CH-7 Problem Recognition and Information Search – Consumer Behavior : Book Guide

Chapter 7 Problem Recognition and Information Search CHAPTER SUMMARY This chapter examines the three initial stages of the consumer judgment and decision-making process. Problem recognition is the perceived difference between an ideal state and the actual state. When a discrepancy between these two states exists, the consumer may be motivated to resolve it by engaging in decision making. Internal search involves the recall of information, experiences, and feelings from memory. In general, the extent of internal search will increase as motivation (e.g., involvement, perceived risk), ability (knowledge and experience), and opportunity (no time pressure or distractions) increase. Consumer researchers have been interested in examining which brands, attributes, evaluations, and experiences are recalled. In general, aspects that are more salient, diagnostic, vivid, and related to goals are more likely to be recalled. Several biases exist in internal search: confirmation bias, in which information that reinforces our overall beliefs is remembered; inhibition, in which the recall of some information can inhibit the recall of other attributes; and mood, which refers to our tendency to recall mood-congruent information. The last part of the chapter focuses on external search—how consumers acquire information from outside sources. This included pre-purchase search and ongoing search. The extent of search can vary widely, depending on the motivation, ability, and opportunity to search, but the extent of search is usually rather low. The content of search depends on the salience and diagnosticity of information. In most situations, brand name and price tend to be the most accessed attributes. Consumers also tend to exhibit a confirmation bias in their external search. Six major sources of external search are identified. Retailer, Internet, and media searches account for the highest level of search activity, but interpersonal sources increase in importance as consumer knowledge decreases and normative factors increase. The Internet is changing the manner in which consumers search for information. They have access to a great deal of information without even leaving home, so much so that they may suffer information overload. Finally, discussion of the search process shows that more salient and diagnostic information tends to be accessed earlier. In addition, consumers tend to process either by brand or by attribute. Attribute search is easier and preferred, but often the information environment is not organized to facilitate this type of processing. CHAPTER LEARNING OBJECTIVES After studying this chapter, students will be able to 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. 4. Identify opportunities and the challenges that marketers face in trying to influence external searches. CHAPTER OUTLINE I. Problem Recognition A. The Ideal State: Where We Want to Be 1. A perception of how consumers would like or desire situations to be across each consumption context 2. Sometimes based on simple expectations, usually based on past experiences 3. Can be a function of future goals or aspirations 4. Changes in life situations also change what is considered to be the ideal state. B. The Actual State: Where We Are Now 1. The consumer’s perception of the situation as it exists now 2. Often determined by simple physical factors 3. Consumers’ needs play a critical role 4. External stimuli can suddenly change perceptions of the actual state C. Marketing Implications 1. Putting consumers in a state of problem recognition may stimulate the decision process and lead to acquisition, consumption, or disposition of a product or service. 2. Marketers can attempt to create a new ideal state. 3. Marketers can attempt to create dissatisfaction with the actual state. II. Internal Search: Searching for Information from Memory A. How Much Do We Engage in Internal Search? 1. Degree of internal search can vary from simple recall of a brand name to more extensive searches through memory for relevant information, feelings, and experiences. 2. Amount of internal search devoted depends on motivation, ability, and opportunity to process information. 3. Consumers will attempt to recall more information for decisions that are important to them than for those that are less important. B. What Kind of Information Is Retrieved from Internal Search? 1. Recall of Brands a) Consideration or evoked set is the subset of brands evaluated when making a choice. b) From the marketing standpoint it is important that a brand is in the evoked set, otherwise it will not be considered. c) Consideration sets vary in size, stability, variety, and equality of preferences toward brands d) Factors that will increase the possibility of being included in the consideration set include: (1). Prototypicality (2). Brand familiarity (3). Goals and usage situations (4). Brand preference (5). Retrieval cues 2. Recall of Attributes a) Factors that influence the recall of attributes include: (1). Accessibility or availability (2). Diagnosticity of attributes: Diagnostic information helps us discriminate among objects. (3). Salience (prominence) (4). Vividness (5). Goals 3. Recall of Evaluations a) Overall evaluations are easier to remember than specific attribute information. b) More likely to be remembered if consumers are actively trying to evaluate a brand when exposed to the information. (1). This act of processing an ad as you view it is called online processing. 4. Recall of Experiences a) Vivid, salient, or frequent experiences are more likely to be remembered. 5. Marketing Implications a) Marketers want consumers to recall positive experiences in relation to a certain product or service. C. Is Internal Search Always Accurate? 1. Confirmation Bias a) Refers to fact that we are more likely to recall information that reinforces rather than contradicts our beliefs, thereby making the judgment or decision more positive than it should be. 2. Inhibition a) Certain diagnostic attributes are not recalled due to limitations in consumers’ processing capacity. b) Can also lead to a biased judgment or decision because important and useful information may be remembered but ignored 3. Mood: Internal search stems from mood a) Marketing communications that put consumers in a good mood can enhance the recall of positive attribute information. 4. Marketing Implications a) Confirmation bias presents a problem when consumers search internally only for positive information about the competition. b) One way to attack the problem is to draw attention to negative aspects about the competition through comparative advertising. c) Key aspects of a brand may not always enter into the decision process because other more accessible attributes are recalled instead. d) Marketers can sometimes offset the impact of their own disadvantages and/or competitors’ advantages by drawing attention to more vivid or accessible attributes. III. External Search: Searching for Information from the Environment A. In external search consumers, acquire information from outside sources. B. Pre-purchase search occurs in response to the activation of problem recognition and is related to situational involvement. C. Ongoing search occurs on a regular and continuous basis, even when problem recognition is not activated. It is related to enduring involvement. D. Where Can We Search for Information? 1. Researchers have classified sources of information into five major groups. a) Retailer search b) Media and social media search c) Interpersonal search d) Independent search e) Experiential search 2. Internet Sources a) The phenomenal growth of the Internet has dramatically altered the way consumers shop and search for information. b) Consumers see product choice as riskier when they lack access to experiential information until after purchasing online. 3. Information Overload a) To reduce information overload, companies are producing more efficient search aids to try to identify the most popular or useful information for consumers. 4. Simulations a) Website developers can now simulate the retail experience as well as product trials. 5. The Online Community a) The Internet also makes it easier for consumers to talk to each other about product recommendations and usage advice. 6. Marketing Implications a) Not all types of products and services are experiencing success on the Internet, especially when quality cannot be judged online, or when the cost of delivery is high relative to the cost of the items purchased. E. How Much Do We Engage in External Search? 1. Motivation to Process Information a) Involvement and perceived risk b) Perceived costs and benefits c) Consideration set d) Relative brand uncertainty e) Attitude toward search f) Discrepancy of information 2. Ability to Process Information a) Consumer knowledge b) Cognitive abilities c) Demographics. For example, consumers with higher education’s tend to search more than less-educated consumers. 3. Opportunity to Process Information a) Amount of information available b) Information format c) Time availability d) Number of items being chosen F. Marketing Implications 1. If a sizable number of consumers tend to search heavily for a particular product or service, marketers need to make information readily available and easily accessible. 2. Marketers should segment the market for any product or service according to search activity. G. What Kind of Information Is Acquired in External Search? 1. Brand Name a) Most frequently accessed type of information 2. Price a) Diagnostic b) Can be used to infer value c) Importance of price varies by culture 3. Other Attributes a) Varies by product or service category H. Is External Search Always Accurate? 1. Consumers can be just as biased in their search for external information as they are during internal search. 2. Consumers tend to exhibit a confirmation bias. I. How Do We Engage in External Search? 1. Process includes orientation, evaluation, and verification. 2. Search Stages a) Mass media and marketer-related sources are more influential in the early stages. b) Interpersonal sources are more critical when the actual decision is made. c) Consumers search first for information when attributes are uncertain or less favorable. 3. Searching by Brand or Attribute a) When searching by brand, consumers acquire all the needed information on one brand before moving on to the next. b) When searching by attribute, consumers compare brands one attribute at a time. (1). Price comparison shopping is an example. c) Consumers are sensitive to the format in which information is presented in the store. d) Different search strategies affect uncertainty reduction differently. (1). Consumers who process by brand name remain high in uncertainty until the very end of the search process. (2). Those who search by attribute gradually reduce their uncertainty. J. Marketing Implications 1. Marketers want to ensure that the specific information consumers want is easily and readily available. 2. Emphasizing that information in advertising can do this. 3. Brands need to perform well on attributes that are frequently accessed. QUESTIONS FOR REVIEW AND DISCUSSION Possible answers are as follows. 1. How does a discrepancy between the ideal state and the actual state affect consumer behavior? Answer: The difference between the ideal state and the actual state equates to problem recognition. The degree of discrepancy can strongly influence consumer behavior. Marketers attempt to put consumers in a state of problem recognition in effort to stimulate the decision process. Without problem recognition, marketing efforts are likely to be less effective because the consumer may not be motivated to process information. 2. What factors affect the inclusion of brands in the consideration set, and why would a company want its brand in the consideration set? Answer: The consideration set is affected by prototypicality, a brand’s familiarity, goals and usage situations, brand preference and retrieval cues. A company wants its brand to be part of the consideration set, as this is the set of alternatives that consumers evaluate when making a choice. If your brand is not part of a consumer’s consideration set then that brand will not likely be the one purchased. 3. How does confirmation bias operate in internal and external searches for information? Answer: Consumers tend to recall information that reinforces or confirms their beliefs. This confirmation bias will lead consumers to selective perception. We are more likely to recall information about brands we like or have previously chosen than about brands we dislike or have rejected. 4. What five broad groups of sources can consumers consult during external search? Answer: Consumers can acquire information from five major categories of external sources: retailer search, media search, interpersonal search, independent search, experiential search, and the Internet. 5. How do involvement, perceived risk, perceived costs and benefits, and the consideration set affect a consumer’s motivation to conduct an external search? Answer: In general, as the motivation to process information increases, external search will be more extensive. Involvement, perceived risk, perceived costs and benefits, and the consideration set all affect our motivation to conduct an external search. Motivation increases when involvement, perceived risk, and perceived costs and benefits increase. Additionally, when we are familiar with a brand and that brand is part of our consideration set, we are more likely to be motivated to gather information through external searching. Finally, a consideration set that contains a large number of attractive alternatives motivates the consumer to engage in external search, to decide which alternative to select. 6. When would a consumer be more likely to conduct an external search by brand rather than by attribute? Which search process would a marketer prefer consumers to use—and why? Answer: Consumers with more product knowledge tend to process by brand because they have more brand-based knowledge. Consumers also are more likely to process information by brand if information is presented to them by brand, as it is in most stores. Marketers of well-established brands might prefer a consumer to process by brand. It is thought that consumers will use the high brand equity as a symbol of quality. However, there may be situations in which a particular brand excels on a certain attribute. Marketers in this situation attempt to highlight these differences. CONSUMER BEHAVIOR CASE Searching for a Search Engine There’s a big marketing battle brewing among the search engines of the world. Google is so widely used that many consumers talk of “Googling” a product or service when they mean they’re going to do some Internet research. But as dominant as Google may be in some countries—it handles two out of every three online searches in the United States, for instance—it does face competition, both locally and globally. Still, because of Google’s firmly entrenched position, other search engines have to start by stirring consumers to recognize a problem with their current search engine. The most aggressive of Google’s search competitors is Bing, introduced by parent company Microsoft in 2009. Within months, Bing had arranged to become the official search engine of Yahoo!, one of the web’s original search sites. Thanks to this deal, Bing improved its share and now holds about 15 percent of the U.S. search market, pulling nearly even with the market share of Yahoo! Worldwide, however, Bing holds only a tiny share of the search market, whereas Google still controls more than 80 percent of the global search market. To increase brand awareness, put itself in the consideration set, and bring consumers to its search site, Bing runs ads on TV and in movie theaters to promote itself as a “decision engine.” The messages, delivered with a dash of humor, suggest that consumers can avoid information overload and find just what they need by searching on Bing, whether they’re looking for how-to videos, holiday gift ideas, airline flights, or movie show-times. For its part, Google is pouring on the warm feelings in its ads to engage consumers emotionally and retain their loyalty. Ads portray Google as the place to search for long-lost friends, for example, among other search stories with affective appeal. In essence, Google is reminding consumers: “Remember how it felt when you did those successful searches through our site? Use Google when you’re searching for something you care about, whether it’s videos, images, news, maps, or more.” Google also wants to be sure that mobile users continue to choose its search site when using their phones to locate information about goods and services. Currently, Google is responsible for more than 90 percent of U.S. mobile searches. However, that may change as many search sites gear up in earnest for this fast-growing segment. Other search engines have captured considerable market share outside the United States by optimizing their searches and the look of their sites and results to local needs and preferences. Baidu, for example, is the market leader in Chinese-language searches, and Yandex is the leader in Russian-language searches. In addition, various niche search sites want consumers to choose them for specialized searches. VideoSurf, now owned by Microsoft, enables consumers to search for specific content among 50 million online video clips. It is being marketed in connection with Microsoft’s Xbox system as a way for consumers to locate sports or music videos to stream to their TVs. Mocavo, used to search for names of ancestors, is marketed through mentions on genealogy blogs and web sites. Wolfram Alpha calls itself a “computational knowledge engine” that can help users search for data about mathematics, statistics, engineering, units and measures, and more. Infomine searches academic resource collections available online. Findsounds.com enables consumers to locate and listen to sound effects posted on the web. Spezify.com emphasizes colorful and intuitive visual display rather than a simple text listing of results. No matter what kind of search consumers want to conduct online, there’s a site to help them locate exactly what they want. Case Questions 1. Why is achieving a significant level of brand familiarity especially important for Google’s competitors? Answer: It is critical to achieve a significance level in order to even be in the consumers’ consideration set; Google is such a prototypical brand, they tend to dominate users internal searches so that other search engines are never even considered. 2. What are the search sites doing to increase consumers’ motivation, ability, and opportunity to process external information? Answer: Search sites try to motivate consumers to search for alternatives by illustrating that the “actual state” of their search engine use is not satisfactory, and then provide easy-to-access information to increase consumer knowledge about their specific brand and how it can better suit consumer needs. 3. Are consumers likely to search by brand or search by attribute when comparing search sites? Which process is likely to favor the specialized search sites? Answer: If consumers are actively seeking a different search engine, brand may play a part initially because you can’t use a service you’ve never heard of; however, since most people only recognize the brands of a few companies, consumers may subsequently seek out engines by attributes to meet needs unmet by the larger companies. Searching by attribute favors specialized search sites because they offer specialized attributes such as more accurate searches for their specific subject areas and more precise results. 4. Given the role of prototypicality in recall of search engine brands, what do you think niche search sites should do to get into the consideration set? Answer: Niche sites must distinguish themselves from Google, the prototypical brand, by both highlighting the attributes that set them apart from Google and ensuring consumers have a positive overall brand evaluation through the company’s marketing communication. SUGGESTED EXERCISES AND TEACHER GUIDELINES 1. Find 20 magazine, television, or radio advertisements that you think are trying to instigate problem recognition in consumers. Group these ads into those you think are (a) trying to influence the ideal state and (b) trying to create dissatisfaction with the actual state. Relate each group of ads to the factors discussed in the chapter on influencing both the ideal state and the actual state. Which types of ads do you think are effective and why? Answer: Students should consider how the ads have tried to create a new ideal state and/or shift consumer preferences by attempting to create dissatisfaction with the actual state. In addition, students should analyze how the marketer has tried to position their product as the solution to the consumer’s problem. Ads Instigating Problem Recognition: (a) Influencing the Ideal State: 1. Luxury Car Brands (e.g., Mercedes-Benz): Showcase aspirational lifestyles. 2. High-End Appliances (e.g., Samsung Smart Fridge): Highlight advanced features. 3. Premium Skincare (e.g., La Mer): Promote flawless skin. 4. Designer Fashion (e.g., Gucci): Focus on elite style. 5. Travel Destinations (e.g., Maldives Resorts): Depict luxurious experiences. Factors: Aspirational Appeal and Emotional Appeal. (b) Creating Dissatisfaction with the Actual State: 1. Weight Loss Programs (e.g., Weight Watchers): Address weight issues. 2. Dental Care Products (e.g., Crest White Strips): Focus on dental problems. 3. Car Maintenance Services (e.g., Jiffy Lube): Highlight car issues. 4. Home Cleaning Products (e.g., Lysol): Show dirty surfaces. 5. Health Supplements (e.g., Centrum): Target health deficiencies. Factors: Problem-Solution Approach and Fear or Discomfort. Effectiveness: Ideal State Ads: Effective if they strongly appeal to desires and contrast the current with the desired state. Dissatisfaction Ads: Effective if they clearly identify problems and offer immediate solutions. 2. Interview five consumers to determine their knowledge about a product or service category for which you think motivation, ability, and opportunity to process are high. Ask consumers to discuss: (a) all the brands they would consider, (b) what they know about each brand, (c) their evaluations of each brand, and (d) any prior experiences they have relative to these brands. After obtaining this information, ask consumers which brand they would choose if they had to pick one right now, and whether they would want any additional information before deciding. Finally, analyze this information in terms of the principles discussed in this chapter: recall of brands, attributes, evaluations, and experiences. Do your findings support or contradict these concepts? If so, why?. How does internal search relate to the desire for external search? Answer: A good way to present this information is in the context of evoked and awareness sets. It may be interesting to see which brands people are aware of but not consider for a particular product category. Interview Analysis: Product Category: Smartphones Consumers’ Responses: 1. Brands Considered: • Apple, Samsung, Google, OnePlus, Xiaomi 2. Knowledge About Each Brand: • Apple: Premium quality, ecosystem integration. • Samsung: Innovation, diverse models. • Google: Software, camera. • OnePlus: Performance, value. • Xiaomi: Affordability, features. 3. Evaluations: • Apple: Preferred for design, reliability. • Samsung: Valued for features. • Google: Praised for software. • OnePlus: High performance, cost-effective. • Xiaomi: Best value. 4. Prior Experiences: • Apple: Positive, user-friendly. • Samsung: Mixed, software issues. • Google: Positive, good software. • OnePlus: Positive, fast. • Xiaomi: Good for budget. Current Choice and Additional Info: • Chosen Brand: Apple • Additional Info Needed: Up-to-date reviews and comparisons. Analysis: • Recall: High for popular brands. • Attributes & Evaluations: Based on design, performance, and price. • Experiences: Influence current preferences. Internal vs. External Search: • Internal Search: Initial knowledge and brand recall. • External Search: Additional information needed to finalize decision. Conclusion: Internal knowledge guides initial choices; external search refines and confirms decisions, reflecting high involvement. 3. Interview five consumers about their external search activity regarding a product or service category for which you think motivation, ability, and opportunity to search are high. Be sure to ask them questions about: (a) which brands they would search for information on, (b) which types of information they would look for, (c) what sources of information they would use, and (d) how much time they would take. Analyze the answers in terms of the external search principles discussed in this chapter: the extent, content, and sources of search. Do your findings support or contradict these concepts? Answer: Tie student responses into the motivation, ability, and opportunity concepts discussed from Chapter 2. Discuss the impact of the Internet on the search process for a wide variety of product categories. Interview Analysis: Product Category: Laptops Consumers’ Responses: 1. Brands Searched: Apple, Dell, HP, Lenovo, ASUS 2. Information Sought: Specs, price, reviews, comparisons 3. Sources Used: Online reviews, retailer sites, forums, manufacturer websites 4. Time Spent: Several hours to days Analysis: • Extent: Extensive search across multiple brands. • Content: Focus on specs, price, and reviews. • Sources: Variety of trusted online sources. Findings: • Support: High motivation and effort lead to thorough external search. • Conclusion: Findings align with principles of extensive external search for high-involvement products. SUGGESTED INTERNET EXERCISES WITH SAMPLE ANSWERS BURPEE SEEDS AND PLANTS Homeowners who purchase a newly constructed house with little or no landscaping often want to quickly personalize the exterior appearance of their homes. Especially among novice gardeners or those who have moved to a different climate, the problem of what will flourish in their new environment is difficult to solve. The venerable W. Atlee Burpee Company, purveyors of seeds and plants for generations in their colorful catalogs, now offers gardening help online at www.burpee.com. Go to Burpee’s website and click through to Your Plant Finder. Follow the steps to obtain a recommendation for flowers and ornamental plants (choose whatever descriptors you like). How does Your Plant Finder work? What are its advantages and disadvantages for the consumer trying to escape the new-home landscaping blues? Instructor Notes Your Plant Finder at Burpee’s website can be a valuable tool, especially for novice gardeners. The visitor can enter descriptors that fit his situation, such as sunlight level, ease of growth and maintenance, and plant height. Based on these data, Your Plant Finder recommends plants and seeds available through Burpee that are appropriate to the visitor’s needs. The advantages of Your Plant Finder are its ease of use; speed of recommendations; the ability to preview recommended plants for color and shape; and the convenience of ordering recommended plants and/or seeds through the website. The disadvantages of Your Plant Finder are its inclusion only of plants and seeds available from Burpee (an extensive but not comprehensive product assortment); its exclusion of important variables such as climate, growing conditions, and soil quality; and its failure to specify which plants are environmentally friendly (for example, those that attract beneficial insects). Your Plant Finder’s advantages provide the visitor with a good starting point. The visitor can also access other pages within Burpee’s website for advice and resources, but because these are not linked directly to Your Plant Finder, they require additional effort to utilize. For more detailed information, the novice gardener may want to supplement his knowledge through a more extensive media search of other catalogs and websites; a retailer search of local garden centers; an independent search through the County Extension Service office; and especially an interpersonal search for advice from neighbors. Additional Uses This exercise also relates to concepts in the following chapters: • Chapter 5, Attitudes Based on High Effort (attitudes about the appearance of one’s home) • Chapter 8, Judgment and Decision Making Based on High Effort (evaluation of gardening alternatives, including using a landscaping service instead of planting one’s own flowers, shrubs, and trees) • Chapter 10, Post-Decision Processes (impact of feedback from gardening choices on product satisfaction; for example, is the beauty of certain flowers worth the extra maintenance effort?) • Chapter 12, Consumer Diversity (regional variations concerning appropriate garden choices, beyond those accounted for by climactic differences) • Chapter 14, Psychographics: Values, Personality, and Lifestyles (impact on landscaping choices) Discussion Idea As a relevant source of landscaping information, does Burpee’s very traditional, even old-fashioned company image help or hurt its reputation with consumers (especially novice gardeners)? ADDITIONAL DISCUSSION QUESTIONS WITH SAMPLE ANSWERS These discussion questions can be used as in-class activities or as thought questions that the students consider while reading the chapter, or to test their understanding of the material after the reading and lecture are complete. 1. Ask the students to imagine that they are at the grocery store so they can buy food for dinner. What factors will influence their actual state situation? Answer: Responses may vary. A sample student response follows. These are some of the factors that would influence my actual state decisions: a. How hungry I am? b. What kinds of foods do I classify as dinner foods? c. How busy I am? d. How much money do I have available to spend on dinner? e. What is my level of cooking experience? f. What is my experience with the store, products, brands? g. What are my dietary restrictions? h. How is the food displayed? i. Which items are on sale? j. Which items are in stock? Factors Influencing the Actual State Situation: 1. Current Food Inventory: What’s already in the pantry/fridge. 2. Budget Constraints: Available funds for grocery shopping. 3. Dietary Needs: Personal or family dietary restrictions/preferences. 4. Time Constraints: Time available for meal preparation. 5. Special Occasions: Upcoming events or special meals. 6. Current Health Goals: Focus on health and nutrition. 7. Recent Cravings or Preferences: Current food cravings or trends. 2. What motivates a consumer to resolve a recognized problem? Answer: The degree of difference between the ideal state and the actual state motivates a consumer to resolve a recognized problem. The greater the difference between the two states, the more likely the consumer is to seek a change. This difference is dynamic. It changes as other factors change such as lifestyle, needs and wants, messages from advertisers, family demographics, etc. 3. How can marketers respond to problem recognition? Answer: Marketers can alter the marketing mix to address the consumer problem. In addition, they can identify a latent consumer problem and use the mix to stimulate recognition and information search. ADDITIONAL QUESTIONS 1. As a group, select two product and two service categories. For each of these categories describe how problem recognition might occur for consumers and how marketers could influence this process. Answer: Products: Smartphones: Recognition of outdated technology; marketers highlight new features. Washing Machines: Awareness of inefficiency; marketers emphasize energy savings. Services: Dental Services: Problem due to pain; marketers stress preventive care. Fitness Training: Desire for health improvement; marketers use success stories. 2. Work together to develop your definition of the ideal state. Create a list of factors that can influence how it is determined. Describe how marketers could influence this perception. Create three examples in which marketers help to create the ideal state in consumers. Answer: Definition: Desired perfect condition or situation. Influences: Aspirations, trends, personal goals. Marketing Examples: Luxury Cars: Emphasize prestige. Electronics: Highlight cutting-edge technology. Health Supplements: Promote optimal health benefits. 3. Duplicate the exercise described in question two using the actual state. Specifically describe how marketers can influence consumers’ dissatisfaction with their actual state. Answer: Definition: Current condition or situation. Marketing Influence: Electronics: Show inefficiencies of old models. Food Products: Emphasize risks of expired items. Furniture: Contrast with modern designs. 4. Internal search is one of the search processes people can use. Create a list of conditions under which internal search is most likely to occur. Explain how marketers can influence this process. Answer: Conditions: Familiarity, recent experiences, high relevance. Marketing Influence: Provide clear, memorable brand messages. 5. As a group, select a product or service category to discuss. Now describe how each of the following would influence the nature of the consideration set a consumer might use in making a purchase decision: (a) prototypicality, (b) brand familiarity, (c) goals and usage situations, (d) brand preference, and (e) retrieval cues. Answer: Category: Laptops Prototypicality: Leading brands (e.g., Apple) are easily recalled. Brand Familiarity: Familiar brands are favored. Goals/Usage: Needs for work or gaming shape choices. Brand Preference: Strong preferences narrow options. Retrieval Cues: Effective ads and word-of-mouth enhance recall. 6. Develop a definition for each of the following terms: (a) accessibility, (b) diagnosticity, (c) salience, (d) vividness, and (e) goals. Describe how each might affect the internal search for attribute information. Explain how marketing strategy can influence these variables. Answer: Accessibility: Ease of retrieval; improve through frequent exposure. Diagnosticity: How useful info is for decision-making; enhance with clear comparisons. Salience: Importance of info; increase with highlighted benefits. Vividness: Memorability of info; use engaging visuals. Goals: Objectives influencing search; align marketing with consumer goals. 7. Create a definition for each of the following terms: (a) the confirmation bias, (b) inhibition, and (c) mood. Describe how each can bias the internal search process. Offer suggestions for how marketers can overcome these biases. Answer: Confirmation Bias: Favoring existing beliefs; provide diverse perspectives. Inhibition: Suppressing info; refresh with new content. Mood: Affecting perception; use positive, appealing content. 8. Not all consumers search the same amount of time for external information prior to making a decision. Discuss how much the average consumer searches. Specify those factors that influence a consumer’s motivation to search for information. Develop a set of recommendations for marketers that address these factors and can help alter consumer search behavior. Answer: Average Search Time: Moderate to extensive for high-involvement purchases. Influencing Factors: Involvement, complexity, cost. Recommendations: Offer comprehensive, easy-to-access information. 9. Discuss the differences in consumers that may make some more likely than others to search for information. Create a list of the marketing implications for the fact that some will search more than others. Answer: Factors: Experience level, risk perception, knowledge. Implications: Tailor strategies to experience and risk; use educational content. 10. The type of information that is sought may be different depending on the product. Select a product or service category and develop a list of the types of information you believe are most likely to be searched for. Develop a set of recommendations for marketers in this category, given your list. Answer: Category: Smartphones Information: Specs, price, reviews, comparisons. Recommendations: Provide detailed specs, highlight reviews, offer easy comparisons. EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES Students who learn more readily through visual and tactile stimuli will benefit from the introduction of physical examples into the classroom. 1. “Shop till You Drop” Exercise Tell students to assume that they have moved to a new town to start their post-graduation jobs and need to buy several branded items—a Gen X Mx 280 bicycle (men’s version), a Harmon Kardon AVR85 receiver, an RCA F25281 25-inch stereo color TV, and a copy of Dutch, the biography of Ronald Reagan. Announce that you will give a small prize (e.g., a bag of bite-sized Snickers) to the student who finds the lowest total price for all four items. This exercise generally reveals that students exhibit a variety of search inclinations and strategies. Some expend relatively large amounts of time and effort to find the items, while others buy from the first store (or web site) that stocks the product. 2. Consumer Buying Journal Have students keep track of all the purchases between the current class period and the next class period. Obviously, students will not want to share the entire contents of the list with classmates. However, without sharing the list with the class ask students to start to recognize how they went through the searching process for this chapter and the remainder of the consumer buying process for the next chapters. This should provide numerous examples of the search process for illustrating the chapter concepts. CLASSROOM GROUP ACTIVITY Uncovering Problem Recognition Stimuli: 15 Minutes I. Start Up A. Purpose of the activity 1. This activity will give students an opportunity to apply the concepts of problem recognition in a brief classroom exercise. B. What the instructor will do 1. Collect advertisements from local and/or national media. Select advertisements that incorporate elements encouraging the reader to recognize a problem he or she may be facing. If necessary, advertisements can be selected from among the examples in the book. Ads from current media are preferable. 2. The instructor will divide people into small groups, assign them one or more advertisements for analysis, and be available to coach and help the groups as needed. C. What the participants will do 1. The participants will work in small groups to study how concepts related to problem recognition can be applied to the advertising of specific brands. After a period of small-group discussion, they will make reports to the larger group. D. Rules for this experience 1. Groups are to work separately from each other. Individuals should rely on their knowledge from the book and may refer to their notes and the book as necessary. II. Experience A. Group up. 1. Have students form groups of no more than five. This exercise will work in groups of any size; however, room restrictions that do not allow for moving furniture may make group work more difficult. B. Assign ads. 1. Each group should be assigned one or more ads on which to focus. C. Specific actions for groups 1. The groups are responsible for analyzing the advertisements to identify methods that (1) are being used, and (2) could be used to help the reader recognize a problem they may need to solve. 2. Questions to be answered by small groups a) What is the nature of the problem that the advertiser is trying to call to the attention of the reader? b) What techniques would you propose adding to this advertisement to increase the likelihood that it will generate problem recognition in readers? 3. Large-group discussions a) First, have groups present their ideas about the first question, and then proceed to discuss each of the subsequent questions. b) If there are many groups, share the discussion among all groups, though not all groups may answer all of the questions. III. Debrief and Unveil Concepts A. Discuss the activity itself. 1. The purpose of this discussion is to allow students to express what they felt about the experience itself. 2. Ask students to describe their experiences of doing the activity. a) Likes and dislikes about what just happened b) How they felt during the experience c) What is realistic, unrealistic about the exercise? d) What will be different when they do this for their own brand? B. Discuss the content of the experience. 1. The purpose of this discussion is to ensure that students “take away” important learning points. 2. Ask students to describe the important points the experience teaches. a) The role of advertising in generating a sense of problem recognition in readers 3. Use the chalkboard to record student responses. a) Write down their ideas as they are presented. b) Concentrate on the principles being discussed rather than the examples being used. c) Help them to see the interrelationships between their responses. IV. Execute A. Apply what has been learned. 1. Lead a discussion on how the concepts can be applied in organizations. a) What barriers may be faced in applying the concepts from the exercise? b) What can be done to help others understand the concepts when you use them at work? B. Transfer and use the knowledge. 1. Encourage students to make a record in their notes about how they will use the ideas in the workplace. 2. Even if they do not have a specific job, how will they remember to use what they have learned? Jamie Yap, “Google’s Search Lead Entrenched But Not Unbeatable,” ZDNet Asia, November 21, 2011, www.zdnetasia.com; Lee Kaelin, “Microsoft Purchases Video Search Engine Firm VideoSurf,” Tech Spot, November 23, 2011, www.techspot.com; Michael Boland, “Google’s Battle for the Mobile Web,” Search Engine Watch, November 25, 2011, www.searchenginewatch.com; Michael Liedtke, “Bing Hitches Holiday Hopes to Rudolph the Reindeer,” Associated Press, November 23, 2011, www.businessweek.com; and Clint Boutlon, “Google Search Stays 65% Course, Bing Closes on Yahoo,” EWeek, November 13, 2011, www.eweek.com. Solution Manual for Consumer Behavior Wayne D. Hoyer, Deborah J. MacInnis, Rik Pieters 9780357721292, 9781305507272, 9781133435211