Need recognition_ Search_ Prepurchase Evaluation_ Purchase

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					Need Recognition, Search,
 Prepurchase Alternative
  Evaluation, Purchase
     Prof Rushen Chahal
  Need Recognition

    Depends on how much
discrepancy exists between the
  actual state and the desired
Need Recognition Process
            Desired                    Actual
            State                      State

    Below                Degree of              At or above
    Threshold            Discrepancy            Threshold

                No Need                Need
                Recognition            Recognition
Need must first be activated
before it can be recognised

  Such factors operate by altering
   the person’s actual / desired
Need activation factors
 Time
 Changed circumstances
 Product acquisition
 Product consumption
 Individual differences
 Marketing Influences

    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 pre-
  purchase 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
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

 The process by which a choice
 alternative gets evaluated and
Evaluative criteria
 Price
 Brand name
 Country of origin
 Situational influence
 Similarity of choice alternatives
 Motivation
 Knowledge
 Involvement
Decision Rules
 Non-compensatory methods
 Compensatory methods
Non-compensatory Decision Rules
 Lexicographic
 Elimination by aspects
 Conjunctive
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
Not all purchase intentions are fulfilled
Reasons could be
 Changed motivations
 Changed circumstances
 New information
 Desired alternatives are no longer
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%)
Options for the source of purchase
 At home – travelling salesmen, internet,
  phone ordering, mail-order, catalogues
 Retail
Shopping motivations
 Information acquisition
 Alleviating loneliness
 Dispelling boredom
 Escape
 Fantasy fulfillment
 Relieving depression
Shoppers are a dwindling species
 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 –     quality,
  consistency, EDLP
 Personal selling- perceived knowledge and
  expertise, perceived trustworthiness, customer
  knowledge, adaptability
 SalesPromotion – to avoid the rigour of EPS
 Databased marketing – ongoing
  personalized contact, loyalty programmes, direct

Description: Prof Rushen's notes for MBA / BBA students