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PART ONE Introduction Chapter One Consumer Behavior and Marketing Strategy PART TWO External Influences Chapter Two Cross-Cultural Variations in Consumer Behavior Chapter Three The Changing American Society: Values Chapter Four The Changing American Society: Demographics and Social Stratification Chapter Five The Changing American Society: Subcultures Chapter Six The American Society: Families and Households Chapter Seven Group Influences on Consumer Behavior PART TWO Cases Cases 2–1 through 2–9 PART THREE Internal Influences Chapter Eight Perception Chapter Nine Learning, Memory, and Product Positioning Chapter Ten Motivation, Personality, and Emotion Chapter Eleven Attitudes and Influencing Attitudes Chapter Twelve Self-Concept and Lifestyle PART THREE Cases Cases 3–1 through 3–9 PART FOUR Consumer Decision Process Chapter Thirteen Situational Influences Chapter Fourteen Consumer Decision Process and Problem Recognition Chapter Fifteen Information Search Chapter Sixteen Alternative Evaluation and Selection Chapter Seventeen Outlet Selection and Purchase Chapter Eighteen Postpurchase Processes, Customer Satisfaction, and Customer Commitment PART FOUR Cases Cases 4–1 through 4–7 PART FIVE Organizations as Consumers Chapter Nineteen Organizational Buyer Behavior PART FIVE Cases Cases 5–1 and 5–2 PART SIX Consumer Behavior and Marketing Regulation Chapter Twenty Marketing Regulation and Consumer Behavior PART SIX Cases Cases 6–1 and 6–2 Appendix A Consumer Research Methods Appendix B Consumer Behavior Audit
CHAPTER 14 Consumer Decision Process and Problem Recognition McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved PART IV: CONSUMER DECISION PROCESS 14-2 Learning Objectives L0 L0 Describe the impact of purchase involvement on the decision process Explain problem recognition and how it fits into the consumer decision process L0 Summarize the uncontrollable determinants of problem recognition L0 Discuss the role of consumer problems and problem recognition in marketing strategy 14-3 Consumer Behavior In The News… I Didn’t Even Think About That! Can you think of a “Inactive Problem” in Auto Insurance? Source: K Patel, “Flo Thumbs a Ride with Drivers,” Advertising Age, March 14, 2011, p 14-4 Consumer Behavior In The News… I Didn’t Even Think About That! Can you think of a “Inactive Problem” in Auto Insurance? One is that most companies charge an “average” rate for a specific demographic which doesn’t account for good driving habits Not a problem most consumers aware of Progressive now heavily touting its individual monitor which tracks real-time driving and allows motorists to get lower rates for “safer” driving Source: K Patel, “Flo Thumbs a Ride with Drivers,” Advertising Age, March 14, 2011, p 14-5 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 14-6 Types of Consumer Decisions 14-7 Types of Decision Making Nominal Decision Making • Brand Loyal Purchases • Repeat Purchases Limited Decision Making Extended Decision Making 14-8 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 purchase” alternative Consumer buys Campbell’s without considering other brands, its price, etc 14-9 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 Decision based only on buying the cheapest rolls 14-10 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 Emotional decisions may involve substantial cognitive effort 14-11 The Process of Problem Recognition 14-12 The Process of Problem Recognition Types of Consumer Problems Active Problem An active problem is one the consumer is aware of or will become aware of in normal course of events Inactive Problem An inactive problem is one of which the consumer is not aware Marketing strategy: Marketing strategy: Only require marketer to convince consumers that its brand is the superior solution Marketer must convince consumers that they have the problem AND that their brand is a superior solution 14-13 Uncontrollable Determinants of Problem Recognition Nonmarketing Factors Affecting Problem Recognition 14-14 Marketing Strategy and Problem Recognition Discovering Consumer Problems Responding to Consumer Problems Helping Consumers Recognize Problems Suppressing Problem Recognition 14-15 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 Samsung Consumer Problem – over 10,000 views! YouTube Spotlight 14-16 Marketing Strategy and Problem Recognition Discovering Consumer Problems Surveys and focus groups use one of the following approaches to problem identification: Activity Analysis Focuses on a particular activity to determine what problems consumers encounter during the performance of the activity 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 Problem Analysis Starts with a problem and asks which activities, products, or brand are associated with (or perhaps could eliminate) those problems 14-17 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 timelapse photography, video recording, and event recorders are particularly useful methods This type of research can sometimes identify functional problems that consumers are unaware of 14-18 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 14-19 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 14-20 Marketing Strategy and Problem Recognition Helping Consumers Recognize Problems Generic versus Selective Problem Recognition Generic Problem Recognition • • Involves a discrepancy that a variety of brands within a product category can reduce Increasing generic problem recognition generally results in an expansion of the total market Selective Problem Recognition • Involves a discrepancy only one brand can solve • Firms attempt to cause selective problem recognition to gain or maintain market share 14-21 Video Application The following Video Clip demonstrates how numerous brands of bottled water have benefited from generic problem recognition! 14-22 14-23 14-23 Applications in Consumer Behavior The Mack’s earplugs ad shows how marketers often attempt to cause consumers to recognize potential problems for which the product provides a solution Courtesy Mack’s® Earplugs 14-24 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 not want their current customers to recognize problems with their brands Effective quality control and distribution (limited out-ofstock situations) are important in this effort Packages and package inserts that assure the consumer of the wisdom of their purchase are also common 14-25 ... Recognition Nonmarketing Factors Affecting Problem Recognition 14- 14 Marketing Strategy and Problem Recognition Discovering Consumer Problems Responding to Consumer Problems Helping Consumers Recognize... Problem Recognition 14- 15 Marketing Strategy and Problem Recognition Discovering Consumer Problems Identifying Consumer Problems Using Online and Social Media Monitoring and tracking is not enough... a timely and appropriate manner Samsung Consumer Problem – over 10,000 views! YouTube Spotlight 14- 16 Marketing Strategy and Problem Recognition Discovering Consumer Problems Surveys and focus