need can be triggered by internal or external stimuli. Internal stimuli refers to a personal perception experienced by the consumer, such as hunger, thirst, and so on. For example, an elderly, single woman may feel lonely so she decides that she wants to purchase a cat. External stimuli include outside influences such as advertising or word-of-mouth. For example, a consumer who just moved to Minnesota may not realize he needs a heavy winter coat until he sees a store advertising for it, which triggers the need in his mind. Maslow's Hierarchy of NeedsAmerican Psychologist Abraham Harold Maslow believes that needs are arranged in a hierarchy. Only after a human has achieved the needs of a certain stage, does he move to the next one. None of his published works included a visual representation of the hierarchy. The pyramidal diagram illustrating the Maslow needs hierarchy may have been created by a psychology textbook publisher as an illustrative device. Abraham Maslow: Abraham Harold Maslow was an American Psychology professor who created Maslow's Hierarchy of Needs. This now iconic pyramid frequently depicts the spectrum of human needs, both physical and psychological, as accompaniment to articles describing Maslow's
needs theory and may give the impression that the Hierarchy of Needs is a fixed and rigid sequence of progression. Yet, starting with the first publication of his theory in 1943, Maslow described human needs as being relatively fluid—with many needs being present in a person simultaneously.
At the top of the pyramid, "Need for Self-actualization" occurs when individuals reach a state of harmony and understanding because they are engaged in achieving their full potential. Information SearchInformation Search is a stage in the Consumer Decision Process during which a consumer searches for internal or external information. Learning Objectives Examine the "information search" stage of the consumer decision process Key TakeawaysKey Points
Key Terms
Information search is
considered the second of five stages that comprise the Consumer Decision Process. During this stage, a consumer who recognizes a specific problem or need will then likely be persuaded to search for information, whether it be internally or externally. This is also when the customer aims to seek the value in a prospective product or service. During this time, the options available to the consumer are identified or further clarified.  Seeking Information: A consumer seeks information by asking an employee about a product. Asking an employee is external research.
Non-Personal Source: An example of a non-personal source is a search on the Internet. The search engine provides information about a subject. Evaluating AlternativesDuring the evaluation of alternatives stage, the consumer evaluates all the products available on a scale of particular attributes. Learning Objectives Examine the "evaluation of alternatives" stage of the Consumer Decision Process Key TakeawaysKey Points
Key Terms
Evaluation of alternatives is the third stage in the Consumer Buying Decision process. During this stage, consumers evaluate all of their product and brand options on a scale of attributes which have the ability to deliver the benefit that the customer is seeking. The brands and products that consumers compare - their evoked set - represent the alternatives being considered by consumers during the problem-solving process. Exhibition Hall: In an exhibition hall, customers have a range of options to explore and evaluate. Sometimes known as a
consideration set, the evoked set tends to be small relative to the total number of options available. When a consumer commits significant time to the comparative process and reviews price, warranties, terms and condition of sale and other features it is said that they are involved in extended problem solving. PurchaseDuring the purchase decision stage, the consumer may form an intention to buy the most preferred brand or product. Learning Objectives Examine the "purchase decision" stage of the Consumer Decision Process Key TakeawaysKey Points
Key Terms
The purchase decision is the fourth stage in the consumer decision process and when the purchase actually takes place. During this time, the consumer may form an intention to buy the most preferred brand because he has evaluated all the alternatives and identified the value that it will bring him. Making a Purchase: Making a purchase decision is the final stage in the decision process. According to Philip Kotler, Keller, Koshy and Jha (2009), the final purchase decision, can be disrupted by two factors:
During this stage, the consumer must decide the following:
Post-Purchase BehaviorPost-purchase behavior is when the customer assesses whether he is satisfied or dissatisfied with a purchase. Learning Objectives Examine the "post-purchase behavior" stage of the
Consumer Decision Process Key TakeawaysKey Points
Key Terms
Post-purchase behavior is the final stage in the consumer decision process when the customer assesses whether he is satisfied or dissatisfied with a purchase. How the
customer feels about a purchase will significantly influence whether he will purchase the product again or consider other products within the brand repertoire. A customer will also be able to influence the purchase decision of others because he will likely feel compelled to share his feelings about the purchase. Cognitive Dissonance: The anterior cingulate cortex is responsible for cognitive dissonance or "buyer's remorse." Some companies now opt to engage their consumers with post-purchase communications in an effort to influence their feelings about
their purchase and future purchases. Offering money back guarantees also serve to extend and enrich post-purchase communications between the company and its consumers. Other examples include VIP invitations to become part of a club or special and select group of consumers who buy a particular product. Another example is when customers are asked for their contact information at the point of purchase so they can be targeted later with a follow-up call that surveys the product's performance and
consumer satisfaction. This approach could help influence or alleviate feelings of cognitive dissonance or "buyer's remorse" following a product purchase. Licenses and AttributionsCC licensed content, Shared previously
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What are the 5 stages of consumer decision making process?This is the process by which consumers evaluate making a purchasing decision. The 5 steps are problem recognition, information search, alternatives evaluation, purchase decision and post-purchase evaluation.
What happens during the product need recognition step in the consumer decision process?The first step of the buyer decision process is the need recognition stage. Here the consumer recognizes a need or problem and feels a difference between the actual state and some desired state. They try to find goods to satisfy such needs. This leads to the second stage of searching for information about the product.
In what stage of consumer decision process do you identify a need?Stage 1: Problem or Need Recognition
The customer's journey begins with a problem or needs recognition. Essentially, your prospect recognizes a problem, and they need a product or service to solve it. Needs are triggered by internal and external stimuli.
What are the 4 types of consumer decisions?There are four types of consumer behavior: habitual buying behavior, variety-seeking behavior, dissonance-reducing buying behavior, complex buying behavior.
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