Consumer Decision Making: Need Recognition, Information Search, Evaluation of Alternatives, Purchase and Post-Purchase Behavior Questions

Question 1

Name the first stage of the consumer decision-making process.

Accepted Answer

Need recognition is the first stage of the consumer decision-making process.

Question 2

What is internal information search?

Accepted Answer

Internal information search means recalling information from memory and past experience about products and brands.

Question 3

Define evoked set.

Accepted Answer

Evoked set is the small group of brands a consumer seriously considers for purchase.

Question 4

What is a heuristic in consumer decision making?

Accepted Answer

A heuristic is a simple mental shortcut or rule-of-thumb used to make a decision quickly (e.g., choose the highest-rated brand).

Question 5

State one factor that increases information search.

Accepted Answer

High perceived risk (or high involvement/high price) increases information search.

Question 6

What is cognitive dissonance?

Accepted Answer

Cognitive dissonance is post-purchase doubt or discomfort where a consumer questions whether the purchase decision was correct.

Question 7

Explain need recognition with a suitable example.

Accepted Answer

**Need recognition** occurs when the consumer realises a gap between **actual state** and **desired state**.

- Actual state: current condition (e.g., phone battery drains quickly).
- Desired state: what the consumer wants (e.g., a phone that lasts all day).

This gap creates a problem and starts the purchase process.

Question 8

Differentiate between internal and external information search (any three points).

Accepted Answer

Internal vs external information search:

| Basis | **Internal search** | **External search** |
|---|---|---|
| Source | **memory/experience** | **market sources** |
| Examples | previous brand used | friends, ads, reviews |
| When used | routine/low risk | new/high risk purchase |

Both together build the consumer’s information set.

Question 9

Explain evaluation of alternatives and list common evaluation criteria.

Accepted Answer

In **evaluation of alternatives**, consumers compare the brands in their **evoked set** using selected criteria.

Common **evaluation criteria** (any four):
- **price**, quality/performance
- **features**, brand reputation
- **warranty/service**, design/style

The option that best matches the criteria becomes the preferred choice.

Question 10

What is purchase decision? Mention factors that can change purchase intention at the last moment.

Accepted Answer

**Purchase decision** is the final selection of brand/seller/quantity/payment and the act of buying.

Purchase intention can change due to:
- **situational factors** (out of stock, delivery time, store atmosphere)
- **marketing cues** (discounts, bundle offers)
- **influence of others** (family/friends)

Hence, the final purchase may differ from earlier preference.

Question 11

List any three factors that influence the extent of information search by consumers.

Accepted Answer

The extent of **information search** depends on factors like:

- **Perceived risk**: higher risk (money/social) → more search.
- **Product knowledge/experience**: low knowledge → more external search.
- **Involvement/price**: high involvement/high price → deeper search.

Flow (write): Risk/Involvement ↑ → Search ↑

Question 12

Explain the meaning of an evoked set and why it is important for marketers.

Accepted Answer

**Evoked set** is the small list of brands a consumer seriously considers.

It is important because:
- It narrows competition to a few brands (only these are compared).
- Being in the evoked set increases **purchase probability**.
- Marketers aim to enter the evoked set through **awareness + trust**.

| Term | Meaning |
|---|---|
| **Evoked set** | considered brands |
| Reject set | brands avoided |
| Inert set | neutral/ignored brands |

Question 13

Explain the complete consumer decision-making process with a neat flow chart.

Accepted Answer

The **consumer decision-making process** describes the typical steps from problem recognition to reaction after purchase.

### Stages
1) **Need recognition**: gap between actual and desired state.
2) **Information search**: internal (memory) and external (friends, ads, reviews).
3) **Evaluation of alternatives**: compare brands using criteria like price, quality, warranty.
4) **Purchase decision**: choose brand/seller/time/payment and buy.
5) **Post-purchase behavior**: satisfaction/dissatisfaction, repeat purchase, complaints.

### Flow chart (draw in exam)
Need recognition → Information search → Evaluation → Purchase decision → Post-purchase behavior

### Conclusion
The process helps consumers reduce risk and helps marketers identify where to influence decisions.

Question 14

Explain post-purchase behavior and cognitive dissonance. Also suggest ways to reduce dissonance.

Accepted Answer

### Post-purchase behavior
After buying, consumers compare product performance with expectations.
- If **performance ≥ expectations** → **satisfaction** → loyalty and positive word of mouth.
- If **performance < expectations** → **dissatisfaction** → complaints, switching, negative reviews.

### Cognitive dissonance
**Cognitive dissonance** is post-purchase doubt/regret, common in high-cost/high-risk purchases.

### Ways to reduce dissonance (marketer actions)
- Provide **warranty/return policy** and transparent terms.
- Strong **after-sales support** and quick service.
- Send **reassurance communication** (thank-you note, usage tips).
- Use testimonials/reviews to confirm choice.

| Action | Effect |
|---|---|
| Returns + warranty | reduces perceived risk |
| Follow-up support | increases confidence |

### Conclusion
Managing post-purchase experience builds satisfaction and long-term customer relationships.

Question 15

Explain evaluation rules: compensatory vs non-compensatory, with examples.

Accepted Answer

Consumers may use different **evaluation rules** while comparing alternatives.

### 1) Compensatory rule
A weakness on one attribute can be compensated by strength on another.
- Example: Phone is costly but has excellent camera and long warranty, so consumer still chooses it.

### 2) Non-compensatory rule
The consumer sets a strict cut-off on a key attribute; failure means rejection.
- Example: “Battery must be at least **5000mAh**; otherwise reject,” even if the phone is cheaper.

| Rule | Key idea | Example |
|---|---|---|
| **Compensatory** | trade-offs allowed | high price offset by high quality |
| **Non-compensatory** | cut-off/threshold | must meet battery requirement |

### Conclusion
Choice of rule depends on involvement, time, and importance of attributes.

Consumer Decision Making: Need Recognition, Information Search, Evaluation of Alternatives, Purchase and Post-Purchase Behavior

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