Consumer Behavior Chapter 8: Problem Recognition and Information Search

Which factors influence the recall of attribute information in the information search and decision-making processes. These are the major variables they identified:

- accessibility or availability - diagnosticity - salience - attribute determinance - Vividness -goals

Researchers have looked at the following factors that increase the possibility of consumers' recalling a particular brand during internal search and including that brand in their consideration set:

- prototypicality -brand familiarity - goals and usage situations - brand preference - retrieval cues

Where can we search for information? for either prepurchase or ongoing search, consumers can acquire information from five major categories of external sources

- retailer search, visit stores or dealers - Media search, info from ads, online ads - interpersonal search, advice from friends and family - independent search, contact with independent sources of information like books or magazines - experiential search, using product samples or trials

Researchers have examined five key aspects of the external search process

1. The source of information 2. the extent of external search 3. the content of the external search 4. search typologies 5. the process or order of the search

Marketers use two major techniques to try to stimulate problem recognition.

1. They can attempt to create a new ideal state. 2. Marketers can try to encourage our dissatisfaction with the actual state. Ex: When Saks created boldly stylish, eco friendly, reusable bags to purchase it encouraged consumers to view free bags as personal statements about fashion and environmental consciousness. Marketers are more likely to have their offering chosen if they position it as the solution to the consumer's problem.

What kind of information is retrieved from internal search? 4 major types of information

1. brands 2. attributes 3. evaluations 4. experiences

Three biases have important implications for marketing

1. confirmation bias, inhibition, and mood.

Three variables affect the extent of external information search

1. consumer knowledge 2. cognitive abilities 3. demographic factors

Six factors that increase our motivation to conduct an external search are

1. involvement and perceived risk, higher involvement the more research being done and depends on how much risk involved (like uncertainty). 2. the perceived costs of and benefits resulting from the search 3. the nature of the consideration set, if when considering there are many attractive alternatives, consumers will be motivated to engage in external search decide which alternative to select. 4. relative brand uncertainty, which brand is best? 5. attitudes toward the search, how much time do you put in to search? 6. the level of discrepancy of new information, when something new comes, people will try to categorize it by using their stored knowlesge.

Two major types of searching processes

1. searching by brand 2. searching by attribute

Situational factors that might affect the search process include

1. the amount of information 2. the information format, is the info available from diverse sources or locations. 3. the time available 4. the number of items being chosen

Salient attributes

Attributes that are "top of mind" or more important. Prominent. Ex: for apple ipods price, circular pad and white ear buds serve as salient attributes.

Searching by brand

Collecting information on one brand before moving to another.

Confirmation bias

Tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them, thereby making our judgment or decision more positive than it should be. Related to the concept of selective perception- we see what we want to see and it occurs because we strive to maintain consistency in our views. When we engage in internal search , we are more likely to recall information about brands we like or have previously chosen than information about brands we dislike or have rejected. When confirmation bias is operating we are more likely to recall positive rather than negative information about favored brands.

Diagnostic information

That which helps us discriminate among objects. Ex: if prices vary consumers can distinguish among them, so the information is diagnostic.

Preference dispersion

The equality of preferences toward brands or products in the set

External search

The process of collecting information from outside sources, for example, magazines, dealers, ads, trusted friends. Two types of external search are prepurchase search and ongoing search.

Consideration or evoked set

The subset of top-of-mind brands evaluated when making a choice. Consumers tend to recall a subset of two to eight brands. Consists of brands that are top of mind or easy to remember, when a consumer is making a decision.

Actual state

The way things actually are. The real situation as consumers perceive it now. Often these are simple physical factors like running out of a product, having a product malfunction, unexpectedly needing a service. Needs play a critical role. Also external stimuli can suddenly change your perceptions of the actual state ex: mother day.

Ideal state

The way we want things to be. Ex: having an excellent camera or wearing attractive clothing. Expectations and aspiration are often stimulated by our own personal motivations- what we want to be based on our self-image: Social class can exert an influence: many consumers want to be accepted by members of their class. Reference groups also play a critical role because we strive to be accepted by others and because reference groups serve as a guide to our behavior. Finally, major changes in personal circumstances such as getting a promotion or becoming a parent can instigate new ideal states.

Online processing

When consumer are actively evaluating a brand as they view an ad for it. Ex: if you are ready to buy a new computer and suddenly you see an ad for a particular brand, you will probably determine whether you like the brand when you see the ad.

Prepurchase search

a search for information that aids a specific acquisition decision. Occurs in response to the activation of problem recognition. Ex: if someone wants a new car they can visit dealers, search online websites, talking to friends.

Ongoing search

a search that occurs regularly, regardless of whether the consumer is making a choice. Occurs on a regular and continual basis even when problem recognition has not been activated. Ex: Consumer might consistently read automotive magazines, websites, and car shows.

Attribute determinance

attribute that is both salient and diagnostic. Ex: glad products' forceflex line of stretchy-yet-strong trash bangs is made from plastic embossed with distinctive diamond shapes to reinforce the salience and diagnosticity of the strength attribute.

When searching external sources, consumers usually acquire information about

brand name, price, other attributes

Searching by attribute

comparing brands on attributes, one at a time. comparing one attribute at a time like price.

Problem recognition

the perceived difference between an actual and an ideal state. This is a critical stage in the decision process because it motivates the consumer to action. The greater the discrepancy between the actual and the ideal states, and the higher the level of motivation, ability, and opportunity (MAO), the more likely consumers are to act. if consumers don't see a problem then their motivation to act will be low

Internal search

the process of recalling stored information from memory. Almost all decision making involves some form of memory processing. Consumers have stored in memory a variety of information, feelings, and past experiences that can be recalled when making a decision. People investigate 1. the extent of the search. 2. the nature of the search, and 3. the process by which consumers recall information, feelings, and experiences and enter them into the decision process.

Inhibition

the recall of one attribute inhibiting the recall of another. Ex: when buying a house a consumer might recall information such as the selling price, number of bathrooms, and square footage, but he or she may not recall other important attributes such as the size of the lot. Inhibition can also lead to a biased judgement or decision because consumers may remember but still ignore important and useful information. Important aspect of internal search for two reasons. First, consumers may not always consider key aspects of a brand when making a decision because they recall other, more accessible attributes instead. If these nonrecalled attributes reflect features that differentiate the brand from others, the company may want to highlight them in marketing communications.