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
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
(what the consumer would like) and the actual state (what the consumer perceives as already existing).
LO3: Summarize the uncontrollable determinants of problem recognition
A number of factors beyond the control of the marketing manager can affect problem recognition. The
desired state is commonly influenced by (1) culture/subculture, (2) social status, (3) reference groups,
(4) household characteristics, (5) financial status/expectations, (6) previous decisions, (7) individual
development, (8) emotions, (9) motives, and (10) the current situation. The actual state is influenced
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
must be able to identify consumer problems. Surveys and focus groups using activity, product, or
problem analysis are commonly used. Human factors research approaches the same task from an
Once managers are aware of problem recognition patterns among their target market, they can react by
designing the marketing mix to solve the recognized problem. This may involve product development
or repositioning, a change in store hours, a different price, or a host of other marketing strategies.
Attempts to activate problem recognition generally do so by focusing on the desired state. However,
attempts to make consumers aware of negative aspects of the existing state are also common. In
addition, marketers attempt to influence the timing of problem recognition by making consumers
aware of potential problems before they arise.
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.
b) Emergency problems that are not expected and that require an immediate solution.
c) Planning problems that are expected and that do not 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?
d) Under what conditions would a consumer engage in search in order to resolve a recognized
problem?
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.
Purchase involvement is not the same as product involvement. A person may be very involved
with a brand and have a very low level of involvement with the purchase process because of brand
2) How does consumer decision making change as purchase involvement increases?
As purchase involvement increases, decision making becomes increasingly complex: more and
different sources and types of information are used, more alternatives are evaluated on more
dimensions using more complex decision rules, and a more thorough postpurchase evaluation
occurs.
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
events in anticipation (desired state) of positive emotional responses (cheering, winning, having
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,
internal search (memory) provides a single preferred solution (brand), that brand is purchased, and
an evaluation occurs only if the brand fails to perform as expected. Limited decision making
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?
The degree of discrepancy between the existing (actual) solution and desired solution to a
problem, and the relative importance of the problem, both contribute to a motivation to resolve
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
the consumer is aware.
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.
d. Previous decisions: Although the desired performance of a product and actual performance
of a product may be in balance, a consumer may purchase another product simply because a
change is desirable.
e. Changing situations: The situation may influence problem recognition. For example, in hot
weather people prefer cold drinks and in cold weather they prefer hot drinks.
h. Social status: The various dimensions of social status lead to preferences for specific
activities and products. Highly educated individuals desire sophisticated humor, serious
drama, and comprehensive news for television viewing.
i. Motives: Maslow suggests that as lower-level motives are satisfied, high-level motives
dominate the desired state.
j. Emotions: Most people desire a near neutral but slightly positive emotional state most of the
time but occasionally desire a high level of excitement, fear, or even (temporary) sadness.
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.
d. Emotions: Emotions are major components of the actual state. Individuals in an unpleasant
emotional state recognize this as a problem and often buy or consume products as a
response.
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.
h. Situation: The presence of others, physical conditions, and antecedent states are key
elements of 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.
c. Human factors research: This approach looks at the capabilities of humans, and attempts to
design products in light of these capabilities.
e. As indicated in Consumer Insight 14-1, emerging forms of online and social media tracking
are also being used to understand general and brand-specific problems.
12) In what ways can marketers react to problem recognition? Give several examples.
a. Modify the marketing mix (product, price, place or promotion) to resolve a particular
problem and improve on the existing level of performance (actual state).
c. For a problem recognition of little importance, the marketer may bring greater attention to
this problem (increase its perceived importance) while indicating a solution to this problem.
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
tuna) can solve. Selective problem recognition refers to a problem that can only be solved by a
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
the discrepancy by altering the desired state or the perceptions of the existing state. Or, the firm
can attempt to influence the perception of the importance of an existing discrepancy.
15) How can a firm suppress problem recognition?
Advertisements can be designed that will aid in the suppression of problem recognition. Such an
ad would directly or indirectly indicate that a potential problem is not really a problem. Some
would say that ads showing healthy active people smoking cigarettes is an attempt to suppress
problem recognition about health and smoking. Also, effective quality control, distribution,
packaging, and package inserts are commonly used for this purpose.
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
Extended: Major, infrequent, or important purchases such as a new car, a sailboat, or a wedding
ring.
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
often purchased or used to elicit a desired emotion. Services such as restaurant meals and movies
are also often consumed primarily for emotional reasons.
typically fewer in number with less external information available.
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 iPhone have high levels of brand loyalty because in large
part they have a strong image component which relates to the self-concept of those who are loyal
to them. Frequently purchased items with limited or no image component such as salt, ketchup,
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
using nominal decisions while important (often defined as expensive) items that are purchased
situational and individual influences on the decision process.
20) Describe two recent purchases you have made. What uncontrollable factors, if any, triggered
The answers will vary widely by student but are generally straightforward.
21) How would you measure consumer problems among the following?
a) College students
b) Children aged 2 to 4
c) Internet shoppers
d) New residents in a town
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
c) Online health food store
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
STAGE OF HOUSEHOLD
MAJOR
PRODUCT
LIFE CYCLE
PROBLEMS
SOLUTIONS
YOUNGER (<35)
Young Married (no children)
Full Nest I
Single parent I
MIDDLE-AGED (35-64)
Single II
Delayed Full Nest I
Full Nest II
Single parent II
Empty Nest I
OLDER (>64)
Empty Nest II
Single III
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
b) Gift basket
c) Car tune-up
d) Air conditioner filters
e) Health insurance
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
most, and with the most people, are likely to rise to the top in terms of volume of postings.
No cost comparisons are available that we are aware, though the constant and wide-
ranging monitoring and “real–time” adaptation to consumer problems would appear to be
heavily resource consuming, though highly useful.