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Marketing 334 Consumer Behavior Chapter 14 Consumer Decision Process and Problem Recognition Based on Consumer Behavior, 10 th ed. By Hawkins, Mothersbaugh.

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Presentation on theme: "Marketing 334 Consumer Behavior Chapter 14 Consumer Decision Process and Problem Recognition Based on Consumer Behavior, 10 th ed. By Hawkins, Mothersbaugh."— Presentation transcript:

1 Marketing 334 Consumer Behavior Chapter 14 Consumer Decision Process and Problem Recognition Based on Consumer Behavior, 10 th ed. By Hawkins, Mothersbaugh and Best

2 14-2 Types of Consumer Decisions Purchase involvement Purchase 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.

3 Types of Consumer Decisions

4 Types of Decision Making 1.Nominal Decision Making Brand Loyal Purchases Repeat Purchases 2.Limited Decision Making 3.Extended Decision Making

5 The Process of Problem Recognition

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

7 The Process of Problem Recognition Types of Consumer Problems Active Problem active problem An active problem is one the consumer is aware of or will become aware of in normal course of events. Marketing strategy Marketing strategy: Only require marketer to convince consumers that its brand is the superior solution. Inactive Problem inactive problem An inactive problem is one of which the consumer is not aware. Marketing strategy Marketing strategy: Marketer must convince consumers that they have the problem AND that their brand is a superior solution.

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

9 Owens Corning © 1996 Owens Corning

10 Uncontrollable Determinants of Problem Recognition Nonmarketing Factors Affecting Problem Recognition

11 Uncontrollable Determinants of Problem Recognition Variety-seeking Variety-seeking is a challenge to marketers Sensory-specific satiety Sensory-specific satiety – consumers get bored (satiated) with sensory attributes more than on non-sensory attributes. Variety WITHIN brand can drive loyalty in the face of variety seeking.

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

13 Marketing Strategy and Problem Recognition Surveys and focus groups use one of the following approaches to problem identification: Discovering 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

14 Marketing Strategy and Problem Recognition Human 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 Problems

15 Marketing Strategy and Problem Recognition Emotion Research focus group researchpersonal interviews  Common approaches are focus group research and personal interviews  Critical in helping marketers anticipate consumer reaction to problems and train customer service personnel to respond appropriately. Discovering Consumer Problems

16 Marketing Strategy and Problem Recognition Once a consumer problem is identified, the manager may structure the marketing mix to solve the problem. This can involve: Responding to Consumer Problems Developing a new product or altering an existing one Modifying channels of distribution Changing pricing policy, or Revising advertising strategy

17 Marketing Strategy and Problem Recognition Generic versus Selective Problem Recognition Helping Consumers Recognize Problems 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 Selective Problem Recognition Involves a discrepancy only one brand can solve Firms attempt to cause selective problem recognition to gain or maintain market share

18 Courtesy: © American Dairy Farmers TM

19 Sanyo Camcorder - UK Courtesy Sanyo House Ltd.

20 Marketing Strategy and Problem Recognition Suppressing Problem Recognition Helping Consumers Recognize Problems Occasionally information is introduced in the market place that triggers problem recognition that some marketers prefer to avoid.


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