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Goals

 Understand the nature of need recognition and factors that

Chapter 9 influence need recognition
Customer’s purchase decision  Marketing stratgies used for activating need recognition
 Understand the nature of information search and
process marketing strategies used for different types of
information search
BEFORE BUYING

Content 1. Types of purchase decisions

1. Types of purchase decisions Cognitive (extended) decision making: people calmly and
2. Need recognition carefully integrate as much information as possible with what
they already know about a product, painstakingly weigh the
3. Marketing application of need recognition pluses and minuses of each alternative, and arrive at a
4. Information search satisfactory decision.
5. Marketing application of information search Habitual (nominal) decision making describes the choices
we make with little or no conscious effort.
Limited decision making: involves internal and limited
external search, few alternatives, simple decision rules on a
few attributes, and little postpurchase evaluation

Which type of purchase decision is often applied for each

of these products?

dish lunch meals at automobiles ice-creams clothes cooking oil

washing school
liquid
Source: Consumer nominal
Behavior - Building limited
marketing strategy, 11e
(Mothersbaugh, 2010) extended

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A simple model of buying decision process 2. Need recognition

What causes a person to buy a new cellphone?

Before buying

While buying

After buying

2. Need recognition 2. Need recognition

2.2. Factors affecting the desired state

Desired Actual Need
state state Culture/ Subculture Previous decisions
Social status Individual development
Magnitude of the discrepancy between a desired state and Reference group Emotions
an actual state Household characteristics Motives
Customers’ budget and time limits
Financial status/expectations Situation
The importance of the need

Source: Consumer Behavior - Building marketing strategy, 11e (Mothersbaugh, 2010)

2. Need recognition 3. Marketing application of need recognition

3.1 Discovering Consumer Problems
2.3. Factors affecting the actual state Activity analysis: focuses on a particular activity and
Past decisions determine what problems consumers encounter during the
Normal depletion performance of the activity

Individual development
Emotions
Government/consumer groups
Availability of products
Situation
Source: Consumer Behavior - Building marketing strategy, 11e (Mothersbaugh, 2010)

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3. Marketing application of need recognition
3.1 Discovering Consumer Problems
Product Analysis: similar to activity analysis but
examines the purchase or use of a particular product or
brand
3. Marketing application of need recognition
3.1 Discovering Consumer Problems
Human Factors Research: determine human capabilities
in areas such as vision, strength, response time, flexibility,
and fatigue and the effect on these capabilities of lighting,
temperature, and sound
Emotion Research: the role of emotions in problem
recognition and resolution -> anticipate consumer
reactions to problems and train their customer service
personnel to respond appropriately
3. Marketing application of need recognition
3.2 Responding to Consumer Problems
Identify the time and place of need recognition
ürecognized needs: solve problems after they arise
üunrecognized needs: mention problems in advance
when they haven’t happened yet
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3. Marketing application of need recognition
3.1 Discovering Consumer Problems
Problem Analysis: starts with a problem and asks
respondents to indicate which activities, products, or brands
are associated with (or perhaps could eliminate) those
problems
3. Marketing application of need recognition
3.2 Responding to Consumer Problems
Activate need recognition
ü Influence the desired state: emphasize product benefits
ü Influence the perception of the actual state: many
personal care and social products take this approach
4. Information search
Where do you get information when you buy a new
smartphone?
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4. Information search 4. Information search

Information search in Consumer Decisions

Personal source Public source

Commercial source Experiential source

4. Information search 4. Information search

4.1. Internal information search 4.1.1 Brand

Brand  Consumers tend to first remember a group of some certain
Attribute brands called evoked set
Evaluation  Elements that help increase the recall of a brand and adding
Experience it to the evoked set
übeing similar to the original model
übrand familiarity
üpurpose and usage situation
übrand preference

4. Information search 4. Information search

4.1.2 Attributes 4.1.3 Evaluation

 Customers tend to remember some details about a product or Evaluation or the attitude (like or dislike) is more
brand. memorable than specific attributes
 Factors influencing the recall of attributes Positive attitudes are important to brands.
üavailability
üprediction
übeing outstanding
übeing lively
üpurpose

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4. Information search 4. Information search

4.1.4 Experience 4.2 External information search:

Information from experience is more lively and easier to
remember
Customers tend remember positive or negative
experiences better than normal ones. However, whether a
brand is added to the evoked set depends on if the
experience is positive or not
When information from memories is insufficient,
consuemrs conduct external search
Consumers can also do external search to support their
evoked sets.

4. Information search 4. Information search

2 types of external information search
Before buying search Continuous search 4.2 External information search:
Criteria • buying oriented • product oriented retailers
• market context • market context
media
• situation • situation
Motives To make better purchase • to build n information source for future personal interactivity
decisions purchases experience (trials)
• interesting experience
Results • increasing knowledge • Increased knowledge about products and
about products and markets markets leads to:
• making better decisions ü better effectiveness of future purchase
• being more satisfied with ü personal influence.
the purchase decisions ü increased impulse purchase.
ü increased satisfaction from information search

3. Information search 5. Marketing application of information

search
3.2 External information search: 5.1 Improving the information quality controllable
sources
Retailers: Traing on selling skills and product knowledge
etc.
Media: Select appropriate media channels for target
customers, spot-on message, attractive images, etc.
Experience: giving free samples etc.

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5. Marketing application of information search
5.2 Viral marketing
5. Marketing application of information
search
5.3. Marketing strategies based on information search
patterns
Maintenance strategy:
• consistent attention to product quality
• distribution (avoiding out-of-stock situations)
• reinforcement advertising strategy
• defend against the disruptive tactics of competitors
5. Marketing application of information
search
5.3. Marketing strategies based on information search patterns
 Capture strategy:
• know where consumers search and what information they are
looking for
• supply information, often on price and availability, on Web
site and local media as well as at the point of purchase through
displays and adequate shelf space.
• maintain consistent product quality and adequate distribution.
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5. Marketing application of information
search
5.3. Marketing strategies based on information search
patterns
Source: Consumer Behavior - Building marketing strategy, 11e (Mothersbaugh, 2010)
5. Marketing application of information
search
5.3. Marketing strategies based on information search patterns
 Disrupt strategy:
• In the short run: attention-attracting advertising, free samples,
coupons, rebates, and tie-in sales, striking package designs
and point-of-purchase displays, comparative advertising
• In the long run: a major product improvement accompanied by
attention-attracting advertising could shift the target market
into a more extensive form of decision making.
5. Marketing application of information
search
5.3. Marketing strategies based on information search patterns
 Intercept strategy:
• intercept the consumer during the search for information on
the brands in the evoked set or during general search for
related information
• cooperative advertising on local media and at the point of
purchase with displays, shelf space, package design, etc.
• Coupons can also be effective.
• placing considerable emphasis on attracting the consumers’
attention
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5. Marketing application of information 5. Marketing application of information

search
5.3. Marketing strategies based on information search patterns
Preference strategy:
• structure an information campaign that will result in the brand
being preferred by members of the target market.
• strong position on those attributes important to the target
market
• information must be provided in all the appropriate sources
• word of mouth, product testing by indepedent groups
• the sales team provide detailed information
• keyword searches prior to a purchase tend to be generic
→ opportunities for unfamiliar brands
search
5.3. Marketing strategies based on information search patterns
Acceptance strategy:
• similar to the preference strategy but the marketer must
attract the consumers’ attention or otherwise motivate them to
learn about the brand
• product improvements and heavy advertising
• pay consumers to get them seek information about the
products (Chrysler cars)
• Long-term advertising to enhance low-involvement learning

Discussion Discussion
1. Discovering consumer problems for 3. Which information source will you use when:
üstressed office workers ü buying a rice cooker
üparents ü buying cooking oil
üremote learners ü booking a hotel
2. How would you activate the need recognition for: ü going to a diner
üinstant coffee How will you get your customer attention if you’re an
unfamiliar brand in these industries?
ühealth insurance
üEnglish courses
(desired and actual state? time & place?)