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

2. Types of Consumer Decisions
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.
14-2

3. Types of Consumer Decisions

4. Types of Decision Making
Nominal Decision Making
Brand Loyal Purchases
Repeat Purchases
Limited Decision Making
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
An active problem is one 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.
Inactive Problem
An inactive problem is one of 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.

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 is a challenge to marketers
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
Discovering Consumer Problems
Responding to Consumer Problems
Helping Consumers Recognize Problems
Suppressing Problem Recognition

13. 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

14. Marketing Strategy and Problem Recognition
Discovering Consumer Problems
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.

15. Marketing Strategy and Problem Recognition
Discovering Consumer Problems
Emotion Research
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.

16. Marketing Strategy and Problem Recognition
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

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