Five Step in Decision Making Process and the Influences

FIVE STEP IN DECISION MAKING PROCESS AND THE INFLUENCES

1. NEED RECOGNITION 

- A customer feeling tired when he or she works too much on papers (the actual state) would like to have a personal computer (the need recognized) to work more effectively and faster (the desired state). However, If price of the computer is so high, the customer can wait until the price decreases.

 - There are 2 influences on need recognition: environmental influences and individual differences

 + Environmental influences include the situation. When someone works as an office worker, all of them have to have a personal computer to complete their tasks on time and the most effectively. Working on papers would be more time-consuming and not accurate.

+ Individual differences include consumer resources and knowledge. The customer's purchase would be based on the customer's income. And the customers have to know about the computer they want to purchase. Because there are a lot of personal computers with various types, colors and functions.

2. Information search

The second step is gather information so that you can make a decision based on facts and data. Consumers engage in both internal and external information search. Internal search involves the consumer identifying alternatives from his or her memory such as his or her past experience with the personal computer. External search involves word of mouth, media, store visit, trial. For high involvement products, consumers are more likely to use an external search.  Before buying a laptop, for example, the consumer may ask friends’ opinions, read reviews in Consumer Reports, consult several web sites, and visit several dealerships.

For example: If you want to purchase a personal computer. You can acquire information through any of the following sources:

• Personal Sources - You might discuss your need with your friends, family members, co workers and other acquaintances.
• Commercial sources - Advertisements, sales people, Packaging of a particular product in many cases prompt individuals to buy the same, Displays (Props, Mannequins etc)
• Public sources - Newspaper, Radio, Magazine
• Experiential sources - your own experience, prior handling of personal (You would definitely purchase a Dell laptop again if he had already used one)

Influences in Searching information:

* Total number of brands available in the market: In the personal computer nowadays has many brands like Dell, Apple, ASUS, Lenovo,... so customers may get confused, don’t know what brand to choose. And that lead to time consuming when you take time to search information about one brand and at the end you found out that brand don’t meet your needs.

* Your needs: The way you search information depend on your personal needs. For example, if a student need computer to study the information he get will definitely different from ones who need computer to work or to play games.

* Word of mouth: Sometime, word of mouth can bring you wrong information and that make you search information in wrong direction. If you are looking for information about Apple Macbook and then you hear someone told you that “ Macbook is expensive but not worth your money” and then you will have doubt about that brand. Or if you want to find a computer to help you in your studying but you got information from a person that don’t know much about personal computer and that might make you made the wrong choice