1. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 7 Problem Recognition and Information Search

2. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives~ Ch. 7 1.Describe how consumers recognize a consumption problem and show why marketers must understand this part of the decision-making process. 2.Describe how consumers recognize a consumption problem and show why marketers must understand this part of the decision-making process. 3.Explain why and how consumers conduct an external search to solve a consumption problem. 4.Identify opportunities and the challenges that marketers face in trying to influence external searches.

3. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Stimulating Problem Recognition Create a new ideal state Create dissatisfaction with actual state Position as solution to problem

4. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal Search Searching for information from memory Degree of internal search Kind of information recalled: –Brands –Attributes –Evaluations –Experiences

5. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Brand Recall Consideration or evoked set Vary in terms of: –Size –Stability –Variety –Preference dispersion

6. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Brand Recall Prototypicality Familiarity Goals/usage situation Preference Retrieval cues

7. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attribute Recall Accessibility/availability Diagnosticity Salience Vividness Goals

8. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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

9. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Sources of External Information Retailer Media Interpersonal Independent Experiential Internet

10. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Effort to Process Information Influenced by –Motivation –Ability –Opportunity What motivates you to process information in advertising?

11. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Motivation to Process Information Involvement and perceived risk Perceived costs and benefits Consideration set Relative brand uncertainty Attitudes toward search Discrepancy of information

12. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ability to Process Information Consumer knowledge Cognitive abilities Demographics

13. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunity to Process Information Amount of information available Information format Time availability Number of items being chosen

14. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Acquired in Search Accuracy? Search by: –Brand –Attribute –Brand name –Price –Other Reliability Durability Relevant