There Are Five Decision Making Process Business Essay

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In this assignment I will pick House as my objective. House is a home, shelter, building or structure that is a dwelling or place for habitation by human beings. A house also is a basic need of human we can not live without the house. So house is underlying need for us.

I will show the five important decision processes and fully utilize in this assignment. The first is need recognition which I will explain why I need house, and then is information research which means I will search all those importance information from several ways. The third is evaluation alternative; I will compare the entire potential alternative to select one. The next is purchase which contain how I buy, from whom to buy and when to buy. At the last is post-purchase; I will express my experience to my friend after I had stayed the house. Those are the element I will use in this assignment, in order to make a rational decision.


The decision making processes are actually providing for the buyer. The buyer use those process to clarify what is they underlying need; identify what is the problem, and making rational decision that have no regret. On other hand this process also fully used by the marketer. In the true world, the customer will not go through all the stage, they will skip. The process is need recognition, information search, alternatives evaluation, purchase, and post-purchase.

2.1 Need Recognition

The initial step of the decision making process is need recognition which is mean that we have to identify the need and problem that we have. And it also can be the reason why the customers will buy the certain product.

At the first of all, house has been classified as the physiological need by Abraham Maslow. In the hierarchy, need is like water, human can not live without it, and house as water also, human need a house for shelter. When we feel tired it is the place for us to take rest. So that I need a warm shelter to keep my family and I comfort.

I am not only need a comfort house to stay, but a house for earning money in the future also. In order to gain a plenty of income in the rapid way, the requirement for me to buy a house is the house has the value and I can buy it in the cheaper price, so I can be able to sell it in the higher price and make profit in between. For an example I buy a house by RM300, 000. After few years, I can sell the house by more then the price that I bought it.

I am working at Subang Jaya and I am staying at Purchong now. Every day I have to wake up early for avoid the traffic jam, otherwise I will stack in the traffic jam which let me feel tired and inconvenient. So the trouble situation has necessitated change in my house location. I need a new place that easy for me to go to work, shopping, have no traffic jam and easy to get to the high way. So base on this problem the new house I want to buy have to be at Subang Jaya area.

The house that I am staying now is insufficient of space. It is only 1300s.f which is only can accommodate 3 to 4 people, but we are six including my girlfriend. The inconceivable thing is we six people have to share one toilet, some time I will shower in the midnight that is a gravity situation. Because of this, I will always dispute with my family. For this problem I want to buy a house that at least 1.5sty.

In fact my family include me are dwelling on the bad environment. My house is situated nearby the industries area, so the air and water are contaminated by the industry. We every day breathed the polluted air which is detrimental to human health because it will cause several disease like asthma. Furthermore, in one of the research has pointed out that the air pollution no only will impinge on our body but will effect on miscarriage and sperm in men also.

Base on the several sensible reason upon, I have a clearly understand that the new house is the demonstrable need for me right now. So I will go further on the decision process which is information research.


2.2 Information Search

When we have finished the first step then we come to the second step which is information search. In this step the consumer will have a heightened attention to get to know about the product and collect the useful information. There are two ways to get the information know as internal information search and external information search.

2.2.1 Internal Information search

Internal information is getting from our memory. I still remember one of my aunt who was staying at Subang Jaya UEP, she told me that the environment is good and there have several public park with the complete facilities are provided for the resident to exercise. Further more the public order is not too bad; the place is quite safety compare with KL and PJ.

2.2.2 External information search

The external information we can get from several ways such as family, commercial, friends and public etc. Those ways can provide us useful information, and let us to know about other product or brand.

Friends - when I talk about house they all are expressing the opinion respectively. Some of them are telling me use which materials build the house will be better. Some of them telling me who want to sale his/her house.

Salesman - the salesman are the guy who give a lot of information to me, he said that to buy a house we have to pay attention in whether it have got a good transport system, conveniently located and public order or not. And he also suggest me several area like USJ1, 3, 4 etc. The agent we can meet the in property firm like Affirm Company.

Website - nowadays is an information century, all of the information is easy to get through internet. When I open my computer and type several word I can get the useful message like where people want to sell their house, where the company are develop a new house etc. for an example like namcom website.

Family - My family tell me there are four way to buy a house, those are buy through agency, personal, auction and property developer. But in my research, I found that, if I buy the house through auction, I have got no choose to visit the house and need to spend some money to repaid it, so I will not take auction in account. On other hand I will not take new property into account also, due to Subang Jaya have got no new property.

Advertisement - The advertisement we can actually find it on the newspaper or road board etc. The advertisement will inform us where have got new house and the price. For an example like on sin chew newspaper metro edition at the last page had one advertisement was talking about the new house in kinrara on 3 September.

2.3 Alternative Evaluation

After I have finish information search, I am taking step three which is the consumer will compare the price, similarities function, brand, quality, staff, services and location with the alternative choose in the choose set to decide which one to buy.






USJ 18

USJ 11









Built Up
























Semi-detached House







Move in condition

Easy to access to highway

Near to shop, restaurant

Very high demand area

Fully renovated &fully extended.

Superb Location / Convenient residential area.

Fully renovated with built-ins in all rooms.

Back fully extended.

Front also extended.

Strategic location with easy access to amenities.

Fully extended kitchen with suction and upstairs.

well kept, auto gate

alarm system

4 air-cond

Renovated kitchen extension


built-in cabinet

Well-kept by owner

Move-in condition

Tastefully renovated

Well kept

Guarded with security patrol

Easy access to highways

Near amenities

To amenity

5min to 10min



(Carrefour, subang parade)

5min to 10min


5min to 10min



(Carrefour, subang parade)

5min to 10min


To work place (ss15)

15 min

( By car)


(By walk)


(By car)


(By car)


(By walk)


(By car)

Table 1

2.3.1 Summary

During the time I was doing research I found 6 areas that can fulfill my normal requirement. Those are USJ 3A, 5, 6, 11, 18, and ss14. Table 1 will show the comparison among those area which contain price, style, build up place, bedrooms, bathrooms, time to work place and amenity, and description.


It is 1.5 storey- terrace houses in side have got 4 bedrooms and 3 bathrooms which can at least accommodate 4 people. The asking price is RM 538,000 and the build up area is 2,200s.f. Further more it had already renovated, in a move-in condition. The situation of this house is easy to get to the high way (LDP, NKVE, and KESA). From here to amenity (Taipan and Summit) will only take 5min and 15min can reach my work place.


It is Semi-detached house in side have got 6 bedrooms and 3 bathrooms which can at least accommodate 6 people. The asking price is RM 1,460,000 and the build up area is 4,000s.f. Further more it had already renovated and the situation of this house is easy to get to the high way (LDP, KESA), from here to amenity (Carrefour and Sunway) will only take 15min and 5min can reach my work place.


It is 2sty-terrace house in side have got 4 bedrooms and 3 bathrooms which can at least accommodate 4 people. The asking price is RM 550,000and the build up area is 2,000s.f. Further more it had already renovated fully extend in front and black, and the situation of this house is easy to get to the high way (LDP, NKVE, and KESA). From here to amenity (Taipan and Summit) will only take 5min and 15min can reach my work place.


It is 2sty-terrace house in side have got 5 bedrooms and 3 bathrooms which can at least accommodate 5 people. The asking price is RM 408,000 and the build up area is 2,500s.f. Further more owner provide auto gate, alarm system, fully extended kitchen with suction and upstairs, and the situation of this house is easy to get to the high way (LDP, NKVE, and KESA). From here to amenity (Taipan and Summit) will only take 5min and 15min can reach my work place.

USJ 18

It is 2sty-terrace house in side have got 5 bedrooms and 3 bathrooms which can at least accommodate 5 people. The asking price is RM 550,000 and the build up area is 2,500s.f. Further more it provide auto gate, fully extended kitchen, build-in cabinet and move-in condition. From here to amenity (Taipan and Summit) only take 15min, and 10min can reach my work place.

USJ 11

It is 1.5 storeys- terrace house in side have got3 bedrooms and 2 bathrooms which can at least accommodate 3 people. The asking price is RM 538,000and the build up area is 2,200s.f. Further more it had already renovated and the situation of this house is easy to get to the high way (LDP, NKVE, and KESA). From here to amenity ( Taipan and Summit) only take 15min, and 10min can reach my work place.

2.4 Purchase Decision

Purchase decision is the fourth step in the entire process, which is mean a buyer have distinct understand on what to buy. The buyers now have to take where to buy, how to buy; buy with whom, and when to buy etc in to account. After buyers have settled all those trifle, then the buyer will consume the product.

When I had passed through all those process upon, I have already known I will buy the USJ 3A 1.5sty-terrace, because it fulfills my requirement and which I can afford. I will buy the new house now. This is because from my research, the price of house is keep going up even during the recession time. So I will buy the house as fast as I can. And buy the house direct to the seller, as I can negotiate the price.

After I know the amount of the house, i will bring all the hardcopy of income, current saving, financial commitment, and credit history to the bank for mortgage. The OCBC bank also allocates a valuer to estimate the property. After that, the OCBC bank agrees to loan 90 percent of the total amount (RM 450,000) to me and the BLC(Base Lending Rate) is 6.25, but the bank offer me 4.25 for the firs year. When I get the pre-approval I will hire a solicitor to help me to settle all those complicated law issue including conveyance. At the next I will pay RM50, 000 to the seller by myself for down payment. I estimate that three month after I will move-in to my new house, because all the renovation will has been done by the time.

2.5 Post-Purchase

At the end of the process is post-purchase which is mean after the buyer buy the product the buyer will compare the product with their expectation and is either satisfied or dissatisfied.

In fact, this arises from a concept that is known as "cognitive dissonance". The buyer will feel that the product he/she bough is not better than other product. In these circumstances that buyer will switch brands next time. On other hand if the buyer is dissatisfied, the buyer will share this unpleasant to 11 people; against this, if the buyer feel satisfied they will share to 3 people, this is arise from theory named " Buzz Marketing", so the marketer have to take care the buyer after he/she has bough the product.

I feel pleased when I move-in to the house, because the house satisfied my need and solve the entire problem like traffic, space, and the environment. So I will introduce this nice place to my friend who is looking for the house.


The foregoing is a description of decision making process and I will sum up all the point to write a summary. There are five decision making process know as need recognition, information search, evaluation alternative, purchase and post-purchase. First of foremost is need recognition. In fact there are five elements to show why I need to buy a house which is underlying need, profitable, inconvenience, insufficient of space and the environment effect. Those points let me go further to the next stage which is information search. In this stage, we can get the information form internal search which is the information is getting from the memory and external search which is search from family, friend, agent, advertisement, and website. After the information search I have to evaluate the alternative option such as USJ 3A, 5, 6, 11, 18 and ss14 to compare them and figure out which one I preference. Further more is purchase, in this stage I already know which one like, and I need to thing how to buy, when to buy and from whom to buy. Ta the last is post-purchase; it is talk about satisfaction or dissatisfaction and buzz marketing. I feel satisfy by buying the house so I will introduce to my friend.

In my conclusion I will appreciate that I have the opportunity to doing this assignment as I learn a lot of knowledge. This process not only let me know the step of buying a house, but let me understand that the power of price also. If the thing is high-involvement the buyer will carry out extensive evaluation with caution for avoid mistake. Otherwise the buyer will just simply buy without go through the process. On other hand, this decision making process also let the marketer more close with the buyer and understand the buyer behavior. Base on the understanding of consumer behavior, the marketer can provide consumer in difference buying situation. Further more, this process also let me know the importance of service. The service is more important then product. If the product is good but the service is poor, the buyer will swift to other brand; against this if the product is normal but the service is good, the buyer will consider buying again. Those are the little knowledge that I acquire from this assignment. Thank you.


Philip Kotler & Armstrong G. (2007): Principle of marketing, 12th Edition, Prentice Hall, Pearson Education International

David L. Loudon & Albert J. Della Botta. (1993); Consumer Behavior, 4th Edition, McGrow.Hill International Edition

J. Paul Petter & Jerry C. Olson. (2008); Consumer Behavior and Marketing Strategy, 8th Edition, McGrow.Hill International Edition.