Chapter 14

(marketing strategy and problem recognition- discovering consumer problems- Helping Consumers Recognize problems- Generic versus Selective 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

(marketing strategy and problem recognition- discovering consumer problems- Helping Consumers Recognize problems- Generic versus Selective Problem Recognition) 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

(marketing strategy and problem recognition- discovering consumer problems) Surveys and focus groups use one of the following approaches to problem identification:

1. Activity Analysis: Focuses on a particular activity to determine what problems consumers encounter during the performance of the activity. 2. Product Analysis: Examines the purchase or use of a particular product or brand. Consumers may be asked about problems associated with using a product or brand. 3. Problem Analysis: Starts with a problem and asks which activities, products, or brand are associated with (or perhaps could eliminate) those problems.

Marketing Strategy and Problem Recognition (4)

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

Types of decision making (3)

1. Nominal Decision Making -Brand Loyal Purchases -Repeat Purchases 2. Limited Decision Making 3. Extended Decision Making

(The process of problem recognition) 2 types of consumer problems

Active Problem and Inactive Problem

(marketing strategy and problem recognition- discovering consumer problems) Helping Consumers Recognize problems

Generic versus Selective Problem Recognition

(marketing strategy and problem recognition- discovering consumer problems) Emotion Research

Marketers are increasingly conducting research on the role of emotions in problem recognition and resolution. Common approaches are surveys, 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.

(marketing strategy and problem recognition- discovering consumer problems) 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

Nominal decision making

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. Brand loyal purchases made a decision before how have high purchase involvement Repeat purchase- out of habit

(marketing strategy and problem recognition- discovering consumer problems) Human Factors Research

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.

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 postpurchase 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 postpurchase evaluation. Middle ground between nominal and extended decision making. Involves recognizing a problem for which there are several possible solutions.

(The process of problem recognition- types of consumer problems) Active Problem

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

(The process of problem recognition- types of consumer problems) Inactive Problem

one in which the consumer is not aware. Marketing strategy: Marketer must convince consumers that they have the problem AND that their brand is a superior solution.

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.