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Problem Recognition: The Crucial First Stage of the Consumer Decision Process
Abstract
Since 1910, when John Dewey first introduced the five-stage decision process, it has been a widely accepted concept and still serves as the central pillar of a popular consumer behavior model. These stages are Problem Recognition, Information Search, Alternative Evaluation, Choice, and Outcomes. The importance of these stages is attested to by the considerable attention devoted to most of them in numerous textbooks and journal articles. Such attention, however, has not come to the Problem Recognition stage. While some texts provide hypothetical descriptions of this “trigger” of the decision process, theoretical discussion and empirical support are surprisingly lacking. Journal literature fares even worse, with articles on the topic almost non-existent. Lack of information on the topic is even more ironic when one considers that a purchase cannot occur unless a problem is recognized! The purpose of this article is to provide a detailed explanation of the Problem Recognition process. The results of the few empirical studies that have been done will be examined. In addition, a proposed model of the Problem Recognition process is presented. The implications of this material will be discussed as it relates to marketing.
... Figure 1 illustrates consumer decision-making processes. This model was developed based on previous studies, including Engel et al. (1968), Bruner and Pomazal (1988), Kotler and Keller (2008) and Stankevich (2017). The traditional model involves five steps: need recognition, information search, evaluation of alternative, purchase and outcomes (Engel et al., 1968). ...
... When consumers' needs arise from internal and external stimuli, homeostasis is maintained. There are two types of homeostatic mechanisms: static and dynamic (Bruner and Pomazal, 1988). Most consumer decision-making processes involve dynamic homeostasis. ...
... Online searching for information is the strongest predictor of purchase intention (Chen et al., 2022;Deng et al., 2021;Jun and Park, 2016;Shim et al., 2001;To et al., 2007). Furthermore, GT has been used as a proxy for consumer demand in various research fields, such as finance (Preis et al., 2013), healthcare Note: This model modified the previous researchers' model, including Engel et al.(1968), Bruner and Pomazal (1988), Kotler and Keller (2008) and Stankevich (2017) Classification and regression tree (Ginsberg et al., 2009), hospitality (Bakirtas and Gulpinar Demirci, 2022) and tourism (Rossello and Waqas, 2016). ...
Purpose – Climate change-induced weather changes are severe and frequent, making it difficult to predict apparel sales. The primary goal of this study was to assess consumers’ responses to winter apparel searches when external stimuli, such as weather, calendars and promotions arise and to develop a decision-making tool that allows apparel retailers to establish sales strategies according to external stimuli.
Design/methodology/approach – The theoretical framework of this study was the effect of external stimuli, such as calendar, promotion and weather, on seasonal apparel search in a consumer’s decision-making process. Using weather observation data and Google Trends over the past 12 years, from 2008 to 2020, consumers’ responses to external stimuli were analyzed using a classification and regression tree to gain consumer insights into the decision process. The relative importance of the factors in the model was determined, a tree model was developed and the model was tested.
Findings – Winter apparel searches increased when the average, maximum and minimum temperatures, windchill, and the previous day’s windchill decreased. The month of the year varies depending on weather factors, and promotional sales events do not increase search activities for seasonal apparel. However, sales
events during the higher-than-normal temperature season triggered search activity for seasonal apparel.
Originality/value – Consumer responses to external stimuli were analyzed through classification and regression trees to discover consumer insights into the decision-making process to improve stock management because climate change-induced weather changes are unpredictable.
... This process involves complex information processing, where consumers evaluate various product alternatives based on different criteria. Psychological factors such as motivation, perception, and attitudes are crucial in shaping preferences that ultimately influence purchase decisions (Bruner & Pomazal, 1988). ...
The study investigates the effects of product quality and price on the purchasing decisions of Bonpatis Danish pastry sheets, with brand image acting as a mediator. Indonesia's food and beverage industry, mainly retail, is experiencing significant growth as modern retailers like Hypermart introduce competitive products. A quantitative approach was used, applying Structural Equation Modeling (SEM) with Partial Least Squares (PLS) to data collected from 83 respondents, mainly Hypermart bakery employees in DKI Jakarta. Results indicate that product quality and price positively influence brand image and purchasing decisions. Specifically, product quality boosts brand image and directly affects purchase decisions, whereas price influences purchase decisions directly but not via brand image. The study emphasizes the role of product appearance and packaging in shaping brand perceptions and suggests improving these elements to attract more consumers. Due to a limited sample size, the study recommends future research to explore broader aspects like customer satisfaction and loyalty. Keywords: Danish pastry sheet, product quality, price, brand image, purchase decision.
... Firstly, demand identification is regarded as the initial step in consumer decision-making. According to Bruner and Pomazal (1988), external stimuli such as advertisements have a direct influence on customers' awareness of the difference between their desired condition and their existing state. This is seen as a generic trigger that commences the consumer purchasing decision process and serves as the precursor to all following initiated consumer behaviours, such as information search, assessment and the first purchase. ...
Purpose
This study explores the decision-making powers of Australian female consumers in the financial product market. More precisely, it examines how the integrative effects of rationality, emotions and personality traits influence the decision-making powers of Australian female consumers when making financial product purchase decisions.
Design/methodology/approach
The study employs a quantitative research approach, utilising a survey strategy. The proposed conceptual model was tested using structural equation modelling (AMOS) on a valid 357 responses from Australian female consumers.
Findings
The findings revealed that rationality, self-efficacy and impulsivity have a positive impact on the decision-making powers of Australian female consumers. Besides this, self-efficacy and anxiety had significant moderating effects on the decision-making power of Australian female consumers when buying financial products, whereas anger and impulsivity were found to have no moderating effects.
Research limitations/implications
The study offers understanding on the role of emotions and personality traits in financial decision-making, which can help financial institutions design sound products and services that can also ensure consumers' overall well-being.
Originality/value
Informed by the theoretical notions of the appraisal-tendency framework (ATF) and emotion-imbued choice model (EIC), the study makes a unique contribution by investigating the impact of rationality, emotions and personality traits on the decision-making powers of female consumers in the Australian financial product market.
... The EKB model has been used of several purposes such as perception of marketing strategy, development, modification, consumer satisfaction and several other marketing strategies and decisions tactics (Paul, 2013). After collecting the required data, the EKB model consist of a five-stage process when individuals making purchasing decisions: a-Problem recognition: Understanding and recognizing the different situations from the first stage rationalize consumers decisions (Bruner & Pomazal, 1988). b-Search for information: Individuals search for information to resolve their problems relying on internal and external factors (Solomon, 2012). ...
Contemporary Issues In Consumer Research: Attitude Theories & the Attitude Behavior Gap
El objetivo de este trabajo de investigación es comprender el proceso de decisión de compra de los consumidores para el diseño de programas de marketing. Se inicia con un análisis situacional de la industria del calzado en México, y en el Estado de Jalisco, donde se hizo el estudio de campo. Se identifica una problemática y se aplica un instrumento diseñado por Michael J. Etzel, adecuándolo al índice del sentimiento del consumidor hacia el marketing en el rubro del calzado, utilizando para ello una escala multidimensional aportando los componentes funcionales de las 4p’s. Finalmente se presentan los resultados obtenidos.
How can marketers increase social media engagement? This research argues that a simple adjustment to the language used in brand messaging can help. Specifically, that marketers can increase social media engagement by using language that directs the attention of consumers to a discrepancy. A field study that analyzed the text of brand messages across 17 product categories found that consumers are more likely to interact with brands when their messages include words that direct attention to discrepancies between actual and desired states (e.g., words such as could, should, wish, want, and lacking). Controlled experiments reveal the mechanism underlying this effect. Specifically, that using language that directs attention to a discrepancy about the self makes messages seem more relevant, which, in turn, increases the likelihood that consumers will interact with the brand. This type of language is especially effective at making messages seem more relevant (and hence more engaging) among consumers that feel like they lack personal control in their lives. These findings provide marketers with a simple, yet theoretically-grounded technique for engaging more consumers with their brand messaging.
This paper aims to explore the development of UK fashion clothing brands and their associated marketing communication plans to identify effective advertising methods that can facilitate expansion into the Chinese fashion clothing market. The research critically evaluates the psychology and buying behavior of young consumers in the UK and China to understand cultural differences and to better inform successful advertising strategies in both countries. In addition, the study assesses and identifies the relevant factors that affect the purchasing behavior of UK and Chinese consumers in the fashion clothing industry. The key finding is that UK fashion clothing brands, such as TOP SHOP and River Island, can optimize their marketing communication outputs to increase their chances of success in the Chinese market. The paper concludes that a better understanding of cultural differences and effective marketing strategies can help UK fashion clothing brands expand into the Chinese market.
In this study, it is aimed to examine the relationship between customer experience and re-visit intention, and purchase intention in e-commerce sites in the example of amazon.com.tr. The questionnaire form prepared to collect data within the scope of the research was shared on the internet. Descriptive statistical analysis and regression analysis were performed with the data obtained from 358 participants who answered the questionnaire. As a result of the analysis, it was found that customer experience has significant effects on purchase intention and re-visit intention, as well as purchase intention on re-visit intention.
The principal objective of this learning was to inspect the effect of variety dependability and brand relationship arranged buyers' buy plan. It additionally plans to investigate the connection amid product mindfulness and saw eminence comparable to the aim to acquisition from buyers. The outcomes showed that both brand devotion and brand affiliation are altogether connected with purchaser purpose to purchase, while brand mindfulness and saw quality are not considerably connected to the aim to purchase from buyers. A non-irregular inspecting procedure was utilized to gather information from 100 respondents through restricted surveys from various business sectors in Sukkur division, Pakistan.
This study uses Markowitz mean-variance portfolio theory with forecasted data for the years 2005 to 2035 to determine efficient electricity generating technology mixes for Switzerland. The SURE procedure has been applied to filter out the systematic components of the covariance matrix. Results indicate that risk-averse electricity users in 2035 gain in terms of higher expected return, less risk, more security of supply and a higher return-to-risk ratio compared to 2000 by adopting a feasible minimum variance (MV) technology mix containing 28 percent Gas, 20 percent Run of river, 13 percent Storage hydro, 9 percent Nuclear, and 5 percent each of Solar, Smallhydro, Wind, Biomass, Incineration, and Biogas respectively. However, this mix comes at the cost of higher CO2 emissions.
The theory of beginning a search for new products with a customer need or problem is appealing. The practice, however, of discovering such needs/problems is difficult. Problem inventory analysis is designed to aid in this task. Identifying how products can improve the quality of life forms the basis of the tool. An application illustrates its use, results, and limitations.
The purpose of this research is to (1) examine the relationship between presearch decision making and external information seeking in consumer durable purchases and (2) to construct consumer profiles corresponding to the different levels of presearch decision making. The term “presearch decision making“is used to denote those decisions that consumers make before they actively start searching for fand collecting) information on product alternatives. The latter process is referred to here as “external information seeking”.
While several studies have examined the roles of husbands and wives in making decisions about products, few have examined the impact of children. This article reports the results of a 1985 study of the influence of children on families. The study examines children's influence in each of four stages of the purchase decision, for 25 products, and by age of the children. For child-centered (e.g., toys, children's clothing, food) and child-used products or services (e.g., vacations, restaurant choices, outside entertainment), the study shows that children are perceived as influential by most households. Older children are perceived as more influential than younger children for nearly all the products studied. The study concludes that “family” decision making is quite different from “husband-wife” decision making.
The Consumer Problem Recognition Process
- Richard J Pomazal
Pomazal, Richard J., "The Consumer Problem Recognition Process," Proceedings of the Atlantic
Marketing Association Conference, 1985, pp. 75-79.