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Chapter 7: Problem Recognition and Information Search
CHAPTER 7
PROBLEM RECOGNITION AND INFORMATION
SEARCH
CHAPTER SUMMARY
This chapter examines the three initial stages of the consumer judgment and decision-making
process. Problem recognition is the perceived difference between an ideal state and the
actual state. When a discrepancy between these two states exists, the consumer may be
motivated to resolve it by engaging in decision making.
Internal search involves the recall of information, experiences, and feelings from memory. In
general, the extent of internal search will increase as motivation (e.g., involvement, perceived
risk), ability (knowledge and experience), and opportunity (no time pressure or distractions)
increase.
Consumer researchers have been interested in examining which brands, attributes,
evaluations, and experiences are recalled. In general, aspects that are more salient,
diagnostic, vivid, and related to goals are more likely to be recalled. Several biases exist in
internal search: confirmation bias, in which information that reinforces our overall beliefs is
remembered; inhibition, in which the recall of some information can inhibit the recall of other
attributes; and mood, which refers to our tendency to recall mood-congruent information.
The last part of the chapter focuses on external search—how consumers acquire information
from outside sources. This included pre-purchase search and ongoing search. The extent of
search can vary widely, depending on the motivation, ability, and opportunity to search, but
the extent of search is usually rather low. The content of search depends on the salience and
diagnosticity of information. In most situations, brand name and price tend to be the most
accessed attributes. Consumers also tend to exhibit a confirmation bias in their external
search.
Six major sources of external search are identified. Retailer, Internet, and media searches
account for the highest level of search activity, but interpersonal sources increase in
importance as consumer knowledge decreases and normative factors increase.
The Internet is changing the manner in which consumers search for information. They have
access to a great deal of information without even leaving home, so much so that they may
suffer information overload.
Finally, discussion of the search process shows that more salient and diagnostic information
tends to be accessed earlier. In addition, consumers tend to process either by brand or by
attribute. Attribute search is easier and preferred, but often the information environment is not
organized to facilitate this type of processing.
CHAPTER LEARNING OBJECTIVES
At the end of this chapter, students will be able to:
1. Describe how consumers recognize a consumption problem and show why marketers
must understand this part of the decision-making process.
2. Discuss what happens when consumers conduct an internal search to solve a consumption
problem and identify some of the ways in which marketers can affect internal searches.
Chapter 8: Problem Recognition and Information Search
a) The phenomenal growth of the Internet has dramatically altered the way
consumers shop and search for information.
b) Consumers see product choice as riskier when they lack access to
experiential information until after purchasing online.
3. Information Overload
a) To reduce information overload, companies are producing more efficient
search aids to try to identify the most popular or useful information for
consumers.
4. Simulations
a) Web site developers can now simulate the retail experience as well as
product trials.
5. The Online Community
a) The Internet also makes it easier for consumers to talk to each other
about product recommendations and usage advice.
6. Marketing Implications
a) Not all types of products and services are experiencing success on the
Internet, especially when quality cannot be judged online, or when the
cost of delivery is high relative to the cost of the items purchased.
E. How Much Do We Engage in External Search?
1. Motivation to Process Information
a) Involvement and perceived risk
b) Perceived costs and benefits
c) The consideration set
d) Relative brand uncertainty
e) Attitude toward search
f) Discrepancy of information
2. Ability to Process Information
a) Consumer knowledge
b) Cognitive abilities
c) Demographics. For example, consumers with higher educations tend to
search more than less-educated consumers.
3. Opportunity to Process Information
a) Amount of information available
b) Information format
c) Time availability
d) Number of items being chosen
F. Marketing Implications
1. If a sizable number of consumers tend to search heavily for a particular product
or service, marketers need to make information readily available and easily
accessible.
2. Marketers should segment the market for any product or service according to
search activity.
G. What Kind of Information Is Acquired in External Search?
1. Brand Name
a) Most frequently accessed type of information
2. Price
a) Diagnostic
b) Can be used to infer value
c) Importance of price varies by culture
3. Other Attributes
a) Varies by product or service category
Chapter 7: Problem Recognition and Information Search
H. Is External Search Always Accurate?
1. Consumers can be just as biased in their search for external information as
they are during internal search.
2. Consumers tend to exhibit a confirmation bias.
I. Marketing Implications
1. Marketers want to ensure that the specific information consumers want is
easily and readily available.
2. Emphasizing that information in advertising can do this.
3. Brands need to perform well on attributes that are frequently accessed.
J. How Do We Engage in External Search?
1. Process includes orientation, evaluation, and verification.
2. Search Stages
a) Mass media and marketer-related sources are more influential in the early
stages.
b) Interpersonal sources are more critical when the actual decision is made.
c) Consumers search first for information when attributes are uncertain or
less favorable.
3. Searching by Brand or Attribute
a) When searching by brand, consumers acquire all the needed information
on one brand before moving on to the next.
b) When searching by attribute, consumers compare brands one attribute at
a time.
(1). Price comparison shopping is an example.
4. Consumers are sensitive to the format in which information is presented in the
store.
5. Different search strategies affect uncertainty reduction differently.
a) Consumers who process by brand name remain high in uncertainty until
the very end of the search process.
b) Those who search by attribute gradually reduce their uncertainty.
QUESTIONS FOR REVIEW AND DISCUSSION
Possible answers are as follows.
1. How does a discrepancy between the ideal state and the actual state affect consumer
behavior?
2. What factors affect the inclusion of brands in the consideration set, and why would a
company want its brand in the consideration set?
Copyright © Cengage Learning. All rights reserved.
7
2. Interview five consumers to determine their knowledge about a product or service
category for which you think motivation, ability, and opportunity to process are high. Ask
consumers to discuss: (a) all the brands they would consider, (b) what they know about
each brand, (c) their evaluations of each brand, and (d) any prior experiences they have
relative to these brands. After obtaining this information, ask consumers which brand
they would choose if they had to pick one right now, and whether they would want any
additional information before deciding. Finally, analyze this information in terms of the
principles discussed in this chapter: recall of brands, attributes, evaluations, and
experiences. Do your findings support or contradict these concepts? If so, why?. How
does internal search relate to the desire for external search?
3. Interview five consumers about their external search activity regarding a product or
service category for which you think motivation, ability, and opportunity to search are
high. Be sure to ask them questions about: (a) which brands they would search for
information on, (b) which types of information they would look for, (c) what sources of
information they would use, and (d) how much time they would take. Analyze the
answers in terms of the external search principles discussed in this chapter: the extent,
content, and sources of search. Do your findings support or contradict these concepts?
ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS
These discussion questions can be used as in-class activities or as thought questions that the
students consider while reading the chapter, or to test their understanding of the material after
the reading and lecture are complete.
1. Ask the students to imagine that they are at the grocery store so they can buy food for
dinner. What factors will influence their actual state situation?
c. How busy I am?
d. How much money do I have available to spend on dinner?
Copyright © Cengage Learning. All rights reserved.
8
2. What motivates a consumer to resolve a recognized problem?
3. How can marketers respond to problem recognition?
ADDITIONAL QUESTIONS
1. As a group, select two product and two service categories. For each of these categories
describe how problem recognition might occur for consumers and how marketers could
influence this process.
2. Work together to develop your definition of the ideal state. Create a list of factors that can
influence how it is determined. Describe how marketers could influence this perception.
Create three examples in which marketers help to create the ideal state in consumers.
3. Duplicate the exercise described in question two using the actual state. Specifically
describe how marketers can influence consumers’ dissatisfaction with their actual state.
4. Internal search is one of the search processes people can use. Create a list of conditions
under which internal search is most likely to occur. Explain how marketers can influence
this process.
5. As a group, select a product or service category to discuss. Now describe how each of
the following would influence the nature of the consideration set a consumer might use in
making a purchase decision: (a) prototypicality, (b) brand familiarity, (c) goals and usage
situations, (d) brand preference, and (e) retrieval cues.
6. Develop a definition for each of the following terms: (a) accessibility, (b) diagnosticity, (c)
salience, (d) vividness, and (e) goals. Describe how each might affect the internal search
for attribute information. Explain how marketing strategy can influence these variables.
7. Create a definition for each of the following terms: (a) the confirmation bias, (b) inhibition,
and (c) mood. Describe how each can bias the internal search process. Offer
suggestions for how marketers can overcome these biases.
8. Not all consumers search the same amount of time for external information prior to
making a decision. Discuss how much the average consumer searches. Specify those
factors that influence a consumer’s motivation to search for information. Develop a set of
recommendations for marketers that address these factors and can help alter consumer
search behavior.
9. Discuss the differences in consumers that may make some more likely than others to
search for information. Create a list of the marketing implications for the fact that some
will search more than others.
10. The type of information that is sought may be different depending on the product. Select
a product or service category and develop a list of the types of information you believe
Chapter 7: Problem Recognition and Information Search
are most likely to be searched for. Develop a set of recommendations for marketers in
this category, given your list.
EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES
Students who learn more readily through visual and tactile stimuli will benefit from the
introduction of physical examples into the classroom.
1. “Shop till You Drop” Exercise
Tell students to assume that they have moved to a new town to start their post-
graduation jobs and need to buy several branded items—a Gen X Mx 280 bicycle (men’s
2. Consumer Buying Journal
Have students keep track of all the purchases between the current class period and the
next class period. Obviously, students will not want to share the entire contents of the list
CLASSROOM GROUP ACTIVITY: UNCOVERING PROBLEM
RECOGNITION STIMULI: 15 MINUTES
I. Start Up
A. Purpose of the activity
1. This activity will give students an opportunity to apply the concepts of problem
recognition in a brief classroom exercise.
B. What the instructor will do
1. Collect advertisements from local and/or national media. Select advertisements
that incorporate elements encouraging the reader to recognize a problem he or
she may be facing. If necessary, advertisements can be selected from among
the examples in the book. Ads from current media are preferable.
2. The instructor will divide people into small groups, assign them one or more
advertisements for analysis, and be available to coach and help the groups as
needed.
C. What the participants will do
1. The participants will work in small groups to study how concepts related to
problem recognition can be applied to the advertising of specific brands. After
a period of small-group discussion, they will make reports to the larger group.
D. Rules for this experience
1. Groups are to work separately from each other.
II. Experience
Chapter 8: Problem Recognition and Information Search
A. Group up.
1. Have students form groups of no more than five.
B. Assign ads.
1. Each group should be assigned one or more ads on which to focus.
C. Specific actions for groups
1. The groups are responsible for analyzing the advertisements to identify
methods that (1) are being used, and (2) could be used to help the reader
recognize a problem they may need to solve.
2. Questions to be answered by small groups
a) What is the nature of the problem that the advertiser is trying to call to the
attention of the reader?
b) What techniques would you propose adding to this advertisement to
increase the likelihood that it will generate problem recognition in
readers?
3. Large-group discussions
a) First, have groups present their ideas about the first question, and then
proceed to discuss each of the subsequent questions.
b) If there are many groups, share the discussion among all groups, though
not all groups may answer all of the questions.
III. Debrief and Unveil Concepts
A. Discuss the activity itself.
1. The purpose of this discussion is to allow students to express what they felt
about the experience itself.
2. Ask students to describe their experiences of doing the activity.
a) Likes and dislikes about what just happened
b) How they felt during the experience
B. Discuss the content of the experience.
1. The purpose of this discussion is to ensure that students “take away” important
learning points.
2. Ask students to describe the important points the experience teaches.
a) The role of advertising in generating a sense of problem recognition in
readers
3. Use the chalkboard to record student responses.
a) Write down their ideas as they are presented.
b) Concentrate on the principles being discussed rather than the examples
being used.
c) Help them to see the interrelationships between their responses.
IV. Execute
A. Apply what has been learned.
1. Lead a discussion on how the concepts can be applied in organizations.
a) What barriers may be faced in applying the concepts from the exercise?
b) What can be done to help others understand the concepts when you use
them at work?
B. Transfer and use the knowledge.
1. Encourage students to make a record in their notes about how they will use the
ideas in the workplace.
2. Even if they do not have a specific job, how will they remember to use what
they have learned?
