Marketing 334 Consumer Behavior Chapter 14 Consumer Decision Process and Problem Recognition Based on Consumer Behavior, 10th ed. By Hawkins, Mothersbaugh and Best 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. 14-2 Types of Consumer Decisions Types of Decision Making 1. Nominal Decision Making • Brand Loyal Purchases • Repeat Purchases 2. Limited Decision Making 3. Extended Decision Making The Process of Problem Recognition Courtesy Diamond Trading Company; Agency: J. Walter Thompson. 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. Balance Bar Courtesy BioFoods, Inc.; Buckley Friedman Advertising and Public Relations Owens Corning © 1996 Owens Corning Uncontrollable Determinants of Problem Recognition Nonmarketing Factors Affecting Problem Recognition Uncontrollable Determinants of Problem Recognition Variety-seeking is a challenge to marketers Sensory-specific satiety – consumers get bored (satiated) with sensory attributes more than on non-sensory attributes. Variety WITHIN brand can drive loyalty in the face of variety seeking. Marketing Strategy and Problem Recognition 1. Discovering Consumer Problems 2. Responding to Consumer Problems 3. Helping Consumers Recognize Problems 4. Suppressing Problem Recognition 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 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 This type of research can sometimes identify functional problems that consumers are unaware of. Marketing Strategy and Problem Recognition Discovering Consumer Problems Emotion Research Common approaches are focus group research and personal interviews Critical in helping marketers anticipate consumer reaction to problems and train customer service personnel to respond appropriately. 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 Marketing Strategy and Problem Recognition Helping Consumers Recognize Problems Generic versus Selective Problem Recognition Generic Problem Recognition • • 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 Selective Problem Recognition • Involves a discrepancy only one brand can solve • Firms attempt to cause selective problem recognition to gain or maintain market share Courtesy: © American Dairy Farmers TM Sanyo Camcorder - UK Courtesy Sanyo House Ltd. 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.