UNCERTAINTY AND

INFORMATION FROM
CONSUMERS AS WELL
AS MANUFACTURERS
PRESENTED BY:
BININGAYAN, MICHELLE
CAMAYA, STEPHANIE
FRANCISCO, JUBILEO
NILO, PATRICIA JUSTINE
UNCERTAINTY (Economics)
 According to Frank H. Knight,
uncertainty is the present when
the likelihood of future events is
indefinite or incalculable since no
one can exactly foretell future
events.
 Simply means the lack of
certainty or sureness of an event.
CONSUMERS UNCERTAINTY
 Identified as a major determinant
shaping consumer search and buying
behaviour.
 The presence of uncertainty implies
that the consequences of each
alternative are not known in advance,
but depend on the realization of
events out of the control of the
consumer.
 TWO TYPES OF CONSUMERS
UNCERTAINTY WHEN PURCHASING
1. Behaviour-related customer
uncertainty- the way the company
treats its customers. Treatment during
the acquisition of a product signals how
the company treats its customers.
2. Use-related customer uncertainty-
occurs when the customer is unable to
try out or experience your product prior
to the purchase.
CONSUMER INFORMATION
 The information needed
by consumers when
researching, purchasing
and completing a
purchase.
EXAMPLES OF CONSUMER
INFORMATION NEEDS
1.Product attributes (labelling,
packaging, manufacturing
date and expiration date,
price)
2.Expert and consumer
opinions
3.Vendor reputation
MANUFACTURERS
UNCERTAINTY
 The strategy of manufacturing
uncertainty has been used with
great success by manufacturers
of dangerous products to
oppose public health and
environmental regulation
THREE TYPES OF
MANUFACTURERS UNCERTAINTY
1. State Uncertainty- when a business manager
is unable to determine what could happen as
a result of the business environment.
2. Effect Uncertainty- when you can’t figure out
how outside environmental events might
affect your business either now or in the
future.
3. Response Uncertainty- your inability to be
sure of how the market will react to the
actions that you take.
MANUFACTURER
INFORMATION
 Comes in general surveys, data,
articles, books, references, search
engines, and internal records that a
business can use to guide its planning,
operations, and the evaluation of its
activities.
 Business information is whatever
information helps a business know its
environment.
EXAMPLES OF MANUFACTURER
INFORMATION NEEDS
1. Customers
2. Associates
3. Vendors
4. Friends
5. Published sources (daily newspaper,
magazines, databases government
statistics, directories, technical
manuals)
6 STRATEGIES FOR DEALING WITH
UNCERTAINTY IN BUSINESS
1. Use analytical techniques that don’t require
high accuracy
2. Prepare for multiple outcomes
3. Find and rely on the predictable elements of
the situation
4. Focus your evaluation of initiatives on the
inputs, not just the outputs.
5. Remain agile, and strive to respond quickly
6. Cultivate your reputation for extreme trust