Chapter 3A - Problem Recognition

30-Jan-24
CHAPTER 03A:
CONSUMER DECISION PROCESS and
PROBLEM RECOGN IT ION
Consumer Behaviour (704003)
CONCEPTUAL MODEL of CONSUMER BEHAVIOR
External Influences
Experiences and Acquisitions
Culture Decision Process
Sub-culture
Demographics
Social Status Situations
Reference Groups
Family
Marketing Activities Problem Recognition

Self-concept Needs Information Search
and 
Lifestyle Desires Alternative Evaluation
and Selection
Internal Influences 
Outlet Selection and
Perception Purchase
Learning 
Memory Post-purchase Process
Motives
Personality
Emotions
Experiences and Acquisitions
Attitudes
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LEARNING OBJECTIVES Describe the impact of purchase involvement on

01 the decision process
Explain problem recognition and how it fits into the

02 consumer decision process
Summarize the uncontrollable determinants of

03
problem recognition
Discuss the role of consumer problems and

04
problem recognition in marketing strategy
Chapter 3A
PROBLEM
3A.1 Types of CONSUMER DECISIONS
RECOGNITION
3A.2 The PROCESS of Problem Recognition
UNCONTROLLABLE DETERMINANTS
3A.3
of Problem Recognition
MARKETING STRATEGY and

3A.4
Problem Recognition
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1. TYPES OF CONSUMER DECISIONS
1.1 Purchase Involvement
1.2 Types of Consumer decision
1.3 Purchase Involvement and the

Decision Process
1.1. Purchase involvement
 The level of concern or interest in the

purchase process triggered by the need to
consider a particular purchase.
 A temporary state that depends on the

interaction of individual, product, and
situational factors.
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1.1. Purchase involvement
HIGH-INVOLVEMENT
Purchase
MODERATE-INVOLVEMENT
Purchase
LOW-INVOLVEMENT
Purchase
1.2. Types of consumer decision
LOW-INVOLVEMENT MODERATE-INVOLVEMENT HIGH-INVOLVEMENT

Purchase Purchase Purchase
NOMINAL LIMITED EXTENDED

Decision Making Decision Making Decision Making
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 Involves no or very limited information search, and no or

very simple evaluation of alternatives
 Occurs when consumers buy the same brand out of habit

(brand loyal) or convenience (repeat purchase)


 Involves internal and limited external information search,

and few alternatives evaluated on few attributes using
simple rules
 Occurs when consumers have some experience or

knowledge of the product category, but are not committed
to a specific brand
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 Involves extensive internal and external information search,

and many alternatives evaluated on many attributes using
complex rules
 Occurs when consumers face a complex or important

problem that requires a lot of effort and information
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1.3. Purchase involvement and the Decision process
The IMPACT of
PURCHASE INVOLVEMENT
on the
DECISION PROCESS
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Nominal decision making Limited decision making Extended decision making
Problem recognition Problem recognition Problem recognition

Selective Generic Generic
Information search Information search Information search

Limited internal Internal, Limited external Internal, External
Alternative evaluation Alternative evaluation

Few attributes, Many attributes,
Simple decision rules, Complex decision rules,
Few alternatives Many alternatives
Post-purchase Post-purchase Post-purchase

No dissonance, No dissonance, Dissonance,
Very limited evaluation Limited evaluation Complex evaluation
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Chapter 3A
PROBLEM
RECOGNITION
3A.3

3A.4
Problem Recognition
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2. The PROCESS of PROBLEM RECOGNITION
2.1. The Nature of Problem Recognition

o Definition
o The Process
o The Desire to Resolve Recognized Problems
2.2. Types of Consumer Problems
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What is a problem recognition?
Problem recognition occurs when there is a discrepancy

between a consumer’s desired state and their actual state
that is sufficient to arouse and activate the decision process.
 Desired state: what the consumer would like

 Actual state: what the consumer perceives as already existing
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What is a problem recognition?
Example:
 Your laptop is outdated (actual state)

 You need softwares installed for a design course (desired state)
 Your laptop is too slow for latest softwares (recognized problem)
 You start thinking about solutions (decision process activated)
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Desired consumer’s lifestyles Current situation
The way the consumer would like to live Temporary situations affecting the
and feel consumer
Desired state Actual state

The condition the consumer would like The condition the consumer perceives
to be in at this point of time themselves to be in at this point of time
Nature of discrepancy
Difference between the consumer’s desired and perceived condition
Desired state exceeds Actual state exceeds

No difference
actual state desired state
Satisfaction Problem recognized

No action Search decision initiated
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The Desire to Resolve Recognized Problems
a) The MAGNITUDE of the DISCREPANCY between the

desired and actual states.
The larger the discrepancy, the more motivated the consumer
is to solve the problem
b) The relative IMPORTANCE of the PROBLEM

The more important the problem, the more motivated the
consumer is to solve it
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2.2 Types of Consumer Problems
ACTIVE Problem
An active problem is one that the consumer is aware of

or will become aware of in the normal course of events
INACTIVE Problem
An inactive problem is one that the consumer is not

aware of
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Chapter 3A
PROBLEM
RECOGNITION
3A.3

3A.4
Problem Recognition
21
3. UNCONTROLLABLE DETERMINANTS of PROBLEM RECOGNITION
Uncontrollable factors that influence the desired state
 Factors beyond the control of both the consumer and the

marketer
 Impacting what a consumer wants or desires
Uncontrollable factors that influence the actual state
 Factors beyond the direct influence of the consumer or the

marketer
 Affecting the actual state by changing the consumer’s

perceptions, needs, or satisfaction with the current situation
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3. UNCONTROLLABLE DETERMINANTS of PROBLEM RECOGNITION
NONMARKETING FACTORS AFFECTING PROBLEM RECOGNITION
• Culture/subculture
• Past decisions
• Social status
• Normal depletion
• Reference group
• Product/brand
• Household Less performance
characteristics than
• Individual
• Financial
DESIRED Equal ACTUAL
development
status/expectations
state to state
• Emotions
• Previous decisions
Greater • Government /
• Individual
than consumer groups
development
• Availability of
• Emotions
products
• Motives
• Situation
• Situation
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Chapter 3A
PROBLEM
RECOGNITION
3A.3

3A.4
Problem Recognition
24
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4. MARKETING STRATEGY and PROBLEM RECOGNITION
Marketers’ concerns related to problem recognition
4.1 Discovering Consumer Problems
4.2 Responding to Consumer Problems
4.3 Helping Consumers Recognize Problems
4.4 Suppressing Problem Recognition
25
Measuring problem recognition
 Goal: identify problems consumers face during:

(1) the performance of an activity
(2) the purchase or use of a product, or
(3) the existence of a general situation
 Major research methods: activity analysis, product

analysis, problem analysis
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Structuring/restructuring marketing mix
 PRODUCT
Developing or modifying products or services
 PLACE/DISTRIBUTION
Changing channels of distribution
 PRICING
Adjusting pricing policy
 PROMOTION/COMMUNICATION
Revising advertising strategy
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Selective and Generic Problem Recognition
 Selective Problem Recognition

involves a discrepancy that only one brand can solve
Example: Consumer needs laptop. Immediately considers Dell and
ignores or reject other brands
 Generic Problem Recognition

involves a discrepancy that a variety of brands within a
product category can reduce
Example: Consumer needs laptop. Consider different brands such
as Dell, Apple, Lenovo, etc.
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Influencing consumer’s problem recognition
 Influencing SELECTIVE problem recognition

o Gain or maintain market share or
o Differentiate product from competitors.
Example:
A smartphone manufacturer launching a campaign
highlighting the unique features of its new model, such as AI-
assisted camera.
Goal: make consumers realize they need this specific advanced
feature and choose their brand over others.
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Influencing consumer’s problem recognition
 Influencing GENERIC problem recognition

o Expand the total market or
o Increase the importance of a problem
Example:
An electric car manufacturer running a marketing campaign to
raise awareness about the environmental impact of gasoline
cars.
Goal: make people realize the problem (environmental
pollution) and consider electric cars as a solution.
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Approaches to Activating Problem Recognition
 Influencing the size of the discrepancy by

altering the desired state or perceptions of the
actual state.
 Influencing perceptions of the importance of

an existing discrepancy
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 Raising the consumer’s desired state and create a
larger gap with the actual state
Example:
A car manufacturer can highlight the advanced safety
features of its new model, such as blind spot detection or lane
departure warning, and make the consumer feel that their
current car is less safe and reliable
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 Lowering the consumer’s actual state and create a
larger gap with the desired state
Example:
A dental clinic can show the effects of poor oral hygiene, such
as tooth decay, gum disease, or bad breath, and make the
consumer feel that they need to visit the dentist more often
or use better products
33

 Creating a sense of urgency or anticipation in the
consumer and motivate them to take action
Example:
A home security company can warn the consumer of the
increasing rate of burglaries in their area, and offer a range
of security systems and services to protect their home and
family
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Definition
 Efforts by marketers to prevent consumers

from recognizing issues or problems associated
with their products or services
35
Some Strategies
 Creating positive associations

 Diverting attention or creating distractions
 Implementing effective quality control and
distribution
 Providing reassurance
 …
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RECAP
Marketers’ concerns related to problem recognition
37
19

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30-Jan-24

CONCEPTUAL MODEL of CONSUMER BEHAVIOR

LEARNING OBJECTIVES Describe the impact of purchase involvement on

Explain problem recognition and how it fits into the

Summarize the uncontrollable determinants of

Discuss the role of consumer problems and

3A.2 The PROCESS of Problem Recognition

MARKETING STRATEGY and

1. TYPES OF CONSUMER DECISIONS

1.1 Purchase Involvement

1.2 Types of Consumer decision

1.3 Purchase Involvement and the

1. TYPES OF CONSUMER DECISIONS

1.1. Purchase involvement

 The level of concern or interest in the

 A temporary state that depends on the

1. TYPES OF CONSUMER DECISIONS

1.1. Purchase involvement

1. TYPES OF CONSUMER DECISIONS

1.2. Types of consumer decision

LOW-INVOLVEMENT MODERATE-INVOLVEMENT HIGH-INVOLVEMENT

NOMINAL LIMITED EXTENDED

1. TYPES OF CONSUMER DECISIONS

1.2. Types of consumer decision

LOW-INVOLVEMENT MODERATE-INVOLVEMENT HIGH-INVOLVEMENT

NOMINAL LIMITED EXTENDED

 Involves no or very limited information search, and no or

 Occurs when consumers buy the same brand out of habit

1. TYPES OF CONSUMER DECISIONS

1.2. Types of consumer decision

LOW-INVOLVEMENT MODERATE-INVOLVEMENT HIGH-INVOLVEMENT

NOMINAL LIMITED EXTENDED

 Involves internal and limited external information search,

 Occurs when consumers have some experience or

1. TYPES OF CONSUMER DECISIONS

1.2. Types of consumer decision

LOW-INVOLVEMENT MODERATE-INVOLVEMENT HIGH-INVOLVEMENT

NOMINAL LIMITED EXTENDED

 Involves extensive internal and external information search,

 Occurs when consumers face a complex or important

1. TYPES OF CONSUMER DECISIONS

1.3. Purchase involvement and the Decision process

LOW-INVOLVEMENT MODERATE-INVOLVEMENT HIGH-INVOLVEMENT

Nominal decision making Limited decision making Extended decision making

Problem recognition Problem recognition Problem recognition

Information search Information search Information search

Alternative evaluation Alternative evaluation

Purchase Purchase Purchase

Post-purchase Post-purchase Post-purchase

3A.2 The PROCESS of Problem Recognition

MARKETING STRATEGY and

2. The PROCESS of PROBLEM RECOGNITION

2.1. The Nature of Problem Recognition

2.2. Types of Consumer Problems

2. The PROCESS of PROBLEM RECOGNITION

2.1. The Nature of Problem Recognition

What is a problem recognition?

Problem recognition occurs when there is a discrepancy

 Desired state: what the consumer would like

2. The PROCESS of PROBLEM RECOGNITION

2.1. The Nature of Problem Recognition

What is a problem recognition?