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 person’s 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
information
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
Conjunctive
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