MAR3503 Consumer Behavior Exam 2 Study Guide 1 Problem Recognition and Information Search 1 The image below shows a graphical representation of the Consumer Decision Making Process 2 Problem Recognition a Ideal State i Ideal State is the way that consumers would like a situation to be 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 aware of a discrepancy between the actual state and the ideal state a Ex My car needs frequent repairs or My clothing is out of date 2 Problem recognition motivates the consumer to action d Influences on Problem Recognition i Situational Influences 1 Something is broken lost worn etc 2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 Search 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 depends on their level of MAO Motivation Ability Opportunity to process information 2 2 You can only engage in internal search if relevant information is stored in memory 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 important aspect of internal search that greatly affects decision making Rather than remembering all available brands 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 brands because the memory links associated with these brands tend to be stronger As a result companies need to repeat marketing communications continually to keep brand awareness high and associations strong iii Brand Preference iv Retrieval Cues 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 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 that is more accessible or available is the most likely 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 information because the negative information is more distinctive c Salient d Vividness e Goals i Research has shown that consumers can recall very salient prominent attributes even when their opportunity to process is low i Vivid information is presented as concrete words pictures or instructions to imagine or through word or mouth communication 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 when considering possible vacation destinations 3 iii Is internal search always accurate 1 Conformation Bias 3 Recall of Evaluations 4 Recall of Experiences 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 recall that the amenities seemed cheap a Internal search can involve the recall of experiences from autobiographical memory in the form of specific images and the effect associated with them Like information in sematic memory experiences that are more vivid salient or frequent are the most likely to be recalled Positive Experiences a Conformation bias refers to our tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them thereby making our judgment or decision more positive than it should be 2 Inhibition i Selective perception 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 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 remembering the 3 Mood i Searching for information from the environment such information may be found by way of word of mouth observed media store visits trial and error 1 Pre purchase Search a A search for information that aids a specific acquisition decision 2 Ongoing Search choice a A search that occurs regularly regardless of whether the consumer is making a ii Where can we search for information 1 Retailer Search i Ex Picking up and browsing a car magazine a Visits or calls to stores or dealers including the examination of package information or pamphlets about brands 2 Media Search a Information from advertising online ads manufacture sponsored websites and forums and other types of marketer produced communications as well as from Facebook Twitter blogs and other social media resources a Advise from friends relatives neighbors coworkers and or other consumers whether sought in person by phone online text message or in other ways