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  • 1. Lecture Objectives
    • Understand the overall model of Consumer Behavior
    • Nature of Problem Recognition
    • Difference between habitual, limited and extended decision making
    • Methods for measuring problem recognition
  • 2. Overall Model of CB
  • 3. Consumer Decision Types
    • Extended Decision Making
      • High perceived risk
      • Typically expensive, infrequently purchased products
    • Habitual Decision Making
      • Low perceived risk
      • Purchases made out of habit or brand loyalty
      • Typically inexpensive, frequently purchased product
    • Limited Decision Making
      • Moderate perceived risk
      • Consumer has limited time or energy
  • 4. Problem Recognition Result of an imbalance between actual and desired states.
  • 5. Problem Recognition Internal Stimuli and External Stimuli Present Status Preferred State Marketing helps consumers recognize an imbalance between actual state and desired state
  • 6.
    • Where do we get our notion of what is ideal state or a desired state????
  • 7.
    • personal expectations
    • personal aspirations
    • culture
    • reference group
    • marketing
  • 8. Stimulus
    • Any unit of input affecting one or more of the five senses:
    • sight
    • smell
    • taste
    • touch
    • hearing
  • 9. Want Recognition of an unfulfilled need and a product (or attribute or feature) that will satisfy it.
  • 10. Recognition of Unfulfilled Wants
    • When a current product isn’t performing properly
    • When the consumer is running out of an product
    • When another product seems superior to the one currently used
  • 11. Consumer Goals
    • Discuss
  • 12. Levels of Goals
    • Life Themes and Values
    • Life Projects
    • Current Concerns
    • Consumption Intentions
    • Benefits Sought
    • Feature Preferences
  • 13. Process of Problem Recognition
    • Discuss
  • 14. Consumer Problems
    • Active Problem
    • Inactive Problem
  • 15. Factors Influencing the Desired State
    • Culture
    • Reference Group
    • Household Characteristics
    • Financial Status
    • Previous Decisions
    • Individual Development
    • Motives
    • Emotions
    • The Situation
  • 16. Factors Influencing the Actual State
    • Past Decisions
    • Normal Depletion
    • Product/brand Performance (Instrumental& Expressive)
    • Individual Development
    • Emotions
    • Efforts of Consumer Groups and Govt. Departments
    • The Availability of Products
    • The Current Situation
  • 17. Marketing Implications
    • Putting consumers in a state of problem recognition may stimulate the decision process and lead to acquisition, consumption or disposition of a product or service.
    • Without problem recognition, marketing efforts are likely to be less effective because the consumer may not be motivated to process information.
    • Marketers use two techniques to try to stimulate problem recognition: they can attempt to create a new ideal state or create dissatisfaction with the actual state.
    • Either way marketers are more likely to get a response if they position the product or service as a solution to the consumer’s problem.