Marketing 2: consumer behavior
Tussentoets 2: The process of making decisions
Chapter 7: problem recognition and information search
The consumer decision process generally begins with a person identifies a problem that needs to be
solved (‘’I need a new car’’). Problem recognition: the perceived difference between an ideal state and
an actual state. This is a critical stage in the decision process because it motivates the consumer to
action. The ideal state is the way consumers would like a situation to be and the actual state is the real
situation as consumers perceive it now. Problem recognition occurs if consumers become aware of a
discrepancy between the actual and ideal state.
Where do we get our notion of the ideal state? Sometimes we rely on simple expectations, usually based
on past experience, about everyday consumption and disposition situations and how products or
services fulfill our needs (we consider how we look in certain clothes). The ideal state can also be a
function of our future goals or aspirations (consumer want car that gives him social status). Major
changes in personal circumstances can instigate new ideal states (when you graduate and start a new
job).
The actual state can be influenced by a variety of factors. Often simple physical factors (running out of a
product). But also needs (hungry) and external stimuli.
Implications: marketing can help put consumers in a state of problem recognition and motivate them to
start the process, leading them to acquire, consume, or dispose of a product or service. Marketers use
two major techniques to try to stimulate them: 1) they attempt to create a new ideal state. 2) they try to
encourage our dissatisfaction with the actual state.
Marketers can target the ideal state by showing consumers how the product is the solution to their
problems.
After problem recognition, the next step is internal search: the process of recalling stored information
from memory (chapter 4). The effort that consumers devote to internal search depends on MAO to
process information. Consumers will attempt to recall more information when felt involvement,
perceived risk and need for cognition is high.
Recall of Brands:
The set of brands that consumers recall from memory whenever problem recognition has been
stimulated is an important aspect of internal search that greatly affects decision-making. Rather than
remembering all available brands, consumers tend to recall a subset of two to eight brands known as a
consideration or evoked set. Consideration sets vary in terms of their size, stability, variety and
preference dispersion (the equality of preferences toward brands or product in the set). If consumers
can’t recall brands from memory to form a consideration set, the set will tend to be determined by
external factors (shelf, sales people).
,The following factors increase the possibility of consumers’ recalling a particular brand during internal
search, and including that brand in their consideration set:
▪ Prototypicality: consumers easily recall brands that are closest to the prototype or that most resemble
other category members, making these more likely to be included in the consideration set than brands
that are not typical of the category. (Apple’s iPad in category tablet)
▪ Brand familiarity: Well-known brands are more easily recalled than unfamiliar brands because the
memory links associated with these brands tend to be stronger. Companies need to repeat marketing
communications continually to keep brand awareness high and associations strong.
▪ Goals and usage situations: consumers have goal-derived and usage-specific categories in memory,
such as drinks to bring to the beach, and the activation of these categories will determine which brands
they recall during internal search. Therefore, marketers can attempt to associate products with certain
goals and usage situation.
▪ Brand preference: Brands toward which the consumer has positive attitude tend to be recalled more
easily and be included more in the consideration set than brands that evoke negative attitudes.
▪ Retrieval cues: by strongly associating the brand with a retrieval cue, marketers can increase the
chance that the brand will be included in the consumer’s consideration set. (Coco cola with glass bottle)
Recall of Attributes
The attribute information we recall tends to be in summary or simplified form rather than in its original
detail. Factors that influence the recall of attribute information:
▪ Accessibility or availability: information that is more accessible or available is the most likely to be
recalled. When information is easy to recall, it is also more accessible.
▪ Diagnosticity: Diagnostic information helps us distinguish objects from one another. If prices vary,
consumers can distinguish among them, so the information is diagnostic.
▪ Salience: consumers van recall very salient attributes (attribute that is ‘’top of mind’’ or more
important) even when their opportunity to process is low. Price is a highly salient attribute for many
consumers. By repeatedly calling attention to an attribute in marketing messages, marketers can
increase a product’s salience and its impact on the decision. However, an attribute can be highly salient
but not necessarily diagnostic (by a watch, the attribute ‘tells time’ is salient, but not very diagnostic).
For information to be recalled and entered into the decision, it must have attribute determinance, which
means the information is both salient and diagnostic.
▪ Vividness: vivid information is presented as concrete words, pictures or instructions to image or
through word-of-mouth communication. Example: photo of an arm wearing an Apple watch. Vivid
information is easier to recall.
▪ Goals: The consumer’s goals determine which attribute is recalled from memory. Goal: to economize,
attribute recalled: price.
Recall of Evaluations
We find overall evaluations or attitudes (like/dislike) easier to remember than specific attribute
information. It is important for a marketer to encourage positive attitudes towards its brand or offering.
Many businesses do this via social media. Evaluations are also more likely to be recalled by consumers
who are actively evaluating the brand when they are exposed to relevant information. You want to buy
computer, suddenly you see an ad for particular brand, you will determine whether you like the brand
when you see the ad: this activity is called online processing.
, Recall of Experiences
Internal search can involve the recall of experiences from autobiographical memory in the form of
specific images and the effect associated with them. If you have an experience with a product or service
that is unusually positive of negative it will be easier to recall.
Search biases can sometimes lead to the recall of information that results in a less-than-optimal decision.
Three biases have important implications for marketing:
Confirmation bias: refers to our tendency to recall information that reinforces or confirms our overall
beliefs rather than contradicting them, thereby making out judgment or decision more positive than it
should be. Related to the concept of selective perception (we see what we want to see).
Inhibition: The recall of one attribute inhibiting the recall of another. Inhibition can also lead to a biased
judgment or decision because consumers may remember but still ignore important and useful info.
Mood: consumers are most likely to recall information, feelings and experiences that match their mood.
Sometimes a consumer’s decision can be based entirely on information recalled from memory. At other
times, information may be missing or some uncertainty may surround the recalled information. Then
consumers engage in external research of outside sources.
Two types of external search
1) Pre purchase search: occurs in response to the activation of problem recognition.
2) Ongoing search: occurs on a regular and continual basis, even when problem recognition has not been
activated. A consumer might consistently read automotive magazines, because he has a high degree of
enduring involvement in cars.
(Exhibit 7.7 on page 190)
Tussentoets 2: The process of making decisions
Chapter 7: problem recognition and information search
The consumer decision process generally begins with a person identifies a problem that needs to be
solved (‘’I need a new car’’). Problem recognition: the perceived difference between an ideal state and
an actual state. This is a critical stage in the decision process because it motivates the consumer to
action. The ideal state is the way consumers would like a situation to be and the actual state is the real
situation as consumers perceive it now. Problem recognition occurs if consumers become aware of a
discrepancy between the actual and ideal state.
Where do we get our notion of the ideal state? Sometimes we rely on simple expectations, usually based
on past experience, about everyday consumption and disposition situations and how products or
services fulfill our needs (we consider how we look in certain clothes). The ideal state can also be a
function of our future goals or aspirations (consumer want car that gives him social status). Major
changes in personal circumstances can instigate new ideal states (when you graduate and start a new
job).
The actual state can be influenced by a variety of factors. Often simple physical factors (running out of a
product). But also needs (hungry) and external stimuli.
Implications: marketing can help put consumers in a state of problem recognition and motivate them to
start the process, leading them to acquire, consume, or dispose of a product or service. Marketers use
two major techniques to try to stimulate them: 1) they attempt to create a new ideal state. 2) they try to
encourage our dissatisfaction with the actual state.
Marketers can target the ideal state by showing consumers how the product is the solution to their
problems.
After problem recognition, the next step is internal search: the process of recalling stored information
from memory (chapter 4). The effort that consumers devote to internal search depends on MAO to
process information. Consumers will attempt to recall more information when felt involvement,
perceived risk and need for cognition is high.
Recall of Brands:
The set of brands that consumers recall from memory whenever problem recognition has been
stimulated is an important aspect of internal search that greatly affects decision-making. Rather than
remembering all available brands, consumers tend to recall a subset of two to eight brands known as a
consideration or evoked set. Consideration sets vary in terms of their size, stability, variety and
preference dispersion (the equality of preferences toward brands or product in the set). If consumers
can’t recall brands from memory to form a consideration set, the set will tend to be determined by
external factors (shelf, sales people).
,The following factors increase the possibility of consumers’ recalling a particular brand during internal
search, and including that brand in their consideration set:
▪ Prototypicality: consumers easily recall brands that are closest to the prototype or that most resemble
other category members, making these more likely to be included in the consideration set than brands
that are not typical of the category. (Apple’s iPad in category tablet)
▪ Brand familiarity: Well-known brands are more easily recalled than unfamiliar brands because the
memory links associated with these brands tend to be stronger. Companies need to repeat marketing
communications continually to keep brand awareness high and associations strong.
▪ Goals and usage situations: consumers have goal-derived and usage-specific categories in memory,
such as drinks to bring to the beach, and the activation of these categories will determine which brands
they recall during internal search. Therefore, marketers can attempt to associate products with certain
goals and usage situation.
▪ Brand preference: Brands toward which the consumer has positive attitude tend to be recalled more
easily and be included more in the consideration set than brands that evoke negative attitudes.
▪ Retrieval cues: by strongly associating the brand with a retrieval cue, marketers can increase the
chance that the brand will be included in the consumer’s consideration set. (Coco cola with glass bottle)
Recall of Attributes
The attribute information we recall tends to be in summary or simplified form rather than in its original
detail. Factors that influence the recall of attribute information:
▪ Accessibility or availability: information that is more accessible or available is the most likely to be
recalled. When information is easy to recall, it is also more accessible.
▪ Diagnosticity: Diagnostic information helps us distinguish objects from one another. If prices vary,
consumers can distinguish among them, so the information is diagnostic.
▪ Salience: consumers van recall very salient attributes (attribute that is ‘’top of mind’’ or more
important) even when their opportunity to process is low. Price is a highly salient attribute for many
consumers. By repeatedly calling attention to an attribute in marketing messages, marketers can
increase a product’s salience and its impact on the decision. However, an attribute can be highly salient
but not necessarily diagnostic (by a watch, the attribute ‘tells time’ is salient, but not very diagnostic).
For information to be recalled and entered into the decision, it must have attribute determinance, which
means the information is both salient and diagnostic.
▪ Vividness: vivid information is presented as concrete words, pictures or instructions to image or
through word-of-mouth communication. Example: photo of an arm wearing an Apple watch. Vivid
information is easier to recall.
▪ Goals: The consumer’s goals determine which attribute is recalled from memory. Goal: to economize,
attribute recalled: price.
Recall of Evaluations
We find overall evaluations or attitudes (like/dislike) easier to remember than specific attribute
information. It is important for a marketer to encourage positive attitudes towards its brand or offering.
Many businesses do this via social media. Evaluations are also more likely to be recalled by consumers
who are actively evaluating the brand when they are exposed to relevant information. You want to buy
computer, suddenly you see an ad for particular brand, you will determine whether you like the brand
when you see the ad: this activity is called online processing.
, Recall of Experiences
Internal search can involve the recall of experiences from autobiographical memory in the form of
specific images and the effect associated with them. If you have an experience with a product or service
that is unusually positive of negative it will be easier to recall.
Search biases can sometimes lead to the recall of information that results in a less-than-optimal decision.
Three biases have important implications for marketing:
Confirmation bias: refers to our tendency to recall information that reinforces or confirms our overall
beliefs rather than contradicting them, thereby making out judgment or decision more positive than it
should be. Related to the concept of selective perception (we see what we want to see).
Inhibition: The recall of one attribute inhibiting the recall of another. Inhibition can also lead to a biased
judgment or decision because consumers may remember but still ignore important and useful info.
Mood: consumers are most likely to recall information, feelings and experiences that match their mood.
Sometimes a consumer’s decision can be based entirely on information recalled from memory. At other
times, information may be missing or some uncertainty may surround the recalled information. Then
consumers engage in external research of outside sources.
Two types of external search
1) Pre purchase search: occurs in response to the activation of problem recognition.
2) Ongoing search: occurs on a regular and continual basis, even when problem recognition has not been
activated. A consumer might consistently read automotive magazines, because he has a high degree of
enduring involvement in cars.
(Exhibit 7.7 on page 190)
