(CB) L5 - Problem Recognition and Information Search

PROBLEM RECOGNITION AND INFORMATION SEARCH
Consumer Behavior
Sem 1, 2023-2024
Adapted from Hoyer W. D., MacInnis D. J. and Pieters R. (2018), Consumer Behavior, 7th ed., Cengage Learning.
Learning objectives
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
3. Explain why and how consumers conduct an external search to solve a

consumption problem, and highlight the main implications for marketing
strategy
The process of making decisions
Factors that affect consumer decision making journey
Social Factors
Reference groups Cultural Factors
Opinion leaders Culture and values
Family Subculture
Social class
Individual Factors Psychological Factors

Gender Perception
Age & family life cycle Motivation
stage
Learning
Personality, self- Consumer decision-making process Beliefs and attitudes
concept & lifestyle
Kotler P. T. & Amstrong G. 2018, Principles of Marketing (17th Global Edition), Pearson.
Continuum of consumer buying decision
Habitual Limited Extensive
Involvement Low Low to moderate High

Time Short Short to moderate Long
Cost Low Low to moderate High
Information search Internal only Mostly internal Internal and external
Number of alternatives One Few Many
Quester P., Pettigrew S., Rao Hill S., Kopanidis F.,
Hawkins D. I. 2014, Consumer Behaviour -
Implications for Marketing Strategy, McGraw-
Hill Education.
Problem recognition
 Ideal state
• Where individuals want to be
 Actual state
• Where individuals are now

It is important to note that it is the consumer’s perception of the actual state that
drives problem recognition, not some objective reality.
Problem recognition
 Think about a situation when …
… a current product is not functioning well
… the consumer is running out of a product
… another product seems superior than the one currently used

 Active problem  Inactive problem
The problem that the The problem that the consumer
consumer is aware of or will is not aware of.
become aware of in normal
course of events.
 Marketing strategy  Marketing strategy

Convince consumers that the Convince consumers that they
brand is the superior have the problem and the brand
solution is the superior solution
Active vs. inactive problems
Stimulating problem recognition
 Creating a new ideal state
• A firm can change a consumer's desired state by offering features not

previously offered. These additional attributes are often highlighted as unique
features of the product.
 Encouraging dissatisfaction with the actual state
• Marketers can activate problem recognition by emphasizing the importance of

addressing an existing discrepancy between consumers' desired and existing
states
Consumers may not always recognize problems.
Advertising may activate problem recognition and position a good or

service as a solution.
Information search
Mothersbaugh D., Hawkins D., Kleiser S.D. (2019), Consumer Behavior - Building Marketing Strategy 14th, McGraw Hill
Internal search
 Searching for information from memory
 Degree of internal search varies
 Kinds of information recalled
• Brands
• Attributes
• Evaluations
• Experiences
Brand recall
 Consideration or evoked set:

Subset of top-of-mind brands
evaluated when making a choice
• Varies in terms of: size, stability,

variety, preference dispersion
Quester P., Pettigrew S., Rao Hill S., Kopanidis F., Hawkins D. I. 2014, Consumer Behaviour - Implications for Marketing
Strategy, McGraw-Hill Education.
Brand recall
When you need You might envision
Pizza
Soft drink
Smart phone
Sneakers
Brand recall
 Factors that increase the possibility of
consumers recalling a particular brand
• Prototypicality
The Ultimate Driving Machine
• Brand familiarity
• Goals and usage situations
• Brand preference
• Retrieval cues
Tips to make your brand top of mind
 Be different…stand for something

 Provide consistently memorable
branded experience
 Build your social media presence
 Connect emotionally
 Use a tag line or slogan
 Use loyalty cards & gift cards
 Sponsor events
 Hold contests
 Follow-up …
Attribute recall
 Accessibility/availability
 Diagnosticity
 Salience
 Vividness
 Goals
Evaluations and experiences recall
 Evaluations
• Are easier to remember than specific attribute

information
• Tend to form strong associative links with the brand
 Experiences
• Take the form of specific images and the effect

associated with them
• Are most likely to be recalled when they are more

vivid, salient, or frequent
Is internal search accurate?
 Confirmation bias
• Drawing attention to negatives of competition
 Inhibition
• Consumers do not always
consider key aspects
• Consumers recall other

attributes that are more
accessible
 Mood
• Enhancing the recall of

positive attribute
information through the
use of humor or attractive
visuals
Types of external information search
Sources of external information
Media and
Retailer
social media
Interpersonal Independent
Experiential Internet
Internet sources
 Keyword search
 Online community
 Shopping agents
 Simulations
 https://www.youtube.com/watch?v=bRY4NLTRCNU
 https://www.youtube.com/watch?v=zBKtZvy5r1A
User-generated contents
Mobile search is changing how consumers search for information
Mothersbaugh D., Hawkins

D., Kleiser S.D. (2019),
Consumer Behavior -
Building Marketing
Strategy 14th, McGraw Hill
Information processing
 Influenced by:
• Motivation
• Ability
• Opportunity
What motivates you to process information in advertising?

Motivation to process information
 Involvement and perceived risk
 Perceived costs and benefits
 Consideration set
 Relative brand uncertainty
 Attitudes toward search
 Discrepancy of information
Ability to process information
 Consumer knowledge
 Cognitive abilities
 Demographics
Opportunity to process information
 Amount of information available
 Information format
 Time availability
 Number of items being chosen

Marketing implications
 Marketers can facilitate external information process by making information
readily available and easily accessible at the lowest cost and with the least
consumer effort.
 Resigning their product packaging, websites, ads, and other promotional
materials to add information that will alter consumers’ attitudes and change
their buying behavior.
 Highlight information about salient and diagnostic attributes, particularly if

the brand has a differential advantage.

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PROBLEM RECOGNITION AND INFORMATION SEARCH

2. Discuss what happens when consumers conduct an internal search to solve

3. Explain why and how consumers conduct an external search to solve a

Individual Factors Psychological Factors

Habitual Limited Extensive

Involvement Low Low to moderate High

• Where individuals want to be

• Where individuals are now

… a current product is not functioning well

… the consumer is running out of a product

… another product seems superior than the one currently used

 Marketing strategy  Marketing strategy

 Creating a new ideal state

• A firm can change a consumer's desired state by offering features not

 Encouraging dissatisfaction with the actual state

• Marketers can activate problem recognition by emphasizing the importance of

Advertising may activate problem recognition and position a good or

 Degree of internal search varies

 Kinds of information recalled

 Consideration or evoked set:

• Varies in terms of: size, stability,

• Goals and usage situations

 Be different…stand for something

• Are easier to remember than specific attribute

• Tend to form strong associative links with the brand

• Take the form of specific images and the effect

• Are most likely to be recalled when they are more

• Consumers recall other

• Enhancing the recall of

Mothersbaugh D., Hawkins

What motivates you to process information in advertising?

 Perceived costs and benefits

 Relative brand uncertainty

 Attitudes toward search

 Number of items being chosen

 Highlight information about salient and diagnostic attributes, particularly if

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