Problem Recognition & Information Search

Continuum of Buying Decision Behaviour

Routinised response behaviour (Sanitary Pad)

Limited problem solving (Laptop)

Extended problem solving (BTO)

Different consumers will have different MAO perceptions to differently priced products

Problem Recognition

the perceived difference between an ideal and an actual state

ideal state: the way that consumers would like a situation to be

actual state: real situation as consumers perceive it now

occurs if consumers become aware of a discrepancy between the actual state and the ideal state

is a critical stage in the decision process because it motivates the consumer to action

Usually in line with current trends

Expectations

Our future goals or aspirations

Both expectations and aspirations

Some societies are more materialistic than others,

Social class

Reference groups

Major changes in personal circumstances (E.g., becoming a parent)

Actual state can be influenced by a variety of factors

Physical factors

Needs

External stimuli

Marketing Implication

Marketing can help put consumers in a state of problem recognition and motivate them to start the decision process, leading them to acquire, consume, or dispose of a product or service

two major techniques to try to stimulate problem recognition

They can attempt to create a new ideal state

Marketers can encourage our dissatisfaction with the actual state

Whether they create a new ideal state or stimulate dissatisfaction with the actual state, marketers are more likely to have their offering chosen if they position it as the solution to the consumer’s problem

Information Search

Internal Search

Consumers have stored in memory a variety of information, feeling, and past experiences that can recalled when making a decision

Consumers have limited capacity/ ability to process information and memory traces tend to decay overtime - consumers are likely to recall only a small subset of stored information when they engage in internal search

How much do we engage in internal search?

What kind of information is retrieved from internal search? ⭐

Recall of brands

consumers tend to recall a subset of two to eight brands known as a consideration or evoked set

consideration (evoked) set

consideration sets vary in terms of their size, stability, variety, and preference dispersion

Factors that increase the possibility of consumers’ recalling a particular brand during internal search, and including that brand in their consideration set

Prototypicality

Brand familiarity

Goals and usage situations

Brand Preference

Retrieval Cues

Recall of Attributes

summary or simplified form rather than in its original detail

consumers can often recall some details when they engage in internal search, and the recalled attribute information can strongly influence their brand choices

Factors influence the recall of attribute information

Accessibility or Availability

Diagnosticity

Salience

Information must have attribute determinance,

Vividness

Goals

Recall of evaluations

our evaluations tend to form strong associative links with the brand

Online processing

Recall of experiences

from memory in the form of specific images and the effect associated with them

Like information in semantic memory, experiences that are more vivid, salient, or frequent are the most likely to be recalled

unusually positive or unusually positive experiences will be easier to recall

Limitations

Confirmation bias

Inhibitation

Mood

External Search

of outside sources

2 Types of External Search

Pre-purchase search

Ongoing search

Sources of External Search

Retailer

Media/ Social Media

Interpersonal

Independent

Experiential

How much do we engage in External Search?

Motivation to process information

Six factors increase our motivation to conduct an external search

involvement and perceived risk

the perceived costs of and benefits resulting from the search

the nature of the consideration set

relative brand uncertainty

attitudes toward the search

the level of discrepancy of new information

Ability to process information

Consumer knowledge

Cognitive Ability

Demographics

Opportunity to process information

Amount of Information

Information Format

Time Availability

Number of Items

Information acquired in External Search

Brand name information

Price information

Information about other attributes

attribute information consumers search for depends on which attributes are salient and diagnostic in the offering category

Consumers are more likely to access information that is relevant to their goals

Limitations to External Search

confirmation bias

vary