Lecture Objectives

Understand the overall model of Consumer Behavior

Nature of Problem Recognition Difference between habitual, limited and

extended decision making Methods for measuring problem recognition

Overall Model of CB

Consumer Decision Types

Extended Decision Making High perceived risk Typically expensive, infrequently purchased products

Habitual Decision Making Low perceived risk Purchases made out of habit or brand loyalty Typically inexpensive, frequently purchased product

Limited Decision Making Moderate perceived risk Consumer has limited time or energy

Problem Recognition

Result of an imbalance between

actual and

desired states.

Problem Recognition

Internal StimuliInternal Stimuliandand

External StimuliExternal Stimuli

Present Status

Preferred State

Marketing helps consumers

recognize an imbalance between

actual state and desired state

Where do we get our notion of what is ideal state or a desired state????

personal expectations personal aspirations culture reference group marketing

StimulusAny unit of input affecting one or more of the five senses:

sight

smell

taste

touch

hearing

Want

Recognition of an

unfulfilled need and

a product

(or attribute or feature)

that will satisfy it.

Recognition of Unfulfilled Wants

When a current product isn’t performing properly

When the consumer is running out of an product

When another product seems superior to the one currently used

Consumer Goals

Discuss

Levels of Goals

Life Themes and Values Life Projects Current Concerns Consumption Intentions Benefits Sought Feature Preferences

Process of Problem Recognition

Discuss

Consumer Problems

Active Problem Inactive Problem

Factors Influencing the Desired State Culture Reference Group Household Characteristics Financial Status Previous Decisions Individual Development Motives Emotions The Situation

Factors Influencing the Actual State Past Decisions Normal Depletion Product/brand Performance (Instrumental&

Expressive) Individual Development Emotions Efforts of Consumer Groups and Govt. Departments The Availability of Products The Current Situation

Marketing Implications

Putting consumers in a state of problem recognition may stimulate the decision process and lead to acquisition, consumption or disposition of a product or service.

Without problem recognition, marketing efforts are likely to be less effective because the consumer may not be motivated to process information.

Marketers use two techniques to try to stimulate problem recognition: they can attempt to create a new ideal state or create dissatisfaction with the actual state.

Either way marketers are more likely to get a response if they position the product or service as a solution to the consumer’s problem.