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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.
... For instance, need recognition and initial set consideration has been termed as need recognition. Need recognition is defined as the difference between the actual and desired state (Bruner & Pomazal 1988) and may be influenced by internal factors such as personal characteristics (Pham & Higgins 2005) or external factors such as assortment (Bell et al. 2011). ...
... Bruner & Pomazal (1988) described need recognition as the discrepancy between actual and desired state. Factors such as previous experience, reference group, social class, family characteristic, personal characteristic, personal circumstances, marketing pressures and social comparison can help recognize the difference between actual and desired states (Bruner & Pomazal 1988;Pham & Higgins 2005). In an online world, firm initiated channels (e.g. ...
... Need recognition is the discrepancy between actual and desired state (Bruner & Pomazal 1988) which can be recognized due to certain situational cues such as product type (Zhou and Pham 2004) or brand associations (Yoon et. al 2012). ...
Previous research has highlighted that behavior is the result of both individual and situational factors. Therefore, consideration of both these factors is importantto better understand and predict human behavior. Despite this, extant literature is replete with studies which have mostly focused on studying the influence of either individual or situational factors on behavior. Given the (i) increased complexity faced by marketers due to greater number of product and channel options at different stages of customer decision journey (ii) premise involving the importance of studying both individual and situational factors to understand behaviour (iii) paucity of research involving customer decision journey and channels from the regulatory focus theory perspective, this thesis aims to provide a nuanced understanding of customer behavior from a multi-channel and customer decision journey perspective grounded in regulatory focus theory. It provides a rich customer behaviour understanding during different stages of customer decision journey based on chronic and situational regulatory orientation interaction. It provides answers to the “why” (regulatory focus theory), of “what” (means and emotions) and “where” (CDJ and channel context) questions(Ratneshwar, Mick & Huffman 2003). Specifically, this research aims to determine the influence of chronic and situational regulatory focus interaction on the choice of means and emotions faced at each stage of cutomer decision journey. For instance, what means (e.g. channels) will be chosen and what emotions will be experienced in case of chronic promotion person facing promotion situation?A mixed method approach is adopted for this thesis. The first qualitative phase involved in-depth interviews with 30 multi-channel customers. The results of this phase indicated differences in channel choice, actions taken at channels and emotions experienced at each stage of the customer decision journey among the chronic and situational regulatory orientationsinteractiongroups. The results of the first phase helped in the design of second experimental phase. This experiment was conducted in lab settingwith the aim of identifying chronic and situational regulatory focus interaction on the online customer decision journey. The first two stages provide complementarity. The results of the lab session indicate a significantinfluence of incongruent chronic-situation regulatory condition on the basket amount, significant promotion chronicsituation congruent condition on session duration and significant prevention chronic-situation congruent condition on the overall extensiveness of search and comparison. The third phase involved 14 interviews with experts from different industries. These experts highlighted the channel choices and actions of their customers. The experts also explained their implemented marketing strategies for each customer decision journey stage. The results indicate greater focus on push online marketing and separate rather than an integrated focus on each channel. This thesis contributes towards consumer behavior, regulatory focus theory and mixed method literature. It helps obtain a rich understanding of the role of both chronic and situational regulatory orientation on the channel choices and actions taken at these channels during different stages of customer decision journey. This may help marketers in targeting, channel and messagedesign. The results emphasize that marketers must use a combination approach in online channel design, involving usage of visuals and information. Product category may provide further guidance regarding the extent of trade-off between one type of design overanother. The strengths and limitations related to each stage are also provided.
... Source: (Bruner & Pomazal, 1988) At first, the consumers recognise a problem (need or want) while using online channels. ...
... Consistent with Dewey (Bruner & Pomazal, 1988), consumers show comparable online buying behaviour in the context of Instagram influencers. Examining the findings by gender, it is noticeable that females have the tendency to follow more influencers than males do. ...
This thesis aims to investigate the effectiveness of (Instagram) influencer marketing on Generation Z’s sustainable product buying behaviour. In the first part of the thesis, existing literature is reviewed regarding social media and influencer marketing, influencers, Instagram in the influencer marketing context, consumer buying behaviour, Generation Z, circular economy, sustainable products and sustainable buying behaviour. The second part consists of quantitative research: The collected data is discussed against the backdrop of the literature review to figure out to what extent and how Instagram influencers influence Generation Z’s sustainable product buying decision.
... 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
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.
MEMAHAMI pelanggan menjadi salah satu pilar super vital di dalam bisnis apapun bentuknya. Tak ayal seorang milyarder seperti Richard Branson mengatakan ―You can never go too far wrong by thinking like a customer who's new to the business‖
Dengan berpikir layaknya pelanggan yang baru bertransakasi dengan organisasi anda, maka anda memiliki peluang untuk memenangkan loyalitasnya.
Pertempuran memenangkan loyalitas pelanggan menjadi semakin kompleks di era sekarang. Kompetisi yang lebih sengit, pilihan yang lebih bervariasi dan tekanan eksternal lain membentuk pelanggan yang rentan. Mereka dengan mudah berpaling dari anda hanya gara-gara hal kecil yang tidak diterima. Belum lagi perubahan perilaku dengan semakin maraknya solusi digital menjadi tekanan tambahan untuk semua pebisnis.
72% pelanggan akan berbagi pengalaman positif dengan 6 orang atau lebih. Di sisi lain, jika pelanggan tidak senang, 13% dari mereka akan berbagi pengalaman mereka dengan 15 atau bahkan lebih. Tantangannya di sini terletak pada kenyataan bahwa, dalam banyak kasus, pelanggan tidak memberi tahu Anda bahwa mereka tidak senang. Faktanya, hanya 1 dari 26 pelanggan yang tidak puas yang benar-benar mengeluh.
Satu-satunya jalan adalah bagaimana kita benar-benar memiki atensi lebih mencermati perubahan perilaku dan trend harapan dari pelanggan. Dalam berbagai perspektif, perjalanan calon pelanggan mulai dari cara mereka mencari informasi tentang produk atau solusi anda hingga preferensi transaksi dan pemberian feedback menjadi mandatory, mutlak dan wajib untuk diketahui.
Buku ini disusun dengan ringan, kompleks dan penuh dengan narasi story deskriptif yang akan memberikan kemudahan pemahaman bagi para pembaca. Tinjuan buku ini teraa lengkap dengan melihat dari sisi akademik, bisnis dan pskilogis. Sehingga para pembaca akan mendapatkan pengayaan tentang bagaimana memahami perilaku pelanggan. Pada buku ini juga menjelaskan isu-isu kekinian terkait digital dan social media yang mempengaruhi pengambilan keputusan seorang pelanggan.
The emergence of e-commerce opened up various benefits for retailers and consumers alike, including the possibility to purchase products from across the world. However, the information asymmetry inherent to online shopping impedes consumers to entirely inspect these products before they are delivered. To mitigate this information asymmetry and thereby reducing the number of product returns, several information cues can serve as signals indicating higher/lower quality. Such information cues encompass (inter alia) online customer reviews, quality seals, and/or information about products’ country of origin, whereby their interaction is assumed to affect their individual importance. Since the way consumers cognitively process such information and their interplay varies based on consumers’ cultural background, this dissertation aims at answering the following research question: How are different extrinsic information cues affecting the online purchase of Chinese and German consumers in an e-commerce context? Additionally, this dissertation seeks to provide a methodological contribution by examining a methodology capable of analyzing the impact of multiple information cues on online purchase decisions simultaneously. Hence, the Adaptive Choice-Based Conjoint (ACBC) analysis will be contrasted with its methodological antecedent Choice-Based Conjoint (CBC) analysis to enlighten where the advantages and disadvantages for applying one or the other are situated. After introducing this dissertation’s topic in more detail and providing the theoretical backgrounds for (i) the information cues of interest in an e-commerce context as well as (ii) how different cultural backgrounds affect information processing, a total of six papers intend to answer the research questions. More precisely, paper #1 explores the country of origin effect in an e-commerce context for German low- and high-involvement products from a Chinese consumer’s perspective by taking into account recent findings in country of origin research. In paper #2, the impact of one country of origin dimension (country-of-manufacture) is compared to the influence of online customer reviews based on surveying German and Chinese consumers. Moreover, ACBC’s advantages and disadvantages are juxtaposed to the ones related with CBC investigations. Making use of the ACBC and two of its major benefits (‘summed price’ approach and Calibration section), paper #3 is the first to measure the willingness to pay for sustainable clothing by applying this more realistic methodology. Apart from that, the importance of quality seals and country-of-manufacture are analyzed depending on consumers’ green ori-entation. Paper #4 then explores the same information cues for consumers from Generation Z and X. Focusing on online customer reviews, papers #5 and #6 investigate online customer reviews’ credibility among German and Chinese consumers. While paper #5 examines the effect of video versus purely textual online customer reviews, paper #6 highlights cultural differences and scrutinizes how online customer review components are cognitively processed between German and Chinese consumers. In the last chapter, the dissertation concludes with new insights gained and outlines the derived practical implications.
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.