Chapter 7.1 Problem Recognition
The first step in the consumer decision-making process involves problem recognition (the
consumer recognizes a problem that needs to be solved). Next, the consumer searches for
information to solve the problem either internally from memory or externally from outside
sources (such as experts, magazines, or ads).
Problem recognition is the perceived difference between an ideal and an actual state. This is a
critical stage in the decision process because it motivates the consumer to action. The ideal
state is the way that consumers would like a situation to be (having an excellent camera or
wearing attractive clothing). The actual state is the real situation as consumers perceive it now.
Problem recognition occurs if consumers become aware of a discrepancy between the actual
state and the ideal state (“My car needs frequent repairs” or “My clothing is out of date”). The
greater the discrepancy between the actual and the ideal states, and the higher the level of
motivation, ability, and opportunity (MAO), the more likely consumers are to act. If consumers
do not perceive a problem, their motivation to act will be low.
Where do we get our notion of the ideal state? Sometimes we rely on simple expectations,
usually based on past experience, about everyday consumption and disposition situations and
how products or services fulfill our needs. Both expectations and aspirations are often
stimulated by our own personal motivations, what we want to be based on our self-image, and
by aspects of our own culture. Reference groups also play a critical role because we strive to be
accepted by others and because reference groups serve as a guide to our behavior.Major
changes in personal circumstances, such as getting a promotion or becoming a parent, can
instigate new ideal states.
Our perception of the actual state can be influenced by a variety of factors. Often these are
simple physical factors, such as running out of a product, having a product malfunction (the cell
phone breaks) or become obsolete (the digital music player has insufficient storage), or
unexpectedly needing a service (a cavity requires dental work). Needs also play a critical role.
,If you are hungry or thirsty or if friends make fun of your clothes, your actual state would not be
acceptable. Having a creative mindset can play a role as well.2 External stimuli can suddenly
change your perceptions of the actual state.
Marketing implications:
2 techniques to help consumers recognize problems:
1. Create a new ideal state, athletic shoes for example which we are bombarded with the
performance and fashionability. 40 years ago nobody even thought about how they
performed and their looks.
2. Encouraging dissatisfaction with the actual state, Saks Fifth Avenue did this by
fostering shoppers’ dissatisfaction with ordinary shopping bags. They created
eco-friendly, reusable, stylish bags to hold purchases.
The best chance to be chosen is by offering the solution to the consumer’s problem. Sometimes
even within the message itself.
Chapter 7.2 Internal Search: Searching for information from memory
After problem recognition has been stimulated, the consumer will usually begin the decision
process to solve the problem. Typically, the next step is internal search. Researchers are
investigating (1) the extent of the search, (2) the nature of the search, and (3) the process by
which consumers recall information, feelings, and experiences and enter them into the decision
process.
In addition, consumers can engage in active internal search only if the information is stored in
memory. Consumers with a greater degree of knowledge and experience therefore have a
greater ability to search internally. Finally, consumers can recall information from memory only if
they have the opportunity to do so. Time pressure or distractions will limit internal search.
Researchers have examined the recall of four major types of information: (1) brands,
(2) attributes, (3) evaluations, and (4) experiences.
Rather than remembering all available brands in any given situation, consumers tend to recall a
subset of two to eight brands known as a consideration or evoked set. Consideration set
consists of brands that are “top of mind,” or easy to remember, when a consumer is making a
decision. Many brands engage in heavy marketing, they hope that the brands will be
immediately recognized on the shelf and therefore considered for purchase. Studies indicate
that consideration sets vary in terms of their size, stability, variety, and preference dispersion
(the equality of preferences toward brands or products in the set).
Factors increasing the possibility of recalling a brand during internal search:
1. Prototypicality, easier recalling brands that are closest to the prototype, or most
resemble other category members. For example, Ipad dominates the market for tablets.
2. Brand familiarity, well-known brands are more easily recalled during internal search
than unfamiliar brands. Because the memory links tend to be stronger.
, 3. Goals and usage situations, consumers have goal-derived and usage-specific
categories in memory. They will be recalled during internal search when a specific goal is
in our mind.
4. Brand preference, when someone has positive attitudes towards a brand it tends to be
easier recalled. Which is the goal of marketing strategies worldwide.
5. Retrieval cues, strongly associating a brand with a retrieval cue can increase recall. For
example the Target Bullseye, this very identifiable logo helps to remember the stores.
Often we cannot remember specific facts about a product or service because our memory of
details decreases over time. Thus, the attribute information we recall tends to be in summary or
simplified form rather than in its original detail. There are some major variables which
determines the factors of the recall of attribute information:
- Accessibility or availability, information that has the strongest associative links is most
likely to be recalled and entered in the decision process. Marketers can make
information more accessible by repeatedly drawing attention to it in communications or
by making the information more relevant.
- Diagnosticity (Diagnostic information), helps consumers distinguish objects from one
another. If all prices are the same, price is not diagnostic information. But if they vary
between products, then you can distinguish between the products. So price is diagnostic
information then. Negative information tends to be more diagnostic than positive
information. Because most of the brands associations are positive. Communicate
two-sided messages can be a solution.
- Salience, research has clearly shown that consumers can recall very salient
(prominent) attributes even when their opportunity to process is low. An attribute can be
highly salient but not necessarily diagnostic. For information to be recalled and entered
into the decision, it must have attribute determinance, which means the information is
both salient and diagnostic. In the watch category, “telling time” is a very salient attribute
but is not diagnostic because all watches tell time.
- Vividness, vivid information is presented as concrete words, pictures, or instructions to
imagine or through word-of-mouth communication. It only tends to influence judgement
and decision-making when consumers have not formed a strong prior evaluation,
especially one that is negative.
- Goals, this will determine which attribute is recalled from memory. If you want to
economize, you are likely to recall prices when comparing vacation destinations.
If you are ready to buy a new smartphone and suddenly see an ad for a particular brand, you
will probably determine whether you like the brand when you see the ad. This activity is called
online processing. Moreover, consumers are more likely to use online processing in evaluating a
family of brands when the brands within that family have low variability and share many
attributes.
Internal search can involve the recall of experiences from autobiographical 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.
, Marketing implications:
- Deliberately associate your products or services with common positive experiences or
images to increase the recall from consumers’ memory.
- Monitor reviews posted online and in social media for negative recall experiences. It is
important to respond to negative experiences with speedy, satisfactory responses that
are more salient.
We all have processing biases that alter the nature of the internal search. There are three
biases that have important implications for marketing:
1. Confirmation bias, our tendency to recall information that reinforces or confirms our
overall beliefs rather than contradicting them. Thereby making our judgment or decision
more positive than it should be. This is related to selective perception, we see what we
want to see and occurs because we strive to maintain consistency in our views. When
we engage in internal search, we are more likely to recall information about brands we
like or have previously chosen than information about brands we dislike or have rejected.
2. Inhibition, limitations in consumers’ processing capacity.In this case, all the variables
that influence the recall of certain attributes( accessibility, vividness and salience) can
actually lead to the inhibition of recall for other diagnostic attributes.
3. Mood, consumers engaged in internal search are most likely to recall information,
feelings and experiences that match their mood.
Marketing implications:
- Draw attention to negative aspects of competitive brands through comparative
advertising with the goal to attack confirmation bias. Samsung advertising their camera
quality against Apple's.
- Highlight the nonrecalled attributes which are the result of inhibition in your marketing
communications.
- Marketers can also sometimes offset the effect of their brand’s disadvantages by
drawing attention to more vivid or accessible attributes.
7.3 External Search: Searching for information from the environment.
External search is in outside sources, such as the Internet, retailers or dealers, trusted friends
or relatives, published sources, advertisements or the product package. Consumers use this to
collect additional information about which brands are available, their benefits and their
attributes. 2 types of external search:
1. Prepurchase search, occurs in response to the activation of problem recognition. So
when you want to buy a new car you will investigate the options.
2. Ongoing search, occurs on a regular and continual basis even when problem
recognition has not been activated. Consumers search for information because they find
searching enjoyable.