Chapter 7: Problem Recognition and Information Search
When making a purchase decision, consumers go through stages. First, problem recognition
happens (e.g., your car breaks down and you need a new one). Next, you perform an internal search,
recalling what you already know about brands and features. Then, you do an external search, looking
at ads, visiting dealerships, or reading reviews. These stages may happen in sequence or overlap, but
together they explain the basics of consumer decision-making.
7-1 Problem recognition
The consumer decision process generally begins when a person identifies a consumption problem that
needs to be solved. Example: “I need a new car” or “I would like some new clothes”.
Problem recognition is the perceived difference between an ideal and an actual state. It motivates
the consumer to action.
- Ideal state: The way that consumers would like a situation to be (e.g. having an excellent camera or
wearing attractive clothing)
- Actual state: The real situation as consumers perceive it now.
Problem recognition occurs when consumers notice the discrepancy between the actual and the ideal
state (e.g. “my care needs frequent repairs” or “My clothing is out of date”).
The greater the discrepancy between states and the higher level of MAO the more likely consumers
act. Problem recognition relates to acquisition, usage (consumption) and disposition.
7-1a The Ideal State: Where We Want to Be
Where do consumers get a notion of their ideal state?
- Expectations: Bases on passed experiences on everyday consumption and disposition situations
and how products fulfil our needs (e.g. we consider how we look in certain clothes, how fun a
particular vacation destination will be and which old products we should keep).
- Aspirations/goals: Based on what consumers want to achieve in the future (e.g. Wanting to drive a
car for status or joining a club for acceptance).
Consumers’ idea of their ideal state is shaped by various influences:
Personal motivations & culture
- Self-image: What we want to be.
- Cultural differences: Materialistic societies → stronger desire for goods/services.
Social class
- Consumers want acceptance within their class.
- Many aspire to rise to a higher social standing.
Reference groups
- Provide guidance for behavior.
- We strive for acceptance from these groups.
Life changes
- New circumstances (promotion, becoming a parent, graduating, starting a job) create new ideal
states.
- Example: Affluent South Korean consumers buying luxury brands (e.g. Bentley cars) as symbols of
wealth.
, 7-1b The Actual State: Where We Are Now
Consumers’ perception of the actual state can be shaped by different factors:
Physical factors
- Running out of a product.
- Malfunction (e.g., broken cell phone).
- Obsolescence (e.g., outdated digital music player).
- Unexpected service need (e.g., cavity requires dentist).
Needs
- Basic needs: hunger, thirst.
- Social needs: friends making fun of clothing.
Mindset
-A creative mindset can alter how the current situation is perceived.
External stimuli
- Outside events or reminders shift perception.
- Example: Hearing Mother’s Day is next week → realize you need to buy a gift.
Marketing Implications
Marketing plays a key role in triggering problem recognition and motivating consumers to take
action. Companies usually do this in two ways. First, they can create a new ideal state by shaping
consumers’ aspirations—athletic shoes, for example, were once just functional, but today are
promoted as making us faster, healthier, and more fashionable. Second, they can increase
dissatisfaction with the actual state. Saks Fifth Avenue did this by transforming shopping bags into
stylish, eco-friendly fashion statements, making ordinary free bags seem inadequate.
Whether by elevating the ideal state or highlighting flaws in the current state, marketers are most
successful when they position their product as the solution. Zyrtec is marketed as relief for
sneezing, while Mr. Clean Magic Eraser suggests an easy way to “erase” dirt and achieve a cleaner
home.
7-2 Internal Search: Searching for Information from Memory
After problem recognition has been stimulated, consumers begin the decision process to solve
problem. The next step is called Internal search, the process of recalling stored information from
memory.
Because our ability to process information is limited and memory traces can fade over time, we usually
recall only a small subset of what we know. Researchers focus on three aspects of this process:
- The extent of the search (how much we remember).
- The nature of the search (what kind of information we recall)
- The process of retrieval (how stored knowledge enters the decision-making process).
7-2a How Much Do We Engage in Internal Search?
The degree of internal search can vary widely from the simple recall of only a brand name to more
extensive searches through memory for relevant information, feelings, and experiences.
The effort that consumers devote to internal search depends on their MAO to process information.
Consumers will attempt to recall more information when felt involvement, perceived risk, or the need
for cognition is high.
In addition, consumers can engage in active internal search only if the information is stored in
memory. Consumers with a greater degree of knowledge and experience therefore have a greater
ability to search internally. Finally, consumers can recall information from memory only if they have
the opportunity to do so. Time pressure or distractions will limit internal search.
7-2b What Kind of Information is Retrieved from Internal Search?
Much of the research on the role of internal search in consumer judgment and decision-making has
focused on what is recalled. Specifically, researchers have examined the recall of four major types of
information:
(1)brands
(2) attributes
When making a purchase decision, consumers go through stages. First, problem recognition
happens (e.g., your car breaks down and you need a new one). Next, you perform an internal search,
recalling what you already know about brands and features. Then, you do an external search, looking
at ads, visiting dealerships, or reading reviews. These stages may happen in sequence or overlap, but
together they explain the basics of consumer decision-making.
7-1 Problem recognition
The consumer decision process generally begins when a person identifies a consumption problem that
needs to be solved. Example: “I need a new car” or “I would like some new clothes”.
Problem recognition is the perceived difference between an ideal and an actual state. It motivates
the consumer to action.
- Ideal state: The way that consumers would like a situation to be (e.g. having an excellent camera or
wearing attractive clothing)
- Actual state: The real situation as consumers perceive it now.
Problem recognition occurs when consumers notice the discrepancy between the actual and the ideal
state (e.g. “my care needs frequent repairs” or “My clothing is out of date”).
The greater the discrepancy between states and the higher level of MAO the more likely consumers
act. Problem recognition relates to acquisition, usage (consumption) and disposition.
7-1a The Ideal State: Where We Want to Be
Where do consumers get a notion of their ideal state?
- Expectations: Bases on passed experiences on everyday consumption and disposition situations
and how products fulfil our needs (e.g. we consider how we look in certain clothes, how fun a
particular vacation destination will be and which old products we should keep).
- Aspirations/goals: Based on what consumers want to achieve in the future (e.g. Wanting to drive a
car for status or joining a club for acceptance).
Consumers’ idea of their ideal state is shaped by various influences:
Personal motivations & culture
- Self-image: What we want to be.
- Cultural differences: Materialistic societies → stronger desire for goods/services.
Social class
- Consumers want acceptance within their class.
- Many aspire to rise to a higher social standing.
Reference groups
- Provide guidance for behavior.
- We strive for acceptance from these groups.
Life changes
- New circumstances (promotion, becoming a parent, graduating, starting a job) create new ideal
states.
- Example: Affluent South Korean consumers buying luxury brands (e.g. Bentley cars) as symbols of
wealth.
, 7-1b The Actual State: Where We Are Now
Consumers’ perception of the actual state can be shaped by different factors:
Physical factors
- Running out of a product.
- Malfunction (e.g., broken cell phone).
- Obsolescence (e.g., outdated digital music player).
- Unexpected service need (e.g., cavity requires dentist).
Needs
- Basic needs: hunger, thirst.
- Social needs: friends making fun of clothing.
Mindset
-A creative mindset can alter how the current situation is perceived.
External stimuli
- Outside events or reminders shift perception.
- Example: Hearing Mother’s Day is next week → realize you need to buy a gift.
Marketing Implications
Marketing plays a key role in triggering problem recognition and motivating consumers to take
action. Companies usually do this in two ways. First, they can create a new ideal state by shaping
consumers’ aspirations—athletic shoes, for example, were once just functional, but today are
promoted as making us faster, healthier, and more fashionable. Second, they can increase
dissatisfaction with the actual state. Saks Fifth Avenue did this by transforming shopping bags into
stylish, eco-friendly fashion statements, making ordinary free bags seem inadequate.
Whether by elevating the ideal state or highlighting flaws in the current state, marketers are most
successful when they position their product as the solution. Zyrtec is marketed as relief for
sneezing, while Mr. Clean Magic Eraser suggests an easy way to “erase” dirt and achieve a cleaner
home.
7-2 Internal Search: Searching for Information from Memory
After problem recognition has been stimulated, consumers begin the decision process to solve
problem. The next step is called Internal search, the process of recalling stored information from
memory.
Because our ability to process information is limited and memory traces can fade over time, we usually
recall only a small subset of what we know. Researchers focus on three aspects of this process:
- The extent of the search (how much we remember).
- The nature of the search (what kind of information we recall)
- The process of retrieval (how stored knowledge enters the decision-making process).
7-2a How Much Do We Engage in Internal Search?
The degree of internal search can vary widely from the simple recall of only a brand name to more
extensive searches through memory for relevant information, feelings, and experiences.
The effort that consumers devote to internal search depends on their MAO to process information.
Consumers will attempt to recall more information when felt involvement, perceived risk, or the need
for cognition is high.
In addition, consumers can engage in active internal search only if the information is stored in
memory. Consumers with a greater degree of knowledge and experience therefore have a greater
ability to search internally. Finally, consumers can recall information from memory only if they have
the opportunity to do so. Time pressure or distractions will limit internal search.
7-2b What Kind of Information is Retrieved from Internal Search?
Much of the research on the role of internal search in consumer judgment and decision-making has
focused on what is recalled. Specifically, researchers have examined the recall of four major types of
information:
(1)brands
(2) attributes
