Consumer Decision Process and Problem recognition

LEARNING OBJECTIVES

1) Understand the impact of purchase involvement on the decision process.

2) Know the various types of decision making used by consumers.

3) Know what problem recognition is, how it occurs, and how it fits into the consumer decision-making process.

4) Know how to measure problem recognition.

5) Understand how marketing strategy can be developed based on problem recognition.

SUMMARY

Consumer decision making becomes more extensive and complex as purchase involvement increases. The lowest level of purchase involvement is represented by nominal decisions: a problem is recognized, long-term memory provides a single preferred brand, that brand is purchased, and only limited postpurchase evaluation occurs. As one moves from limited decision making toward extended decision making, information search increases, alternative evaluation becomes more extensive and complex, and postpurchase evaluation becomes more thorough.

Problem recognition involves the existence of a discrepancy between the consumer’s desired state (what the consumer would like) and the actual state (what the consumer perceives as already existing). Both the desired state and the actual state are influenced by the consumer’s lifestyle and current situation. If the discrepancy between these two states is sufficiently large and important, the consumer will begin to search for a solution to the problem.

A number of factors beyond the control of the marketing manager can affect problem recognition. The desired state is commonly influenced by (1) culture/subculture, (2) social status, (3) reference groups, (4) household characteristics, (5) financial status/expectations, (6) previous decisions, (7) individual development, (8) motives, (9) emotions, and the (10) current situation. The actual state is