Problem Recognition, Search and Evaluation and Decision and Purchase

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Consumer Psychology (PSY - 514)

Lecture 37

Problem Recognition,

Search and Evaluation and Decision and Purchase

Understanding:

· Problem Recognition

· Search and Evaluation

Sources of Information for Consumers

Types of Search

1. Problem Recognition

Problem recognition results when a consumer recognizes a difference of sufficient magnitude between what is

perceived as the desired state of affairs and what is the actual state of affairs, enough to arouse and activate the

decision process.

ACTUAL STATE: The way in which a need is already being met

DESIRED STATE: The way a person would like the need to be met with

The motivation to resolve a problem depends upon two factors:

Importance of the problem

Magnitude of the discrepancy between actual state and desired state

The problem must be sufficiently defined if the consumer is to engage in meaningful behavior aimed at solving it.

Consumer who runs out of milk or bread has clear definition of the problem

Situations exist in which there is clear problem recognition but vague definition of the problem for example a

young man may feel that expression of a desired image is not right yet he is unable to define exactly what is wrong.

In such case information search may be engaged in to more clearly identify the problem. The cases of problem

recognition and problem definition may be complex

Consumers Delaying Purchase Process

At this stage sometimes consumers go on delaying the purchase process because of a number of factors such as:

1. Difficulty selecting the best brand

2. Time and pressure

3. Perceived Risk of Product Performance

4. Uncertainty

5. Task avoidance and unpleasantness

2. Search and Evaluation

Once consumers have recognized the existence of a problem they have to solve they move to next stage in the

decision making process in which consumers search for more information.

In this context information is knowledge obtained about some fact or circumstance. Such knowledge is to be used

in the context of consumer-behavior situation. Searching is a mental as well as physical information-seeking and

processing activities which one engages in to facilitate decision making regarding some goal object in the market

place.

1. Sources of Information for Consumers

At this stage there are two main sources of information for the consumers:

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Consumer Psychology (PSY - 514)

1. Firm's Marketing Efforts:

This includes information gathered through the firm's marketing efforts in the following areas:

Product

Promotion

Price

Place/Channels of Distribution

2. Sociocultural Environment:

Consumers also gather information from their sociocultural environment through:

Family

Informal Sources

Non-Commercial Sources

Social Class

Culture and Subculture

Consumers undertake search in order to find out about:

Products

Prices

Stores, etc...

2. Types of Search

Search may be categorized into two main ways:

Based upon the source

Internal search

External search

Based upon the purpose

Pre purchase search

On-going Search

1. Search Based upon the source

Internal Search: This is the first response of the consumer after the problem recognition - a mental process of

recalling and reviewing the information stored in memory that may relate to the purchase situation

External Search

This refers to the process of obtaining information from other sources in addition to that which can be recalled

from the memory. Sources from which such information will be attained include advertisements, friends,

salespeople, store displays, and product testing magazines.

Three sources information are important here:

Attitudes expressed by the significant others

Past exposure to Marketing efforts (Advertisements)

Past Experience

2. Search Based Upon the Purpose

Pre-Search Decision Making

This entails decisions, consumers make before actively engaging in external search for information (from family,

friends or product information). When the decision process is initiated, consumers will rely on the stored

information to help them make a variety of decisions before engaging in external information seeking

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