JM602 Consumer Behaviour

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JM602Consumer Behaviour

• Lecture 3 Problem recognition

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(No Transcript)
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Material in these slides

• Primarily drawn from
• Neal, Quester and Hawkins (2005). Consumer
  behaviour Implications for marketing strategy
  (4th ed). McGraw-Hill Irwin Queensland

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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
• The first stage in the consumer decision process
• 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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Purchase involvement

• Purchase involvement
• The level of concern for, or interest in, the
  purchase process, once the purchase process has
  been triggered by the need to consider a
  particular process
• influenced by the interaction of individual,
  product and situational characteristics
• Cf. product involvement

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Types of Consumer Decisions (cont.)

• Forms of involvement and outcomes
• Habitual decision makingbrand loyal and repeat
  purchase decisions
• 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
• 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
• Consumer is aware of the problem, or will become
  aware of it, in the normal course of events
• Inactive problem
• A problem which the consumer is not aware of

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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, dont require immediate solution
• Evolving problems
• Not expected, dont require immediate solution

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Non-marketing factors affecting problem
recognition
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How can we measure problem recognition?

• Surveys and focus groups
• activity analysisstudy of meal preparation eg.
  what problems do consumers face?
• product analysisproblems using it?
• Problem analysis
• Human factors research
• Emotion research eg role of emotions in problem
  recognition

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Marketing strategy

• Responding to consumer problems
• Activating problem recognition
• generic problem e.g. dairy foods
• When the problem is latent or of low importance
  firm has strong hold on market
• selective e.g. one brand solution

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Responding to a Recognised Problem
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An Active Attempt to Activate Problem Recognition
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Approaches to activating problem recognition

• Influence the size of the discrepancy between the
  desired and existing states
• Alter the desired state eg advertising
• Alter perceptions of the existing state

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Responding to Consumer Problems

• Timing problem recognition
• e.g. winter colds
• Suppressing problem recognition
• avoid upsetting habitual buyers
• anticipate and counteract negatives

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Responding to Consumer Problems (cont.)
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Next lecture

• Chapter 4Information Search