Q.1.

Which of the stages of the family life cycle would constitute the
most lucrative segment/segments for the following products and
services? Justify your answer.
a) Domino's pizza
b) Mobile telephones
c) Mutual funds

Family Life cycle in Consumer Behaviour

The family life cycle in consumer behaviour are given below
1. The bachelor stage—young and single.
2. The newly married couples—young, no children.
3. Full nest 1—young, married, with child.
4. Full nest 2—older, married, with children.
5. Full nest 3–older, married, with dependent children.
6. Empty nest—older, married, with no children living with them.
7. Solitary survivor—older, single, retired people.
1.Young Singles
Young singles may live alone, with their nuclear families, or with friends, or they may
co-habitate with partners-translating into a wide range of how much disposable income is
spent on furniture, rent, food, and other living expenses in this stage .Although earnings
tend to be relatively low, these consumers usually don’t have many financial obligations
and don’t feel the need to save for their futures or retirement. Many of them find
themselves spending as much as they make on cars, furnishings for first residences away
from home, fashions, recreation,alcoholic beverages, food away from home, vacations,
and other products and services involved in the dating game. Some of these singles may
have young children, forcing them to give up
2. Newly married couples:
Newly married couples without children are usually better off financially than they were
when they were single, since they often have two incomes available to spend on one
household. These families tent to spend a substantial amount of their income son cars,
clothing, vacations, and other leisure activities. They also have the highest purchase rate
and highest average purchases of durable good (particularly furniture and appliances) and
appear to be more susceptible to advertising.
3. Full Nest I:
With the arrival of the first child, parents being to change their roles in the family, and
decide if one parent will stay to care for the child or if they will both work and buy
daycare services .Either route usually leads to a decline in family disposable income and a
change in how the family spends its income. In this stage, families are likely to move into
their first home;purchases furniture and furnishings for the child; buy a washer and dryer
and home maintenance items; and purchase new items such as baby food, cough
medicine, vitamins, toys, sleds,and skates. These requirements reduce families’ ability to
save,and the husband and wife are often dissatisfied with their financial position.
4. Full Nest II
In this stage, the youngest child has reached school age, the employed spouse’s income
has improved, and the other spouse often returns to part-or full-time work outside the
home. Consequently, the family’s financial position usually improves,but the family finds
itself consuming more and in larger quantities. Consumption patterns continue to be
heavily influenced by the children, since the family tends to buy large-sized packages of
food and cleaning suppliers, bicycles, music lessons, clothing, sports equipment, and a
computer. Discount department stores (such as Cost co and Sam’s Club) are popular with
consumers in this stage.
5. Full Nest III
As the family grows older and parents enter their min-40s, their financial position usually
continues to improve because the primary wage earner’s income rises, the second wage
earner is receiving a higher salary, and the children earn spending an education money
from occasional and part-time employment.The family typically replaces some worn
pieces of furniture,purchases another automobiles, buys some luxury appliances,and
spends money on dental services (braces) and education .Families also spend more on
computers in this stage, buying additional PCs for their older children. Depending on
where children go to college and how many are seeking higher education, the financial
position of the family may be tighter than other instances
6. Empty nest
Older married with no children living with them. Financial position stabilizes and there is
no expense on children. The couple is free to enjoy their own pursuits and spend on
luxury or self-improvement items and medical care.
7. Solitary survivor
Older single retired people. Retired people living alone after the death of a partner. Life
becomes lonely and income may reduce due to retirement. This again changes the
consumption pattern and living style of old people.
Another point to note, is that the family life cycle concept segments the families on the
basis of demographic variables, and ignores the psychographics variables (families
interest and opinions) of family members. Family life cycle is also related to the spare
time and the available income, education, etc. A marketer has to take these elements into
consideration.
(NOTE – THESE ARE THE STAGES OF FAMILY CYCLE, ANSWER
ACCORDING TO YOU WHICH FITS PERFECTLY FOR THE FOLLOWING
PRODUCTS GIVEN)

Q.2. Explain influence of external factors of environment on

consumer behavior with special reference to culture, social class, &
family.

These factors include culture, subculture, social class, reference group and family
influences. They are associated with the groups that the individual belongs to and
interacts with.

1. Culture:
Culture refers to the traditions, taboos, values and basic attitudes of the whole society
within which an individual lives. It is essentially associated with a certain nationality
or religious identity of an individual. Cultural norms are learnt by an individual from
childhood and their influence is so ingrained that it is invisible in daily behaviour.
Culture teaches an individual the acceptable norms of behaviour and tells him the
rights and wrongs. When an individual deviates from acceptable norms, certain
sanctions are imposed on him.

Cultural values affect how business is conducted. Culture also affects consumption
behaviour. Cultural influences can be seen in the food habits and dressing style of
people. It also influences communication (language), attitudes and values that
influence consumption patterns.
For instance, attitude towards future security and prosperity affects the propensity to
save and consume and also affects decisions about possessions. In many Asian
countries, having one’s own house is one of the most important indicators of security
(it is considered an investment) and lends social standing.

Cultural influences are highly conspicuous in communication messages. Use of

colours, symbols, language and message sources reflect culture. Many brands
associate their messages with a country’s culture to adapt their messages. For
instance, Honda, a Japanese brand communicates Indianness and its wide presence in
India by using the brand logo in Mehendi (Henna, a local craft of painting one’s
hands), Chevrolet uses a popular Indian festival to indicate cultural adaptation, while
some food brands such as Pillsbury show the mother serving hot food to her children
and thus communicating her love (signifying the role of the mother in the Indian
culture) to position their brand’s superior product. The main aim of the multinational
brands is to tune their messages according to the cultural specifications of various
regions that they operate in.

2. Social class:
Social class refers to the hierarchical arrangement of the society into various
divisions, each of which signifies social status or standing. Social class is an
important determinant of consumer behaviour as it affects consumption patterns,
lifestyle, media patterns, activities and interests of consumers.

Though there are various methods of ascertaining social class, most often it has been
equated with income differences. However, this may not be true. Income differences
do contribute to differences in social status, though they may not be the sole cause of
differences in consumption patterns or lifestyles.

For instance, two consumers earning the same income may differ considerably in
lifestyle when one has professional qualification at the post graduate level and is
employed at the senior management cadre of a multinational, while the other is self
employed, with education confined to a few years of schooling. Preferences regarding
product and brand purchases, media consumption patterns, interests in pursuit of
various leisure time activities vary a lot among these two consumers.

Such revelations through the years have prompted marketers to measure social class
as a composite variable that reflects not just income differences, but other indicators
such as educational qualifications, type of profession and designation, material
possessions, etc.

Social class may fail to distinguish between contrasting consumption patterns though
it remains an important discrimination of consumption patterns. Social class should be
used with other measures such as life stage and life cycle.

3. Reference groups:
Reference groups are groups of people that influence an individual’s attitude or
behaviour. Individuals use these groups as reference points for learning attitudes,
beliefs and behaviour, and adapt these in their life.
Family and close friends are considered to be primary reference groups in an
individual’s life due to their frequency of interaction with the individual and primacy
of these significant others in an individual’s life. Schoolmates, neighbourhood,
colleagues, other acquaintances are a part of the secondary reference groups of an
individual.

An individual may or may not personally interact with others to imitate their
behaviour, and thus, even those individuals or groups from whom an individual learns
by mere observation are also part of his reference group.

Reference groups influence product and brand purchases, particularly when the
consumption is conspicuous in nature. Where a product is conspicuously consumed,
the brand chosen may be influenced by what buyers perceive as acceptable to their
reference groups.

In case of conspicuous luxuries, even product consumption is influenced by reference

groups. In case of inconspicuous products, reference group influence is lower, as there
are little or no consequences (sanctions) for not buying the ‘right’ choices.

Among various members in a reference group, there are some who are referred to as
opinion leaders. Members respect the views of an opinion leader, and seek his counsel
and guidance on a particular issue. An opinion leader can influence purchase
decisions because members respect them for their expertise, or their social standing.

An opinion leader is a very credible source of word-of-mouth communication, and

most of them ensure that their views on issues are known to members of the reference
group. Their credibility is higher, as they are part of the reference group and do not
have vested interests in selling the product to others, unlike marketers.

Opinion leaders are product or category specific and are characterized by high
involvement level. It is extremely difficult to identify opinion leaders as they appear
to be like other members of their group. They do not stand out, though their
influencing power is stronger.

Marketers can identify reference group members only by conducting appropriate

research, which has to be product specific. Such research must include questions
about the involvement levels of the respondent, level of knowledge, social standing in
groups, inclination to adopt new products and ability to influence others.

Q.3. Discuss family influences on buying decisions. Explain the role

played by family members in buying:
a) Birthday gift for daughter
b) Residential flat
c) Home furniture
 Family Buying Influence on Consumer Behaviour
Family is a social group. It is also an earning, consuming and decision-making unit. All
purchasesare influenced by family members. Family is a closely-knit unit, and the bonds
in afamily are more powerful than in other groups. A reciprocal influence operates in all
familydecisions. There are three main influences which are father, mother and other
family members.Every member has his own motives, beliefs and predisposition to the
decision process.Every member is influenced and influences other family members.
There is a reciprocal influenceexerted in the decision process other family members. It
becomes important for a marketer to sort out all family influences, and formulate a
strategy for effective marketing.

Family Decision-making
In a family there is the
Instrument role: Taken by the head of the family for the achievement of special goals.
Expressive role: Undertaken by the wife and other family members to provide emotional
support
The concept of intergenerational carry over
Important buying roles are:
1. The instigator (initiator): Person who first suggests the idea of a product/service
and initiates the purchase process.
2. The influencer: Person having direct/Indirect influences, on final purchase
decision.
3. The decider: Person who makes the final decision.
4. The purchaser (buyer): Person who actually purchases the product, pays for it,
takes it home.
5. The consumer: User of goods/service.

Family Decision Stages

1. Problem recognition
2. Search for information
3. Evaluation of alternatives
4. Final decision

(NOTE - THIS IS JUST A BRIEF IDEA OF FAMILY INFLUENCES AND

ROLES PLAYED BY THE FAMILY MEMBERS)

Q.4. What is personality? Discuss the trait theory of Personality.

Explain influence of personality on Consumer behavior.

Personality is defined as the thoughts, emotions, intentions and behavior that people
express as they move through their environment. Personality is unique to individuals,
but may be applied to groups, is a combination of characteristics and traits and
influences purchasing behaviors

Following are five personality traits of an individual:

1. Openness to experience

Individuals with openness to experience are generally very active, have a

tremendous inclination towards creativity and aesthetics and listen to their
heart i.e. follow their inner feelings. Such individuals are generally open to
new learnings, skill sets and experiences. People who score high on openness
are quite broadminded and modern in their outlook as compared to individuals
who score low on the same parameter. Such individuals are conservative,
reluctant to changes and have a traditional approach in life.

2. Conscientiousness

As the name suggests, individuals with a Conscientiousness personality trait

listen to their conscience and act accordingly. Such individuals are extremely
cautious and self disciplined. They never perform any task in haste but think
twice before acting. People with this personality trait are generally methodical
and tend to become perfectionists in the long run. People who score high on
conscientiousness are proactive, goal oriented and self disciplined. They strive
hard to accomplish goals and objectives within the stipulated time frame.
Individuals who score less are little laid back and are not much goal oriented.

3. Extraversion and Introversion

a. Extraversion: Extraversion refers to a state where individuals show

more concern towards what is happening outside. Such individuals
love interacting with people around and are generally talkative. They
do not like spending time alone but love being the centre of attraction
of parties and social gatherings. Such individuals love going out,
partying, meeting people and often get bored when they are all by
themselves. They admire the company of others and hate staying
alone.
b. Introversion: Introversion, on the other hand refers to a state when an
individual is concerned only with his own life and nothing else. Such
individuals do not bother about others and are seldom interested in
what is happening around. They prefer staying back at home rather
than going out and spending time with friends. Such individuals speak
less and enjoy their own company. You would never find them in
meetings, clubs, parties or social get-togethers. They generally do not
have many friends and tend to rely on few trusted ones.

4. Agreeableness

Agreeableness is a personality trait which teaches individuals to be adjusting

in almost all situations. Such individuals do not crib and face changes with a
smile. They accommodate themselves to all situations and are friendly and
kind hearted. People who score high on agreeableness are ready to help others
 and flash their trillion dollar smile whenever a problem arises. Individuals
who score low on agreeableness on the other hand find difficulties in adjusting
with others and are little unfriendly.

5. Neuroticism

Neuroticism is a trait where individuals are prone to negative thoughts such as

anxiety, anger, envy, guilt and so on. Such individuals are often in a state of
depression and do not how to enjoy life. They always look at the negative
sides of life and find extremely difficult to cope up with stress.

Q.5. How, as a Marketer of home appliances, would you use

knowledge of post purchase evaluation by consumer, and ensure that
your consumer do not experience dissonance. Describe the response
strategy you will follow.

8 ways to improve your post purchase customer experience

The good news is that with a little consideration and some simple technology you can
have a post-purchase marketing strategy up and running in no time. So here are 8
ways you can improve your post-purchase customer experience right now:

1. Show you care

Show your customer that you value their custom. It only takes a simple ‘thank you’
but these two words can really make an impact on your customer’s post-purchase
experience and help build a longer term relationship.

2. Refunds and returns

Help reduce post-purchase anxiety by ensuring your customer is fully aware of your
refund policy and returns process. Being transparent about this will build trust with
your customer as it shows your brand isn’t all about sales, and that you understand
your customers’ needs.

3. ‘How-to’ guides
Once your customer has purchased your product, you want to ensure they can enjoy
it. A simple ‘how-to’ guide can facilitate this and reduce the risk of returns from
frustrated customers who gave up trying to work it out.

This can be done in a number of ways. You could include an infographic in your
email, embed a video guide or direct them to a written guide on your website.

4. Product care tips

Similar to the above, the same intention here is to ensure your customer is engaging
with their product but also getting value from their purchase. Help them prevent their
purchase from wearing out quickly with an informative email packed with product
care tips.

5. Product satisfaction feedback

A great way to improve customer experience is to get feedback from your customers
on the products they’ve purchased. Let the customer know that you value their
opinion and that it will help improve your product line, as Marks and Spencer have
done in the example below.

Keep in mind that the time frame around reviews will differ according to what type of
product they’ve purchased. If someone purchases a shirt, they’re likely to try it on
right away. However, an item such as a computer might need to be used several times
before the customer is ready to leave a review.

6. Replenishment reminders
Replenishment emails are automated emails that are sent to customers when their
product is about to run out so they can re-order. They’re useful for all sorts of
products from makeup to pet food and are low effort – they can be fired out
automatically with little ongoing management.

This simple attention to detail enhances the customer experience by offering

convenience and makes your brand a source of reliability.

7. Reward loyalty
Go beyond the thank you and demonstrate that you value their custom by inviting
customers to be part of your loyalty programme.

Email them with an invitation to join and lay out the benefits, be they an exclusive
offer, VIP access to sales, or bonus points on purchases.

8. Complementary product recommendations

Getting as much information about your customer as possible is going to be very
helpful in building a better relationship with them. But even if you have very limited
information, the item they’ve just purchased means you can now send them an email
with recommendations on complimentary products.

There may be other items of clothing, for example, to help them complete their look.
It might be something within the same product range such as a skincare routine. Or
maybe other food items so they can create a complete meal or recipe.

Q.6. How does reference group influence vary over product

categories? Which type of reference group influence can you expect
in the following and why?
a) Camera
b) Soap
 c) Car

In our daily lives, we all get influenced by a variety of people while making our
purchase decisions. We, as humans do a lot to try to impress others. We make
purchase to get compliments and try that others should not think less of us.
A reference group is the group whose perspective we consider. Now our reference
could be very large or very small including few of our family members or few close
friends. Reference groups influence people a lot in their buying decisions. They set
the levels of lifestyle, purchasing patterns, etc.
Reference groups are of two types −

 Primary Groups
 Secondary Groups

Primary Groups
Primary reference groups are basically the set of people whom you meet every day.
They can be from your family, your close friends, your roommates, etc.
These people from primary groups may have a direct and strong impact in your lives
and your buying decisions since they are very significant to you. Primary groups
make you comfortable and give you a feeling that they are with you when you are
confused about a purchase. These people give you very honest and clear advices as
they are so close to you, due to which you could be more confident about the
purchase. Research shows that the bond between people leads people to be
effectively social and as satisfied consumers.
Secondary Groups
Secondary reference groups are usually formal and they speak less frequently. They
might be professionals, your collogues, your seniors at work or your acquaintance at
club, etc.
In secondary reference groups the power to influence people is quite less as
compared to primary reference groups as people in these groups are not that
comfortable in sharing their thoughts or views on the purchase.

Let’s have a look at few more reference groups

Aspirational Group
Aspirational group is the one to which a person may want to become part of. They
currently are not part of that group but wish to become and get with that group. For
doing the same, they try to dress, talk, act and even think the way the members of
that group do.
For example, people who like Madhuri Dixit wish to become like her and meet her
and so start purchasing and using all those products that she endorses.
Dissociative Group
The people in these groups are totally opposite to the people in the aspirational
group. Here people deny of becoming or getting connected to a particular group.
They just hate being related to that group.
For example, if people don’t like a particular community, they would never like
being connected to them. So they would try all the possible ways to avoid the way in
which they dress, think or act.
Thus marketers need to understand the likes and dislikes of the consumers and also
the groups to which they belong. Marketers should recognize the extent to which a
reference group influences the consumer and he should also understand out of all the
groups which group influences him the most.

Q.8. Explain the concept of culture and sub-culture. Discuss the

concept of sub-cultural segmentation for food products.

Meaning of Culture
Culture may be defined as the “personality of a society”. It is broad and all pervasive in nature,
inclusive of language, customs and traditions, norms and laws, religion, art and music, etc. It also
includes the interests of people, the work practices and orientations, as also their attitudes towards
general and specific issues. Culture delineates precisely, the do’s and dont’s of a society, and specifies
all that is acceptable and all that is not. It is reflective of values and beliefs that are widely accepted by
members of a society. The members of a society subscribe to the various values, beliefs and norms, and
this gives strength to a society’s culture. This does not imply that cultures are truly rigid; in fact, they
evolve and adapt to changing situations and times. Culture is a society's personality, unique in itself
and differentiated from others; it is further divided into various sub-cultures. Culture is also trans-
generational, and is passed on from one generation to another. A study on our culture requires an
elaborate and detailed inquiry into the very character and personality of the society that we live in. The
culture of a society also has a bearing on buying patterns and consumption behavior. In terms of
consumer behavior, Schiffman defines culture as “the sum total of learned beliefs, values, and customs
that serve to direct the consumer behavior of members of a particular society”. The kinds of products
and services and/or brands that consumers’ buy and use, are all based on their cultures and sub-
cultures. For example, the food they eat and the kinds of clothes they buy and wear, are all impacted by
their culture, their customs, traditions, norms and values.

Components of Culture:
Culture is reflected through the various components that it comprises, viz., values,
language, myths, customs, rituals and laws. These are briefly explained as follows:

- Values: Values are the beliefs and ideals shared by the people of a society, for
which they have great respect and regard. They could assume both positive (do’s) and
negative (dont’s) connotations, and are indicative of appropriate thoughts, feelings
and acts of behavior.

- Language: Man is a social animal and needs to communicate with others. Language
is used as a means to communicate with people in a social set up. It is the common
language that binds together the people in a social structure.

- Myths: Myths are legendary folktales and stories that describe events and
occurrences, and teach values to society. They are imaginary and fictitious, and
comprise characters that are gods, heroes and common men, ultimately aimed at
giving lessons to the people, with respect to the causes and effects, good and bad,
right and wrong, etc. Myths describe the values that members of a social structure
should share.

- Customs: Customs are habitual practices that formulate the established way of
doing things and reflect culturally accepted patterns of behavior. They reflect
practices that have permanent continuance and are so long established that they have
the force of law; in other words they are conventions. People in a social system follow
such practices collectively, and the habitual activity gets transmitted from one
generation to another.

- Rituals: Rituals are prescribed processes and procedures for conduct of religious or
social rites. They are established rites, ceremonies and proceedings that are symbolic
in nature. Rituals are collective in nature, comprising many patterns of behavior that
are interdependent to each other.

- Laws: Laws are principles, rules and regulations that are formulated/sanctioned by
an authority (ruler, government, constitution etc.), and supported/protected by judicial
authority.
Their basis can actually be found in the society’s values, customs, and rituals. Laws
are universally applicable across people in a society/country. They are written
collection of rules and regulations to be adhered to by the people, and non-adherence
to which would lead to legal action from the judiciary.

Meaning of Sub-Culture
While culture is defined as the “personality of a society”, (inclusive of language,
customs and traditions, norms and laws, religion, art and music, etc), it is not entirely
homogenous in nature. Not all people within a social system, share the same
language, religion, customs and traditions. Every society is composed of smaller sub-
units, homogenous within, and heterogeneous outside, all of which when put together
make a complex society. Such sub-units or sub-groups are known as sub-cultures;
people within sub-cultures possess distinctive sets of values, beliefs, customs and
traditions etc. The members of a subculture possess such values and beliefs, as also
customs and traditions that set them apart from people belonging to other sub-
cultures.

For example, while we are all Indians, and our culture is Indian (with a common
national language, Hindi, and common festivals like Diwali), North Indians are
different from South Indians. While North Indians, celebrate Lohri, as a harvest
festival in January, the South Indians celebrate Pongal as their harvest festival at the
same time. In other words, people within smaller units share the same language,
religion, customs and traditions; and, this would be different in smaller or larger
magnitude to people in other sub-units.

Types of Sub-Culture :

(NOTE: THESE ALL TYPES CAN BE USED AS A SEGMENTATION

CRITERIA FOR FOOD PRODUCTS)
Based on the varying criteria, there can be different types of sub-cultures. The
important subcultural categories are nationality, geographical location, religion, race
and caste, gender and age.

Nationality: Sub-cultures could be based on nationality. While we are all Asians, we

are distinct with respect to culture, and are different in terms of language, customs
and traditions etc. Thus, we are classified as Indians, Burmese, Nepalese, Pakistani
etc.

- Geographical location: Within a country, we could be different across geography,

climatic conditions, regions and terrains, and density of population. This is more so in
cases where the country is large and borders spread across a huge population
occupying a vast territory. People tend to develop regional affinity and identification,
and this gets reflected in the food they eat, clothes they wear, interests they pursue,
etc. They constitute as distinct sub-cultures and people across such sub-cultures are
different to each other. For example, we can be classified as North Indians and South
Indians. As consumers, our needs are different and would translate into
various wants, for example, i) differences in food habits, and demand for poori-sabji,
paratha, idli-vada etc.; or ii) differences in clothing, and demand for cottons, woolens
and silk.

- Religion: People also exhibit differences when it comes to the religions that they
belong to. Hindus, Muslims, Christians, Sikhs, Parsis etc. are all different from one
another and have different values and beliefs, customs and traditions etc. As
consumers, they make purchase choices and purchase decisions that are influenced by
the dictates of their religious leaders, scriptures, and holy books. In fact, many
products/services are symbolically and ritualistically associated with religion. For
example, as per Islam, non-vegetarian food must be “Halal”, and this itself comprises
a huge segment that marketers across national boundaries are catering to.

- Gender: Because gender roles have an impact on acts of behavior, gender

constitutes an important cultural sub-group. Males and females across all cultures are
assigned different traits and characteristics that make them masculine and feminine.
They also perform different roles in society and are two distinct sub-groups. It is true
that gender roles have got blurred, and both men and women are performing such
roles that they did not perform earlier. Product usage is common to both man and
woman; for example, a man shown as using a LG washing machine or making Act II
popcorn. Similarly products like shavers and razors exclusive to usage by men, are
also being used by women (Gillette thus introduced a razor for women). All this has
brought
about a big socio-economic change and led to cultural transformation. The values
espoused by the generation of today is much different to the one espoused by the
previous generation.

-Age: Infants, kids, teenagers and adolescents, adults and the aged, may all be looked
up as distinct sub-groups. They have different values and beliefs, and all this impacts
upon their priorities in life. Daily lifestyles, activities and interests, fashion and
accessories, food and diet, etc. receive varying priorities across the various sub-
groups. For example, an aged person would prioritize health and go in for nutritious
home food as opposed to young man who would prioritize work and go in for fast
food. Today we see a rising trend amongst kids, adolescents and the young towards
junk food, and they constitute a lucrative segment for restaurants providing fast food.

Q.9. What do you understand by extensive problem solving, limited

problem solving and routinised response behaviour? What kind of
decision process can you expect in the following cases and why?
(a) Purchase of a greeting card.
(b) Purchase of an after shave lotion/moisturize

Extensive problem solving

When consumers have no established criteria problem for evaluating a product

category or specific brands in that category or have not narrowed the number of
brands they will consider to a small, manageable subset, their decision making efforts
can be classified as extensive problem solve . At this level, the consumer needs a
great deal of information to establish a set of criteria on which to judge specific
brands and a correspondingly large amount of information concerning each of the
brands to be considered. Extensive problem solve usually occurs when buying
products that are expensive, important and technically complicated, and implies long
time commitments (e.g. a car, an apartment, a high definition television).

Limited problem solving

At the limited problem solve level , consumers have already established the basic
criteria for evaluating the product category and the various brands in the category.
However, they have not fully established preferences concerning a select group of
brands. Their search for additional information is more like ‘fine tuning’; they must
gather additional brand information to discriminate among the various brands. This
level of problem solve commonly occurs when purchasing an updated version of a
product the consumer has bought before, such as replacing a mobile phone with a new
one, buying a food processor or replacing an old laptop with a new one.

Routinised response behaviour

At this level, consumers have experience with the product category and a well
established set of criteria with which to evaluate the brands they are considering. In
some situations, they may search for a small amount of additional information; in
others, they simply review what they already know. Buying a refill of laundry
detergent, toothpaste or hand soap are all examples of products consumers purchase
more or less based on routine.
Just how extensive a consumer’s problem solve task is depends on how well
established his or her criteria for selection are, how much information he or she has
about each brand being considered, and how narrow the set of brands is from which
the choice will be made.