1. Searching
Cognitive Dissonance Problem Solving – Search Alternatives Set Theory Week 1 Lecture 3

2. Questions Faced By Consumers
Are veggie burgers actually healthy?
What makeup should you use to get an “even” skin tone?
Do I get any useful benefits from spending more than 1300 RMB on a digital watch?
Should I colour my hair?” What should I do?
Is my car mechanic honest?
Should I join Facebook?
Should I give my wife roses, chocolate, or a new iron?

3. Consumer Problems and Recognition
Consumer problem: Discrepancy between ideal and actual state--e.g., consumer:
Has insufficient hair
Is hungry
Has run out of ink in his or her inkjet cartridge
Problems can be solved in several ways--e.g., stress reduction < vacation, movie, hot bath, medication

4. CONSUMER DECISIONS: Theory and Reality in Consumer Buying
PROBLEM
RECOGNITION
INFORMATION
SEARCH
EVALUATION OF
ALTERNATIVES
PURCHASE
POSTPURCHASE
EVALUATION/
BEHAVIORS
Theory
Complications

5. Cognitive Dissonance WIKIPEDIA accessed 04092012
Cognitive dissonance is the term used in modern psychology to describe the discomfort felt by a person seeking to hold two or more conflicting cognitions (e.g., ideas, beliefs, values, emotional reactions) simultaneously. In a state of dissonance, people may feel surprise, dread, guilt, anger, or embarrassment.[1] The theory of cognitive dissonance in social psychology proposes that people have a motivational drive to reduce dissonance by altering existing cognitions, adding new ones to create a consistent belief system, or alternatively by reducing the importance of any one of the dissonant elements.[1] An example of this would be the conflict between wanting to smoke and knowing that smoking is unhealthy; a person may try to change their feelings about the odds that they will actually suffer the consequences, or they might add the consonant element that the short term benefits of smoking outweigh the long term harm. The need to avoid cognitive dissonance may bias one towards a certain decision even though other factors favour an alternative.[2]
WIKIPEDIA accessed

6. Consumer Search and Evaluation

7. Stages of Search and Choice
Information Search – seeking values
Evaluation of Alternatives – assessing value
Purchase decision – buying value
Post Purchase – value in use

8. Three Problem Solving Variants
Routine
Limited
Extended

9. Routine Problem Solving
Almost a Habit
Little effort in buying process
Low priced, frequently used products

10. Limited Problem Solving
Moderate effort
Buyer has little time or effort to spend

11. Extended Problem Solving
All stages of decision making process used
Time and effort spent on search and evaluation
High involvement purchases

12. Information Search Internal - memory of previous External
experiences
External
- personal sources
- public sources
- marketing sources

13. Information Search aids Consumer by:
Suggesting purchase criteria
Identifying possible brand names
Developing value perceptions

14. Alternative Evaluation – Assessing Value
Consumers evaluation criteria represent
Objective / functional attributes of product
Symbolic/subjective factors

15. Purchase Decision – Buying Value
Three possibilities:
From whom to Buy
When to Buy
Do Not Buy

16. From Whom…
Terms of sale
Past experience of seller
Returns policy

17. When To Buy…
Store experience
Time pressure
Sales process

18. Five Situational Influences
Purchase Task
Social surroundings
Physical surroundings
Temporal effects
States (Mood)

19. Problem Solving – Search Alternatives
Internal Search
External Search
Limited Decision Making
Extended Decision Making
Ongoing search for pleasure as part of a hobby and information for future use – Opinion leaders

20. Inert Set Neutral Brands
Set Theory
All Brands
Awareness Set
Evoked Set
Acceptable Brands
Inept Set
Unacceptable Brands
Inert Set Neutral Brands
Unawareness Set

21. Options Identified and Considered
UNIVERSAL SET
All possible options
RETRIEVED SET
Options that readily come to mind
EVOKED SET
Options that will be considered by the consumer
Note: Retrieved and evoked sets will vary among different consumers

22. Approaches to Search for Problem Solutions
INTERNAL
Long Term Memory
Remembering
Experience
We now turn to the consumer’s search for potential solutions to the problems that he or she is facing. Search strategies can be divided into those involving internal and external search, although consumers may use both in some combination.
Internal search is based on the consumer’s memory and his or her thinking processes. In the case of a motorist stranded with a blown tire, for example, he or she may remember preferred provider of replacement tires and thus go to that one. An implication of this reality is that it may pay to advertise to establish an identity among potential future consumers. For example, bail bonds people will advertise on TV to people, suggesting a solution if they, for some reason, should find themselves in jail. Similarly, Midas Mufflers and various other auto service providers attempt to create internal beliefs about the benefits of patronizing their establishments if and when the need arises. Aamco Transmissions advertises that half the half the transmissions they see do not need to be replaced, presumably implying that it is safer to take a car there than to ostensibly less skilled competitors. The marketer, however, faces some significant problems in creating this kind of awareness. First, many consumers, not readily expecting to encounter a need for the products and services in question, may have little motivation to process and store the information. Secondly, recalling the relevant information may be difficult as need arises.
External search involves the consultation of outside sources, ranging from friends and acquaintances to the yellow pages and the media. (We will revisit this issue in Chapter 18, when we discuss, within the context of the diffusion of innovation, which
EXTERNAL
Word of mouth, Opinion leaders,
media, internet – types of sites,
store visits, - sales people, POS,
Trial if possible
CATALOG

23. Evaluative Criteria May be part of the search process.
Refining of needs
EG Digital Camera.
Set theory before....
Desired Characteristics.
Specifically and general aspects.

24. Evaluative Criteria -Specifically
Technical specification....
Performance
Features
Price / Cost of ownership
Desired Characteristics.
Other aspects >>>>

25. Evaluative criteria - Wider aspects. Penult
Visibility of purchase
Emotional Purchase
Maslow aspects .

26. POSTPURCHASE EVALUATION/BEHAVIORS
Review decision
Information sources
Learn information
Update memory

27. Moore’s Law
Computer power growing exponentially Prices remaining stable if not falling Equals better value but when does the consumer buy and how does this impact upon new products and profits and the marketing mix generally?

28. Search Exercise
Interview a person to find out what they are considering purchasing and ask them to tell you about the evaluative criteria they have – this will mean that you will have to list the possible features / and match these to their needs.
In other words what do they want to do with the product.
EG Camera. (Electric) Bike, Trainers, MP3 player, Notebook computer