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PART THREE The Process of Making Decisions

PART THREE The Process of Making Decisions. Chapter 9 PROBLEM RECOGNITION & INFORMATION SEARCH. Consumer Problem Solving. Problem Recognition. Search for Information. Evaluation of Alternatives. Choice Decision. Purchase. Postpurchase Use and Reevaluation. Chapter Overview.

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PART THREE The Process of Making Decisions

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  1. PART THREE The Process of Making Decisions

  2. Chapter 9 PROBLEM RECOGNITION & INFORMATION SEARCH

  3. Consumer Problem Solving Problem Recognition Search for Information Evaluation of Alternatives Choice Decision Purchase Postpurchase Use and Reevaluation

  4. Chapter Overview • Identifying a problem • Internal search • External search

  5. Definition Problem: the perceived difference between an _________ state and ________ state

  6. Some “Problems” Recognized and Possible Solutions

  7. The Ideal State • Simple expectation • Aspirations • Cultural basis • Changes in life (e.g., promotion, birth of child) changes in expectations

  8. The Actual State • Simple Physical Functions • Depletion and wear-out • Product malfunctions • Ailments • External stimuli • Advertising and reminders • Comparison to others; peer pressure

  9. How to Create “Problems” for Consumers • Create a new ideal state • E.g., fashion • Create dissatisfaction with actual state • Eg., fear of crime buy club, guns, burglar alarms feeling of safety

  10. Approaches to Search for Problem Solutions INTERNAL Memory Thinking EXTERNAL Word of mouth, media, store visits, trial CATALOG

  11. Internal Search Advil Excedrin Aleve Bayer Tylenol • Varies in effort by importance, motivation, and experience • Recall based on • Brands • Attributes • Evaluations • Experiences

  12. Biases in Internal Search • Confirmation bias • Inhibition • Mood

  13. External Search • Prepurchase vs. Ongoing • Extent of searching • Where we search • retailer/store • media • interpersonal • independent • experiential • Internet information searches

  14. Actual Searching Behavior • 42%of respondents shopping for a refrigerator only visited one store and 41% considered only one brand • 77% of consumers seeking to purchase a small appliance visited only one store • What does this mean to you as a marketer?

  15. Individual Application Exercise • Apply your choice of attending CSUC to the topics of PROBLEM RECOGNITION and INFORMATION SEARCH. • List specifically how you recognized a problem (actual & ideal state??) • Did you do any internal search? Any biases? • Did you do any external searching? Where? • List specifics and be prepared to discuss.

  16. Chapter 9 Review • Problems • Ideal vs. actual state • Creating “problems” for customers • Internal Search • Biases • External Search • What, where, how much • Internet implications

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