Chapter 3: Problem recognition
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-1
Problem recognition
An important stage of consumer
decision making
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-2
Problem recognition
• Nature of problem recognition
• Difference between habitual, limited and extended
decision making
• Methods for measuring problem recognition
• Uncontrollable factors that effect problem
recognition
• Marketing strategies based on problem recognition
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-3
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?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-4
Types of consumer decisions
• Problem recognition
• Purchase involvement
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-5
Types of consumer decisions (cont.)
• Purchase involvement
–
influenced by the interaction of individual, product and
situational characteristics
• Forms of involvement and outcomes
–
–
–
Habitual decision making—single brand
Limited decision making
Extended decision making
• Implications for strategy
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-6
Purchase involvement and types
of decision making
High purchase
involvement
Low purchase
involvement
Habitual
decision
making
Limited
decision
making
Extended
decision
making
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-7
Purchase involvement and types
of decision making (cont.)
Marketing strategy and types of
consumer decisions
The process of problem recognition
• The nature of problem recognition
–
–
Desired state
Actual state
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-9
Process of problem recognition
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-10
Desire to resolve
recognised problems
•
Depends on two factors:
–
The magnitude of the discrepancy between the desired
state and the actual state
–
The relative importance of the problem
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-11
Products are positioned as providing a potential
solution eg. shampoo
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-12
Products are positioned as providing a potential
solution eg. cough medicine
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-13
Types of consumer problems
• Active problem
–
A problem the consumer is aware of, or will become
aware of, in the normal course of events.
• Inactive problem
–
A problem of which the consumer is not yet aware.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-14
Types of consumer problems
and action required
• Routine problems
–
Expected, require immediate solution
• Emergency problems
–
Not expected, require immediate solution
• Planning problems
–
Expected, don’t require immediate solution
• Evolving problems
–
Not expected, don’t require immediate solution
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-15
Non-marketing factors affecting
problem recognition
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-16
Factors that influence the desired state
• Culture/social class, e.g. importance of cleanliness
• Reference groups, e.g. a change after graduation
• Family/household, e.g. family brands
• Change in financial status, e.g. retrenchment
• Previous purchase decisions
• Individual development
• Motives: refer to Maslow’s needs
• Emotions: seek positive experiences?
• The situation
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-17
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
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-18
Product / brand performance
Many products need to perform on two levels:
•
Instrumental performance
•
Expressive performance
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-19
Marketing strategy and
problem recognition
•
Measuring problem recognition
– Activity analysis—study of meal preparation
– Product analysis—problems using it?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-20
Marketing strategy and
problem recognition (cont.)
• Measuring problem recognition (cont.)
–
Problem analysis—product/brand solutions?
–
Human factors research—suit users
–
Emotion research—how people feel about it
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-21
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
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-22
An active
attempt to
activate problem
recognition
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-23
Responding to a
recognised
problem
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-24
Responding to consumer problems
• Timing problem recognition,
e.g. winter colds
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-25
Responding to consumer problems
(cont.)
• Suppressing problem recognition
–
Avoid upsetting habitual buyers
–
Anticipate and counteract negatives
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-26
Summary
• What is the nature of problem recognition?
• What is the difference between habitual, limited
and extended decision making?
• What are the key methods for measuring problem
recognition?
• What are the uncontrollable factors that effect
problem recognition?
• What marketing strategies can be used to activate
problem recognition?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-27
Next lecture
Chapter 4:
Information Search
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins
Slides prepared by Dr Wayne Binney
3-28