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