1. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 1 Problem Recognition Chapter 3  The nature of problem recognition  The difference between habitual, limited and extended decision making  The methods for measuring problem recognition  The marketing strategies used to activate problem recognition

2. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 2 Purchase Involvement and Types of Decision Making Low purchase involvement High purchase involvement Habitual decision making Limited decision making Extended decision making

3. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 3 Need/Problem Recognition What happens during need/problem recognition? Need activation Non-marketing influences Marketing influences Is it different for different people? Implications for marketing strategy

4. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 4 Decision Process Purchase involvement ôinfluenced by the interaction of individual, product and situational characteristics Forms of involvement and outcomes Habitual decision making Limited decision making Extended decision making Implications for strategy

5. Purchase Involvement and Types of Decision Making Insert figure 3.1 3/e (but exclude words from slide 2, 3/e, at top of figure)

7. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 7 Non-marketing Factors Affecting Problem Recognition

8. Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 8 Marketing Strategy and Problem Recognition Measuring problem recognition activity analysis product analysis problem analysis human factors research emotion research Reacting to problem recognition Activating problem recognition Timing problem recognition Suppressing problem recognition