CHAPTER

14

CONSUMER
DECISION
PROCESS AND
PROBLEM
RECOGNITION
14-1

Consumer Behavior In The News

One persons problem is another persons
Many people would pay to NOT have snow.
Indeed snow REMOVAL is a major industry in
colder climates.
But would people pay to HAVE snow?

Source: A. Warren, Winter Wonderland at 72, The Wall Street Journal, December 23, 2003, p. B1/4.

14-2

Consumer Behavior In The News

One persons problem is another persons
Would people pay to HAVE snow?
Turns out yes!
People in warmer climates such as Texas,
Arizona, Florida, Georgia.
Often want snow for Christmas season but
rarely get it naturally.
So, they buy it!

Source: A. Warren, Winter Wonderland at 72, The Wall Street Journal, December 23, 2003, p. B1/4.

14-3

Types of Consumer Decisions

Purchase involvement is the
level of concern for, or interest
in, the purchase process.
Triggered by need to consider a
particular purchase.
A temporary state influenced by
the interaction of individual,
product, and situational
characteristics.

14-4

Types of Consumer Decisions

14-5

Types of Decision Making

1. Nominal Decision Making

Brand Loyal Purchases

Repeat Purchases

2. Limited Decision Making

3. Extended Decision Making

14-6

Types of Decision Making

Nominal Decision Making
Nominal decision making, a.k.a., habitual decision making,
in effect involves no decision per se.
Nominal decisions occur when
there is very low involvement with
the purchase.
A completely nominal decision
does not even include
consideration of the do not
purchase alternative.

Consumer buys Campbells

without considering other
brands, its price, etc.
14-7

Types of Decision Making

Limited Decision Making
Limited decision making involves internal and limited
external search, few alternatives, simple decision rules on a
few attributes, and little postpurchase evaluation.
Middle ground between
nominal and extended
decision making.
Involves recognizing a
problem for which there are
several possible solutions.
Decision based only on
buying the cheapest rolls.

14-8

Types of Decision Making

Extended Decision Making
Extended decision making involves extensive internal and
external search followed by a complex evaluation of multiple
alternatives.
It is a response to the high level
of purchase involvement.
During post-purchase evaluation,
doubts are likely and a thorough
evaluation takes place.
Emotional decisions may involve
substantial cognitive effort.

14-9

The Process of Problem Recognition

14-10

The Process of Problem Recognition

Types of Consumer Problems
Active Problem
An active problem is one the
consumer is aware of or will
become aware of in normal
course of events.

Inactive Problem
An inactive problem is one of
which the consumer is not
aware.

Marketing strategy:

Marketing strategy:

Only require marketer to

convince consumers that its
brand is the superior solution.

Marketer must convince

consumers that they have the
problem AND that their brand
is a superior solution.

14-11

Uncontrollable Determinants of Problem

Recognition
Nonmarketing Factors Affecting Problem Recognition

14-12

Uncontrollable Determinants of Problem

Recognition
Variety-seeking is a challenge to marketers because it means
that consumers switch brands for reasons beyond a companys
control.
Sensory-specific satiety
consumers get bored (satiated)
with sensory attributes more than
on non-sensory attributes.
Offering variety on key sensory
attributes can increase loyalty to
the brand even if consumers
engage in variety seeking.

Variety WITHIN brand can

drive loyalty in the face of
variety seeking.
14-13

Marketing Strategy and Problem

Recognition
Responding to Consumer Problems
Once a consumer problem is identified, the manager may
structure the marketing mix to solve the problem.
This can involve:

Developing a new product or altering an existing one

Modifying channels of distribution

Changing pricing policy, or

Revising advertising strategy

14-14

Marketing Strategy and Problem

Recognition
Helping Consumers Recognize Problems
Generic versus Selective Problem Recognition
Generic Problem Recognition

Involves a discrepancy that

a variety of brands within a
product category can
reduce
Increasing generic problem
recognition generally
results in an expansion of
the total market

Selective Problem Recognition

Involves a discrepancy only

one brand can solve

Firms attempt to cause

selective problem
recognition to gain or
maintain market share

14-15

Applications in Consumer Behavior

The Macks earplugs

ad shows how
marketers often
attempt to cause
consumers to
recognize potential
problems for which the
product provides a
solution.
Courtesy Macks Earplugs.

14-16

CHAPTER

15

INFORMATION
SEARCH

15-17

Types of Consumer Decisions

14-18

Nature of Information Search

Consumers continually recognize problems and opportunities,
so internal and external searches for information to solve
these problems are ongoing processes.
Internal Search

External Search

Search of long-term memory to

determine if a satisfactory
solution is known.

If a resolution is not reached

through internal search, then
the search process is
focused on relevant external
information.

15-19

Types of Information Sought

Consumer decisions require information about:
Appropriate evaluative criteria
The existence of various alternatives
Performance of each alternative on each evaluative
criterion

15-20

Types of Information Sought

Information Search

15-21

Types of Information Sought

15-22

Types of Information Sought

Awareness Versus Evoked Sets for Various Products

15-23

Sources of Information
Five primary sources of information available to consumers:
Memory of past searches, personal experiences, and lowinvolvement learning
Personal sources, such as friends, family, and others.
Independent sources, such as magazines, consumer
groups, and government agencies
Marketing sources, such as sales personnel, websites,
and advertising
Experiential sources, such as inspection or product trial

15-24

Sources of Information

15-25

Sources of Information
Information Search on the Internet
The Internet influences search.
Provides increased speed and
efficiency to vast information.
More efficient search and
better decisions can result.
However, information overload
can also occur.

15-26

Sources of Information
The Nature of Search Using Online Search Engines

15-27

Sources of Information
Information Search on the Internet
There are numerous shopping services on the Internet
that can:
search out the lowest prices for specific items
search out online retailers of specific merchandise
suggest specific brands based on your prior
purchases and pre-specified criteria
These services use bots or shopping bots, which are
software robots that do the shopping/searching for
users.
15-28

Sources of Information
Driving Information to Consumers
Banner ads
Permission-based e-mail
Widgets

15-29

Sources of Information
Driving Consumers to a Firms Information
Website design is also critical. Ongoing and repeat traffic
requires relevant and frequently updated content.
Consumers need ongoing
incentives to return such as:
product-related news features
user-related discussion
forums
updates on new products
Firms use various incentive
techniques to encourage repeat traffic
15-30

Amount of External Information Search

Various measures of external information search:
1. Number of stores visited
2. Number of alternatives considered
3. Number of personal sources used, and
4. Overall or combination measures

15-31

Costs vs. Benefits of External Search

Market Characteristics
Product Characteristics
Consumer Characteristics
Situation Characteristics

15-32

Marketing Strategies Base on

Information Search Patterns
Sound marketing strategies take into account the nature of
information search prior to purchase.
Two dimensions of search are particularly appropriate:
1. The type of decision influences the level of search,
and
2. The nature of the evoked set influences the
direction of the search

15-33

Marketing Strategies Based on

Information Search Patterns

15-34