Chapter 8.docx

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Department
Management (MGM)
Course
MGMC02H3
Professor
Bill Mc Conkey
Semester
Summer

Description
Chapter 8- Problem Recognition and Information Search Problem Recognition The perceieved diference between an actual and ideal state Ideal state- the way we want things to be Actual state- the way things actually are Problem recognition occurs if consumers become aware of a discrepancy between the actual state and the ideal state. Problem recognition relates to consumption and disposition as well as to acquisition Consumers can recognize problems The Ideal State: Where we want to be We consider certain things; how clean our house should be, how we should look in certain clothes, The ideal state can be a function of our own goals or aspirations Both of these are stimulated by our own personal motivations- what we want to be based on our self image, and by aspects of our own culture Society, reference groups can play a critical role Major changes in personal circumstances can instigate new ideal states o i.e. getting a new promotion can instigate new ideal states The Actual State: Where we are now Physical factors often affect this; running out of a product, having a product malfunction or become obsolete, or unexpectedly needing a service. External stimuli also affect this; if someone tells you its mothers day next week; you might realize you have not bought a card or a present as of yet. Internal Search: Searching for Information from Memory Internal search: the process of recalling stored information from memory This is the next step after problem recognition has been stimulated Consumers are likely to recall only a small subset of stored information when they engage in internal search How much do we engage in internal search? These can vary form recalling only a brand name to more extensive searches through memory for relevant experience, feelings, and information MAO to process information is correlated to how much effort consumers devote to internal search Consumers will attempt to recall more information when felt involvement, perceived risk, or the need for cognition is high. Active internal search occurs only if the information is stored in memory. Consumers with a greater degree of knowledge and experience have a greater ability to search internally. What kinds of information is retrieved form internal search Much of the research on the rols of internal search in consumer judgment and decision-making has focused on what is recalled. Recall of Brands Consumers tend to recall a subset of two to eight brands known as consideration or evoked set (the subset of top-of-mind brands evaluated when making a choice) Studies indicate that consideration sets vary in terms of their size, stability, variety, and preference dispersion (the equality of preference towards or brands in the products in the set) Companies should enhance their products linkage with an occasion or situation familiar to consumers Research states that brands that are recalled are more likely to be chosen. However, a brand simply being recalled doesnt not guarantee that it will be in a consumers consideration set because consumers can recall a number of brands and then reject undesirable alternatives. Thus, if consumers cannot recall brands from memory to form a consideration set, the set will tend to be determined by external factors such as the availability of products on the shelf or the suggestions of salespeople. Researchers have looked at the following factors that increase the possibility of consumers recalling a particular brand during internal search and including that brand in their consideration set o Prototypically Brands that are closest to the prototype or that most resemble other category members o Brand familiarity Well known brands are easily recalled o Goals and usage situations i.e. drinks to bring to the beach, drinks to take to a soccer game marketers can therefore attempt to associate products with certain goals and usage situations o Brand preference Brands toward which the consumer has positive attitudes tend to be recalled more easily and tend to be included in the consideration set more often than brands that evoke negative attitudes. o Retrieval cues By strongly associating the brand with a retrieval cue, marketers can increase the chance that the brand will be include in the consumers considerations set.Recall of Attributes The attribute information we recall tends to be in summary or simplified form rather than in its original detail. Consumers can often recall some details when they engage in internal search, and the recalled attribute information can strongly influence their brand choices. The following factors influence the recall of attribute information in the information search and decision-making processes: o Accessibility or availability Information that is more accessible or available- having the strongest associative links- is the most likely to be recalled and entered into the decision process. Information that is perceived as being easy to recall is also more likely to be accessible o Diagnosticity Diagnostic Information- That which helps us discriminate among objects If all brands of computers are the same price, then price is not diagnostic, if prices vary; consumers can distinguish amongst them, so then it IS diagnostic. If accessible information is not diagnostic, it is less likely to be recalled. Negative information tends to be more diagnostic than positive or n
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