DECA Retail Merchandising Practice Exam

What is the process called when a customer becomes aware of a need and decides to address it through shopping?

1. Information search

2. Need recognition

3. Evaluation

4. Choice

The correct answer is: Need recognition

The process where a customer becomes aware of a need and decides to address it through shopping is known as need recognition. This is the first step in the consumer decision-making process, where an individual identifies a gap between their current situation and a desired state, prompting the realization that they need to obtain a product or service to fulfill that need. Recognizing this need can be influenced by internal factors, such as personal preferences and experiences, or external factors, such as marketing messages and social influences. Understanding need recognition is vital for retail merchandising as it highlights the importance of effectively communicating the value of products to consumers to inspire their desire to shop and fulfill their identified needs. This foundational awareness drives the next steps in the decision-making process, where customers explore their options and evaluate potential solutions.