Chapter 14- Consumer Decision Process and Problem Recognition

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

Human Factors (Capabilities) Research:

-Observational techniques such as slow-motion and time-lapse photography, video recording and event recorders are particularly useful methods -This type of research can sometimes identify functional problems that consumers are unaware of. -Useful for the design of products

Purchase involvement is

1. The level of concern for or interest in, the purchase process, 2. Triggered by need to consider a particular purchase, and so 3. It is a temporary state influenced by the interaction of individual, product, and situational characteristics

Emotion Research:

Common approaches are surveys, focus group research ad personal interviews that can examine the emotions associate with certain problems. -Critical in helping marketers anticipate consumer reaction to problems and train customer service personnel to respond appropriately. -Ex. How do consumers cope with the negative emotions follow the product and service failure?

Discovering Consumer Problems:

Identifying consumer problems using online and social media Monitoring and tracking in not enough Problems need to be solved in a timely and appropriate manner

Inactive Problem:

Is one of which the consumer is not aware. Marketing Strategy: Marketers must convince consumers that they have a problem and that their brand is a superior solution.

Active Problem:

Is one the consumer is aware of or will become aware in the normal course of events. Marketing strategy: Only requires a marketer to convince consumers that its brand is the superior solution.

Helping Consumers and Problem Recognition

Occasionally information is introduced in the marketplace that triggers problem recognition that some marketers prefer to avoid. Obviously, marketers do not want their current customers to recognize problems with their brands. Effective quality control and distribution (limited out-of-stock situations are important in this effort)

Responding to Consumer Problems

Once a consumer problem is identified the manager may structure the marketing mix to solve the problem. (This can involve the 4P's)

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 post purchase evaluation, doubts are likely and a thorough evaluation takes place.

Limited Decision Making

involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little post purchase evaluation. Middle ground between nominal and extended decision making. Involves recognizing a problem for which there are several possible solutions

Nominal Decision Making

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. -Brand Loyal Purchases -Repeat Purchases