Consumer Behaviour and Decision-making Process

Need Recognition

• Need recognition is triggered in consumers by internal stimuli (e.g., hunger, thirst) or external stimuli (e.g., advertising, social media)

Consumer Decision-Making Process

• The third step after need recognition and information search is alternative evaluation

Internal Stimuli

• Internal stimuli that trigger need recognition include physiological needs (e.g., hunger, thirst), emotional needs (e.g., boredom, loneliness), and cognitive needs (e.g., problem-solving)

Pareto Principle

• Approximately 20% of customers typically generate 80% of demand, according to the Pareto Principle

Information Search

• An internal information search involves recalling stored information from memory (e.g., past experiences, brand awareness)
• Non-marketing-controlled information sources include word of mouth, online reviews, and social media

Evaluation of Alternatives

• A cutoff in the evaluation of alternatives is a minimum requirement that an option must meet for it to be considered

Purchasing Process

• Decision confirmation is the final stage of the purchasing process, where the consumer confirms their decision and makes a purchase

Cognitive Dissonance

• Cognitive dissonance is a feeling of discomfort or psychological tension that occurs when a consumer holds two conflicting attitudes or beliefs

Evoked Set

• The evoked set refers to the set of brands or options that a consumer considers during the evaluation of alternatives