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Problem Recognition, Search and Evaluation and Decision and Purchase

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Consumer Psychology (PSY - 514)
VU
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)
VU
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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Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism