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

Problem Recognition
When consumers realize that they need something!
It is the first step in the decision-making process:
Problem recognition
Search
Alternative evaluation
Choice
Outcomes

Problem Recognition: Actual State Versus Desired State
It is the psychological process used to determine the difference between the actual state (where we are) and the desired state (where we want to be).
Opportunity (vs. problem) recognition

Influences upon Problem Recognition
Situational
Consumer
Marketing

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)

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

Marketing Influences
Marketing information and actions may help stimulate problem recognition:
Advertising – ads that show people like you
Coupons
Free offers
Sweepstakes
 
Motivational Arousal
Different people have different motivations for purchasing different products or services.
Types of motives:
To optimize satisfaction
To prevent possible future problems
To escape from a problem
To resolve a conflict
To maintain the status quo or satisfaction

Information Search
Information collected by consumers becomes the basis of future consumption behavior.
It is important for marketers to know:
Why consumers are searching for information
Where they are looking
What they are looking
How extensively they are willing to search
Consumer Reports?
Talking to experts
Consulting with Friends

We need to find out whether the sources of information are correct

Types of Information Search
Prepurchase search:
Directed searches: consumer searches for information that will help solve a specific problem.
Browsing: consumer has no immediate intent to buy.
Accidental search: consumer is not actively looking for information, but take note of information that is presented in an attractive, persuasive manner.
Post-purchase search: evaluating other options in the marketplace after the purchase.
Ongoing search: staying current with marketplace developments.

Internal and External Information Search
Internal search: it is based on existing memory.
Experts vs. novices
External search: the search of information beyond one’s memory.
Personal sources: friends, experts, salespeople
Impersonal sources: advertising, in-store displays, trade reports, the Internet

Why Do Consumers Engage in External Information Search?
High perceived value versus perceived costs of search
Need to acquire information
Ease of acquiring and using information
Confidence in decision-making ability
Locus of control
Actual or perceived risk
Costs of external search
Types of products sought
Characteristics of the purchase decision

Types of Risk
Functional or performance
Financial
Psychological
Social
Physiological
Time
Linked-decision

Costs of External Search
Financial
Time
Decision delay (opportunity cost)
Physical cost
Psychological cost
Information overload

Type of Product Sought
Specialty goods: those products that consumer has developed strong preferences.
Shopping goods: those products that the consumer must devote time and effort to compare and contrast.
Convenience goods: those products that the consumer is reluctant to spend time and effort to purchase.
Unsought goods: those we need but are reluctant to buy, funeral planning

Characteristics of Purchase Decision
Extent to which the number of possible solutions is limited
Need for trial
Difficulty of trial

External Search Strategy
Evoked set: those brands that have front-of-mind presence. Also called consideration set.
Which brands of computers would you consider purchasing?
Also known as relevant or consideration set
Marketplace information sources:
General
Marketer-controlled