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Consumer Decision Process and Problem Recognition

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Limited post-purchase evaluation, little/no dissonance ... no dissonance. Implications of ... ( complex, dissonance) Implications of Extended Problem Solving ... – PowerPoint PPT presentation

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Title: Consumer Decision Process and Problem Recognition


1
Consumer Decision Process and Problem Recognition
  • Dr. John Drea
  • Associate Professor of Marketing
  • Western Illinois University

2
Types of Problems
  • Routine a problem expected to occur and
    requires an immediate solution.
  • Emergency a problem not expected and which
    requires an immediate solution.
  • Planning a problem expected to occur but does
    not require an immediate solution.
  • Evolving a problem not expected and does not
    require an immediate solution
  • The type of problem influences information search

3
Problem Recognition
  • Defined the result of a discrepancy between a
    desired state and an actual state
  • If desired state actual state , there is no
    problem recognition.
  • If desired state is different from actual state,
    motivation to act is a function of two things
  • The magnitude of the discrepancy
  • The relative importance of the problem
  • Active and inactive problems

4
Purchase Involvement
  • Defined The level of interest in the purchase
    process, triggered by the need to consider a
    particular purchase.
  • Influenced by the combination of the individual,
    the product and situational influences.
  • Not the same as product (enduring) involvement.

5
Nominal Decision Making
  • Problem recognition (selective)
  • Abbreviated internal search for information
  • Purchase
  • Limited post-purchase evaluation, little/no
    dissonance
  • In essence, the problem solving process has been
    committed to memory when the problem becomes
    active, so does the solution.

6
Implications of Nominal Decision Making
  • Peripheral processing is an important way of
    entering the evoked set, since little attention
    is likely to be given to alternatives (affective
    component)
  • Focusing on the behavioral component may also be
    of value
  • Location is critical for the delivery of the
    product
  • dont want to trigger search which may bring the
    customer into contact with other brands.

7
Implications of Nominal Decision Making
(continued)
  • Reminder advertising is also critical
  • reinforcing the reasons why the customer buys
    your product)
  • Avoid calling attention to competitors
  • reduce the likelihood of search behavior.

8
Limited Decision Making
  • Generic problem recognition
  • Information search is internal with some external
    (convenient/passive sources)
  • Alternative evaluation
  • limited of attributes
  • comparing a narrow of products
  • simple decision rules
  • Purchase
  • Post-purchase evaluation is limited. Little/no
    dissonance

9
Implications of Limited Decision Making
  • Consumers may not view competing brands - limited
    information search.
  • Entry into the evoked set is critical.
  • Consumers may consider external information, but
    are unlikely to integrate information from
    multiple sources.
  • Be sure your location does not impede the
    purchase process.

10
Extended Decision Making
  • Generic problem recognition
  • Internal and external information search. Types
    of external information
  • the alternative brands available
  • evaluative criteria on which to compare brands
  • importance of various evaluative criteria
  • info. on which to form beliefs
  • Evaluation of alternatives (many attributes,
    complex decision rules, many alternatives)
  • Purchase
  • Post-purchase eval. (complex, dissonance)

11
Implications of Extended Problem Solving
  • You need to have large amounts of cognitive
    information accessible in places where consumers
    seek the information
  • For business-to-business marketing, need to be on
    list of vendors when products are put out for
    quote/bid
  • Your customers are likely to also see your
    competitors products
  • be ready to address key differences, address
    perceived weaknesses, emphasize strengths

12
Implications of Extended Problem Solving
(continued)
  • The ability to close a sale is key - consumers
    are frequently close between several products
    (especially for homogenous products). Sales
    personnel need to clarify benefits and close the
    sale!

13
Implications of Extended Problem Solving
(continued)
  • Consumers w/ a limited background in a product
    category are also learning how to shop for it for
    the first time.
  • Utilize your ability to influence the choice
    criteria of customers through advertising and
    support of sales personnel.
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