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Consumer Decision Making
• Refers to the thought process
of a ________ decision
• Can be determined by various
mental and social factors
• Research helps businesses
gain knowledge to provide
value to consumers
• _______ helps ______ make
____ choices
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Consumer Decision Making Process
• Includes five stages:
– _________________
– _________________
– _________________
– _________________
– _________________
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Need Identification
• Occurs when a person
recognizes a difference between
his or her ____ and ______
situation
• Examples include:
– recognizing the _____ of a formal
suit for a job interview
– perceiving the need of a better
computer for running a highdemanding software
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Information Searching
• Involves_______ for more information about the product
or service
• Includes two methods
– _______ search
– _______ search
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Internal Search
• Is based on previous _________ of using the product or
service
• Is efficient for ________ purchased items
• Examples include:
– buying the same brand of milk
– having lunch at the school cafeteria
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External Search
• Involves searching for _______ information to _____
about the product or service
• Is often used when ____ experience is __________
• Primary sources include:
– personal sources such as friends or family
– public sources such as information on the Internet
– marketing sources such as advertising and salespeople
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Alternative Evaluation
• Involves _______ a product or service based on the
consumer’s criteria of meeting the need
• Can be influenced by:
– ______ reasons
• cost-efficiency
• certain attributes of a product
– _______ impulses
• favor of a brand
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Purchase Decision
• Refers to the _____ decision of
______ or ___ buying a product
• Has three possibilities:
– item first
• selecting a set of brands and then
considering when and where to buy
– outlet first
• deciding when and where to buy and
then choosing certain brands
– not to purchase
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Purchase Outlet
• Involves two main considerations:
– ___________, which can be influenced by:
• store atmosphere
• quality of service
• return policy
– ___________, which can be influenced by:
• discount sales
• time pressure
• certain holidays
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Post-Purchase Evaluation
• Involves _______ the product to
_______ and deciding whether it
is ______ or __________
• May leads to:
– positive consumer perceptions
– negative consumer perceptions
– repeat-purchase behavior
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Cognitive Dissonance
• Refers to the ____-purchase ____ caused by the doubt of
whether a ______ purchase decision has been made
• Can be reduced by:
– follow-up calls
– extended warranty
– post-purchase customer service
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Consumer Skills
• ______ consumers in purchasing the right
product to suit their needs
• ______ consumers increase purchasing
power
• buying the same product or service for less
money
• buying more goods and services with the same
amount of money
• buying better quality goods for the same
amount of money
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Smart Shopping
• Include three steps:
• identify the ________
• what problem are you trying to solve?
• how will you use this product and service?
• list the ____________
• what functions do you have to have?
• what functions would be nice to have but are not necessary?
• ________ the items
• which item is the most cost-effective?
• how well does each item fit in your budget?
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Reliable Consumer Organizations
• Include:
• ________________
• publishes Consumer Reports, an unbiased
source of product and service evaluations
• ____________________(UL)
• establishes safety standards
• gives the UL Seal of Approval to qualified
products
• ____________________(BBB)
• reports consumer complaints
• provides consumers news and tips
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When Shopping for Food
• Consumers should _____ food labels and look
for the following information:
• the ____ of the product
• ______ of contents
• information of the processor, distributor or packer
• ___ of ingredients
• the ________ Facts panel
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The Nutrition Facts Panel
• Must provide the following
information:
• ________ size
• ________ of servings
• _______ per serving
• ______ per serving (in grams)
• _____________ per serving (in grams)
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The Nutrition Facts Panel
• Must provide the following
information:
• ___ per serving (in grams)
• fiber per serving (in grams)
• _____ per serving (in milligrams)
• percent of ________for protein,
carbohydrates, fat, cholesterol and
certain vitamins and minerals
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When Shopping for Clothes
• Consumers should ____ the following information on
clothing labels:
• ____ content
• ____ instructions
• where the clothing was _____
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When Shopping for Clothes
• Consumers should be able to select:
• well-___________ clothes
• attention to _____
• well-_______
• reliable _______ and assembly
• _______ fabric clothes
• even ______ throughout
• free of ______ and _____
• returns to the original shape after being
stretched or pulled
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When Buying a Used Car
• Consumers should:
• find the car’s value
• value of a used car can be found at
______________(KBB) or the
______________________(NADA)
• check the vehicle history report
• can be found at _______.com
• includes information such as _____of
previous owners and whether it was
salvaged, stolen, recalled or in an ______
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When Buying a Used Car
• Consumers should:
• ______ sign an “_____” statement with the dealer
• have the _________ and ________ approvals ready
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When Buying a New Car
• Consumers are suggested to:
• conduct ______ research and know what they
want
• put their _________ in order and narrow down
choices
• ____ drive
• compare the _____ at several different places
• plan to _____ the best price
• take financing, warranties and insurance into
consideration
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New Car or Used Car?
New Car
Used Car
Advantage
• Freedom of choice
• Better _______
• Lower cost
• Better ______ rates
Disadvantage
• More expensive
• Unknown problems
• Higher _______ cost • Higher _______
rates
• Limited ________
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When Buying a House
• Consumer should:
• conduct _________ research
• common sources include _________ agencies,
__________ classifieds, ______ sources, family
and friends, etc.
• look for government aid
• housing aid is provided by federal agencies
such the __________________(FHA) and the
U.S. Department of Housing and Urban
Development (HUD)
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When Buying a House
• Consumers must:
• have the property __________
• professional home inspections are required by law in many
states
• know the _____ and _________ of purchasing a home
• home buyers must have a ____ search in order to establish a
clear ___ to __________
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When Renting a House
•Tenants must understand:
• renter’s rights
• have a ____ and _____ environment
• have ______
• renter’s responsibilities
• must ____ for the property
• must pay the ___rent when due
• must obey _____ and ________ in
______
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Renting or Buying?
• Should be considered based on:
• __________
• _________: deposit, monthly rent, utilities and renter’s
insurance
• _________: down payment, mortgage, property taxes,
utilities and property insurance
• ____________
• _________: greater freedom to move, less responsibility
for upkeep
• _________: greater sense of security and stability, freedom
to remodel or redecorate
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Renting or Buying?
Payments
Advantages
Renter
• _________
• Monthly _____
• ________
• _________ insurance
Buyer
• Down ______
• _________
Property ____
• Utilities
• ________
• Greater ______ to
move
• Less responsibility
for _________
• Greater sense of
_______ and ______
• Freedom to _______
or redecorate
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Rules for Smart Shoppers
• Include:
• learn about the _______ and _______
• ____ around
• watch for _____
• be aware of _____ costs
• read the _______
• consider the __________ and ________
• think _______ you _____
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COMPLETE THE CONSUMER
SKILLS QUIZ ON VISION
References
• http://www-rohan.sdsu.edu/~renglish/370/notes/chapt05/
• http://www.managementstudyguide.com/consumer-decision-making-process.htm
• http://www.udel.edu/alex/chapt6.html
• http://www.psychologytoday.com/basics/consumer-behavior
• http://www.consumerpsychologist.com/
• http://texas4-h.tamu.edu/files/2012/12/2012-13_CDM_Best_Consumer_Decision.pdf
• http://www.consumerreports.org/cro/index.htm
• http://www.carfax.com/entry.cfx
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Acknowledgement
Production Coordinator
Caroline Huang-Loggains
Brand Manager
Megan O’Quinn
Graphic Designer
Melody Rowell
Technical Writer
Jessica Odom
V.P. of Brand Management
Clayton Franklin
Executive Producer
Gordon W. Davis, Ph.D.
© MMXIV
CEV Multimedia, Ltd.
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