Chapter 2
Problem Recognition &
Information Search
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights
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Consumer decision process action options
Problem recognition: actual state versus
desired state and motivation arousal
Pre-purchase, post-purchase, and ongoing
information search
Internal and external information search
Consideration sets
Sources of marketplace information
Copyright Atomic Dog Publishing, 2002
Consumer Decision Process
Action Options
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Start through steps and complete them in
order
Start, stop, start, stop, etc. and complete
steps in order
Start steps and “loop back” as needed based
on what happens and complete process
Start into the process then stop somewhere
along the way and never finish
Do not start the process
Copyright Atomic Dog Publishing, 2002
Problem Recognition
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When consumers realize that they need
something!
It is the first step in the decision-making
process:
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Problem recognition
Information search
Alternative evaluation
Choice
Outcomes
Copyright Atomic Dog Publishing, 2002
Motivational Arousal
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Different people have different benefit
motivations for purchasing different products
or services.
Types of benefit motives:
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To
To
To
To
To
optimize satisfaction
prevent possible future problems
escape from a problem
resolve a conflict
maintain the status quo or satisfaction
Copyright Atomic Dog Publishing, 2002
Problem Recognition: Actual
State versus Desired State
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It is the psychological process used to
determine the difference between the
consumer’s actual benefits state (where
you are) and the desired benefits state
(where you want to be).
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Opportunity (vs. problem) recognition
Copyright Atomic Dog Publishing, 2002
Problem Recognition
Influences
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Situational influences
Consumer influences
Marketing influences
Copyright Atomic Dog Publishing, 2002
Situational Influences
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Product consumption (e.g., running out of
gas)
Product acquisition (e.g., purchasing a new
home may stimulate other purchases)
Changed circumstances (e.g., moving away
from home to college)
Copyright Atomic Dog Publishing, 2002
Consumer Influences
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Actual state consumers: those who look
to existing products to solve their
problems.
Desired state consumers: those who
shop for new products to address their
problems.
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They enjoy the shopping experience
Copyright Atomic Dog Publishing, 2002
Marketing Influences
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Marketing mix
changes and/or
promotion actions
may help stimulate
problem recognition:
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Advertising
Coupons
Free offers
sweepstakes
Copyright Atomic Dog Publishing, 2002
Information Search
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Information collected by
consumers is the basis
for evaluation and
choice behavior.
It is important for
marketers to know:
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Why consumers are
searching for information
Where will they look
What information
consumers seek
How extensively they are
willing to search
Copyright Atomic Dog Publishing, 2002
Types of Information Search
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Prepurchase search:
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Directed searches: consumer searches for information that
will help solve a specific problem.
Browsing: consumer is “just looking” with no immediate
intent to buy.
Accidental search: consumer is not actively looking for
information, but takes note of information that is formally
presented or inadvertently encountered.
Post-purchase search: gathering information on
choice made after the purchase.
Ongoing search: continuous information gathering to
stay “marketplace-current.”
Copyright Atomic Dog Publishing, 2002
Internal and External
Information Search
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Internal search: search based on existing
information in memory.
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Information quantity, quality, relevance, currency
Experts vs. novices
External search: the search of information
beyond one’s memory.
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Personal sources: friends, experts, salespeople
Impersonal sources: advertising, in-store displays,
trade reports, the Internet.
Experts vs. novices
Copyright Atomic Dog Publishing, 2002
Why Do Consumers Engage in
External Information Search?
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High perceived value versus perceived cost of search
Need to acquire information
Ease of acquiring and using information
Confidence in decision-making ability
Locus of control (internals vs. externals)
Actual or perceived risk
Costs of external search
Types of products sought
Characteristics of the purchase decision
Copyright Atomic Dog Publishing, 2002
Types of Risk
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Functional or
performance
Financial
Psychological
Social
Physiological
Time
Linked-decision
Copyright Atomic Dog Publishing, 2002
Costs of External Search
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Financial
Time
Decision delay
(opportunity cost)
Physical cost
Psychological cost
Information
overload
Copyright Atomic Dog Publishing, 2002
Type of Product Sought
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Specialty goods: search willingness is high
when consumer has developed strong
preferences
Shopping goods: less search willingness for
products that the consumer must devote time
and effort to compare and contrast.
Convenience goods: consumer is reluctant to
spend any time and effort in search and
evaluation before purchase.
Copyright Atomic Dog Publishing, 2002
Characteristics of Purchase
Decision
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If number of
possible solutions is
limited – extensive
search is acceptable
If need for trial is
high – more likely to
search
Difficulty of trial high
– search is for
quality supplier
Copyright Atomic Dog Publishing, 2002
External Search Strategy
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Consideration set: those brands, outlets, etc.
that have front-of-mind presence and from
among which there is intention to choose.
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Which brands of computers would you consider
purchasing?
Also called “evoked set” or “relevant set”
Marketplace information sources:
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General (face-to-face or mass media)
Marketer-controlled (face-to-face or mass media)
Copyright Atomic Dog Publishing, 2002