Textbook Notes (380,718)
CA (168,183)
UTSC (19,294)
MGM (268)
MGMC02H3 (51)
Chapter 8

Chapter 8 summary

10 Pages
124 Views

Department
Management (MGM)
Course Code
MGMC02H3
Professor
Kyeongheui Kim

This preview shows pages 1-3. Sign up to view the full 10 pages of the document.
Ch 8: Problem Recognition and Information Search
Problem recognition (Ideal vs. Actual state)
Internal Information Search
Extent
Type of information retrieved
Search biases
External
Information Search
Where search occurs
Extent
Type of
information acquired
How information is searched
Problem Recognition
Consumer decision process begins with problem recognition the perceived difference
between an actual and an ideal state.
The greater the discrepancy b/w actual and ideal states, and the higher the level of
MAO, the more likely consumers are to act
Problem recognition relates to consumption, disposition, and acquisition
The Ideal State is a function of:
oExpectations (usually based on past experience) about everyday consumption and
disposition situations and how products/services fulfill our needs
oFuture goals or aspirations
oMajor changes in personal circumstances (e.g. getting a promotion or becoming a
parent)
oExpectations/aspirations are often stimulated by our own personal motivations
(what we want to be based on our self-image) and by aspects of our own culture
(e.g. materialistic culture, social class, reference groups)
Our perception of the Actual State is influenced by:
oPhysical factors (e.g. running out of a product, product malfunction, product
becomes obsolete)
oNeeds (e.g. if youre hungry/thirsty, actual state is not acceptable > unfavorable
perception)
oExternal stimuli (e.g. someone tells you Mothers Day is next Sunday > stimuli
makes you realize you didnt buy a gift yet > unfavorable perception)
Marketing implications
oMarketers use 2 techniques to stimulate problem recognition:
Attempt to create a new ideal state
www.notesolution.com
Encourage our dissatisfaction with the actual state
oMarketers are more likely to have their offering chosen if they position it as the
solution to the consumers problem
Internal Search: Searching for Information from Memory
Internal search: the process of recalling stored information from memory
The extent of the search (How Much Do We Engage in Internal Search?)
oThe effort consumers devote to internal search depends on their MAO to process
information
Higher felt involvement, perceived risk, need for cognition > Higher motivation
Greater degree of knowledge/experience based on info stored in memory>
Higher ability
Less time pressure/distractions > Higher opportunity to recall information
from memory
Type of information retrieved from internal search
oRecall of Brands
Consideration or evoked set: the subset of 2~8 top-of-mind brands evaluated
when making a choice
A small consideration set is usually necessary because consumer ability to
recall brand info decreases as the size of the set increases
Consideration sets vary in terms of size, stability, variety, and preference
dispersion (the equality of preferences toward brands in the set). On more
familiar occasions/locations, consumers tend to have:
- consideration sets that are less stable, larger in size, and have slightly more
variety
- stronger preferences for 1-2 items in the set
If brands are recalled > more likely to be chosen, but does not guarantee it will
be in the consideration set
If brands are not recalled > set will likely be determined by external factors
(e.g. product availability on shelf or salespeople suggestion)
Factors that increase a brands recall rate during internal search & including
it in the consideration set:
- Prototypicality: the closer a brand resembles the prototype or category
members, the more likely it will be in the consideration set (E.g. Armor All
created category of automotive protectant, became dominant brand in U.S.,
and then Canada, Germany, etc.)
- Brand familiarity: well-known brands are more easily recalled due to
stronger memory links associated with these brands. Even in low-MAO
situations, incidental ad exposure can increase likelihood of a brands inclusion
in consideration set. (E.g. Familiar brands like Sony, McDonalds, Coca-Cola)
- Goals and usage situations: If a product is associated with certain goal-
derived and usage-specific categories in memory, it is more likely to be
recalled. E.g. Western Unions tagline sending so much more than money
www.notesolution.com
- Brand preference: Brands towards which consumer has positive attitudes
tend to be recalled more easily and be included in consideration set more often
than brands that evoke negative attitudes. (E.g. Doves positive association
with moisturizing and celebrating real beauty of real women)
- Retrieval cues: Products strong association with a retrieval cue can increase
chance that brand will be included in consideration set (E.g. McDonalds
Golden Arches, Targets bulls-eye, Listerines squared-off bottle, Cokes
hourglass bottle)
oRecall of Attributes
We access only a small portion of info stored in memory during internal
search; attribute info we recall tend to be in summary or simplified form
rather than its original detail, since our memory of details decreases over time
But we recall some details about attribute info, which can strongly influence
brand choice
Factors that influence recall of attribute information:
- Accessibility or availability: Info that is more accessible or available having
the strongest associative links is the most likely to be recalled and entered
into decision making process. Info that is perceived as being easy to recall is
more likely to be accessible.
- Diagnosticity: Diagnostic information helps us distinguish objects from one
another. If info is both accessible and diagnostic, it has a very strong influence
in decision-making process; if accessible info is not diagnostic, it is less likely
to be recalled. Negative info tends to be more diagnostic than positive/neutral
info, but consumers give negative info greater weight in decision-making >
marketers should avoid associating their offerings with negative info, pan two-
sided message to counter negative info, or divert attention away from negative
feature. Marketers can establish competitive advantage by identifying which
attributes are most diagnostic for a product category (E.g. Toyotas highly fuel-
efficient and earth-friendly Prius).
- Salience: Consumers can recall very salient attributes even when
opportunity to process is low. (E.g. iPods circular control pad & white ear
buds). Price is a salient attribute for many consumers. By repeatedly calling
attention to an attribute in marketing messages, marketers can increase
products salience.
** for info to be recalled and entered into decision, it must have attribute
determinance attributes that are both salient and diagnostic (E.g. Glad
Products’ ForceFlex line of stretchy-yet-strong trash bags made from plastic
embossed with diamond shapes)
- Vividness: Info presented as concrete words/pictures, instructions to imagine,
or through word-of-mouth communication. Vividness only influences judgment
when consumers have not formed a strong prior evaluation and when the
effort required processing the info matches the amount of effort consumer is
willing to put forth.
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Ch 8: Problem Recognition and Information Search Problem recognition (Ideal vs. Actual state) Internal Information Search Extent Type of information retrieved Search biases External Information Search Where search occurs Extent Type of information acquired How information is searched Problem Recognition Consumer decision process begins with problem recognition the perceived difference between an actual and an ideal state. The greater the discrepancy bw actual and ideal states, and the higher the level of MAO, the more likely consumers are to act Problem recognition relates to consumption, disposition, and acquisition The Ideal State is a function of: o Expectations (usually based on past experience) about everyday consumption and disposition situations and how productsservices fulfill our needs o Future goals or aspirations o Major changes in personal circumstances (e.g. getting a promotion or becoming a parent) o Expectationsaspirations are often stimulated by our own personal motivations (what we want to be based on our self-image) and by aspects of our own culture (e.g. materialistic culture, social class, reference groups) Our perception of the Actual State is influenced by: o Physical factors (e.g. running out of a product, product malfunction, product becomes obsolete) o Needs (e.g. if youre hungrythirsty, actual state is not acceptable > unfavorable perception) o External stimuli (e.g. someone tells you Mothers Day is next Sunday > stimuli makes you realize you didnt buy a gift yet > unfavorable perception) Marketing implications o Marketers use 2 techniques to stimulate problem recognition: Attempt to create a new ideal state www.notesolution.com
More Less
Unlock Document


Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit