Chapter 7

Problem Recognition & Search

Learning Objectives

1. To understand consumer problem recognition and the decision making process.

2. To know how & why consumers conduct internal search.

3. To know how & why consumers conduct external search.

4. To access challenges marketers face in influencing consumers’ searches.

Problem Recognition and Information Search

Problem Recognition

Ideal State: Where we want to be

Actual State: Where we are now

Stimulating Problem Recognition

Create a new ideal state

Create dissatisfaction with actual state

Position as solution to problem

Internal Search

Searching for Information from Memory

Degree of internal search

Kind of information recalled:– Brands– Attributes– Evaluations– Experiences

Brand Recall

Consideration or evoked set

Vary in terms of:– Size– Stability– Variety– Preference dispersion

Brand Recall

Prototypicality

Familiarity

Goals/Usage Situation

Preference

Retrieval Cues

Attribute Recall

Accessibility/Availability

Diagnosticity

Salience

Vividness

Goals

Is Internal Search Accurate?

Confirmation bias—Draw attention to negatives of competition

Inhibition– Consumers don’t always consider key

aspects– Consumers recall other, more accessible

attributes

Mood

External Search: Searching for Information from Environment

Sources of External Information

Retailer

Media

Interpersonal

Independent

Experiential

Internet

Internet Sources

Keyword search

Shopping agents

Information overload

Simulations

Online community

Social Media

©adage.com

Measures of Online Consumer Activity~1

Measures of Online Consumer Activity~2

Effort to Process Information

Influenced by – Motivation– Ability– Opportunity

– What motivates you to process information in advertising?

Motivation to Process Information

Involvement and perceived risk

Perceived costs and benefits

Consideration set

Relative brand uncertainty

Attitudes toward search

Discrepancy of information

Ability to Process Information

Consumer knowledge

Cognitive abilities

Demographics

Opportunity to Process Information

Amount of information available

Information format

Time availability

Number of items being chosen

Information Acquired in Search

Accuracy?

Search by:– Brand– Attribute

– Brand name– Price– Other

• Reliability• Durability• Relevant

Questions?