Chapter 3 Problem Recognition
• Nature of problem recognition
• Difference between habitual, limited and extended
decision making
• Methods for measuring problem recognition
• Marketing strategies based on problem recognition
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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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?
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
3–2
Types of Consumer Decisions
• Problem recognition
• Purchase involvement
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3–3
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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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Purchase Involvement and Types
of Decision Making
High purchase
involvement
Low purchase
involvement
Habitual
decision
making
Limited
decision
making
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
Extended
decision
making
3–5
Purchase Involvement and Types
of Decision Making (cont.)
3–6
Purchase Involvement and Types
of Decision Making (cont.)
3–7
Marketing Strategy and Types of
Consumer Decisions
The process of problem recognition
• The nature of problem recognition
–
–
Desired state
Actual state
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The Process of Problem Recognition
3–9
The Process of Problem Recognition (cont.)
3–10
The Desire to Resolve
Recognised Problems
•
Depends on two factors:
1.
2.
The magnitude of the discrepancy between the desired
state and the actual state
The relative importance of the problem
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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Types of Consumer Problems
• Active problem
• Inactive problem
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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
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
3–13
Non-Marketing Factors Affecting
Problem Recognition
3–14
Factors that Influence the
Desired State
• Culture/social class, e.g. cleanliness
• Reference groups, e.g. 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
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3–15
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
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Brand Performance
Many products need to perform on two levels:
1. Instrumental performance
2. Expressive performance
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
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Marketing Strategy and
Problem Recognition
•
Measuring problem recognition
1. activity analysis—study of meal preparation
2. product analysis—problems using it?
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
3–18
Marketing Strategy and
Problem Recognition (cont.)
• Measuring problem recognition (cont.)
3. problem analysis—product/brand solutions?
4. human factors research—suit users
5. emotion research—how people feel about it
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
3–19
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
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An Active Attempt to Activate Problem Recognition
3–21
Responding to a Recognised Problem
3–22
Responding to Consumer Problems
• Timing problem recognition
e.g. winter colds
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Responding to Consumer Problems
(cont.)
• Suppressing problem recognition
–
avoid upsetting habitual buyers
–
anticipate and counteract negatives
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
3–24
Next lecture…
Chapter 4
Information Search
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