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Consumer Behavior Chapter 14: Consumer Decision Process and Problem Recognition

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consumer decision
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produces an image of an individual carefully evaluating the attributes of a set of products, brands, or services and rationally selecting the one that solves a clearly recognized need for the least cost
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purchase involvement
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the level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase. **product involvement is not the same as purchase involvement**
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nominal/routine decision making
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habitual decision making, involves no decision per se. automaticity: choice made with little/no conscious effort (minimal time/energy) Challenge for marketers is that consumers must be convinced to “unfreeze” their former habit and replace it with new one. Point of Purchase is important
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limited decision making
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involves internal and limited external information search, few alternatives, simple decision rules on a few attributes, and little post-purchase evaluation. Little to moderate decision effort, moderate trade off between effort and outcome. Challenge for marketers: use of simple decision rules
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extended decision making
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involves an extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant post-purchase evaluation. Most like “rational” decisions, evaluate multiple attributes. Challenge for marketers: provide information that makes you better than competitors
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problem recognition
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the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process
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actual state
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the way an individual perceives his or her feelings and situation to be at the present time
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desired state
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the way an individual wants to feel or be at the present time
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The level of one’s desire to resolve a particular problem depends of 2 factors:
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1.) the magnitude of the discrepancy between the desired and actual states 2.) the relative importance of the problem
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active problem
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one the consumer is aware of or will become aware of in the normal course of events
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inactive problem
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one of which the consumer is not aware
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What do inactive problems require from marketers?
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to convince consumers that they have the problem and that the marketer’s brand is a superior solution to the problem
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Generic Problem recognition
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discrepancy that a variety of brands within a product category can reduce. Increase of this generally results in an expansion of the total market
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selective problem recognition
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a discrepancy that only one brand can solve. Firms attempt to cause this to gain or maintain market share
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Problem recognition is a reflection of:
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1.) the importance and 2.) magnitude of a discrepancy between the desired state and an existing state
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Consumer purchase is a response to a problem:
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Problem/Need= Actual state- Ideal state
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decision making process
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after realization that we want to make a purchase, we go through a series of steps in order to make it. can seem automatic or like a lot of work
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How can marketers influence need activation and recognition?
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Call attention to actual states -Actual state-reminder ad -Actual state-product feature -Actual state- “Self-Discovery ad” -Desired state- product innovation -Feared state -Call attention to other features that activate needs like changing circumstances
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Timing of problem recognition
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consumers often recognize problems at times when purchasing a solution is difficult or impossible. A common marketing strategy is to trigger problem recognition in advance of the actual problem
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Decision making process
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Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-purchase