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CHAPTER

14CONSUMER

DECISION

PROCESS AND

PROBLEMRECOGNITION

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Consumer Behavior In The Nes!

One persons problem is another persons

Many people would pay to NOThave snow.

Indeed snow REMO"ALis a major industry in

colder climates.

But would people pay to HA"E sno?

Source: A. Warren, Winter Wonderland at 72, The Wall Street Journal,December 23, 2003, p. B1!.14-2

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Consumer Behavior In The Nes!

One persons problem is another persons

Would people pay to HA"E sno?

Turns out yes!

"eople in warmer climates such as Te#as$

%ri&ona$ 'lorida$ (eor)ia.

O*ten want snow *or +hristmas season but

rarely )et it naturally. ,o$ they buy it!

Source: A. Warren, Winter Wonderland at 72, The Wall Street Journal,December 23, 2003, p. B1!.14-3

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T#$es o% Consumer De&isions

"urchase involvementis 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.

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T#$es o% De&ision Ma'in(

-. ominal /ecision Ma0in)

rand !oyal "urchases

#epeat "urchases

1. 2imited /ecision Ma0in)

3. 4#tended /ecision Ma0in)

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%ominal decisions occur &hen

there is very lo& involvement &ith

the purchase.

A completely nominal decision

does not even include

consideration of the 'do not

purchase( alternative. Consumer )u#s Cam$)e**+si,hou, &onsi-erin( o,her

)ran-s. i,s $ri&e. e,&/

ominal decision ma0in),a.).a., habitual decision making,

in effect involves no decision per se.

ominal /ecision Ma0in)

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+iddle ground bet&een

nominal and etended

decision ma)ing.

nvolves recogniing aproblem for &hich there are

several possible solutions.

De&ision )ase- on*# on)u#in( ,he &hea$es, ro**s/

2imited decision ma0in) involves internal and limited

eternal search, fe& alternatives, simple decision rules on a

fe& attributes, and little postpurchase evaluation.

2imited /ecision Ma0in)

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t is a response to the high level

of purchase involvement.

0uring post-purchase evaluation,

doubts are li)ely and a thorough

evaluation ta)es place.

Emo,iona* -e&isions ma# invo*vesu)s,an,ia* &o(ni,ive e%%or,/

4#tended decision ma0in)involves etensive internal and

eternal search follo&ed by a comple evaluation of multiple

alternatives.

4#tended /ecision Ma0in)

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The Pro&ess o% Pro)*em Re&o(ni,ion

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The Pro&ess o% Pro)*em Re&o(ni,ion

Types o* +onsumer "roblems

%ctive "roblem

An active problemis one the

consumer is a&are of or &illbecome a&are of in normal

course of events.

Marketing strategy

nly reuire mar)eter toconvince consumers that its

brand is the superior solution.

Inactive "roblem

An inactive problemis one of

&hich the consumer is nota&are.

Marketing strategy

+ar)eter must convinceconsumers that they have the

problem%/that their brand

is a superior solution.

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Un&on,ro**a)*e De,erminan,s o% Pro)*em

Re&o(ni,ion

onmar0etin) 'actors %**ectin) "roblem 5eco)nition

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Un&on,ro**a)*e De,erminan,s o% Pro)*em

Re&o(ni,ion

Variety-seekingis a challenge to mar)eters because it means

that consumers s&itch brands for reasons beyond a company6s

control.

Sensory-specific satiety7

consumers get bored 8satiated9

&ith sensory attributes more than

on non-sensory attributes.

ffering variety on )ey sensory

attributes can increase loyalty tothe brand even if consumers

engage in variety see)ing. "arie,# 0ITHIN )ran- &an-rive *o#a*,# in ,he %a&e o%

varie,# see'in(/

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Mar'e,in( S,ra,e(# an- Pro)*em

Re&o(ni,ion

nce a consumer problem is identified, the manager may

structure the mar)eting mi to solve the problem.

This can involve

5espondin) to +onsumer "roblems

Developing a new product or altering an existing one

Modifying channels of distribution

Changing pricing policy, or

evising advertising strategy

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Mar'e,in( S,ra,e(# an- Pro)*em

Re&o(ni,ion

(eneric versus ,elective "roblem 5eco)nition

6elpin) +onsumers 5eco)ni&e "roblems

!eneric "roblem ecognition

nvolves a discrepancy that

a variety of brands &ithin a

product category can

reduce

ncreasing generic problemrecognition generally

results in an epansion of

the total mar)et

Selective "roblem ecognition

nvolves a discrepancy only

one brand can solve

:irms attempt to cause

selective problem

recognition to gain ormaintain mar)et share

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A$$*i&a,ions in Consumer Behavior

;ourtesy +ac)6s< =arplugs.

The +ac)6s earplugs

ad sho&s ho&

mar)eters oftenattempt to cause

consumers to

recognie potential

problems for &hich theproduct provides a

solution.

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CHAPTER 1

IN2ORMATION

SEARCH

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Na,ure o% In%orma,ion Sear&h

Internal ,earch

>earch of long-term memory to

determine if a satisfactory

solution is )no&n.

4#ternal ,earch

f a resolution is not reached

through internal search, then

the search process is

focused on relevant eternalinformation.

;onsumers continually recognie problems and opportunities,

so internal and eternal searches for information to solve

these problems are ongoing processes.

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T#$es o% In%orma,ion Sou(h,

Consumer decisions re#uire information about$

%ppropriate evaluative criteria

The e#istence o* various alternatives

"er*ormance o* each alternative on each evaluative

criterion

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In*ormation ,earch

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%wareness 7ersus 4vo0ed ,ets *or 7arious "roducts

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Sour&es o% In%orma,ion

Memory of past searches, personal experiences, and low-

involvement learning

"ersonal sources, such as friends, family, and others% Independent sources, such as maga&ines, consumer

groups, and government agencies

Mar0etin) sources, such as sales personnel, websites,

and advertising 4#periential sources, such as inspection or product trial

'ive primary sources of information available to consumers$

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The nternet influences search.

"rovides increased speed andefficiency to vast information.

+ore efficient search and

better decisions can result.

?o&ever,information overloadcan also occur.

In*ormation ,earch on the Internet

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The ature o* ,earch 8sin) Online ,earch 4n)ines

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There are numerous shopping services on the nternet

that can

search out the lo&est prices for specific itemssearch out online retailers of specific merchandise

suggest specific brands based on your prior

purchases and pre-specified criteria

These services use botsor shopping bots, &hich are

soft&are 'robots( that do the shopping@searching for

users.

In*ormation ,earch on the Internet

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Banner ads

"ermission9based e9mail

Wid)ets

/rivin) In*ormation to +onsumers

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;onsumers need ongoingincentives to return such as

product-related ne&s features

user-related discussion

forums

updates on ne& products

Website desi)nis also critical. ngoing and repeat traffic

reuires relevantand fre#uently updatedcontent.

/rivin) +onsumers to a 'irms In*ormation

2irms use various in&en,ive

,e&hni3ues ,o en&oura(e re$ea, ,ra%%i&

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Amoun, o% E,erna* In%orma,ion Sear&h

Various measures of external information search$

-. umber o* stores visited

1. umber o* alternatives considered

3. umber o* personal sources used$ and

:. Overall or combination measures

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Cos,s vs/ Bene%i,s o% E,erna* Sear&h

Mar0et +haracteristics

"roduct +haracteristics

+onsumer +haracteristics ,ituation +haracteristics

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Mar'e,in( S,ra,e(ies Base on

In%orma,ion Sear&h Pa,,erns

-. The type o* decision in*luences the level o* search$

and

1. The nature o* the evo0ed set in*luences the

direction o* the search

Sound marketing strategies take into account the nature of

information search prior to purchase%

(wo dimensions of search are particularly appropriate$

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Mar'e,in( S,ra,e(ies Base- on

In%orma,ion Sear&h Pa,,erns

Handout Ch14 15

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