1. PROBLEM RECOGNITION
AND INFORMATION
SEARCH

2. 2
Exhibit 7.1:
Chapter
Overview:
Problem
Recognition and
Information
Search

3. OVERVIEW
 Problem Recognition
 Internal Search: Searching for Information from
Memory
 External Search: Searching for Information from
the Environment
3

4. COMPLEX DECISION MAKING
4
Information
Acquisition
Problem
Recognition
Information
Processing
Comparative
Evaluation/
Purchase
Post-Purchase
Evaluations

5. PROBLEM RECOGNITION
 Problem Recognition
 Ideal State: Where We Want to Be
 Actual State: Where We Are Now
5

6. PROBLEM RECOGNITION/NEED
AROUSAL
 Consumer perceives discrepancy between actual
state and ideal state
 Discrepancy Tension
 Motivated to resolve tension Activate
decision making process
 So: Shift in Either AS or IS can lead to Problem
Recognition
6

7. CAUSES OF PROBLEM
RECOGNITION: I
Changes in Actual State
 Examples???
7

8. CAUSES OF PROBLEM
RECOGNITION: II
Changes in Ideal State
 Examples???
 Marketing strategy???
8

9. INDUCING PROBLEM
RECOGNITION
 Typically, Do Marketers Induce Problem
Recognition by Influencing Actual State or Ideal
State??
9

10. COMPLEX DECISION MAKING
10
Information
Acquisition
Problem
Recognition
Information
Processing
Comparative
Evaluation/
Purchase
Post-Purchase
Evaluations

11. INFORMATION
ACQUISITION/SEARCH
 Different Ways of Classifying Search:
 Internal search vs. External search
 Which is more believable?
 Why do you search externally at all?
11

12. INTERNAL SEARCH: SEARCHING FOR
INFORMATION FROM MEMORY
 Internal Search
 How Much Do We Engage in Internal
Search?
12

13. INTERNAL SEARCH: SEARCHING
FOR INFORMATION FROM MEMORY
 What Kind of Information Is Retrieved from
Internal Search?
Recall of Brands
 Consideration or Evoked Set
Recall of Attributes
Recall of Evaluations
Recall of Experiences
13

14. INTERNAL SEARCH: SEARCHING FOR
INFORMATION FROM MEMORY
 Is Internal Search Always Accurate?
 Confirmation Bias
 Inhibition
 Mood
14

15. EXTERNAL SEARCH: SEARCHING
FOR INFORMATION FROM THE
ENVIRONMENT
 Examples?
 External Search
 Prepurchase Search
 Ongoing Search
15

16. EXTERNAL SEARCH: SEARCHING
FOR INFORMATION FROM THE
ENVIRONMENT
 Where Can We Search for Information?
 Retailers, Media, Interpersonal, Independent,
Experiential
 Internet Sources
 Simulations
 Online Community
 Information Overload
16

18. EXTERNAL SEARCH: SEARCHING
FOR INFORMATION FROM THE
ENVIRONMENT
 How Much Do We Engage in
External Search?
Motivation to Process Information
Ability to Process Information
Opportunity to Process Information
18

19. EXTERNAL SEARCH: SEARCHING
FOR INFORMATION FROM THE
ENVIRONMENT
 What Kind of Information Is Acquired
in External Search?
Brand Name
Price
Other Attributes
19

20. EXTERNAL SEARCH: SEARCHING
FOR INFORMATION FROM THE
ENVIRONMENT
 Is External Search Always
Accurate?
 How Do We Engage in External
Search?
Search Stages
Searching by
 Brand
 Attribute
20

21. LIMITS OF INFORMATION
ACQUISITION
 Is it always worthwhile to collect more
information?
 Cost of Information Acquisition
Extra info. not always worth time and effort
 Information Overload
Lots of brands and attributes: non-optimal
decision
Strategic implication – amount of information in
an ad 21

22.  Read Chapter 8
Lecture 6: Chapter 9
Lecture 7: Chapter 10
22