1. PART THREE The Process of Making Decisions

2. Chapter 9 PROBLEM RECOGNITION & INFORMATION SEARCH

3. Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation

4. Chapter Overview Identifying a problem Internal search External search

5. Definition Problem : the perceived difference between an _________ state and ________ state

6. Some “Problems” Recognized and Possible Solutions

7. The Ideal State Simple expectation Aspirations Cultural basis Changes in life (e.g., promotion, birth of child)  changes in expectations

8. The Actual State Simple Physical Functions –Depletion and wear-out –Product malfunctions –Ailments External stimuli –Advertising and reminders –Comparison to others; peer pressure

9. How to Create “Problems” for Consumers Create a new ideal state –E.g., fashion Create dissatisfaction with actual state –Eg., fear of crime  buy club, guns, burglar alarms  feeling of safety

10. Approaches to Search for Problem Solutions INTERNAL EXTERNAL Memory Thinking Word of mouth, media, store visits, trial CATALOG

11. Internal Search Varies in effort by importance, motivation, and experience Recall based on –Brands –Attributes –Evaluations –Experiences Advil Excedrin Aleve Bayer Tylenol

12. Biases in Internal Search Confirmation bias Inhibition Mood

13. External Search Prepurchase vs. Ongoing Extent of searching Where we search – retailer/store – media – interpersonal – independent – experiential Internet information searches

14. Actual Searching Behavior 42%of respondents shopping for a refrigerator only visited one store and 41% considered only one brand 77% of consumers seeking to purchase a small appliance visited only one store What does this mean to you as a marketer?

15. Individual Application Exercise Apply your choice of attending CSUC to the topics of PROBLEM RECOGNITION and INFORMATION SEARCH. List specifically how you recognized a problem (actual & ideal state??) Did you do any internal search? Any biases? Did you do any external searching? Where? List specifics and be prepared to discuss.

16. Chapter 9 Review Problems –Ideal vs. actual state –Creating “problems” for customers Internal Search –Biases External Search –What, where, how much –Internet implications