True or False?
1. If you have bad breath, you cannot smell it yourself.
2. If you eat a balanced diet, you do not need vitamin supplements.
3. Using a razor with five blades will reduce the likelihood of cutting yourself and will result in less skin irritation.
4. Dell Computers tend to be of higher quality than those made by HP and
Sony.
5. Rust stains on clothes can be removed with the use of lemon juice. Bleach actually makes these stains worse.
MKT 450 PROBLEM RECOGNITION AND INFORMATION SEARCH Lars Perner, Instructor
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Questions Faced By Consumers
• Are veggie burgers actually healthy?
• What makeup should you use to get an “even” skin tone?
• Do I get any useful benefits from spending more than $125 on a digital camera?
• Should I get a “make-over?” What am I looking for? What should I do?
• Is my mechanic honest?
• Which tie should I wear for a job interview?
• Should I give my wife roses, chocolate, or software?
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Consumer Problems and Recognition
• Consumer problem: Discrepancy between ideal and actual state-e.g., consumer:
– Has insufficient hair
– Is hungry
– Has run out of ink in his or her inkjet cartridge
• Problems can be solved in several ways -e.g., stress reduction
 vacation, movie, hot bath, medication
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CONSUMER DECISIONS:
Theory and Reality in Consumer Buying
PROBLEM
RECOGNITION
INFORMATION
SEARCH
EVALUATION OF
ALTERNATIVES
PURCHASE
POSTPURCHASE
EVALUATION/
BEHAVIORS
Theory
Complications
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Problem Recognition—
Implications
• Triggering problem recognition
– Making the consumer aware of a discrepancy that he or she may not have consciously considered —e.g.,
• Bacteria on kitchen counters (cross-contamination of chicken and salad)
• Clothes can get cleaner
• “There is an easier way to do this”
• Creating new ideal
– Fashion
• Addressing denial
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Approaches to Search for Problem
Solutions
Memory
Thinking
Word of mouth, media, store visits, trial
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Options Identified and Considered
UNIVERSAL SET
All possible options
RETRIEVED SET
Options that readily come to mind
Options that will be considered by the consumer
EVOKED SET
Note: Retrieved and evoked sets will vary among different consumers. Brand awareness is important since this is required for the brand to be in the evoked and retrieved sets.
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Internal Search: Issues
• Brand recall
• Consideration set
• Attribute recall
• Recall of evaluations
• Recall of experiences
• Limitations
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Factors Affecting Inclusion Into the Consideration Set
• Prototypicality
• Brand familiarity
• Goal and usage situations
• Brand preference
• Retrieval cues
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Recall of Attributes--
Determinants
• Accessibility/availability
• Diagnosticity—the extent to which the information is believed to be useful in making a good choice
• Salience—the extent to which the information is emphasized, prominent, or otherwise notable
• Vividness
• Goals
– Spreading activation in the Associative Network of Knowledge may trigger relevant attributes
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Internal Search—Limitations
• Confirmation bias
• Inhibition of information
• Mood
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External Search—Issues
• Information sources
• Information overload
• Scope of search
– Motivation
– Ability
– Opportunity
• Information type
• Accuracy
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External Search—Sources
• Retailer
• Media/social media
• Interpersonal/WOM
• Independent (e.g., books)
• Experiential (trial)
• Internet—may or may not be a quality source
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Internet Search
• Type of search
– Search engine
– Review site (e.g., CNET)
– Consumer comments on merchant site (e.g., Amazon)
• Simulations
• Vocabulary used and natural language search
• Search engine rankings
• Paid searches
• “Fake review” sites
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Scope of Search—Determinants
• Motivation
– Involvement and perceived risk
– Perceived costs and benefits
– Consideration set
– Relative brand uncertainty
– Attitude toward search
– Discrepancy of information
• Ability
– Knowledge
– Cognitive abilities
– Demographics
• Opportunity
– Amount of info available
– Information format
– Time availability
– Number of items being chosen
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External Search
• Information Type
– Brand name
– Price information
– Attribute Information
• Accuracy
– Confirmation of existing biases
– Reliance on inaccurate information
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