2.a Problem Recognition¶
Consumer behavior stems from four disciplines. Psychology is the study of the human mind and the mental factors that affect behavior (i.e., needs, personality traits, perception, learned experiences, and attitudes). Sociology is the study of the development, structure, functioning, and problems of human society (the most prominent social groups are family, peers, and social class). Anthropology compares human societies’ culture and development (e.g., cultural values and subcultures). Communication is the process of imparting or exchanging information personally or through media channels and using persuasive strategies.
Consumer Decision-Making
The process of consumer decision-making, featured in Figure 1.10, includes the input, process, and output stages of decision-making. The input stage of consumer decision-making includes two influencing factors: the firm’s marketing efforts (i.e., the product, its price and promotion, and where it is sold) and sociocultural influences (i.e., family, friends, neighbors, social class, and cultural and subcultural entities). This stage also includes the methods by which information from firms and sociocultural sources is transmitted to consumers.
The process stage focuses on how consumers make decisions. The psychological factors (i.e., motivation, perception, learning, personality, and attitudes) affect how the external inputs from the input stage influence the consumer’s recognition of a need, pre-purchase search for information, and evaluation of alternatives. The experience gained through evaluation of alternatives, in turn, becomes a part of the consumer’s psychological factors through the process of learning. The output stage consists of two post-decision activities: purchase behavior and post-purchase evaluation.
Decision-Making: Process
Need recognition occurs when a consumer is faced with a “problem.” For instance, take a young executive who decides to purchase a new cell phone with a high-quality digital camera. He imagines that he would benefit from having a high-quality digital camera built into his phone because it would make it easier and more convenient to take more vivid and realistic photos, without having to lug around a separate digital camera. This executive has recognized a need and identified a suitable response. There are two types of need recognition. Some consumers are actual state types, who perceive that they have a problem when a product fails to perform satisfactorily (e.g., a cordless telephone that develops constant static). In contrast, other consumers are desired state types, for whom the desire for something new may trigger the decision process.
Pre-purchase search begins when a consumer perceives a need that might be satisfied by the purchase and consumption of a product. Sometimes, recalling past purchases provides the consumer with adequate information to make the present choice. However, when the consumer has had no prior experience, he or she may have to engage in an extensive search for useful information on which to base a choice. The consumer usually searches his or her memory (the psychological field) before seeking external sources of information regarding a given consumption-related need. Past experience is considered an internal source of information. The greater the relevant past experience, the less external information the consumer is likely to need to reach a decision.
Problem Recognition in Consumer Behavior: An In-Depth Exploration¶
Problem recognition is the first and arguably the most critical stage in the consumer decision-making process. It occurs when a consumer perceives a difference between their current state and a desired state, triggering the need to make a purchase or take some action to resolve this gap. This recognition sets the entire buying process in motion and significantly influences the subsequent steps, such as information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
1. Definition of Problem Recognition¶
Problem recognition happens when a consumer identifies a need or problem that requires satisfaction. This need can arise from various factors, including changes in the consumer’s situation, product availability, or exposure to new information that highlights a gap between what the consumer currently has and what they desire.
- Example: A consumer realizes their smartphone is outdated and slow, which doesn’t meet their current needs for faster processing and better camera quality. This realization is the problem recognition that prompts the consumer to consider purchasing a new smartphone.
2. Types of Problems Leading to Recognition¶
The nature of the problem that triggers recognition can vary widely. There are generally two types of problems that consumers may recognize:
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Actual State Need: This type of problem occurs when the consumer’s current situation or state does not meet their expectations or needs. The recognition of this gap leads the consumer to seek a solution.
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Example: A consumer runs out of toothpaste and realizes they need to buy more to maintain their dental hygiene. This immediate, practical need represents an actual state problem.
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Desired State Need: This type of problem arises when the consumer aspires to a better situation than their current one. The recognition of an opportunity to enhance their state or experience drives the consumer to seek products or services that can fulfill this desire.
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Example: A consumer sees an advertisement for a new luxury car that offers advanced features they don’t currently have. Although their current car functions perfectly well, the desire to upgrade to a more luxurious and technologically advanced vehicle creates a problem recognition.
3. Triggers of Problem Recognition¶
Problem recognition can be triggered by various internal and external stimuli. Understanding these triggers helps marketers position their products as solutions to recognized problems.
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Internal Triggers: These come from within the consumer and may include personal needs, motivations, and emotions. Hunger, thirst, fatigue, and other physiological needs are common internal triggers that lead to problem recognition. Emotional needs, such as the desire for status, love, or acceptance, can also trigger problem recognition.
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Example: A consumer feels bored and lonely, leading them to recognize a need for social interaction. This might prompt them to seek out entertainment or social activities.
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External Triggers: These are influenced by external factors such as marketing communications, peer influence, changes in the environment, or technological advancements. Advertising, word-of-mouth recommendations, or even social media posts can serve as external triggers that prompt problem recognition.
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Example: A consumer sees a social media influencer showcasing the latest fashion trends, which makes them realize their wardrobe is outdated. This external stimulus triggers the recognition of a need to update their clothing.
4. The Role of Marketing in Problem Recognition¶
Marketers play a crucial role in influencing problem recognition. Through strategic marketing efforts, they can create awareness of needs that consumers may not have consciously recognized or remind consumers of unmet needs.
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Need Creation: Marketers can introduce new products or features that create a need for consumers. For example, when smartphones were first introduced, they created a new category of needs related to mobile communication, internet access, and entertainment on the go.
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Need Amplification: Marketing can also amplify existing needs by highlighting potential problems that consumers might not have considered. For instance, a campaign emphasizing the health risks of using outdated or unsafe products can amplify the need for safer, more reliable alternatives.
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Problem Solution Communication: Effective marketing communicates how a product or service can solve a recognized problem. This involves clearly demonstrating the benefits and value of the product in meeting the consumer's needs.
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Example: A skincare brand might market a new moisturizer by highlighting the problem of dry skin, then positioning their product as the perfect solution to achieve smooth, hydrated skin.
5. Psychological and Social Influences on Problem Recognition¶
Problem recognition is influenced not only by marketing but also by psychological and social factors:
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Psychological Influences: Factors such as motivation, perception, learning, and beliefs play a significant role in problem recognition. A consumer’s self-concept (how they perceive themselves) and their lifestyle choices also influence the types of problems they recognize.
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Example: A health-conscious consumer is more likely to recognize the need for organic or natural products due to their belief in the benefits of a healthy lifestyle.
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Social Influences: Social factors, including family, friends, social networks, and cultural norms, can significantly influence problem recognition. Consumers are often influenced by the opinions and behaviors of those around them.
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Example: A consumer might recognize the need to purchase a particular brand of clothing because it is popular among their peer group, aligning with the desire to fit in or be accepted.
6. Impact on the Consumer Decision-Making Process¶
Problem recognition is the catalyst for the entire consumer decision-making process. Once a problem is recognized, consumers embark on the next steps, including:
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Information Search: Consumers begin searching for information about possible solutions to their recognized problem. This can involve online research, asking for recommendations, or recalling previous experiences.
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Evaluation of Alternatives: Consumers compare different products or services that could potentially solve their problem, weighing the pros and cons of each option.
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Purchase Decision: After evaluating alternatives, the consumer makes a purchase decision, choosing the product or service that best meets their needs.
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Post-Purchase Behavior: Following the purchase, consumers assess whether the product or service effectively solved their problem, influencing future purchasing decisions and brand loyalty.
Problem recognition is a foundational stage in consumer behavior, initiating the journey from need identification to purchase. It is influenced by a variety of internal and external factors, including marketing efforts, psychological and social influences, and environmental changes. By understanding and strategically influencing problem recognition, marketers can effectively position their products as solutions to consumer needs, driving both immediate sales and long-term customer loyalty.
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