Marketing 334Consumer Behavior

Chapter 14Consumer Decision Process and

Problem RecognitionBased on Consumer Behavior, 10th ed. By Hawkins, Mothersbaugh and Best

14-2

Types of Consumer DecisionsTypes of Consumer Decisions

Purchase involvementPurchase involvement is the level of concern for, or interest in, the purchase process.

Triggered by need to consider a particular purchase.

A temporary state influenced by the interaction of individual, product, and situational characteristics.

Types of Consumer DecisionsTypes of Consumer Decisions

Types of Decision MakingTypes of Decision Making

1.1. Nominal Decision MakingNominal Decision Making

• Brand Loyal Purchases

• Repeat Purchases

2.2. Limited Decision MakingLimited Decision Making

3.3. Extended Decision MakingExtended Decision Making

The Process of Problem RecognitionThe Process of Problem Recognition

Courtesy Diamond Trading Company; Agency: J. Walter Thompson.

The Process of Problem RecognitionThe Process of Problem Recognition

Types of Consumer ProblemsTypes of Consumer Problems

Active Problem Active Problem

An active problemactive problem is one the consumer is aware of or will become aware of in normal course of events.

Marketing strategyMarketing strategy:

Only require marketer to convince consumers that its brand is the superior solution.

Inactive Problem Inactive Problem

An inactive probleminactive problem is one of which the consumer is not aware.

Marketing strategyMarketing strategy:

Marketer must convince consumers that they have the problem AND that their brand is a superior solution.

Balance Bar

Courtesy BioFoods, Inc.; Buckley Friedman Advertising and Public Relations

Owens Corning

© 1996 Owens Corning

Uncontrollable Determinants of Uncontrollable Determinants of Problem RecognitionProblem Recognition

Nonmarketing Factors Affecting Problem RecognitionNonmarketing Factors Affecting Problem Recognition

Uncontrollable Determinants of Uncontrollable Determinants of Problem Recognition Problem Recognition

Variety-seekingVariety-seeking is a challenge to marketers

Sensory-specific satietySensory-specific satiety – consumers get bored (satiated) with sensory attributes more than on non-sensory attributes.

Variety WITHIN brand can Variety WITHIN brand can drive loyalty in the face of drive loyalty in the face of variety seeking.variety seeking.

Marketing Strategy and Problem Marketing Strategy and Problem RecognitionRecognition

1.1. Discovering Consumer ProblemsDiscovering Consumer Problems

2.2. Responding to Consumer ProblemsResponding to Consumer Problems

3.3. Helping Consumers Recognize ProblemsHelping Consumers Recognize Problems

4.4. Suppressing Problem RecognitionSuppressing Problem Recognition

Marketing Strategy and Problem Marketing Strategy and Problem RecognitionRecognition

Surveys and focus groups use one of the following approaches to problem identification:

Discovering Consumer ProblemsDiscovering Consumer Problems

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 Marketing Strategy and Problem RecognitionRecognition

Human Factors ResearchHuman Factors Research

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

This type of research can sometimes identify functional problems that consumers are unaware of.

Discovering Consumer ProblemsDiscovering Consumer Problems

Marketing Strategy and Problem Marketing Strategy and Problem RecognitionRecognition

Emotion ResearchEmotion Research

Common approaches are focus group researchfocus group research and personal interviewspersonal interviews

Critical in helping marketers anticipate consumer reaction to problems and train customer service personnel to respond appropriately.

Discovering Consumer ProblemsDiscovering Consumer Problems

Marketing Strategy and Problem Marketing Strategy and Problem RecognitionRecognition

Once a consumer problem is identified, the manager may structure the marketing mix to solve the problem.

This can involve:

Responding to Consumer ProblemsResponding to Consumer Problems

• Developing a new product or altering an existing one

• Modifying channels of distribution

• Changing pricing policy, or

• Revising advertising strategy

Marketing Strategy and Problem Marketing Strategy and Problem RecognitionRecognition

Generic versus Selective Problem RecognitionGeneric versus Selective Problem Recognition

Helping Consumers Recognize ProblemsHelping Consumers Recognize Problems

Generic Problem Generic Problem RecognitionRecognition

• 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

Selective Problem Selective Problem RecognitionRecognition

• Involves a discrepancy only one brand can solve

• Firms attempt to cause selective problem recognition to gain or maintain market share

Courtesy: © American Dairy Farmers TM

Sanyo Camcorder - UK

Courtesy Sanyo House Ltd.

Marketing Strategy and Problem Marketing Strategy and Problem RecognitionRecognition

Suppressing Problem RecognitionSuppressing Problem Recognition

Helping Consumers Recognize ProblemsHelping Consumers Recognize Problems

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