1. Problem Recognition & Search
Chapter 7
Problem Recognition & Search

2. Learning Objectives
To understand consumer problem recognition and the decision making process.
To know how & why consumers conduct internal search.
To know how & why consumers conduct external search.
To access challenges marketers face in influencing consumers’ searches.

3. Problem Recognition and Information Search

4. Ideal State: Where we want to be
Problem Recognition
Ideal State: Where we want to be
Actual State:
Where we are now

5. Stimulating Problem Recognition
Create a new ideal state
Create dissatisfaction with actual state
Position as solution to problem

6. Internal Search Searching for Information from Memory
Degree of internal search
Kind of information recalled:
Brands
Attributes
Evaluations
Experiences

7. Brand Recall Consideration or evoked set Vary in terms of: Size
Stability
Variety
Preference dispersion

8. Brand Recall Prototypicality Familiarity Goals/Usage Situation
Preference
Retrieval Cues

9. Attribute Recall Accessibility/Availability Diagnosticity Salience
Vividness
Goals

10. Is Internal Search Accurate?
Confirmation bias—Draw attention to negatives of competition
Inhibition
Consumers don’t always consider key aspects
Consumers recall other, more accessible attributes
Mood

11. External Search: Searching for Information from Environment

12. Sources of External Information
Retailer
Media
Interpersonal
Independent
Experiential
Internet

13. Internet Sources Keyword search Shopping agents Information overload
Simulations
Online community

14. Social Media
©adage.com

15. Measures of Online Consumer Activity~1

16. Measures of Online Consumer Activity~2

17. Effort to Process Information
Influenced by
Motivation
Ability
Opportunity
What motivates you to process information in advertising?

18. Motivation to Process Information
Involvement and perceived risk
Perceived costs and benefits
Consideration set
Relative brand uncertainty
Attitudes toward search
Discrepancy of information

19. Ability to Process Information
Consumer knowledge
Cognitive abilities
Demographics

20. Opportunity to Process Information
Amount of information available
Information format
Time availability
Number of items being chosen

21. Information Acquired in Search
Accuracy?
Search by:
Brand
Attribute
Brand name
Price
Other
Reliability
Durability
Relevant

22. Questions?