unit-2-consumer-decision-process.pptx

Consumer Decision Process:
Problem Recognition

Consumer Decision Making Process
Consumer decision making process involves the
consumers to identify their needs, gather information,
evaluate alternatives and then make their buying
decision. The consumer behavior may be determined
by economic and psychological factors and are
influenced by environmental factors like social and
cultural values.

The consumer decision making behavior is a complex procedure
and involves everything starting from problem recognition to
post-purchase activities. Every consumer has different needs in
their daily lives and these are those needs which make them to
make different decisions. Decisions can be complex, comparing,
evaluating, selecting as well as purchasing from a variety of
products depending upon the opinion of a consumer over a
particular product. This renders understanding and realizing the
basic problem of the consumer decision making process for
marketers to make their products and services different from
others in the marketplace.

Extensive/Complex Decision
Making
high involvement,
unfamiliar, expensive and/or infrequently bought
products.
High degree of economic/ performance/
psychological risk.
Examples include cars, homes, computers,
education.
Information from the companies ; friends and relatives,
store personnel etc.

Dissonance Reducing Buying
behaviour
• Dissonance reducing buying behavior occurs
when the consumer is highly involved but sees
little difference between brands.
• Consumer involvement is very high due to high price
and infrequent purchase.
 Insignificance differences among brands .
• Examples includes: Carpet, Sofa and Ring

Habitual Buying Behavior
consumer involvement is low however, purchases
are frequent.
no significance difference amongbrands.
example : Milk ( DDC VS Sitaram), bread.
For such brands tv commercials, news papers and
magazines build positive attitude of consumers
towards.
( Marketers should focus on advertisement)

Variety Seeking Buying
Behavior
Consumer involvement is very low
significance differences among brands.
brand switching is common.
Attract consumers by offering free samples, l
special discounts
and attracting through shelves.
Brand switching occurs for the sake of varietyrather than
dissatisfaction.
example: chips, soaps, ice-cream etc,
( Marketers should try to produce variety products for ex. Oreo and
Bournvita biscuits are both from Cadbury)

Purchase Involvement
• LEVEL OF INVOLVEMENT IS THE DEGREE OF
INFORMATION PROCESSING AND THE AMOUNT
OF IMPORTANCE A CONSUMER ATTACHES TO A
PRODUCT WHILE PURCHASING IT. IN OTHER
WORDS, IT SHOWS HOW INVOLVED THE
CUSTOMER IS TOWARDS A PRODUCT
PERSONALLY, SOCIALLY AND ECONOMICALLY.

Degree Product/Service Examples
Low Level
involvement
Short Life Fast moving consumer
goods. (Low cost &risk)
Eg: Matchbox, Toothpaste,
snacks,etc.
Medium level
involvement
Medium Furniture, crockery, ordinary
medical treatment (medium
level of risk & cost factor)
High Level
involvement
Long Automobiles, surgery,
purchase of immovable
assets, insurance policy etc.
(High level of risk and
expensive)

Low Involvement Purchase
Decisions
• These type of decisions are considered habitual
decisions. These are products or services that a
person buys on a regular basis and does not have
to do any research on. For example, a low-
involvement decision can include groceries,
laundry detergent, and household items that are
purchased all the time and the consumer already
knows what they want to buy.

Medium Involvement Purchase
Decisions
These type of decisions are considered simple
decisions. A product or service that only requires
medium involvement can include a new pair of shoes.
The consumer will be more involved than they were
with household products but they are not necessarily
doing research on the new shoes they want to buy.
They will go to a store and try on different pairs of
shoes until they find the pair they want. This is a
simple decision that is made in the store and not over a
long amount of time.

High Involvement Purchase
Decisions
Typically, the more money a consumer is going to
spend on a product, the more involved they will be
in the decision-making process. These types of
purchases can be expensive jewellery, vacations,
cars, and houses. These types of decisions take
time and requires research. The consumer will not
make the decision instantly, instead will compare
product or service such that to eliminate risk.

Types of Consumer Problems
Consumer encounters various types of problem in
their daily life. Either they involve low involvement
product , medium involvement product or high
involvement product. There are two types of
consumer problems;
Active Problem and
Inactive Problem

Active Problem
•An active problem is one the consumer is
aware of or will become aware of in normal
course of events.
•Marketing strategy: Only require
marketer to convince consumers that its
brand is the superior solution

Inactive Problem
•An inactive problem is one of which the
consumer is not aware.
•Marketing strategy: Marketer must convince
consumers that they have the problem AND
thattheir brand is a superior solution.

Routine problems:
Expected, require immediate solution.
Emergency problems:
Not expected, require immediate solution.
Planning problems:
Expected, don’t require immediate solution.
Evolving problems:
Not expected, don’t require immediate
solution.

The Process of Problem
Recognition
3–16

The Process of Problem
Recognition (cont.)
3–17

The Desire to Resolve Recognised
Problems
Depends on two factors:
1. The magnitude of the differences between the
desired state and the actual state.
2. The relative importance of the problem.

Marketing
Strategy
and
Problem
Recogniti
on
´Discovering Consumer Problems
´Responding to Consumer Problems
´Helping Consumers Recognize Problems
´Suppressing Problem Recognition

Discovering Consumer Problem
A wide variety of approaches are used to determine the problems
consumers face. –
Intuition(the ability to understand something ): - the most
common, however, the problemidentified may be of low
importance to most consumers.
Survey:- asks relatively large numbers of individuals about the
problems they are facing-
Focus Groups: composed of 8 to 12 similar individuals brought
together to discuss a particular topic; a moderator is present to keep
the discussion moving and focused on the topic but otherwise free
flowing.

Consumer problems can be discovered through
1. Activity and Product Analysis:
Activity analysis focuses on a particular activity, such as preparing dinner or
swimming. Then, surveys or focus groups attempt to determine what problems
consumers encounter during the performance of the activity.
For example: a shampoo company could use such an approach to develop products
specifically for the hair related problems associated with swimming in chlorinated
pools.
Product analysis is similar to activity analysis but examines the purchase or use of a
particular product or brand. Thus, consumers may be asked about problems
associated with using their mountain bikes or laptop computers.

2. Problem Analysis:
Problem analysis is different in that it starts with a problem and asks respondents
to indicate which activities, products, or brands are associated with (or perhaps
could eliminate) those problems.
For example:
…………….. Packages are hard to open.
Packages of ……………waste too many resources.
Packages of…………….don’t fit on the shelf.

3. Human Factor Research:
Human factors research attempts to determine human capabilities in area such as vision, strength,
response time, flexibility, and fatigue and the effect on these capabilities of lighting, temperature, and
sound.
For example: The manager of a bank branch is concerned about the number of mistakes the tellers
were making, so he started manipulating different aspects of the environment in the bank to see what
effect each has on the tellers performance examined factors such as the lighting, temperature, and the
volume of the music playing in the bank.
4. Emotion Research:
Researchers are beginning to examine how consumers cope with the negative emotions associated
with product or service failures.

3-26
Responding to Consumer Problems
Once a consumer problem is identified, the manager may structure the
marketing mix to solve the problem.
This can involve:
• Developing a new product or altering an existing one
• Modifying channels of distribution
• Changing pricing policy, or
• Revising advertising strategy
For example: Many people wants to remain slim or away from diabetes, yet
want to enjoy sweets. Sugar free is their solution.

Helping Consumer Recognise their
Problem
1. Generic Problem Recognition involves a
discrepancy that a variety of brands within a
product category can reduce. Increasing problem
recognition generally results in an expansion of
the total market.
2. Selective Problem Recognition involves a
difference only one brand can solve. Firms
attempt to cause selective problem recognition to
gain or maintain market share. Eg. Reliance Jio

Timing problem recognition:
Consumers often recognize problems at times
when purchasing a solution is difficult or
impossible:
g. winter colds: Heater
Generator during Load sheading.

Suppressing Problem Recognition
Competitors, governmental agencies and consumer
organizations often introduce information in the market which
marketers would otherwise avoid.
For example: In case of tobacco selling, they undermine the
role of cigarettes as injurious, with such advertisement as
“Alive with pleasure”. They minimize problem recognition of
it being injurious.

unit-2-consumer-decision-process.pptx

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