Consumer Decision Process and Problem Recognition.pdf
- 2. 02 01 03 CONTENT TYPES OF CONSUMER DECISION PROCESS OF PROBLEM RECOGNITION MARKETING STRATEGY AND PROBLEM RECOGNITION
- 3. CONSUMER DECISIONS The term consumer decision produces an image of an individual carefully evaluating the attributes of a set of products, brands, or services and rationally selecting the one that solves a clearly recognized need for the least cost. As Figure 14–1 indicates, there are various types of consumer decision processes. As the consumer moves from a very low level of involvement with the purchase to a high level of involvement, decision making becomes increasingly complex.
- 5. TYPES OF CONSUMER DECISIONS a type of consumer decision-making that involves low-cost products and little customer involvement. consumer decision making that is used when purchasing products that require a moderate amount of time and effort to compare models and brands before making a choice. a consumer decision-making process that involves a lot of research and time spent evaluating alternatives. It's also known as complex buying behavior. NOMINAL DECISION MAKING LIMITED DECISION MAKING EXTENDED DECISION MAKING
- 6. Nominal Decision Making 1.NOMINAL DECISION MAKING Sometimes referred to as habitual decision making, in effect involves no decision per se . As Figure 14–1 indicates, a problem is recognized, internal search (long-term memory) provides a single preferred solution (brand), that brand is purchased, and an evaluation occurs only if the brand fails to perform as expected. Nominal decisions occur when there is very low involvement with the purchase. Nominal decisions can be broken into two distinct categories: brand loyal decisions and repeat purchase decisions.
- 7. Brand Loyal Purchases when customers repeatedly buy the same brand's products or services, even when competitors offer similar products or services. Repeat Purchases In contrast, you may believe that all ketchup is about the same and you may not attach much importance to the product category or purchase. Having tried Del Monte and found it satisfactory, you now purchase it whenever you need ketchup. Thus, you are a repeat purchaser of Del Monte ketchup, but you are not committed to it. 1.NOMINAL DECISION MAKING
- 8. limited decision making also occurs in response to some emotional or situational needs. In general, limited decision making involves recognizing a problem for which there are several possible solutions. There is internal and a limited amount of external search. A few alternatives are evaluated on a few dimensions using simple selection rules. The purchase and use of the product are given very little evaluation afterward, unless there is a service problem or product failure. 2.LIMITED DECISION MAKING Involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little postpurchase evaluation. It covers the middle ground between nominal decision making and extended decision making. In its simplest form (lowest level of purchase involvement), limited decision making is similar to nominal decision making.
- 9. 3.EXTENDED DECISION MAKING Involves an extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant postpurchase evaluation. It is the response to a high level of purchase involvement. Even decisions that are heavily emotional may involve substantial cognitive effort. For example, a consumer may agonize over a decision to take a ski trip or visit parents even though the needs being met and the criteria being evaluated are largely emotions or feelings rather than attributes per se, and are therefore typically fewer in number with less external information available.
- 10. The Nature of Problem Recognition PROCESS OF PROBLEM RECOGNITION Without recognition of a problem, there is no need for a decision. This condition is shown in Figure 14–2, when there is no discrepancy between the consumer’s desired state (what the consumer would like) and the actual state (what the consumer perceives as already existing). Problem recognition is the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process. An actual state is the way an individual perceives his or 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. A desired state is the way an individual wants to feel or be at the present time.
- 12. The Desire to Resolve Recognized Problems The level of one’s desire to resolve a particular problem depends on two factors: 1. The magnitude of the discrepancy between the desired and actual states 2. The relative importance of the problem .
- 13. Types of Consumer Problems PROCESS OF PROBLEM RECOGNITION active and inactive problems require different marketing strategies. Active problems require the marketer only to convince consumers that its brand is the superior solution. Consumers are already aware of the problem. In contrast, inactive problems require the marketer to convince consumers that they have the problem, and that the marketer’s brand is a superior solution to the problem. This is a much more difficult task. Consumer problems may be either active or inactive. An active problem is one the consumer is aware of or will become aware of in the normal course of events. An inactive problem is one of which the consumer is not aware .
- 14. MARKETING STRATEGY AND PROBLEM RECOGNITION Discovering Consumer Problems Activity Analysis - focuses on a particular activity, such as preparing dinner, maintaining the lawn, or swimming. The survey or focus group attempts to determine what problems consumers encounter during the performance of the activity. Product Analysis - similar to activity analysis but examines the purchase or use of a particular product or brand. Problem Analysis-takes the opposite approach from the previous techniques. It starts with a problem and asks respondents to indicate which activities, products, or brands are associated with (or perhaps could eliminate) those problems. 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. 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 associated with certain problems.
- 15. MARKETING STRATEGY AND PROBLEM RECOGNITION Once a consumer problem is identifi ed, 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. Responding to Consumer Problems A key task of marketers is to identify consumer problems and to position their brands as solutions for them
- 16. MARKETING STRATEGY AND PROBLEM RECOGNITION Helping Consumers Recognize Problems Generic versus Selective Problem Recognition- Two basic approaches to causing problem recognition are generic problem recognition and selective problem recognition . These are analogous to the economic concepts of generic and selective demand. - Generic problem recognition - Selective problem recognition Approaches to Activating Problem Recognition- How can a firm influence problem recognition? Recall that problem recognition is a function of the (1) importance and (2) magnitude of a discrepancy between the desired state and an existing state. The Timing of Problem Recognition- Consumers often recognize problems at times when purchasing a solution is difficult or impossible, as the following examples demonstrate: • We decide we need snow chains when caught in a blizzard. • We become aware of a need for insurance after an accident. • We desire a flower bed full of tulips in the spring but forgot to plant bulbs in the fall. • We want cold medicine when we are sick but don’t feel like driving to the store.
- 17. Suppressing Problem Recognition MARKETING STRATEGY AND PROBLEM RECOGNITION As we have seen, competition, consumer organizations, and governmental agencies occasionally introduce information in the marketplace that triggers problem recognition that particular marketers would 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.