Problem Recognition & Search Chapter 7 Problem Recognition & Search

Learning Objectives To understand consumer problem recognition and the decision making process. To know how & why consumers conduct internal search. To know how & why consumers conduct external search. To access challenges marketers face in influencing consumers’ searches.

Problem Recognition and Information Search

Ideal State: Where we want to be Problem Recognition Ideal State: Where we want to be Actual State: Where we are now

Stimulating Problem Recognition Create a new ideal state Create dissatisfaction with actual state Position as solution to problem

Internal Search Searching for Information from Memory Degree of internal search Kind of information recalled: Brands Attributes Evaluations Experiences

Brand Recall Consideration or evoked set Vary in terms of: Size Stability Variety Preference dispersion

Brand Recall Prototypicality Familiarity Goals/Usage Situation Preference Retrieval Cues

Attribute Recall Accessibility/Availability Diagnosticity Salience Vividness Goals

Is Internal Search Accurate? Confirmation bias—Draw attention to negatives of competition Inhibition Consumers don’t always consider key aspects Consumers recall other, more accessible attributes Mood

External Search: Searching for Information from Environment

Sources of External Information Retailer Media Interpersonal Independent Experiential Internet

Internet Sources Keyword search Shopping agents Information overload Simulations Online community

Social Media ©adage.com

Measures of Online Consumer Activity~1

Measures of Online Consumer Activity~2

Effort to Process Information Influenced by Motivation Ability Opportunity What motivates you to process information in advertising?

Motivation to Process Information Involvement and perceived risk Perceived costs and benefits Consideration set Relative brand uncertainty Attitudes toward search Discrepancy of information

Ability to Process Information Consumer knowledge Cognitive abilities Demographics

Opportunity to Process Information Amount of information available Information format Time availability Number of items being chosen

Information Acquired in Search Accuracy? Search by: Brand Attribute Brand name Price Other Reliability Durability Relevant

Questions?