Consumer problem recognition occurs when a consumer perceives a significant difference between their desired state of needs being met and the actual state. The desired state is how a consumer wants a need to be satisfied, and is influenced by reference groups, thinking, and financial considerations. The actual state is how needs are currently being met, and can be affected by arousal of needs, previous decisions, culture, and individual development. Whether a consumer takes action depends on factors like their past experiences, characteristics, motives, environmental influences, and past marketing stimuli.

1. DEFINING PROBLEM RECOGNITION “ Problem Recognition” results when a consumer recognizes a difference of sufficient magnitude between what is perceived as the desired state and the actual state. “ Actual State ” refers to the way in which a need is already being met. “ Desired state ” is the way in which a person would like for the need to be satisfied

2. Factors affecting the Desired State Reference Groups Thinking Factor affecting both Financial Considerations Previous Decisions Family Characteristics Culture Individual Development Factors affecting actual State Arousal of needs Post purchase evaluation Desired State Actual State Opportunity Recognition Need Recognition Consumer Problem Recognition Consumer Action No Consumer Action

3. Consumers’ Past Experiences Consumer Characteristics –benefits sought by consumers , to some extent are conditioned by demographics , lifestyles , personalities, Income , Age , Marital Status Consumer Motives – Motives are general drivers that direct a consumer’s behaviour towards attaining his/ her needs. Greater the disparity between current situation and desired goals , the greater the motivational drive to act to satisfy consumer needs Environmental Influences –like social settings , family , peers Past Marketing Stimuli - Past information about brand characteristics and price also affect consumers’ needs . Consumers obtain such information from advertisement , Television , Radio , Sales Representatives , Internet INFLUENCES ON THE CONSUMER