Problem recognition.docx

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Management (MGM)
Bill Mc Conkey

Problem recognition: the perceived difference between an actual and ideal state Ideal state: the way we want things to be Actual state: the way things actually are - problem recognition relates to consumption and disposition as well as acquisition The ideal state where we want to be - simple expectations or past experiences about everyday consumption and disposition - The function of her future goals or aspirations - Stimulated by personal motivations - Society and culture also affects our idea of state - Reference group we want to be accepted by others because reference groups serve as a guide to our behavior - Major changes in personal circumstances The actual state where we are now - Needs can affect our actual state - Simple physical factors - External stimuli example someone tells you it’s Mother’s Day now you have to go buy a present Marketing implications Marketers use two techniques to stimulate problem recognition 1. create a new ideal state, example athletic shoes that make us run faster jump higher and look more fashionable whereas 30 years ago people do not care 2. Encourage our dissatisfaction with the actual state, example saks started to give out eco-friendly reusable stylish bags to hold purchases, other companies started to do the same thing Internal search: searching for information from memory Internal search: process of recalling stored info from memory - next step after problem recognition How much do we engage in internal search - effort to internal search depends on MAO - Recall more info when felt involvement, perceived risks or need for cognition is high - Engage in internal search only if info is stored in memory - Time pressure or distractions will limit internal search What kind of information is retrieved from internal search? Recall of brand - consideration or evoke set: the success of top of my brands evaluated when making a choice - A small consideration set is usually necessary, consumer ability to recall brand information decrease as sets increase - Sets very in terms of their size, stability, variety and preference dispersion Factors that increase recall of brand during internal search - prototypicality o The dominant brand - brand familiarity o Well-known brand - goals usage and situation o Example drinks to bring to the beach - brand preference o Importance of having positive brand attitudes - retrieval cues o Example target red and white bulls eye Recall of attributes Factors influence recall of attribute information - accessibility or availability o Strongest associative links o Most likely recall and entered into decision-making process - diagnosticity o Diagnostic information: helps us discriminate among objects o Example price varies amongst one product, price is a diagnostic information o Negative information more diagnostic - salience o Salient attributes: attributes that are top of mind for more important o Can recall salient attributes even when opportunity to process is low o Could be salient but not diagnostic o For info to be recalled and enter into decision must be attribute determinance: attributes that are both salient and diagnostic - vividness o only influence decision if prior strong evaluations were not made o only affects attitude when effort to process info matches effort consumer willing put forth - goals o example want to economize therefore price is goal Recall evaluations - evaluation or attitudes easier to remember then specific attribute information - Online processing: consumers are actively evaluating the brand as they view an ad for it Recall of experiences - Vivid, salient, or frequent are more likely to be recall - Advertising can affect recall experience but cannot affect product evaluation Is the internal search always accurate? - processing biases alter the nature of internal search - Three Biases Confirmation bias: tendency to recall information that reinforces or confirms our overall beliefs rather than contradicting them thereby making a judgment or decision more positive than it should be - selective perception Inhibition: recall of one attribute inhibiting the recall another - limitation in consumers processing capacity - Consumer may remember but still ignore important and useful information Mood - internal search most likely recall info, feelings, experience that matched her mood External search searching for information from the environment - external search: process of collecting information from outside sources o Prepurchase search: search for information that aids a specific acquisition decision example want to buy a new car visit dealers  Product knowledge  Better purchase decision  Increase satis o On going search: search that occurs regularly regardless of whether the consumer is making a choice example continuously read auto magazines  Product knowledge  Future buying efficiencies  Impulse buying
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