CHAPTER 14

Consumer
Decision
Process and
Problem
Recognition

Copyright © 2020 by McGraw-Hill Education. All rights reserved.

PART IV: CONSUMER DECISION PROCESS

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 Learning Objectives

Describe the impact of purchase involvement on the

decision process

Explain problem recognition and how it fits into the

consumer decision process

Summarize the uncontrollable determinants of

problem recognition

Discuss the role of consumer problems and problem

recognition in marketing strategy
 Types of Consumer Decisions

Purchase involvement is

the level of concern for, or interest in,

the purchase process,

triggered by need to consider a

particular purchase, and so

it is a temporary state influenced by

the interaction of individual, product,
and situational characteristics. ©Paul Bradbury/age fotostock

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Types of Consumer Decisions

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 Types of Decision Making

1. Nominal Decision Making

• Brand Loyal Purchases
• Repeat Purchases

2. Limited Decision Making

3. Extended Decision Making

Jamie Grill/Getty Images

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 Types of Decision Making
Nominal Decision Making
Nominal decision making, a.k.a., habitual decision making,
in effect involves no decision per se.

Nominal decisions occur when

there is very low involvement with
the purchase.

A completely nominal decision

does not even include
consideration of the “do not Onoky/SuperStock

purchase” alternative. Consumer buys same brand of

olive oil without considering
other brands, its price, etc.

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 Types of Decision Making
Limited Decision Making
Limited decision making involves internal and limited
external search, few alternatives, simple decision rules on a
few attributes, and little postpurchase evaluation.

Middle ground between nominal

and extended decision making.
Involves recognizing a problem for
which there are several possible
solutions.
Shutterstock/LADO

Decision based only on

buying the cheapest pasta.

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 Types of Decision Making
Extended Decision Making
Extended decision making involves extensive internal and
external search followed by a complex evaluation of multiple
alternatives.

It is a response to the high level

of purchase involvement.

During postpurchase evaluation,

doubts are likely and a thorough
evaluation takes place.

© Image Source, all rights reserved.

Emotional decisions may involve

substantial cognitive effort.
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The Process of Problem Recognition

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 The Process of Problem Recognition
Types of Consumer Problems

Active Problem Inactive Problem

An active problem is one the An inactive problem is one of
consumer is aware of or will which the consumer is not
become aware of in normal aware.
course of events.
Marketing strategy: Marketing strategy:

Only require marketer to Marketer must convince

convince consumers that its consumers that they have the
brand is the superior solution. problem AND that their brand
is a superior solution.

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Uncontrollable Determinants of
Problem Recognition
Nonmarketing Factors Affecting Problem Recognition

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Applications in Consumer Behavior

This HEPC ad by Gilead is

geared toward triggering
problem recognition,
illustrating the negative
effects of not being tested
for Hepatitis C.

© 2016 Gilead Sciences, Inc. All rights reserved.

 Marketing Strategy and Problem
Recognition

1. Discovering Consumer Problems

2. Responding to Consumer Problems

3. Helping Consumers Recognize Problems

4. Suppressing Problem Recognition

Shutterstock/Creative Images

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 Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
Identifying Consumer Problems Using Online and Social Media

Monitoring and tracking is not enough

Problems need to be solved in a timely and

appropriate manner

AutoGuide.com Provides List of Lemon Cars Based

on Consumer Complaints – over 165,000 views!
YouTube Spotlight
Ingram Publishing 14-15
 Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
Surveys and focus groups use one of the following
approaches to problem identification:
1. Activity Analysis Focuses on a particular activity to determine what
problems consumers encounter during the
performance of the activity.

2. Product Analysis Examines the purchase or use of a particular

product or brand. Consumers may be asked about
problems associated with using a product or
brand.

3. Problem Analysis Starts with a problem and asks which activities,

products, or brand are associated with (or
perhaps could eliminate) those problems.

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 Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
Human Factors Research
Human factors research attempts to determine human capabilities
in areas such as vision, strength, response time, flexibility, and
fatigue and the effect on these capabilities of lighting, temperature,
and sound.

Observational techniques such as slow-motion and time-lapse

photography, video recording, and event recorders are
particularly useful methods.

This type of research can sometimes identify functional

problems that consumers are unaware of.

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 Marketing Strategy and Problem
Recognition
Discovering Consumer Problems
Emotion Research
Marketers are increasingly conducting research on the role of
emotions in problem recognition and resolution.

Common approaches are surveys, focus group research and

personal interviews that examine the emotions associate with
certain problems.

Critical in helping marketers anticipate consumer reaction to

problems and train customer service personnel to respond
appropriately.

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 Marketing Strategy and Problem
Recognition
Responding to Consumer Problems
Once a consumer problem is identified, the manager may
structure the marketing mix to solve the problem.

This can involve:

• Developing a new product or altering an existing one
• Modifying channels of distribution
• Changing pricing policy, or
• Revising advertising strategy

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 Marketing Strategy and Problem
Recognition
Helping Consumers Recognize Problems
Generic versus Selective Problem Recognition

Generic Problem Recognition Selective Problem Recognition

• Involves a discrepancy that • Involves a discrepancy only
a variety of brands within a one brand can solve
product category can • Firms attempt to cause
reduce
selective problem
• Increasing generic problem recognition to gain or
recognition generally maintain market share
results in an expansion of
the total market

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 Marketing Strategy and Problem
Recognition
Helping Consumers Recognize Problems
Suppressing Problem Recognition
Occasionally information is introduced in the market place that
triggers problem recognition that some marketers prefer to avoid.
Obviously marketers do not want their current customers to
recognize problems with their brands.
Effective quality control and distribution (limited out-of-stock
situations) are important in this effort.
Packages and package inserts that assure the consumer of
the wisdom of their purchase are also common.

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