© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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PART IV: CONSUMER DECISION PROCESS
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CHAPTER
© M. Hruby
14
CONSUMER
DECISION
PROCESS AND
PROBLEM
RECOGNITION
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Consumer Behavior In The News…
One person’s problem is another person’s…
 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.
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Consumer Behavior In The News…
One person’s problem is another person’s…
 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.
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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.
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Types of Consumer Decisions
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Types of Consumer Decisions
roduct involvement or enduring involvement is very different
om purchase involvement.
A consumer may be very
involved with a brand (e.g.,
Starbucks) or a product
category, BUT…
have low purchase
involvement due to brand
loyalty, time pressures, etc.
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Types of Decision Making
1. Nominal Decision Making
•
Brand Loyal Purchases
•
Repeat Purchases
2. Limited Decision Making
3. Extended Decision Making
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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 Campbell’s
without considering other
brands, its price, etc.
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Nominal Decision Making
Nominal decision can be broken into two categories:
1. Brand Loyal Purchases
 High commitment to brand
2. Repeat Purchases
 Low commitment to brand
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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.
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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. 14-13
The Process of Problem Recognition
The Nature of Problem Recognition
Problem recognition is the result of a gap between a
desired state and an actual state sufficient to arouse and
activate the decision process.
An actual state is the way an individual perceives
his/her feelings and situation to be at the present
time.
A desired state is the way an individual wants to
feel or be at the present time.
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The Process of Problem Recognition
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The Process of Problem Recognition
The Nature of Problem Recognition
Desire to resolve a particular problem depends on:
1. The magnitude of the discrepancy between
the desired and actual states, and
2. The relative importance of the problem
In general, importance is determined by how critical the
problem is to maintenance of desired lifestyle.
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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.
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Uncontrollable Determinants of Problem
Recognition
Nonmarketing Factors Affecting Problem Recognition
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Uncontrollable Determinants of Problem
Recognition
Variety-seeking is a challenge to marketers because it means
that consumers switch brands for reasons beyond a company’s
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.
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Marketing Strategy and Problem
Recognition
1. Discovering Consumer Problems
2. Responding to Consumer Problems
3. Helping Consumers Recognize Problems
4. Suppressing Problem Recognition
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Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
A wide variety of approaches are used to determine the
problems consumers face.
1. Intuition - the most common, however, the problem identified
may be of low importance to most consumers
2. Survey – asks relatively large numbers of individuals about
the problems they are facing
3. Focus Groups – composed of 8 to 12 similar individuals
brought together to discuss a particular topic; a moderator is
present to keep the discussion moving and focused on the
topic but otherwise free flowing
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Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
Surveys and focus groups use one of the following approaches
to problem identification:
1. Activity Analysis
Focuses on a particular activity to determine
what problems consumers encounter during the
performance of the activity.
2. Product Analysis
Examines the purchase or use of a particular
product or brand. Consumers may be asked
about problems associated with using a product
or brand.
3. Problem Analysis
Starts with a problem and asks which activities,
products, or brand are associated with (or
perhaps could eliminate) those problems
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Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
Human Factors Research
Human factors research attempts to determine human capabilities
in areas such as vision, strength, response time, flexibility, and
fatigue and the effect on these capabilities of lighting, temperature,
and sound.
Observational techniques such as slow-motion and timelapse photography, video recording, and event recorders are
particularly useful methods.
This type of research can sometimes identify functional
problems that consumers are unaware of.
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Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
Emotion Research
Marketers are increasingly conducting research on the role of
emotions in problem recognition and resolution.
Common approaches are focus group research and personal
interviews that examine the emotions associate with certain
problems.
Critical in helping marketers anticipate consumer reaction to
problems and train customer service personnel to respond
appropriately.
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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
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Marketing Strategy and Problem
Recognition
Helping Consumers Recognize Problems
Generic versus Selective Problem Recognition
Generic Problem Recognition
Selective Problem Recognition
•
•
Involves a discrepancy only
one brand can solve
•
Firms attempt to cause
selective problem
recognition to gain or
maintain market share
•
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
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Marketing Strategy and Problem
Recognition
Helping Consumers Recognize Problems
Approaches to Activating Problem Recognition
How can a firm influence problem recognition?
Recall that problem recognition is a function of
(1) the importance, and
(2) the magnitude
of a discrepancy between the desired state and an existing state
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Marketing Strategy and Problem
Recognition
Helping Consumers Recognize Problems
Approaches to Activating Problem Recognition
Many marketing efforts attempt to influence the desired state,
often advertising the benefits their products will provide and
hoping that these benefits will become desired by consumers.
It is also possible to influence perceptions of the existing state
through advertisements.
Critics frequently question the ethics of activating problem
recognition, especially for problems related to status or social
acceptance.
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Applications in Consumer Behavior
The Nicoderm CQ ad
shows how marketers
often attempt to cause
consumers to
recognize potential
problems for which the
product provides a
solution.
With permission by GlaxoSmithKline.
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Marketing Strategy and Problem
Recognition
Helping Consumers Recognize Problems
The Timing of Problem Recognition
Consumers often recognize problems at times when purchasing
a solution is difficult or impossible, such as
• deciding to purchase a generator during a hurricane
• becoming aware of the need for health insurance after
being hospitalized
A common marketing strategy is to trigger problem recognition in
advance of the actual problem
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Marketing Strategy and Problem
Recognition
Helping Consumers Recognize Problems
Suppressing Problem Recognition
Occasionally information is introduced in the market place that
triggers problem recognition that some marketers prefer to avoid.
Obviously marketers do not want their current customers to
recognize problems with their brands.
Effective quality control and distribution (limited out-of-stock
situations) are important in this effort.
Packages and package inserts that assure the consumer of
the wisdom of their purchase are also common.
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