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Table&of&Contents&&
Chapter!7:!Problem!Recognition!and!Information!Search!
Chapter!8:!Judgment!and!Decision!Making!based!on!High!Effort!
Chapter!9:!Judgment!and!Decision!Making!Based!on!Low!Effort!
Chapter!10:!PostHDecision!Processes!
Chapter!11:!Social!Influences!on!Consumer!Behavior!
Chapter!12:!Consumer!Diversity!
Chapter!7:!Problem!Recognition!and!Information!Search!
Lecture 9 (10/3/14) – Online
Unit 7 – Problem Recognition and Information Search
Project Recognition
Learning Objectives
- To understand consumer problem recognition and the decision making process
o Ex: Adidas has a warranty (solution) – (problem: Close drags her toe when playing tennis)
- To know how & why consumers conduct internal search
o Internal search: when you go back in your mind and think about your experience with a
particular brand
- To know how & why consumers conduct external search
o External search: going out into the world to talk about and search for information about a
particular brand and solve a consumption problem
- To access challenges marketers face in influencing consumers’ searches
Problem: actual state (where we are now) vs. ideal state (where we want to be)
- Problem recognition: the disconnect between actual and ideal states
- 10 years of Dove ‘Real Beauty’: example of delineating the idea of ideal self vs. actual self
o Thinking about beauty in a bad way (i.e. Barbie)
o Think back to the first time you saw a Dove “Real Beauty” ad. What was your initial
reaction?
o Celebrities speaking out against Photoshop and airbrushing
o Selfie campaign (#nofilter) – Dove campaign
o Some makeup companies use anxiety/fear appeals to make consumers think that they need
those products to be beautiful
o Ogilvy & Mather, Toronto
! “Evolution” – Photoshop of a woman that looks nothing like her on a billboard
! “Onslaught” – a video collage of lots of photoshopped ads
! “Sketches” – women describing themselves vs. other people describing what they see
in the women
• “You are more beautiful than you think
o Can Dove claim moral high ground when Unilever also produces Slim-Fast and Axe?
Problem Recognition
- Stimulating Problem Recognition
o Creating a new ideal state
! Not saying “let’s make a problem” – don’t make something new up just to create a
new ideal state
! Also a function of our future goals and aspirations
• Ex: buying athletic shoes for looks, because they’re really runners, etc. – why
do you buy what you buy?
o Create dissatisfaction with actual state
! Ex: Tic Tac “stranger on the subway” ad – suggesting to people that they may need
fresh breath
! Ex: Dove deodorant – it’s clear, won’t be white under your arms
o Position as solution to problem
The Next Step: Internal Search
- Definition: searching for information from memory
Lecture 10 (10/6/14) – Online
Information Search
Degree of internal search can vary between “I’ve seen that” to extensive searches for relevant information
External marketing: take the next step and go through the memory of internal search and search externally
for information in the environment
- Facebook to make targeted ads more transparent for users
o Were criticized for lack of transparency
o Agreed to start displaying the little blue “AdChoices” icon on its display ads served through it
FBX ad exchange
! Intended to provide enhanced notice of behavioral targeting and allow users to opt out
! All ads are targeted by using third-party data
! Facebook takes users’ data to target the ads
! Goal: enhance awareness to users
o Are the ads you see on Facebook relevant to you?
o Have you ever hid an ad on Facebook?
o Do you feel that advertising on Facebook is ethical? Does it feel intrusive?
- Behavior targeting
o Big data helps with measuring behaviors instead of attitude
- Collusion for Chrome: a visual representation of who are getting your data
- Pre-purchase search vs. Ongoing search
o Pre-purchase search: response to problem recognition
! Determinants
• Involvement in the purchase
• Market environment
• Situational factors
! Motive: to make better purchase decisions
! Outcomes
• Increased product and market knowledge
• Better purchase decisions
• Increased satisfaction with the purchase outcome
o Ongoing search: have a continuous basis of searching even if problem recognition is not
activated
! Determinants
• Involvement with the product
• Market environment
• Situational factors
! Motives
• Build a bank of information for future use
• Experience fun and pleasure
! Outcomes
• Increased product and market knowledge leading to:
o Future buying efficiencies
o Personal influence
• Increased impulse buying
• Increased satisfaction from search and other outcomes
- Sources of External Information
o Retailer
-
o Media
o Interpersonal
! Word of mouth
o Independent
o Experiential
o Internet
! Keyword search
! Shopping agents
! Information overload
! Simulations
! Online community
Measures of Online Consumer Activity
o Ad impressions: (opportunity for communication) – How many consumers are exposed to a
particular web ad?
o Unique visitors: (message exposure) – How many different consumers visit the site during a
given period of time?
o Click-through rate: (effectiveness) – How many consumers who are exposed to a message
actually click on it for additional information?
o Percentage of repeat visits: (consumer loyalty) – How many visitors in a given period have
visited the site previously?
o Frequency of visits: (consumer loyalty) - how often does a visitor visit the site in a given
period of time?
o Top entry page: (message and offer effectiveness) – Which page does the visitor enter?
o Top exit page: (message and offer effectiveness) – Which page does the visitor exit the site?
o Visitor path: (message and offer effectiveness) – How do consumers navigate the site?
o Conversion rate: (offer effectiveness) – What percentage of visitors actually buys?
o Cart abandonment rate: (offer and interactivity effectiveness) – What percentage of visitors
put items into carts but fail to complete checkout?
Attribute Recall
- Accessibility/availability
- Diagnosticity
- Salience: how prominent is that attribute
- Vividness
- Goals
Is Internal Search Accurate?
- Confirmation bias – Draw attention to negatives of competition
o The higher likelihood that we can recall information that aligns with and reinforces our beliefs
o Ex: show pictures of Disney World and hyper-imposing WB characters into old family photos
- Inhibition
o Consumers don’t always consider key aspects
! Ex: girls wearing barely anything handing out RockStar energy drink
o Consumers recall other more accessible attributes
- Mood
o If you’re in a bad mood, it prevents you from making clearheaded decisions
o Memory is a function of your mood
Effort to Process Information
- Influenced by:
o Motivation