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Consumers As Problem Solvers

Traditionally, consumer researchers have approached decision making process
from a rational perspective. This dominant school of thought views consumers as
being cognitive and, to some but a lesser degree, emotional. 1 Such a view is
reflected in the stage model of a typical buying process (often called the consumer
information processing model) depicted in Figure 1.

             Problem Recognition
                                               In this model, the consumer passes through
                                               five stages: problem recognition, information
                                               search, evaluation and selection of
                                               alternatives, decision implementation, and
              Information Search
                                               post-purchase evaluation.

                                    Problem Recognition
    Evaluation and Selection of Alternatives
                                    In this information processing model, the
                                    consumer buying process begins when the
                                    buyer recognizes a problem or need. For
          Decision Implementation   example, Kathleen may recognize that her
                                    personal computer is not performing as well
                                    as she thought it should. This is the kind of
          Post-purchase Evaluation  problem that we as consumers encounter all
                                    the time. When we found out a difference
                                    between the actual state and a desired state, a
                                    problem is recognized. When we find a
problem, we usually try to solve the problem. We, in other words, recognize the
need to solve the problem. But how?

Information Search
When a consumer discovers a problem, he/she is likely to search for more
information. Kathleen may simply pay more attention to product information of a
personal computer. She becomes more attentive to computer ads, computers
purchased by her friends, and peer conversations about computers. Or, she may
more actively seek information by visiting stores, talking to friends, or reading
computer magazines, among others. Through gathering information, the consumer
learns more about some brands that compete in the market and their features and
characteristics.

Evaluation and Selection of Alternatives
How does the consumer process competitive brand information and evaluate the
value of the brands? Unfortunately there is no single, simple evaluation process
applied by all consumers or by one consumer in all buying situations.
One dominant view, however, is to see the evaluation process as being cognitively
driven and rational. Under this view, a consumer is trying to solve the problem
and ultimately satisfying his/her need. The distinctions among the need, benefits,
and attributes are very important. One useful way to organize the relationships
among the three is a hierarchical

Decision Implementation
To actually implement the purchase decision, however, a consumer needs to select
both specific items and specific outlets to resolve the problems. There are, in fact,
three ways these decisions can be made: 1) simultaneously; 2) item first, outlet
second; or 3) outlet first, item second. 2 In many situations, consumers engage in a
simultaneous selection process of stores3 and brands.

Post-purchase Evaluation
Post-purchase evaluation processes are directly influenced by the type of
preceding decision-making process. Directly relevant here is the level of purchase
involvement of the consumer. Purchase involvement is often referred to as “the
level of concern for or interest in the purchase” 4 situation, and it determines how
extensively the consumer searches information in making a purchase decision. 5
consume and/or dispose of the product with very limited post-purchase evaluation,
and generally maintain a high level of repeat purchase motivation (Figure 3).

                                                     Simple         Repeat Purchase
  Purchase       Product Use       Disposition
                                                    Evaluation        Motivation


Figure 4      Elaborate Post-purchase Evaluation


According to the research, the likelihood of experiencing this kind of dissonance
and the magnitude of it is a function of:6
• The degree of commitment or irrevocability of the decision,
• The importance of the decision to the consumer,
• The difficulty of choosing among the alternatives, and
• The individual’s tendency to experience anxiety.
Because dissonance is uncomfortable, the consumer may use one or more of the
following approaches to reduce it:7
• Increase the desirability of the brand purchased.
• Decrease the desirability of rejected alternatives.
• Decrease the importance of the purchase decision.
• Reject the negative data on the brand purchased.

The Hierarchy of Effects


                                          2
Another widely-used model in marketing that attempts to explain consumer
decision making process is called the hierarchy of effects model. Although
different researchers developed slightly different models, the basic idea is the
same: people experience a sequence of psychological stages before purchasing a
product. Such a model is provided in Figure 5. 8

Figure 5      A General Model of the Hierarchy of Effects
                    Originally conceived to explain how advertising affects
     Purchase
                    consumer’s purchase decisions, the hierarchy of effects
                    (HOE) model focuses on consumer learning that takes place
   C onviction      as he/she processes information from the external world.
                    The HOE model begins with the state where a consumer has
    Preference      no awareness about the brand then develops awareness
                    triggered by external stimuli, such as advertising message or
                    “word of mouth.” As he/she obtains and processes more
      L iking
                    information, the consumer develops more specific knowledge
                    about the brand. The knowledge, then, is used as basis to
   K now   ledge    form a liking (or disliking), leading to a preference of
                    brand(s) relative to the others. However, people need to be
   A areness
      w             pushed beyond the preference stage to actually buy the brand
                    of preference. The preference stage, after all, simply means
  U naw  areness
                    that the consumer has formed a preference psychologically.
                    Now it takes conviction for him/her before actually buying
the brand.

By now, you might have realized at least two points. One, it seems reasonable that
not all the consumers are at the same stage. Two, it also seems reasonable that not
all people at one stage move onto the next stage.

The HOE model is quite similar to the consumer information processing model
because it also assumes that people are cognitively driven, thinking information
processors. Controversy exists,9 of course, as to whether that is necessarily true.
Some may claim that they often form liking and preference toward brands before
developing cognitive judgment on them. Others argue that people form preference
and knowledge simultaneously. Although each argument has its own support, the
general model seems to be valid especially in relatively complex – or high-
involvement – decision making situations, providing a conceptual framework for
thinking about the sequence of events which begins from the initial awareness to
the final action.




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Consumer decisiion making

  • 1. Consumers As Problem Solvers Traditionally, consumer researchers have approached decision making process from a rational perspective. This dominant school of thought views consumers as being cognitive and, to some but a lesser degree, emotional. 1 Such a view is reflected in the stage model of a typical buying process (often called the consumer information processing model) depicted in Figure 1. Problem Recognition In this model, the consumer passes through five stages: problem recognition, information search, evaluation and selection of alternatives, decision implementation, and Information Search post-purchase evaluation. Problem Recognition Evaluation and Selection of Alternatives In this information processing model, the consumer buying process begins when the buyer recognizes a problem or need. For Decision Implementation example, Kathleen may recognize that her personal computer is not performing as well as she thought it should. This is the kind of Post-purchase Evaluation problem that we as consumers encounter all the time. When we found out a difference between the actual state and a desired state, a problem is recognized. When we find a problem, we usually try to solve the problem. We, in other words, recognize the need to solve the problem. But how? Information Search When a consumer discovers a problem, he/she is likely to search for more information. Kathleen may simply pay more attention to product information of a personal computer. She becomes more attentive to computer ads, computers purchased by her friends, and peer conversations about computers. Or, she may more actively seek information by visiting stores, talking to friends, or reading computer magazines, among others. Through gathering information, the consumer learns more about some brands that compete in the market and their features and characteristics. Evaluation and Selection of Alternatives How does the consumer process competitive brand information and evaluate the value of the brands? Unfortunately there is no single, simple evaluation process applied by all consumers or by one consumer in all buying situations.
  • 2. One dominant view, however, is to see the evaluation process as being cognitively driven and rational. Under this view, a consumer is trying to solve the problem and ultimately satisfying his/her need. The distinctions among the need, benefits, and attributes are very important. One useful way to organize the relationships among the three is a hierarchical Decision Implementation To actually implement the purchase decision, however, a consumer needs to select both specific items and specific outlets to resolve the problems. There are, in fact, three ways these decisions can be made: 1) simultaneously; 2) item first, outlet second; or 3) outlet first, item second. 2 In many situations, consumers engage in a simultaneous selection process of stores3 and brands. Post-purchase Evaluation Post-purchase evaluation processes are directly influenced by the type of preceding decision-making process. Directly relevant here is the level of purchase involvement of the consumer. Purchase involvement is often referred to as “the level of concern for or interest in the purchase” 4 situation, and it determines how extensively the consumer searches information in making a purchase decision. 5 consume and/or dispose of the product with very limited post-purchase evaluation, and generally maintain a high level of repeat purchase motivation (Figure 3). Simple Repeat Purchase Purchase Product Use Disposition Evaluation Motivation Figure 4 Elaborate Post-purchase Evaluation According to the research, the likelihood of experiencing this kind of dissonance and the magnitude of it is a function of:6 • The degree of commitment or irrevocability of the decision, • The importance of the decision to the consumer, • The difficulty of choosing among the alternatives, and • The individual’s tendency to experience anxiety. Because dissonance is uncomfortable, the consumer may use one or more of the following approaches to reduce it:7 • Increase the desirability of the brand purchased. • Decrease the desirability of rejected alternatives. • Decrease the importance of the purchase decision. • Reject the negative data on the brand purchased. The Hierarchy of Effects 2
  • 3. Another widely-used model in marketing that attempts to explain consumer decision making process is called the hierarchy of effects model. Although different researchers developed slightly different models, the basic idea is the same: people experience a sequence of psychological stages before purchasing a product. Such a model is provided in Figure 5. 8 Figure 5 A General Model of the Hierarchy of Effects Originally conceived to explain how advertising affects Purchase consumer’s purchase decisions, the hierarchy of effects (HOE) model focuses on consumer learning that takes place C onviction as he/she processes information from the external world. The HOE model begins with the state where a consumer has Preference no awareness about the brand then develops awareness triggered by external stimuli, such as advertising message or “word of mouth.” As he/she obtains and processes more L iking information, the consumer develops more specific knowledge about the brand. The knowledge, then, is used as basis to K now ledge form a liking (or disliking), leading to a preference of brand(s) relative to the others. However, people need to be A areness w pushed beyond the preference stage to actually buy the brand of preference. The preference stage, after all, simply means U naw areness that the consumer has formed a preference psychologically. Now it takes conviction for him/her before actually buying the brand. By now, you might have realized at least two points. One, it seems reasonable that not all the consumers are at the same stage. Two, it also seems reasonable that not all people at one stage move onto the next stage. The HOE model is quite similar to the consumer information processing model because it also assumes that people are cognitively driven, thinking information processors. Controversy exists,9 of course, as to whether that is necessarily true. Some may claim that they often form liking and preference toward brands before developing cognitive judgment on them. Others argue that people form preference and knowledge simultaneously. Although each argument has its own support, the general model seems to be valid especially in relatively complex – or high- involvement – decision making situations, providing a conceptual framework for thinking about the sequence of events which begins from the initial awareness to the final action. 3