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.

Selective problem recognition

A discrepancy that only one brand can solve.

Inactive problem

A problem in which the consumer is not aware. Inactive problems require the marketer to convince consumers that they have the problem and that the marketer's brand is a superior solution to the problem.

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.

Sensory-specific satiety

Consumers get bored (satiated) with sensory attributes more than on no-sensory attributes. Offering variety on key sensory attributes can increase loyalty to the brand even if consumers engage in variety seeking.

Product Analysis (Measuring Consumer Problems)

Examines the purchase or use of a particular product or brand. Consumers may be asked about problems associated with using a product or brand.

Activity Analysis (Measuring Consumer Problems)

Focuses on a particular activity to determine what problems consumers encounter during the performance of the activity.

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. It is the 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.

Emotion Research (Measuring Consumer Problems)

Marketers are increasingly conducting research on the role of emotions in problem recognition and resolution. Common approaches are focus group research and personal interviews that examine the emotions associate with certain problems. Critical in helping marketers anticipate consumer reaction to problems and train customer service personnel to respond appropriately.

Activity analysis Product analysis Problem analysis human factors research Emotion research

Measuring Consumer Problems, approaches to problem identification

Suppressing Problem Recognition

Occasionally information is introduced in the market place that triggers problem recognition that some marketers prefer to avoid.

Product involvement

Occurs when a consumer is very involved with a brand or a product category and yet has a very low level of involvement with a particular purchase of that product because of brand loyalty, time pressures, or other reasons.

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 Analysis (Measuring Consumer Problems)

Starts with a problem and asks which activities, products, or brand are associated with (or perhaps could eliminate) those problems

Purchase involvement

The level of concern for, or intent in, the purchase process triggered by the need to consider a particular purchase. Triggered by the need to consider a particular purchase. A temporary state influenced by the interaction of individual, product, and situational, characteristics.

Recognized Problems (Desired to resolve)

The magnitude of the discrepancy between the desired and actual states, and the relative importance of the problem.

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.

Recognized Problems (Uncontrollable determinants)

Variety, Sensory-specific satiety

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.

Human factors research (Measuring Consumer Problems)

attempts to determine human capabilities in areas such as vision, strength, response time, flexibility, and fatigue and the effect on these capabilities of lighting, temperature, and sound. 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.

Repeat Purchases

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

Brand Loyal Purchases

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

Variety

seeking is a challenge to marketers because it means that consumers switch brands for reasons beyond a company's control.

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