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Goals
Understand the nature of need recognition and factors that
Chapter 9 influence need recognition
Customer’s purchase decision Marketing stratgies used for activating need recognition
Understand the nature of information search and
process marketing strategies used for different types of
information search
BEFORE BUYING
Content 1. Types of purchase decisions
1. Types of purchase decisions Cognitive (extended) decision making: people calmly and
2. Need recognition carefully integrate as much information as possible with what
they already know about a product, painstakingly weigh the
3. Marketing application of need recognition pluses and minuses of each alternative, and arrive at a
4. Information search satisfactory decision.
5. Marketing application of information search Habitual (nominal) decision making describes the choices
we make with little or no conscious effort.
Limited decision making: involves internal and limited
external search, few alternatives, simple decision rules on a
few attributes, and little postpurchase evaluation
Which type of purchase decision is often applied for each
of these products?
dish lunch meals at automobiles ice-creams clothes cooking oil
washing school
liquid
Source: Consumer nominal
Behavior - Building limited
marketing strategy, 11e
(Mothersbaugh, 2010) extended
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A simple model of buying decision process 2. Need recognition
What causes a person to buy a new cellphone?
Before buying
While buying
After buying
2. Need recognition 2. Need recognition
2.2. Factors affecting the desired state
Desired Actual Need
state state Culture/ Subculture Previous decisions
Social status Individual development
Magnitude of the discrepancy between a desired state and Reference group Emotions
an actual state Household characteristics Motives
Customers’ budget and time limits
Financial status/expectations Situation
The importance of the need
Source: Consumer Behavior - Building marketing strategy, 11e (Mothersbaugh, 2010)
2. Need recognition 3. Marketing application of need recognition
3.1 Discovering Consumer Problems
2.3. Factors affecting the actual state Activity analysis: focuses on a particular activity and
Past decisions determine what problems consumers encounter during the
Normal depletion performance of the activity
Individual development
Emotions
Government/consumer groups
Availability of products
Situation
Source: Consumer Behavior - Building marketing strategy, 11e (Mothersbaugh, 2010)
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3. Marketing application of need recognition 3. Marketing application of need recognition
3.1 Discovering Consumer Problems
3.1 Discovering Consumer Problems Problem Analysis: starts with a problem and asks
Product Analysis: similar to activity analysis but respondents to indicate which activities, products, or brands
examines the purchase or use of a particular product or are associated with (or perhaps could eliminate) those
brand problems
3. Marketing application of need recognition 3. Marketing application of need recognition
3.1 Discovering Consumer Problems 3.2 Responding to Consumer Problems
Human Factors Research: determine human capabilities Activate need recognition
in areas such as vision, strength, response time, flexibility, ü Influence the desired state: emphasize product benefits
and fatigue and the effect on these capabilities of lighting,
temperature, and sound ü Influence the perception of the actual state: many
personal care and social products take this approach
Emotion Research: the role of emotions in problem
recognition and resolution -> anticipate consumer
reactions to problems and train their customer service
personnel to respond appropriately
3. Marketing application of need recognition 4. Information search
3.2 Responding to Consumer Problems Where do you get information when you buy a new
smartphone?
Identify the time and place of need recognition
ürecognized needs: solve problems after they arise
üunrecognized needs: mention problems in advance
when they haven’t happened yet
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4. Information search 4. Information search
Information search in Consumer Decisions
Personal source Public source
Commercial source Experiential source
4. Information search 4. Information search
4.1. Internal information search 4.1.1 Brand
Brand Consumers tend to first remember a group of some certain
Attribute brands called evoked set
Evaluation Elements that help increase the recall of a brand and adding
Experience it to the evoked set
übeing similar to the original model
übrand familiarity
üpurpose and usage situation
übrand preference
4. Information search 4. Information search
4.1.2 Attributes 4.1.3 Evaluation
Customers tend to remember some details about a product or Evaluation or the attitude (like or dislike) is more
brand. memorable than specific attributes
Factors influencing the recall of attributes Positive attitudes are important to brands.
üavailability
üprediction
übeing outstanding
übeing lively
üpurpose
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4. Information search 4. Information search
4.1.4 Experience 4.2 External information search:
Information from experience is more lively and easier to When information from memories is insufficient,
remember consuemrs conduct external search
Customers tend remember positive or negative Consumers can also do external search to support their
experiences better than normal ones. However, whether a evoked sets.
brand is added to the evoked set depends on if the
experience is positive or not
4. Information search 4. Information search
2 types of external information search
Before buying search Continuous search 4.2 External information search:
Criteria • buying oriented • product oriented retailers
• market context • market context
media
• situation • situation
Motives To make better purchase • to build n information source for future personal interactivity
decisions purchases experience (trials)
• interesting experience
Results • increasing knowledge • Increased knowledge about products and
about products and markets markets leads to:
• making better decisions ü better effectiveness of future purchase
• being more satisfied with ü personal influence.
the purchase decisions ü increased impulse purchase.
ü increased satisfaction from information search
3. Information search 5. Marketing application of information
search
3.2 External information search: 5.1 Improving the information quality controllable
sources
Retailers: Traing on selling skills and product knowledge
etc.
Media: Select appropriate media channels for target
customers, spot-on message, attractive images, etc.
Experience: giving free samples etc.
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5. Marketing application of information search 5. Marketing application of information
search
5.2 Viral marketing 5.3. Marketing strategies based on information search
patterns
Source: Consumer Behavior - Building marketing strategy, 11e (Mothersbaugh, 2010)
5. Marketing application of information 5. Marketing application of information
search search
5.3. Marketing strategies based on information search 5.3. Marketing strategies based on information search patterns
patterns Disrupt strategy:
Maintenance strategy: • In the short run: attention-attracting advertising, free samples,
• consistent attention to product quality coupons, rebates, and tie-in sales, striking package designs
and point-of-purchase displays, comparative advertising
• distribution (avoiding out-of-stock situations)
• In the long run: a major product improvement accompanied by
• reinforcement advertising strategy attention-attracting advertising could shift the target market
• defend against the disruptive tactics of competitors into a more extensive form of decision making.
5. Marketing application of information 5. Marketing application of information
search search
5.3. Marketing strategies based on information search patterns 5.3. Marketing strategies based on information search patterns
Capture strategy: Intercept strategy:
• know where consumers search and what information they are • intercept the consumer during the search for information on
looking for the brands in the evoked set or during general search for
• supply information, often on price and availability, on Web related information
site and local media as well as at the point of purchase through • cooperative advertising on local media and at the point of
displays and adequate shelf space. purchase with displays, shelf space, package design, etc.
• maintain consistent product quality and adequate distribution. • Coupons can also be effective.
• placing considerable emphasis on attracting the consumers’
attention
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5. Marketing application of information 5. Marketing application of information
search search
5.3. Marketing strategies based on information search patterns 5.3. Marketing strategies based on information search patterns
Preference strategy: Acceptance strategy:
• structure an information campaign that will result in the brand
being preferred by members of the target market. • similar to the preference strategy but the marketer must
attract the consumers’ attention or otherwise motivate them to
• strong position on those attributes important to the target learn about the brand
market
• information must be provided in all the appropriate sources • product improvements and heavy advertising
• word of mouth, product testing by indepedent groups • pay consumers to get them seek information about the
• the sales team provide detailed information products (Chrysler cars)
• keyword searches prior to a purchase tend to be generic • Long-term advertising to enhance low-involvement learning
→ opportunities for unfamiliar brands
Discussion Discussion
1. Discovering consumer problems for 3. Which information source will you use when:
üstressed office workers ü buying a rice cooker
üparents ü buying cooking oil
üremote learners ü booking a hotel
2. How would you activate the need recognition for: ü going to a diner
üinstant coffee How will you get your customer attention if you’re an
unfamiliar brand in these industries?
ühealth insurance
üEnglish courses
(desired and actual state? time & place?)