Chapter 14: Consumer Decision Process And Problem Recognition

Marketing Strategy and Problem Recognition

1. Discovering Consumer Problems, 2 Responding to Consumer Problems 3. Helping Consumers Recognize Problems, 4 Suppressing Problem Recognition

Generic problem recognition

A discrepancy that a variety of brands within a product category can reduce. Increasing this generally results in expansion of the total market.

Active problem

A problem that the consumer is aware of or will become aware of in the normal course of events. Active problems require the marketer only to convince consumers that its brand is the superior solution.

Selective Problem Recognition

Involves a discrepancy only ONE brand can solve. Firms attempt to cause this to GAIN or maintain market share.

Selective Problem Recognition

Involves a discrepancy only one brand can solve, Firms attempt to cause selective problem recognition to gain or maintain market share.

Generic Problem Recognition

Involves a discrepancy that a variety of brands within a product category can reduce, Increasing generic problem recognition generally results in an expansion of the total market.

Extended decision making

Involves an extensive internal and external information search followed by a complete evaluation of multiple alternatives and significant postpurchase evaluation. Response to a high level of purchase involvement. After the purchase, doubt about its correctness is likely and a thorough evaluation of the purchase takes place. Emotional decisions may involve substantial cognitive effort.  Example: Buying an engagement ring

Limited decision making

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

Limited Decision Making

Involves recognizing a problem for which there are several possible solutions.

Nominal decision making

Occurs when there is very low involvement with the purchase. Broke into two distinct categories: Brand loyal decisions and repeat purchase decisions.

Responding to Consumer Problems

Once a consumer problem is identified, 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.

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.

Nominal Decision Making (habitual decision making)

a.k.a., habitual decision making, in effect involves no decision per se. Consumer buys Colgate toothpaste without considering other brands, its price, etc.

Consumer Decision

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.

Brand Loyal Purchases

fairly high product involvement low purchase involvement. (Nominal Decision Making)

Repeat Purchases

don't care about brand... tried it once, liked it, bought it again (Nominal Decision Making)

Generic Problem Recognition (When to attempt to influence)

when the problem is latent or of low importance and one of the following conditions exists, It is early in the product life cycle, the firm has a high percentage of the market, external search after problem recognition is apt to be limited, it is an industry wide cooperative effort