Consumer Behaviour - Chapter 14: Consumer Decision Process and Problem Recognition

Types of Consumer Decisions

  • Consumer decisions involve evaluating attributes of products/brands/services and rationally selecting the one that solves a recognized need for the least cost.
  • Many decisions involve little conscious effort or focus on feelings/emotions associated with acquiring or using the brand/situation.

Involvement and Types of Decision Making

  • Decisions are categorized based on involvement level: High-involvement and Low-involvement.

Nominal Decision Making (Habitual Decision Making)

  • Involves no actual decision; doesn't include consideration of "do not purchase" alternative.
  • Two categories:
    • Brand Loyal Purchases
    • Repeat Purchases

Limited Decision Making

  • Involves internal and limited external search, few alternatives, simple decision rules, and little post-purchase evaluation.
  • Occurs in response to emotional or situational needs.
  • Recognizes a problem with several possible solutions.

Extended Decision Making

  • Involves extensive internal and external information search, complex evaluation of multiple alternatives, and significant post-purchase evaluation.
  • Response to a high level of purchase involvement.
  • Post-purchase, doubt about the correctness of the decision is likely, leading to a thorough evaluation.
  • Even heavily emotional decisions may involve substantial cognitive effort.

The Process of Problem Recognition

  • Problem recognition is the first stage in the consumer decision process.
  • It results from a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process.

Actual State

  • How an individual perceives their feelings and situation at the present time.

Desired State

  • How an individual wants to feel or be at the present time.

Nature of Discrepancy

  • Difference between the consumer's desired and perceived conditions:
    • No difference: Satisfaction, no action.
    • Desired state exceeds actual state: Problem recognized, search decision initiated.
    • Actual state exceeds desired state: Problem recognized, search decision initiated.

Types of Consumer Problems

Active Problem

  • Consumer is aware of, or will become aware of, in the normal course of events.
    • Marketing strategy: Convince consumers that the brand is the superior solution.

Inactive Problem

  • Consumer is not aware of.
    • Marketing strategy: Convince consumers that they have the problem AND the brand is a superior solution.

Uncontrollable Determinants of Problem Recognition

  • A discrepancy between what is desired and what the consumer has is a necessary condition for problem recognition.

  • Factors influencing desires/perceptions of the existing state (often beyond direct marketing influence):

    • Culture/subculture
    • Social status
    • Reference group
    • Household characteristics
    • Financial status/expectations
    • Previous decisions
    • Individual development
    • Emotions
    • Motives
    • Situation

  • Factors affecting problem recognition:

    • Past decisions
    • Normal depletion
    • Product/brand performance
    • Individual development
    • Emotions
    • Government/consumer groups
    • Availability of products
    • Situation

Marketing Strategy and Problem Recognition

Discovering Consumer Problems

  • 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.

Responding to Consumer Problems

  • Structure the marketing mix to solve the problem:
    • Developing a new product or altering an existing one
    • Modifying channels of distribution
    • Changing pricing policy
    • Revising advertising strategy

Helping Consumers Recognize Problems

Generic Problem Recognition
  • Involves a discrepancy that a variety of brands within a product category can reduce.
    • Increasing generic problem recognition expands 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.

Suppressing Problem Recognition

  • Avoid triggering problem recognition for current customers.
    • Effective quality control and distribution (limited out-of-stock situations) are important.
    • Packages and package inserts assure the consumer of the wisdom of their purchase.