Chapter 2

Problem Recognition &

Information Search

Copyright Atomic Dog Publishing, 2002

Chapter Spotlights

Consumer decision process action options

Problem recognition: actual state versus
desired state and motivation arousal
Pre-purchase, post-purchase, and
ongoing information search
Internal and external information search
Consideration sets
Sources of marketplace information

Copyright Atomic Dog Publishing, 2002

Consumer Decision
Process Action Options

Start through steps and complete them in

order
Start, stop, start, stop, etc. and complete
steps in order
Start steps and loop back as needed
based on what happens and complete
process
Start into the process then stop
somewhere along the way and never finish
Do not start the process
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Problem Recognition

When consumers realize that they need

something!
It is the first step in the decision-making
process:

Problem recognition
Information search
Alternative evaluation
Choice
Outcomes
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Motivational Arousal

Different people have different benefit

motivations for purchasing different
products or services.
Types of benefit motives:

To
To
To
To
To

optimize satisfaction
prevent possible future problems
escape from a problem
resolve a conflict
maintain the status quo or satisfaction
Copyright Atomic Dog Publishing, 2002

Problem Recognition:
Actual State versus
Desired
State

It is the psychological process used

to determine the difference
between the consumers actual
benefits state (where you are) and
the desired benefits state (where
you want to be).

Opportunity (vs. problem) recognition

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Problem Recognition
Influences

Situational influences
Consumer influences
Marketing influences

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Situational Influences

Product consumption (e.g., running

out of gas)
Product acquisition (e.g., purchasing a
new home may stimulate other
purchases)
Changed circumstances (e.g., moving
away from home to college)

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Consumer Influences

Actual state consumers: those who

look to existing products to solve
their problems.
Desired state consumers: those
who shop for new products to
address their problems.

They enjoy the shopping experience

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Marketing Influences

Marketing mix
changes and/or
promotion actions
may help stimulate
problem
recognition:

Advertising
Coupons
Free offers
sweepstakes
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Information Search

Information collected
by consumers is the
basis for evaluation
and choice behavior.
It is important for
marketers to know:

Why consumers are

searching for information
Where will they look
What information
consumers seek
How extensively they are
willing to search

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Types of Information
Search

Prepurchase search:

Directed searches: consumer searches for

information that will help solve a specific problem.
Browsing: consumer is just looking with no
immediate intent to buy.
Accidental search: consumer is not actively looking
for information, but takes note of information that is
formally presented or inadvertently encountered.

Post-purchase search: gathering information

on choice made after the purchase.
Ongoing search: continuous information
gathering to stay marketplace-current.
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Internal and External

Information Search

Internal search: search based on existing

information in memory.

Information quantity, quality, relevance,

currency
Experts vs. novices

External search: the search of information

beyond ones memory.

Personal sources: friends, experts, salespeople

Impersonal sources: advertising, in-store
displays, trade reports, the Internet.
Experts vs. novices
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Why Do Consumers
Engage in External
Information
Search?
High perceived value versus perceived cost of

search
Need to acquire information
Ease of acquiring and using information
Confidence in decision-making ability
Locus of control (internals vs. externals)
Actual or perceived risk
Costs of external search
Types of products sought
Characteristics of the purchase decision
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Types of Risk

Functional or
performance
Financial
Psychological
Social
Physiological
Time
Linked-decision
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Costs of External Search

Financial
Time
Decision delay
(opportunity cost)
Physical cost
Psychological cost
Information
overload
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Type of Product Sought

Specialty goods: search willingness is high

when consumer has developed strong
preferences
Shopping goods: less search willingness for
products that the consumer must devote
time and effort to compare and contrast.
Convenience goods: consumer is reluctant
to spend any time and effort in search and
evaluation before purchase.

Copyright Atomic Dog Publishing, 2002

Characteristics of
Purchase Decision

If number of
possible solutions is
limited extensive
search is acceptable
If need for trial is
high more likely to
search
Difficulty of trial
high search is for
quality supplier

Copyright Atomic Dog Publishing, 2002

External Search Strategy

Consideration set: those brands, outlets, etc.

that have front-of-mind presence and from
among which there is intention to choose.

Which brands of computers would you consider

purchasing?
Also called evoked set or relevant set

Marketplace information sources:

General (face-to-face or mass media)

Marketer-controlled (face-to-face or mass media)

Copyright Atomic Dog Publishing, 2002