Chapter 3 Problem Recognition
Learning objectives
• Nature of problem recognition
• Difference between habitual, limited and extended
decision making
• Methods for measuring problem recognition
• The uncontrollable factors that affect problem
recognition
• Marketing strategies based on problem recognition
3–1
Problem recognition
An important stage of consumer
decision making
3-2
Need/Problem Recognition
At the first stage in the consumer decision process, it
must occur before decision making can begin; it is the
result of a discrepancy between a desired state and an
actual state that is sufficient to arouse and activate the
decision process
3–3
Purchase involvement and product
involvement
• Purchase involvement: the level concern for, or
interest in, the purchase process , once the purchase
process has been triggered by the need to consider a
particular purchase
• Low-purchase involvement and high- purchase
involvement
• Product involvement refers to the interest a person
has in purchasing a product and the person's
commitment to a particular brand
• Purchase involvement is not the same as product
involvement. A person may be very involved with a
brand and have a very low level of involvement with
the purchase process because of brand loyalty
3–4
Purchase involvement and types
of decision making
Low purchase High purchase
involvement involvement
Habitual Limited Extended
decision decision decision
making making making
3-5
Purchase involvement and types of decision making
Types of Consumer Decisions
Habitual decision making
• Habitual decision making: a purchase decision
effectively involving no decision as such; occurs when
there is very low involvement with the purchase and
results in repeat purchasing behaviour (also called
routinised purchase behaviour)
• HDM: 2 categories: Brand-loyal decision and repeat
purchase decisions
– BLD: Decisions made by a consumer who displays a high degree
of product involvement and emotional attachment to that brand
– RPD: a pattern of consumer behaviour that involves the purchase
of the same good or service over time, with or without loyalty to
that good or service
• Product location and availability is critical (i.e. making sure
product is stocked up)
• Reminder advertising to reinforce wisdom of choice
3–7
A model of online shopping showing the importance of habit
as a determinant of repeat purchase intentions
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Types of Consumer Decisions
Limited decision making
• Limited decision making covers the middle ground
between habitual decision making and extended
decision making.
– In simplest form (lowest level of purchase involvement)→
HDM
• Moderately low involvement, limited information
search and selection from small set of alternative
• Consumers may consider external information,
unlikely to integrate information from multiple sources
• Keeping brand at top of consumer’s mind is critical
3–9
Types of Consumer Decisions
Extended decision making
• Extended decision making: High level of purchase
involvement with extensive internal and external
information search and complex evaluation of multiple
alternatives
• Provide detailed cognitive information (i.e. providing
details about price, available and etc...)
• Anticipate consumers seeing and comparing brands
(need to address key differences, weakness and
strengths)
• Consumers with limited background may be learning
how to shop in the product category
– Need to balance between providing a lot of information and to
prevent information overload
3–10
3–11
The nature of problem recognition
• Problem recognition: At the first stage in the
consumer decision process, it must occur before
decision making can begin; it is the result of a
discrepancy between a desired state and an actual
state that is sufficient to arouse and activate the
decision process
– Actual state: the way an individual perceives their situation
and feelings to be at the present time
– Desired state: the way an individual wants to feel or be at the
present time
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Process of problem recognition
3-13
The Desire to Resolve Recognised Problems
• Depends on two factors:
1. The magnitude of the discrepancy between the desired state
and the actual state
2. The relative importance of the problem
• Budget/time constraints
3–14
Types of consumer problems
• Active problem
– A problem the consumer is aware of, or will become aware of,
in the normal course of events.
– Marketer: convince customers -> provide superior solution
• Inactive problem
– A problem of which the consumer is not yet aware.
– Marketer: first- convince customers: have problem ->
marketer’s brand is the best solution to the problem
3-15
Non-marketing factors affecting
problem recognition
3-16
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
3–17
Factors Influencing the Actual State
• Past decisions
• Normal depletion (oil change or the replacement of a
tyre..)
• Product/brand performance
• Individual development
• Emotions
• The efforts of consumer groups and government
departments
• The availability of products
• The current situation (SS, PS, TP, AS)
3–18
Brand Performance
Many products need to perform on two levels:
1. Instrumental performance: the physical or functional
performance of a product
2. Expressive performance: the symbolic, expressive,
aesthetic or image-enhancement performance of a
product
3–19
Marketing Strategy and
Problem Recognition
Measuring problem recognition
1. Activity analysis—focus on a particular activity
2. Product analysis—problems using it?
3. Problem analysis—product/brand solutions?
4. Human factors research—suit users
5. Emotion research—how people feel about it
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Marketing Strategy and
Problem Recognition
Responding to Consumer Problems
• i.e. developing or altering products, modifying
channels of distribution, changing pricing policy or
revising advertising strategy.
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Marketing Strategy and
Problem Recognition
Activate problem recognition
• Generic versus selective problem recognition
• Generic problem recognition: the recognition of a
discrepancy that a variety of brands within a product
category could resolve, used when;
– the problem is latent or of low importance
– it is early in the product life cycle
– the firm has very high market penetration
– an external search after problem recognition is likely
– to be limited
– an industry-wide cooperative effort is being made.
• Selective problem recognition: the recognition of a
discrepancy that only one brand in the product
category can resolve
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Marketing Strategy and
Problem Recognition
• Timing problem recognition: Timely reminders can
be used to alert consumers to the need to purchase
certain products
e.g. prevent adverse health conditions in their pet
• Suppressing problem recognition:Marketers may
desire to suppress any problems, especially if habitual
buyers are likely to start searching for other brands or
product categories. Product attributes or quality, rather
than prices, may need to be brought to the attention of
regular consumers.
– avoid upsetting habitual buyers
– anticipate and counteract negatives
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Responding to Consumer Problems
(cont.)
• Suppressing problem recognition
– avoid upsetting habitual buyers
– anticipate and counteract negatives
3–24
Summary P.82
• Next chapter 4: Information searching
3–25
The level concern for, or interest in, the purchase process, once the purchase process has been triggered by
1
the need to consider a particular purchase. This is about_______________
A) Low-involvement
B) High-involvement
C) Purchase involvement
D) Product involvement
_______________refers to the interest a person has in purchasing a product and the person's commitment to
2
a particular brand
A) Purchase involvement
B) Product involvement
C) Low involvement
D) High involvement
____________ is a purchase decision effectively involving no decision as such; occurs when there is very low
3 involvement with the purchase and results in repeat purchasing behaviour (also called routinised purchase
behaviour)
A) Limited decision making
B) Extended decision making
C) Normal decision making
D) Habitual decision making
______________is a purchase decision that covers the middle ground between habitual decision making and
4
extended decision making.
A) Extended decision making
B) Limited decision making
C) Normal decision making
D) Habitual decision making
High level of purchase involvement with extensive internal and external information search and complex
5
evaluation of multiple alternatives. This purchase decision is called_________________
A) Extended decision making
B) Limited decision making
C) Normal decision making
D) Habitual decision making
3–26
At the first stage in the consumer decision process, it must occur before decision making can begin; it is the
6 result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the
decision process. What is this stage?
A) Problem recognition
B) Information search
C) Purchase stage
D) None of all above
7 ____________is a problem the consumer is aware of, or will become aware of, in the normal course of events
A) Inactive problem
B) Important problem
C) Active problem
D) Normal problem
8 ____________is a problem of which the consumer is not yet aware
A) Active problem
B) Inactive problem
C) Normal problem
D) Important problem
9 ___________refers to the physical or functional performance of a product
A) Instrumental performance
B) Expressive performance
C) Product performance
D) None of all above
10 ____________refers to the symbolic, expressive, aesthetic or image-enhancement performance of a product
A) Instrumental performance
B) Expressive performance
C) Product performance
D) None of all above
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11 Problem recognition for low-involvement purchase decision is___________
A) Trivial to minor
B) Important and personally meaningful
C) Not necessary
D) Very important
12 Problem recognition for high-involvement purchase decision is___________
A) Big purchase
B) Important and personally meaningful
C) Minor
D) None of all above
A consumer behavior audit is asset of questions dealing with all aspects of an organization’s
13 marketing decision making, including market segmentation, product positions and
______________
A) Marketing strategy
B) Marketing mix
C) Marketing research
D) None of all above
14 The way an individual perceives their situation and feelings to be at the present time is:
A) Actual state
B) Desired state
C) Present state
D) Future state
15 The way an individual wants to feel or be at the present time is:
A) Actual state
B) Desired state
C) Present state
D) Future state
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Five approaches are used to problem identifications that consumers face are: activity
16 analysis, product analysis, problem analysis,________________________
A) People research, and product research
B) Human research, and marketing research
C) Promotion research, and place research
D) Human factors research, and emotions research
Analysis that focuses on a particular activity; the survey or focus group attempts to
17 determine what problems consumers face during the performance of that activity is called:
A) Activity analysis
B) Product analysis
C) Problem analysis
D) Performance analysis
Analysis that examines the purchase and/or use of a particular product or brand; consumer
18 may be asked about problems associated with using a product is called:
A) Activity analysis
B) Product analysis
C) Problem analysis
D) Performance analysis
Analysis that starts with a list of problems and asks the respondent to indicate which
19 activities products or bands are associated the these problems is called:
A) Activity analysis
B) Product analysis
C) Problem analysis
D) Performance analysis
3–29
Research that attempts to determine human capabilities in areas such as vision, strength,
20 response time, flexibility and fatigue, and the effect of such things as lighting, temperature
and sound on these capabilities is called:
A) Activity analysis
B) Product analysis
C) Emotion research
D) Human factors research
Research the attempts to discover the role played by emotions in the consumer decision
21 process is called:
A) Activity analysis
B) Product analysis
C) Emotion research
D) Human factors research
3–30