Marketing 351 Chapter 14: Consumer Decision Process and Problem Recognition

Types of Consumer Problems

- Active problem - Inactive problem

Nominal Decision Making

- Brand loyal purchases - Repeat purchases - A.K.A. habitual decision making - In effect, involves no decision, per se - Nominal decisions occur when there is very low involvement with the purchase - A completely nominal decision does not even include consideration of the "do not purchase" alternative

External influences

- Culture - Subculture - Demographics - Social status - Reference groups - Family - Marketing activities

Extended Decision Making

- Involves extensive internal and external search followed by a complex evaluation of multiple alternatives - It is a response to the high level of purchase involvement - During the post purchase evaluation, doubts are likely and a thorough evaluation takes place

Satisfaction

- No action is required - There is no difference between the consumer's desired and perceived conditions

Tess noticed that she was almost out of shampoo. Which stage of the decision process will this observation activate? A. Problem recognition B. Information search C. Alternative evaluation D. Postpurchase evaluation

A. Problem recognition

Which type of consumer decision making includes only a limited internal information search and no external search for information? A. Extended decision making B. Nominal decision making

B. Nominal decision making

Which type of consumer decision making involves the evaluation of many attributes and alternatives and employs complex decision rules? A. Routine decision making B. Nominal decision making C. Extended decision making

C. Extended decision making

Brad was out of soft drinks in his dorm room, so he went to the store and purchased Coke. This is the brand he always buys, and he would not even consider purchasing another brand. Which type of nominal decision does this illustrate? A. Routine decision B. Repeat purchase decision C. Primary decision D. Brand loyal decision E. Low visibility decision

D. Brand loyal decision

Nature of Discrepancy

Difference between the consumer's desired and perceived conditions

Marketing Strategy for Inactive Problem

Marketer must convince consumers that they have the problem AND that their brand is a superior solution

Marketing Strategy for Active Problem

Only require marketer to convince consumers that its brand is the superior solution

Decision Process

Situations - Problem recognition - Information search - Alternative evaluation and selection - Outlet selection and purchase - Postpurchase processes

Current Situation

Temporary factors affecting the consumer

Actual State

The condition the consumer perceives himself or herself to be in at this point in time

Desired State

The condition the consumer would like to be in at this point in time

Purchase involvement

The level of concern for, or interest in, the purchase process, triggered by need to consider a particular purchase, and so it is a temporary state influenced by the interaction of individual, product, and situational characteristics

Desired Consumer Lifestyle

The way the consumer would like to live and feel

Extended Decision Making

(High-Involvement Purchase) - Problem recognition: Generic - Information search: internal, external - Alternative evaluation: Many attributes, complex decision rules, many alternatives - Purchase - Postpurchase: Dissonance, complex evaluation

Nominal Decision Making

(Low-Involvement Purchase) - Problem recognition: Selective - Information search: Limited internal - Purchase - Postpurchase: No dissonance, very limited evaluation

Limited Decision Making

(Medium-Involvement Purchase) - Problem recognition: Generic - Information search: Internal, limited external - Alternative evaluation: Few attributes, simple decision rules, few alternatives - Purchase - Postpurchase: No dissonance, limited evaluation

Limited Decision Making

- Involves internal and limited external search, few alternatives, simple decision rules on 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

Internal influences

- Perception - Learning - Memory - Motives - Personality - Emotions - Attitudes

Problem recognized

- Search decision initiated - Either desired state exceeds actual state - Or actual state exceeds desired state

Inactive Problem

A problem of which the consumer is not aware

Active Problem

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