Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice Extensive Problem Solving Limited Problem Solving Routine Problem Solving Postpurchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 1 Problem Recognition (Buyer Readiness) Customer Sees a Significant Difference Between the Current State of Affairs and Some Desired State of Affairs.

Consumer’s Current StateConsumer’s Desired State Perceived Discrepancy Problem Recognition Changes in Current State Depletion of stock Dissatisfaction Increase in finances Decrease in finances Marketing inputs Changes in Desired State New need circumstances New want circumstances New product opportunities Purchases of other products Marketing inputs Determinants of Problem Recognition 2

Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice Extensive Problem Solving Limited Problem Solving Routine Problem Solving Postpurchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 3 Need for substantial information and time to choose Fewer expectations Attention is less guided Less apt to be involuntarily interrupted Uses only three to four attributes in the evaluation Relies more on brand recognition than on attitudes Extensive Problem Solving Buying behavior exhibited by customers who are considering a purchase in an unfamiliar category.

Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice Extensive Problem Solving Limited Problem Solving Routine Problem Solving Postpurchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 4 Developed hierarchy for the category of brands Class = autos Category (form) = subcompact, SUV, sports Within Category = recognizable attributes, benefits provided The product hierarchy controls the consumer’s search, attention, memory utilization, and choice Characterized by considerable information seeking and time to choose Limited Problem Solving Buying behavior exhibited by customers when they are confronted by a new brand in a familiar category.

Characterized by little or no information seeking and quick problem solving Evoked set of brands well developed Brands tend to be more standardized and there are few product changes compared to LPS Price and availability are more likely to produce product shifts Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice Extensive Problem Solving Limited Problem Solving Routine Problem Solving Postpurchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 5 Routine Problem Solving Buying behavior exhibited by customers when they are confronted by familiar brands in a familiar product category, and already have formed an evoked set of the familiar brands

Problem-Solving Processes in Purchase Decisions Extensive decision making –Usually involves a substantial amount of search behavior. –Involves several choice decisions and substantial cognitive and behavioral effort. –Likely to take rather long periods.

Problem-Solving Processes in Purchase Decisions (cont.) Limited decision making –Amount of effort ranges from low to moderate. –Involves less search for information than extensive decision making. –Choices typically are carried out fairly quickly.

Problem-Solving Processes in Purchase Decisions (cont.) Routinized choice behavior –Requires very little cognitive capacity or conscious control. –A previously learned decision plan is activated from memory and carried out relatively automatically to produce the purchase behavior.

Problem-Solving Processes - Implications for Marketing Strategy (cont.) Extensive decision making –Satisfy consumers’ special needs for information –Informational displays at the point of purchase –Free samples, coupons, or easy trial.

Problem-Solving Processes - Implications for Marketing Strategy Limited decision making –Advertisements to increase top-of-mind awareness –Stimulate impulse purchases. Routinized choice behavior –Develop strategies for producing prominent environmental stimuli –Efficient distribution system.

Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice Extensive Problem Solving Limited Problem Solving Routine Problem Solving Postpurchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 11 External Search The Process Where a Customer Searches for Appropriate Information to Make a Reasonable Decision. Might Search for Information from: Commercials Friends Recommendations Brochures, Internet

Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice/Purchase Extensive Problem Solving Limited Problem Solving Routine Problem Solving Postpurchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 12 Evaluation of Alternatives An assessment on salient criteria compared to alternatives

Forming a Consideration Set of Brand Choice Alternatives

Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice/Purchase Extensive Problem Solving Limited Problem Solving Routine Problem Solving Postpurchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 14 Choice Selection of a preferred brand and outlet

Retrieval and Problem Solving Orientations Problem Solving Model Problem Recognition External Search Evaluation of Alternatives Choice/Purchase Extensive Problem Solving Limited Problem Solving Routine Problem Solving Post-purchase Evaluation External Stimuli Sensory Receptors Short-Term Memory Long -Term Memory Information Processing Learning Retrieval 15 Post-purchase Evaluation Reflection on the purchase decision