Cb 4

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Cb 4

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

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