Lecture Consumer behaviour: Chapter 3 - Cathy Neal, Pascale Quester, Del Hawkins

Chapter 3 Problem Recognition
• Nature of problem recognition
• Difference between habitual, limited and extended

decision making
• Methods for measuring problem recognition
• Marketing strategies based on problem recognition

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Need/Problem Recognition
• What happens during need/problem recognition?
• Can they be activated?
• Are there non-marketing influences?
• What marketing influences are used?
• Does it vary from one person to the next?
• Implications for marketing strategy?

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Types of Consumer Decisions
• Problem recognition
• Purchase involvement

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Types of Consumer Decisions (cont.)
• Purchase involvement
–

influenced by the interaction of individual, product and
situational characteristics

• Forms of involvement and outcomes
–
–
–

Habitual decision making—single brand
Limited decision making
Extended decision making

• Implications for strategy

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Purchase Involvement and Types
of Decision Making

High purchase
involvement

Low purchase
involvement

Habitual
decision
making

Limited
decision
making

Extended
decision
making

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Purchase Involvement and Types
of Decision Making (cont.)

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Purchase Involvement and Types

of Decision Making (cont.)

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Marketing Strategy and Types of
Consumer Decisions
The process of problem recognition
• The nature of problem recognition
–
–

Desired state
Actual state

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The Process of Problem Recognition

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The Process of Problem Recognition (cont.)

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The Desire to Resolve
Recognised Problems
•

Depends on two factors:
1.
2.

The magnitude of the discrepancy between the desired
state and the actual state
The relative importance of the problem

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Types of Consumer Problems
• Active problem
• Inactive problem

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Types of Consumer Problems
and Action Required
• Routine problems
–

Expected, require immediate solution

• Emergency problems
–

Not expected, require immediate solution

• Planning problems
–

Expected, don’t require immediate solution

• Evolving problems
–

Not expected, don’t require immediate solution

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Non-Marketing Factors Affecting
Problem Recognition

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Factors that Influence the

Desired State
• Culture/social class, e.g. cleanliness
• Reference groups, e.g. after graduation
• Family/household, e.g. family brands
• Change in financial status, e.g. retrenchment
• Previous purchase decisions
• Individual development
• Motives: refer to Maslow’s needs
• Emotions: seek positive experiences?
• The situation

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Factors Influencing the Actual State
• Past decisions
• Normal depletion
• Product/brand performance
• Individual development
• Emotions
• The efforts of consumer groups
• The availability of products
• The current situation

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Brand Performance
Many products need to perform on two levels:
1. Instrumental performance
2. Expressive performance

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Marketing Strategy and
Problem Recognition
•

Measuring problem recognition
1.

activity analysis—study of meal preparation

2.

product analysis—problems using it?

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Marketing Strategy and

Problem Recognition (cont.)
• Measuring problem recognition (cont.)
3. problem analysis—product/brand solutions?
4. human factors research—suit users
5. emotion research—how people feel about it

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Responding to Consumer Problems
• Activating problem recognition
–

generic problem e.g. dairy foods


–

When the problem is latent or of low importance

selective e.g. one brand solution

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An Active Attempt to Activate Problem Recognition

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Responding to a Recognised Problem

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Responding to Consumer Problems
• Timing problem recognition

e.g. winter colds

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Responding to Consumer Problems
(cont.)
• Suppressing problem recognition
–

avoid upsetting habitual buyers

–

anticipate and counteract negatives

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Next lecture…
Chapter 4
Information Search

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