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(1)

Chapter 2

(2)

Chapter Spotlights

Consumer decision process action options

Problem recognition: actual state versus

desired state and motivation arousal

Pre-purchase, post-purchase, and

ongoing information search

Internal and external information search

Consideration sets

(3)

Consumer Decision

Process Action Options

Start through steps and complete them in

order

Start, stop, start, stop, etc. and complete

steps in order

Start steps and “loop back” as needed

based on what happens and complete

process

Start into the process then stop

(4)

Problem Recognition

When consumers realize that they need

something!

It is the first step in the decision-making

process:

Problem

recognition

Information search

Alternative evaluation

Choice

(5)

Motivational Arousal

Different people have different benefit

motivations for purchasing different

products or services.

Types of benefit motives:

To optimize satisfaction

To prevent possible future problems

To escape from a problem

To resolve a conflict

(6)

Problem Recognition:

Actual State versus

Desired State

It is the psychological process used

to determine the difference

between the consumer’s actual

benefits state (where you are) and

the desired benefits state (where

you want to be).

(7)

Problem Recognition

Influences

Situational influences

Consumer influences

(8)

Situational Influences

Product consumption (e.g., running

out of gas)

Product acquisition (e.g., purchasing a

new home may stimulate other

purchases)

Changed circumstances (e.g., moving

(9)

Consumer Influences

Actual state consumers: those who

look to existing products to solve

their problems.

Desired state consumers: those

who shop for new products to

address their problems.

(10)

Marketing Influences

Marketing mix

changes and/or

promotion actions

may help stimulate

problem

recognition:

Advertising

Coupons

Free offers

(11)

Information Search

Information collected

by consumers is the

basis for evaluation

and choice behavior.

It is important for

marketers to know:

Why consumers are

searching for information

Where will they look

What information

consumers seek

How extensively they are

(12)

Types of Information

Search

Prepurchase search:

Directed searches: consumer searches for

information that will help solve a specific problem.

Browsing: consumer is “just looking” with no

immediate intent to buy.

Accidental search: consumer is not actively looking

for information, but takes note of information that is

formally presented or inadvertently encountered.

Post-purchase search: gathering information

on choice made after the purchase.

Ongoing search: continuous information

(13)

Internal and External

Information Search

Internal search: search based on existing

information in memory.

Information quantity, quality, relevance,

currency

Experts vs. novices

External search: the search of information

beyond one’s memory.

Personal sources: friends, experts, salespeople

Impersonal sources: advertising, in-store

displays, trade reports, the Internet.

(14)

Why Do Consumers

Engage in External

Information Search?

High perceived value versus perceived cost of

search

Need to acquire information

Ease of acquiring and using information

Confidence in decision-making ability

Locus of control (internals vs. externals)

Actual or perceived risk

Costs of external search

Types of products sought

(15)

Types of Risk

Functional or

performance

Financial

Psychological

Social

Physiological

Time

(16)

Costs of External Search

Financial

Time

Decision delay

(opportunity cost)

Physical cost

Psychological cost

(17)

Type of Product Sought

Specialty goods: search willingness is high

when consumer has developed strong

preferences

Shopping goods: less search willingness for

products that the consumer must devote

time and effort to compare and contrast.

Convenience goods: consumer is reluctant

(18)

Characteristics of

Purchase Decision

If number of

possible solutions is

limited – extensive

search is acceptable

If need for trial is

high – more likely to

search

Difficulty of trial

(19)

External Search Strategy

Consideration set: those brands, outlets, etc.

that have front-of-mind presence and from

among which there is intention to choose.

Which brands of computers would you consider

purchasing?

Also called “evoked set” or “relevant set”

Marketplace information sources:

General (face-to-face or mass media)

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