CHAPTER 14
CONSUMER DECISION PROCESS
AND PROBLEM RECOGNITION
LEARNING OBJECTIVES
LO1: Describe the impact of purchase involvement on the decision process
LO2: Explain problem recognition and how it fits into the consumer decision process
LO3: Summarize the uncontrollable determinants of problem recognition
LO4: Discuss the role of consumer problems and problem recognition in marketing strategy
SUMMARY
LO1: Describe the impact of purchase involvement on the decision process
Consumer decision making becomes more extensive and complex as purchase involvement increases.
LO2: Explain problem recognition and how it fits into the consumer decision process
Problem recognition involves the existence of a discrepancy between the consumer’s desired state
LO3: Summarize the uncontrollable determinants of problem recognition
A number of factors beyond the control of the marketing manager can affect problem recognition. The
LO4: Discuss the role of consumer problems and problem recognition in marketing strategy
Before marketing managers can respond to problem recognition generated by outside factors, they
LECTURE TIPS AND AIDS
1) Many times the following classification of problem types is useful
a) Routine problems that are expected to occur and that require an immediate solution.
2) It is very important that students understand how purchase involvement influences the decision
process. This is easiest to do by having them describe their decision process for various levels of
purchase involvement (new running shoes versus a soft drink between classes).
3) In discussing problem recognition, you can ask the students the following questions:
a) What is the difference between a desired state and an actual state?
4) Students generally have little trouble understanding the concept and causes of problem
recognition. However, it is important to focus their attention on the marketing strategy
implications of this process.
REVIEW QUESTIONS
1) What is meant by purchase involvement? How does it differ from product involvement?
We define purchase involvement as the level of concern for, or interest in, a particular purchase.
2) How does consumer decision making change as purchase involvement increases?
As purchase involvement increases, decision making becomes increasingly complex: more and
3) What is the role of emotion in the consumer decision process?
Emotions can influence both desired and actual states of problem recognition. People attend sports
4) How do nominal, limited, and extended decision making differ? How do the two types of nominal
decision making differ?
Nominal decision making, in effect, involves no decision per se. That is, a problem is recognized,
5) What is problem recognition?
Problem recognition occurs when the consumer perceives a discrepancy between a desired state
and the actual state that is sufficient to arouse and activate the decision process.
6) What influences the motivation to resolve a recognized problem?
7) What is the difference between an active and an inactive problem? Why is this distinction
important?
An inactive problem is one of which the consumer is not aware. An active problem is one of which
8) How does lifestyle relate to problem recognition?
Pursuit of a particular consumer lifestyle is a major determinant of the desired state for individuals
as well as an important influence on their current state.
9) What are the main uncontrollable factors that influence the desired state?
a. Changes in household characteristics: The birth of a first child greatly alters one’s lifestyle
and creates new problems which need solutions.
10) What are the main uncontrollable factors that influence the existing state?
a. Normal depletion: Examples of normal depletion include a tire wearing out, running out of
beer, or a need to change the oil in a car.
e. Governmental and consumer groups: These groups may provide information to the public
that would alter their perception of actual performance (state). Information on an
automobile’s safety may alter your perceptions of the actual state of certain automobiles.
f. Past decisions: These determine one’s set of problem solutions and resources. They provide
the framework for the actual state.
11) How can you measure problem recognition?
a. Activity analysis and product analysis: Activity analysis focuses on a particular activity
such as preparing dinner, maintaining a lawn, or lighting a fireplace fire. This method
attempts to determine what problems the consumer encounters in performing a particular
activity. Product analysis is similar except that it focuses on a product of interest rather
than an activity.
12) In what ways can marketers react to problem recognition? Give several examples.
13) How does generic problem recognition differ from selective problem recognition? Under what
conditions would a firm attempt to influence generic problem recognition? Why?
Generic problem recognition refers to a problem that a particular type of product (like milk or
14) How can a firm cause problem recognition? Give examples.
Problem recognition is a function of the (1) importance and (2) magnitude of a discrepancy
between the desired state and an existing state. Thus, the firm can attempt to influence the size of
15) How can a firm suppress problem recognition?
Advertisements can be designed that will aid in the suppression of problem recognition. Such an
Discussion Questions
16) What products do you think generally are associated with nominal, limited, and extended decision
making? Under what conditions, if any, would these products be associated with a different form
of decision making?
Nominal: Inexpensive, frequently purchased items, particularly those with an image component
such as soft drinks, beer, cigarettes.
17) What products do you think generally are purchased or used for emotional reasons? How would
the decision process differ for an emotion-driven purchase compared to a more functional
purchase?
Have the class identify products that are purchased or used to elicit an emotional response.
Products such as perfume, fancy lingerie, evening dresses, ornate jewelry, sports cars, etc., are
18) What products do you think generally are associated with brand-loyal decision making and which
with repeat purchase decision making? Justify your response.
Products such as Coca-Cola, Honda, and iPod have high levels of brand loyalty because in large
19) Describe a purchase you have made using nominal decision making, one using limited decision
making, and one using extended decision making. What caused you to use each type of decision
process?
This discussion generally follows the text – inexpensive, frequently purchased items are bought
20) Describe two recent purchases you have made. What uncontrollable factors, if any, triggered
problem recognition? Did they affect the desired state, the actual state, or both?
21) How would you measure consumer problems among the following?
a) College students
22) How would you determine the existence of consumer problems of relevance to a marketer of the
following?
a) Women’s spa
b) Internet retail outlets
23) Discuss the types of products that resolve specific problems that occur for most consumers at
different stages of their household life cycle.
Construct the following table on the board or assign it as homework. Instruct students to identify
the major sorts of problems facing households at different stages of the HLC and the kinds of
products they may purchase to resolve these problems. A useful approach is to ask what problems
24) How would you activate problem recognition among college students for the following:
a) Volunteering time at the Salvation Army
b) Student recreation center
c) A vegan diet
25) How would you influence the time of problem recognition for the following?
a) Fire alarm battery replacement
d) Air conditioner filters
26) Respond to the questions in Consumer Insight 14-1.
Online and social media tracking likely lead to faster recognition of problems, particularly
specific problems with a brand or product. The organic and interconnected online world
allows for a relatively organic (natural) groundswell of ideas, wherein those that resonate