Chapter 3 Problem Recognition

Nature of problem recognition

Difference between habitual, limited and extended

decision making
Methods for measuring problem recognition
Marketing strategies based on problem recognition

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Need/Problem Recognition
What happens during need/problem recognition?
Can they be activated?
Are there non-marketing influences?
What marketing influences are used?
Does it vary from one person to the next?
Implications for marketing strategy?

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Types of Consumer Decisions

Problem recognition
Purchase involvement

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Types of Consumer Decisions (cont.)

Purchase involvement

influenced by the interaction of individual, product and

situational characteristics

Forms of involvement and outcomes

Habitual decision makingsingle brand

Limited decision making
Extended decision making

Implications for strategy

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Purchase Involvement and Types

of Decision Making

High purchase
involvement

Low purchase
involvement

Habitual
decision
making

Limited
decision
making

Extended
decision
making

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Purchase Involvement and Types

of Decision Making (cont.)

36

Purchase Involvement and Types

of Decision Making (cont.)

37

Marketing Strategy and Types of

Consumer Decisions
The process of problem recognition
The nature of problem recognition

Desired state
Actual state

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The Process of Problem Recognition

39

The Process of Problem Recognition (cont.)

310

The Desire to Resolve

Recognised Problems

Depends on two factors:

1.
2.

The magnitude of the discrepancy between the desired

state and the actual state
The relative importance of the problem

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Types of Consumer Problems

Active problem
Inactive problem

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Types of Consumer Problems

and Action Required
Routine problems

Expected, require immediate solution

Emergency problems

Not expected, require immediate solution

Planning problems

Expected, dont require immediate solution

Evolving problems

Not expected, dont require immediate solution

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Non-Marketing Factors Affecting

Problem Recognition

314

Factors that Influence the

Desired State
Culture/social class, e.g. cleanliness
Reference groups, e.g. after graduation
Family/household, e.g. family brands
Change in financial status, e.g. retrenchment
Previous purchase decisions
Individual development
Motives: refer to Maslows needs
Emotions: seek positive experiences?
The situation

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Factors Influencing the Actual State

Past decisions
Normal depletion
Product/brand performance
Individual development
Emotions
The efforts of consumer groups
The availability of products
The current situation

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Brand Performance
Many products need to perform on two levels:
1. Instrumental performance
2. Expressive performance

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Marketing Strategy and

Problem Recognition

Measuring problem recognition

1.

activity analysisstudy of meal preparation

2.

product analysisproblems using it?

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Marketing Strategy and

Problem Recognition (cont.)
Measuring problem recognition (cont.)
3. problem analysisproduct/brand solutions?
4. human factors researchsuit users
5. emotion researchhow people feel about it

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Responding to Consumer Problems

Activating problem recognition

generic problem e.g. dairy foods

When the problem is latent or of low importance

selective e.g. one brand solution

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An Active Attempt to Activate Problem Recognition

321

Responding to a Recognised Problem

322

Responding to Consumer Problems

Timing problem recognition

e.g. winter colds

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Responding to Consumer Problems

(cont.)
Suppressing problem recognition

avoid upsetting habitual buyers

anticipate and counteract negatives

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Next lecture
Chapter 4
Information Search

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