Lecture 02 - WordPress.com€¦ · 08-Jan-18 1 Lecture 02 Problem recognition and Information search The consumer decision process 08-Jan-18 2 Source: Quester et al., (2014), Consumer

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Lecture 02

Problem recognition and

Information search

The consumer decision process

08-Jan-18 2

Source: Quester et al., (2014), Consumer Behaviour: implications for marketing strategy 7th ed, McGraw-Hill Education, page 20

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Learning objectives

• Understand the nature of problem

recognition and information search

• Know the difference between habitual,

limited and extended decision making

• Be aware of the marketing strategies

– used to activate problem recognition

– based on different patterns of search

behaviour

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Types of consumer decisions

• Habitual decision making

• Limited decision making

• Extended decision making

• Marketing strategy and types of consumer

decisions


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• Problem recognition

• Purchase involvement• influenced by the interaction of individual, product and

situational characteristics


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• Forms of involvement and outcomes

– Habitual decision making—single brand

– Limited decision making

– Extended decision making

• Implications for strategy


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• Habitual decision making—single brand

– Brand-loyal decisions

– Repeat-purchase decisions

• Limited decision making

• Extended decision making


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Purchase involvement and types

of decision making


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• Marketing strategy and types of consumer

decisions


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The process of problem recognition

• The nature of problem recognition

• The design to resolve recognized

problems

• Types of consumer problem


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The process of problem recognition

• The nature of problem recognition

– Desired state

– Actual state


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Process of problem recognition


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Desire to resolve

recognised problems

• Depends on two factors:

– The magnitude of the discrepancy between

the desired state and the actual state

– The relative importance of the problem


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Types of consumer problems

• Active problem

– A problem the consumer is aware of, or will

become aware of, in the normal course of

events.

• Inactive problem

– A problem of which the consumer is not yet

aware.


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• Routine problems

– Expected, require immediate solution

• Emergency problems

– Not expected, require immediate solution

• Planning problems

– Expected, don’t require immediate solution


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Types of consumer problems and action required

• Evolving problems

– Not expected, don’t require immediate

solution


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Types of consumer problems and action required

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Non-marketing factors affecting

problem recognition


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Uncontrollable determinants

of problem recognition

• Factor influencing the desired state

• Factors influencing the actual state


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Factors that influence the desired state

• Culture/social class, e.g. importance of

cleanliness

• Reference groups, e.g. a change after

graduation

• Family/household, e.g. family brands

• Change in financial status, e.g.

retrenchment


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Factors that influence the desired state

• Previous purchase decisions

• Individual development

• Motives: refer to Maslow’s needs

• Emotions: seek positive experiences?

• The situation


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Factors influencing the actual state

• Past decisions

• Normal depletion

• Product/brand performance

• Individual development


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Factors influencing the actual state

• Emotions

• The efforts of consumer groups

• The availability of products

• The current situation


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Marketing strategy and

problem recognition

• Measuring problem recognition

– Activity analysis—study of meal preparation

– Product analysis—problems using it?


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Marketing strategy and

problem recognition

• Measuring problem recognition

– Problem analysis—product/brand solutions?

– Human factors research—suit users

– Emotion research—how people feel about it


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Responding to consumer problems

• Activating problem recognition

– Generic problem e.g. dairy foods

• when the problem is latent or of low importance

– Selective e.g. one brand solution


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• Activating problem recognition

– Timing of problem recognition,

e.g. winter colds


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• Suppressing problem recognition

– Avoid upsetting habitual buyers

– Anticipate and counteract negatives


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Information search

• Nature of information search

– Internal versus external search

– Internal search

• Use of information from memory

– External search

• The search process is focused on external stimuli

relevant to solving the problem


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Information search

• Nature of information search

– Ongoing search or exploratory research

– Search for information conducted to acquire

information for later use

– Because the process itself is pleasurable


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Information search

• The type of information sought

– Evaluative criteria

– Appropriate alternatives

– Characteristics of alternatives


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Information search



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Information search



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Information search



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Source: Quester et al., (2014),

Consumer Behaviour: implications

for marketing strategy 7th ed,

McGraw-Hill Education, page 95

Information search

• Sources of information

– Memories of past searches, personal

experience and low-involvement learning

– Personal sources

– Independent sources

– Marketing source

– Experiential sources


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Information search

• Sources of information

– Information searches on the internet

– Information searches on mobile devices

• Marketing strategy and information

searches on the internet

• Marketing strategy and mobile search


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Costs vs benefits of external search


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Newspaper ads increase readers’

awareness of sales


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Strategies (in evoked set)

• Maintenance strategy

• Capture strategy

• Preference strategy


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– Defend against disruptive tactics

– Constant activity + interest


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– Constant supply + quality

– Continue limited search


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• Preference strategy

– Search locations must be anticipated, e.g.

chemists

– POP + sales assistance

– Know where they search


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Strategies (not in evoked set)

• Disrupt strategy

• Intercept strategy

• Acceptance strategy


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– Attention-seeking ads

– Free samples or bonus encouraging trial


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– Must attract attention

– POP display

– Product improvements, etc.


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• Acceptance strategy

– Advertise but don’t ‘sell’ the brand

– Encourage consumer to seek information


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Topics covered in this lecture

• Types of consumer decisions

• The process of problem recognition

• Marketing strategy and problem

recognition

• The nature of information searches

• Marketing strategies based on information-

search patterns


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Summary

• What is the nature of problem recognition?

• What is the difference between habitual, limited and extended decision making?

• What are the key methods for measuring problem recognition?

• What are the uncontrollable factors that effect problem recognition?

• What marketing strategies can be used to activate problem recognition?


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Summary

• What is the nature of information search?

• Key types and sources of information?

• Why consumers engage in information search?

• How is the internet used as an information source?

• What factors affect the amount of external information search?

• How can marketing strategies be based on different patterns of search behaviour?


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Next lecture

• Lecture 03: Evaluating and selecting

alternatives

• Case study:

– Baby you can drive my car (p. 147)


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Documents

Lecture 02 - WordPress.com€¦ · 08-Jan-18 1 Lecture 02 Problem recognition and Information search The consumer decision process 08-Jan-18 2 Source: Quester et al., (2014), Consumer