Consumer Behavior - Chapter 14 - Consumer Decision Process and Problem Recognition

Purchase Involvement

the level of concern for, or interest in, the purchase process,

triggered by the need to consider a particular purchase

thus purchase involvement is a temporary state influenced by the interaction of individual, product, and situational characteristics

Types of Decision Making

1. Nominal Decision Making

-Brand Loyal Purchases

-Repeat Purchases

2. Limited Decision Making

3. Extended Decision Making

Nominal Decision Making

a.k.a habitual decision making, in effect involves no decision per se

occur when there is very low involvement with the purchase

does not even include consideration of the "do not purchase" alternative

EX: you are out of toothpaste. You buy the same brand without considering alternatives

Nominal decisions have two categories:

1. Brand Loyal Decisions

2. Repeat Purchase Decisions

Brand Loyal Purchases

Commitment to the brand because the consumer has an affective (emotional) attachment.

Repeat Purchases

continue to buy the same brand though they do not have an emotional attachment to it

Limited Decision Making

involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little postpurchase evaluation

middle ground between nominal and extended decision making

involves recognizing a problem for which there are several possible solutions

EX: you notice a display for Jell-o and pick up two boxes without seeking information beyond your memory of "Jell-o" is good; may have considered no other or limited alternatives except possibly a very limited examination of a do not buy option

Extended Decision Making

involves extensive internal and external search followed by a complex evaluation of multiple alternatives

response to the high level of purchase involvement

during postpurchase evaluation, doubts are likely and a thorough evaluation takes place

occur when making big purchase decisions (house, cars, trips, etc.)

emotional decisions may involve substantial cognitive effort

Problem Recognition

the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process

Actual State

the way an individual perceives his or her feelings and situation to be at the present time

Desired State

the way an individual wants to feel or be at the present time

Types of Consumer Problems:

1. Active Problem

2. Inactive Problem

Active Problem

a problem where the consumer is aware of or will become aware of in normal course events

Marketing Strategy: only require marketer to convince consumers that its brand is the superior solution

Inactive Problem

one of which the consumer is not aware

Marketing Strategy: marketer must convince consumers that they have the problem AND that their brand is a superior solution

Discovering Consumer Problems

Intuition is the most common approach to discovering consumer problems

Benefits are that it is inexpensive, fast, and easy

Identifying consumer problems using online and social media

Monitoring and tracking is NOT enough

Problems need to be solved in a timely and appropriate manner

Activity Analysis

focuses on a particular activity to determine what problems consumers encounter during the performance of the activity

consumer use the product and are asked what annoys them about the product. An example is the chord getting in the way

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

Ask about the product Dyson specifically and the issues with it. How can we improve our product that already exists for the future?

Problem Analysis

starts with a problem and asks which activities, products, or brand are associated with (or perhaps could eliminate) those problems

look at a specific issue a customer has and see if your product can fix these issues

(Discovering Consumer 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

observational techniques such as slow-motion and time-lapse photography, video recording, and event recorders are particularly useful methods

this type of research can sometimes identify functional problems that consumers are unaware of

(Discovering Consumer Problems)

Emotion Research

marketers are increasingly conducting research on the role of emotions in problem recognition and resolution

common approaches are surveys, focus group research and personal interviews that examine the emotions associate with certain problems

critical in helping marketers anticipate consumer reaction to problems and train customer service personnel to respond appropriately

Generic Problem Recognition

involves a discrepancy that a variety of brands within a product category can reduce

increasing generally results in an expansion of the total market

exists when the problem is latent or of low importance and

o It is early in the product life cycle

o The firm has a high percentage of the market

o External search after problem recognition is apt to be limited

o It is an industry wide cooperation effort

Selective Problem Recognition

involves a discrepancy only one brand can solve

firms attempt to cause selective problem recognition to gain or maintain market share