Consumer Behavior Hawkins Chap 9

Whatyouwilllearn
Session 1:
Consumer behaviour and Marketing strategy
Session 2:
Cross-Cultural Variations, and Group Influence
on Consumer Behavior
Session 3:
Customer Perception
Session 8:
Article presentation
Session 9:
The Process and Problem Recognition
Session 10:
Information search
Session 11:
Alternative Evaluation, and Selection
Session 4:
Consumer learning, memory,
and product positioning
Session 12:
Post-purchase processes, customer satisfaction,
and customer commitment
Session 5:
Motivation, Personality, Emotion
Session 13:
Organizations as consumers
Session 6:
Attitudes and Influencing Attitudes
Session 14:
Group Project presentation
Session 7:
Self-concept and lifestyle
Session 15: Final exam
CHAPTER
14
Consumer
Decision
Process and
Problem
Recognition
McGraw-Hill/Irwin
Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
14-3
Learning Objectives
Describe the impact of purchase involvement on the
decision process
Explain problem recognition and how it fits into the
consumer decision process
Summarize the uncontrollable determinants of
problem recognition
Discuss the role of consumer problems and problem
recognition in marketing strategy
14-5
ConsumerBehaviorInTheNews
I Didnt Even Think About That!
Can you think of a Inactive Problem in Auto
Insurance?
Source: K. Patel, Flo Thumbs a Ride with Drivers, Advertising Age, March 14, 2011, p. 1.
14-6
ConsumerBehaviorInTheNews
I Didnt Even Think About That!
Can you think of a Inactive Problem in Auto
Insurance?
One is that most companies charge an average rate

for a specific demographic which doesnt account for
good driving habits. Not a problem most consumers
aware of.
Progressive now heavily touting its individual

monitor which tracks real-time driving and allows
motorists to get lower rates for safer driving.
Source: K. Patel, Flo Thumbs a Ride with Drivers, Advertising Age, March 14, 2011, p. 1.
14-7
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, and so
it is a temporary state influenced by
the interaction of individual, product,
and situational characteristics.
14-8
Types of Consumer Decisions
14-9
Types of Decision Making

1. Nominal Decision Making
Brand Loyal Purchases
Repeat Purchases
2. Limited Decision Making

3. Extended Decision Making
14-10

Nominal Decision Making
Nominal decision making,
making a.k.a., habitual decision making,
making
in effect involves no decision per se.
Nominal decisions occur when
there is very low involvement with
the purchase.
A completely nominal decision
does not even include
consideration of the do not
purchase alternative.
Consumer buys Campbells

without considering other
brands, its price, etc.
14-11

Limited Decision Making
Limited decision making involves internal and limited
external search, few alternatives, simple decision rules on a
few attributes, and little postpurchase evaluation.
Middle ground between nominal
and extended decision making.
Involves recognizing a problem for
which there are several possible
solutions.
Decision based only on
buying the cheapest rolls.
14-12

Extended Decision Making
Extended decision making involves extensive internal and
external search followed by a complex evaluation of multiple
alternatives.
It is a response to the high level
of purchase involvement.
During postpurchase evaluation,
doubts are likely and a thorough
evaluation takes place.
Emotional decisions may involve
substantial cognitive effort.
14-13
The Process of Problem Recognition
14-14
The Process of Problem Recognition

Types of Consumer Problems
14-15
Uncontrollable Determinants of
Problem Recognition
Nonmarketing Factors Affecting Problem Recognition
14-16
Marketing Strategy and Problem

Recognition
1. Discovering Consumer Problems
2. Responding to Consumer Problems
3. Helping Consumers Recognize Problems
4. Suppressing Problem Recognition
14-17

Recognition
Discovering Consumer Problems
Identifying Consumer Problems Using Online and Social Media
Monitoring and tracking is not enough
Problems need to be solved in a timely and
appropriate manner
Samsung Consumer Problem over 10,000 views!

YouTube Spotlight
14-18

Recognition
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.
14-19

Recognition
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 such as slow-motion and timelapse photography, video recording, and event recorders are
particularly useful methods.
This type of research can sometimes identify functional
problems that consumers are unaware of.
14-20

Recognition
Emotion Research
Marketers are increasingly conducting research on the role of
emotions in problem recognition and resolution.
Common approaches are surveys,
surveys focus group research and
personal interviews that examine the emotions associate with
certain problems.
Critical in helping marketers anticipate consumer reaction to
problems and train customer service personnel to respond
appropriately.
14-21

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
14-22

Recognition
Helping Consumers Recognize Problems
Generic versus Selective Problem Recognition
14-23
Applications in Consumer Behavior

The Macks earplugs
ad shows how
marketers often
attempt to cause
consumers to
recognize potential
problems for which the
product provides a
solution.
Courtesy Macks Earplugs.
14-24

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.
Obviously marketers do not want their current customers to
recognize problems with their brands.
Effective quality control and distribution (limited out-of-stock
situations) are important in this effort.
Packages and package inserts that assure the consumer of
the wisdom of their purchase are also common.
14-25

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What are the different types of consumer decisions?

What are the different types of consumer decisions?

What factors influence purchase involvement?

What factors influence purchase involvement?

Whatyouwilllearn

Session 15: Final exam

Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

One is that most companies charge an average rate

Progressive now heavily touting its individual

Types of Consumer Decisions

Types of Consumer Decisions

Types of Decision Making

Brand Loyal Purchases

2. Limited Decision Making

Types of Decision Making

Consumer buys Campbells

Types of Decision Making

Types of Decision Making

The Process of Problem Recognition

The Process of Problem Recognition

Marketing Strategy and Problem

Marketing Strategy and Problem

Samsung Consumer Problem over 10,000 views!

Marketing Strategy and Problem

Focuses on a particular activity to determine what

Examines the purchase or use of a particular

Starts with a problem and asks which activities,

Marketing Strategy and Problem

Marketing Strategy and Problem

Marketing Strategy and Problem

Developing a new product or altering an existing one

Modifying channels of distribution

Changing pricing policy, or

Revising advertising strategy

Marketing Strategy and Problem

Applications in Consumer Behavior

Marketing Strategy and Problem

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