!1!MAR3503''Consumer'Behavior''Exam'#2'Study'Guide'''''''''''''''''!!!!!!!!!!!!!!!!!!!!!!!!!!2!Problem'Recognition'and'Information'Search'1. The!image!below!shows!a!g ra p hic a l!re p re se nt a tio n !of!th e !Co n su mer!Decision:Making!Process!!!2. Problem'Recognition'a. Ideal'State'i. Ideal!State!is!the!way !that!co nsu m e rs!w ou ld!like!a !situatio n!to!b e '1. Ex.!Having!a!good!camera!or!wearing!attractive!clothing'b. Actual'State'i. Actual!State!is!the!way!things!actually!are'c. Problem'recognition''i. Problem!recognition!is!the!perceived!difference!between!an!actual!and!ideal!state.'1. Problem!recognition!occurs!if!consumers!become!aw are!of!a!discrepancy!between !the!actual!state!and!the!ideal!state.'a. Ex.!“My!car!needs!frequent!repairs”!or!“My!clothing!is!out!of!date”'2. Problem!recognition!motivates!the!consumer!to!action!'d. Influences'on 'Pr ob le m 'R eco gn itio n' 'i. Situational'Influences'1. Something!is!broken,!lost,!worn,!etc'2. Product!acquisition'3. Changed!circumstances'ii. Consumer'Influences'1. Actual!state!vs.!Ideal!state!consumers'iii. Marketing'Influences'(the'4'p’s)'1. Price!information'2. Promotional!activities'3. Product!or!service!developments'4. Place!actions!''''3. Approaches'to'Search'for'Problem'Solutions''a. Internal'Sea rc h'i. Searching'for'information'from'memory'1. The!degree!of!internal!search!can!vary!widely!from!the!simple!recall!of!only!a!brand!name!to!more!extensive!searched!through!memory!for!relevant!information,!feelings,!and!experiences.!On!a!general!level,!researchers!know!that!the!effort!consumers!devote!to!internal!search!depe nds !on!their!le ve l!of!M A O !(Motivation,!Ability,!O pp or tun ity )!t o!process!informat ion .!'!3!2. You'can'only'engage'in'internal'search'if'relevant'information'is'stored'in'me m o ry.'ii. What'kind'of'information'is'retrieved'from'internal'searches?'1. Recall'of'Brands'a. The!set!of!brands!that!consumers!recall!from!memory!whenever!problem!recognition!has!been!stimulated!is!an!imp ortan t!aspect!of!internal!searc h!that!greatly!affects!decision!making.!Rather!than!remembering !a ll !a v a il a b l e !b r a n d s !in!any!given!situation,!consumers!tend!to!recall!a!subset!of!two!to!eight!brands!known!as!a!consideration'or!evoked-set.'b. Factors!that!influence!the!recall!of!brands!i. Prototypicality'1. When!consumers!engage!in!internal!search,!they!more!easily!recall!brands!that!are!closest!to!the!prototype!or!that!most!resemble!other!category!members,!making!these!more!likely!to!be!included!on!the!consideration!set!than!brands!that!are!not!typical!of!the!category.'ii. Brand'Familiarity'1. Well:known!brands!are!more!easily!recalled!during!internal!search!than!unfamiliar!brand s!beca use !the!m em o ry!lin ks !ass ocia ted !w ith !these!brands!tend!to!be!stronger.!'As!a!result,!companies!need!to!repeat!marketing!com m unica tions!contin ually!to!keep !bran d!awareness!high!and!associations!strong.!'iii. Brand'Preference'1. Brands!toward!which!consumers!have!positive!attitudes!tend!to!be!recalled!more!easily!and!tend!to!be!included!in!the!consideration!set!more!often!than!brands!that!evoke!negative!attitudes.'iv. Retrieval'Cues'1. By!strongly!associating!the!brand!with!a!retrieval!cue,!marketers!can!increase!the!chance!that!the!brand!will!be!included!in!the!consumers!consideration!set.''2. Recall'of'Attributes'a. Accessibility'i. Information!tha t!is!m ore!a cce ssible!o r!ava ilab le!is!the!m ost!like ly!to!be !recalled!and!entered!into!the!decision!process.!'b. Diagnostic'Information'i. Diagnostic!information!helps!us!distinguish!objects!from!one!another.!'ii. Research!has!shown!that!negative!information!tends!to!be!more!diagnostic!than!positive!or!neutral!inform ation!b ecau se!the !nega tive!inform ation !is!more!distinctive.!''c. Salient'i. Research!has!shown!that!consumers!can!recall!very!salient!(prominent)!attributes!even!when!their!opportunity!to!process!is!low.!'d. Vividness'i. Vivid!information!is!presented!as!concrete!words,!pictures,!or!instructions!to!imagine,!or!through!w ord :or:mouth!communication.!'e. Goals'i. The!consumer’s!goals!will!determine!which!attribute!is!recalled!from!memory.!!'1. Ex.!If!one!of!your!goals!in!taking!a!vacation!is!to!economize,!you!are!likely!to!recall!price !w h en !co ns ide ring !po ss ible !vac atio n!destinations.!''''!4!3. Recall'of'Evaluations'a. Because!our!memory!for!specific!details!decays!rapidly!over!time,!we!find!overall!evaluations!or!attitudes!easier!to!remember!than!specific!attribute!information.!'i. Ex.!Remember!that!you!like!Double!Tree!Hotel,!don’t!recall!that!is!was!their!chocolate!chip!cookies.!<opposite'side>'Remember!that!you!don’t!like!Holiday!Inn,!don’t !rec a ll!th a t!th e !amenities!seemed!cheap. '4. Recall'of'Experiences'a. Internal!search!ca n!inv olv e!the!re call!of!exp er ienc es!from !a uto bio gra ph ical!m emory!in!the!form !of!s pe c ific!images!and!th e !effe ct !as so cia te d !w it h!t he m.!Like!inform a tio n !in!sematic ! memory,!experiences!that!are!more!vivid,!salient,!or!frequent!are!the!most!likely!to!be!recalled.!(Positive'Experiences)'iii. Is'internal'sea rch 'always'accura te?'1. Conformation'Bias'a. Conformation!bias!refers!to!our!tendency!to!recall!information!that!reinforces!or!confirms!our!overall!beliefs!rather!than!contradicting!them,!thereby!making!our!judgmen t !or !de cis ion !more!positive !th a n!it !sh ou ld !b e.! 'i. Selective-perception--2. Inhibition'-a. Another!internal!search!bias!is!associated!with!limitations!in!consumers’!processing!capacity!(the-recall-of-one-attribute-that-inhibits-the-recall-of-another)-i. Ex.!In!buying!a!house,!a!consumer!may!recall!information!such!as!the!selling!price!and!number!of!bathrooms,!but!may!not!recall!other!information!such!as!the!name!of!the!school!system.-3. Mood-a. Consumers!engaged!in!internal!search!are!most!likely!to!recall!information,!feelings,!and!experiences!that!match!their!mood.-i. Ex.!Humorous!commercial!to!induce!a!good!mood!thus!rem em b ering !the!positive!attributes.!-b. External'Search'i. Searching!for!information!from!the!environ m ent,!s u c h !i n fo r mation!may!be!fou nd!by!wa y !of!word!of!mouth,!observed!media,!store!visits,!trial!and!error'1. PreUpurchase'Search'a. A!search!for!information!that!aids!a!specific!acquisition!decision.'2. Ongoing'Search'a.