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Week 2: Problem recognition - Information Search - Coggle Diagram
Week 2: Problem recognition - Information Search
Step 1: Problem or need recognition
What causes problem or need recognition?
Actual State: Where We Are Now
Often determined by simple physical factors
External stimuli can change how we perceive our actual state
Ideal State: Where We Want To Be
Based on our expectations, future goals or aspirations
Changes in our life situations
Market polarization across categories
GMO FOOD
ECO-ETHICAL BRAND
FULL SERVICE
LUXURY RETAILING
ORGANIC FOOD
COMMERICAL BRAND
NO FRILLS
DISCOUNT RETAILING
Problem recognition
Here the consumer is in equilibrium. Does not recognise a problem.
Problem recognition occurs when consumers perceive a gap between their actual state or desired ideal state
Cause may be actual state declining, or the ideal state moving upward
The magnitude of the gap must be enough to motivate the consumer to proceed to Stage 2
Does the consumer perceive a difference between their actual or ideal state ?
No
Terminate the decision process
Yes
Is the discrepancy strong enough to motivate the consumer
No. Terminate the decision process
Yes. Proceed to Stage 2
Process of problem recognition
Types of consumer decisions
What is purchase involvement?
Consumer’s level of concern, interest and effort in the decision making process
Influenced by the interaction of individual, product and situational characteristics
Level of involvement impacts type of decision making
Habitual decision making or
Limited decision making or
Extended decision making
Purchase involvement and types of decisions
Low purchase involvement: Habitual decision making
Limited decision making
High purchase involvement: Extended decision making
Purchase involvement and types of decision making
Difference between generic and selective problem recognition
Generic Problem Recognition
Need recognition occurs at product category level as all brands are similar
The solution is the product category
Selective Problem Recognition
Need recognition occurs at brand level as brands are differentiated
The solution is the brand that is perceived as best
Types of consumer problems
Routine problems
: Expected, require immediate solution
Emergency problems:
Not expected, require immediate solution
Planning problems:
Expected, don’t require immediate solution
Evolving problems:
Not expected, don’t require immediate solution
Non-marketing factors affecting problem recognition
DESIRED STATE
Culture/social class
Reference group
Household characteristics
Financial status/expectations
Previous decisions
Individual development
Motives
Emotions
Situation
ACTUAL STATE
Past decisions
Normal depletion
Product/brand performance
Individual development
Emotions
Consumer/government groups
Availability of products
Situation
Step 2: Information Search
Categories of decision alternatives
AWARENESS SET:
Alternatives the consumer is aware of
a. Evoked set / Consideration set: Alternatives given consideration
i) Specific alternatives purchased
ii) Alternatives considered, but not purchased
b. Inert set: Back-up alternatives
c. Inet set: Avoided alternatives
UNAWARENESS SET:
Alternatives the consumer does not know about
Costs vs benefits of external search
Benefits obtained
Financial
Psychological
Physical
Costs of search
Out-of-pocket expenses
Psychological
Time
Activities missed
Customer journey in a connected world
Awareness
Findability
Reputation
Conversion
Advocacy
Internal vs External Search
Internal search
Use of information from memory
External search
The method used if a resolution to a problem is not reached through the search process
The search process is focused on relevant external stimuli
Information Search
Nature of information search
Key types and sources of information
Difference between evoked, inept and inert sets of brands
Internet as an information source
Factors that affect amount of external search
Marketing strategies based on different patterns of search behaviour
Information sources
Memories (personal past searches, experience, and learning)
Personal sources (friends and family)
Independent sources (consumer groups, general media and government)
Marketing or commercial sources
Sales personnel
Advertising
Experiential sources (product inspection & trial)
Strategies for products not in evoked set
Disrupt strategy
Attention-attracting advertising, free samples, tie-in sales, eye-catching packaging
Intercept strategy
Provide info on price and availability in local media
POP displays, free samples, active website
Product improvement
Acceptance strategy
Long-term advertising designed
Advertise but don’t “sell” the brand
Encourage consumer to seek information
How marketers benefit from understanding information search
Sources of information consumers use
Focus promotion in the right place
Focus promotion on people who provide information
Decrease search cost, provide right sort and make it easy and convenient
Type of information consumers look for
Ensure brand is in the evoked set
Ensure marketing mix is superior on important criteria
Communicate important evaluative criteria
In internal search
Your brand to be recalled from memory
Use brand name recall and brand image in advertising
Brand has performed well in the past
If external search
Need visual recognition of your brand
In-store displays, packaging
Brand to perform well for positive WOM
Strategies for products in evoked set
Maintenance strategy:
Constant activities (advertising, promotion, product improvement)
Capture strategy
Information on price and availability in local media, through cooperative advertising between the manufacturer and the retail outlet and at the point of purchase through displays and adequate shelf space.
Preference strategy
Extensive advertising, salesperson with extra motivation, POP displays, pamphlets, well-designed website
Factors affecting external search
1. Market characteristics
a) No. of alternatives
b) Price range
c) Store distribution
d) Information availability
i) Advertising
ii) POP Displays
iii) Sale personnel
iv) Packaging
v) Experienced consumers
vi) Independent sources
2. Product characteristics
a) Price
b) Differentiation
c) Positive products
3. Consumer characteristics
a) Learning and experience
b) Shopping orientation
c) Social status
d) Age, gender, household lifecycle
e) Product involvement
f) Perceived risk
4. Situational characteristics
a) Time availability
b) Purchase for self
c) Pleasant surroundings
d) Social surroundings
e) Physical surroundings
Marketing strategy and information search on the internet
Companies need to ask:
Should we have a website?
What is the purpose of the site?
Information only
Company and product/service information
To actively attract customers
A shopping site
What other digital tools should we use? How?
Ongoing search or exploratory research
Search for information conducted to acquire information for later use
Because the process itself is pleasurable
Information search in consumer decisions
Search engine optimization SEO
