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Questions and Answers
What are the five stages of the consumer decision process?
What is Problem Recognition based on?
What needs to happen for a purchase to occur?
What are the two types of Problem Recognition?
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What is homeostasis?
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What is the cause of Problem Recognition according to several authors?
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What is dynamic homeostasis?
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What is the first stage in consumer decision-making models?
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What determines whether Opportunity Recognition or Need Recognition is triggered?
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What are some reasons why a person may not initiate Consumer Action despite perceiving a discrepancy?
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What are the ten distinct outcomes that may occur after defining the problem?
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What is a common reason for consumer inaction?
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What is related to Insufficient Resources as a reason for No Consumer Action?
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What may prevent consumers from taking action on important products or services?
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What is the relationship between Problem Recognition and Problem Delineation?
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What is the main difference between low involvement and higher involvement decisions?
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What is purchase intention?
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What are objections in the context of consumer behavior?
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What is the role of reference groups in consumer behavior?
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What is assortment deficiency?
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What is the role of novelty in consumer behavior?
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What is post-purchase evaluation?
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What is autistic thinking in the context of consumer behavior?
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What can trigger Problem Recognition in consumers?
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What is an example of a financial consideration that can affect the perceived state of consumers?
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How can previous decisions and purchases influence the desired and actual states of consumers?
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What family characteristic greatly affects desires for products?
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How can marketers influence consumers' perceptions of their desired state?
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What can lead to Problem Recognition in consumers?
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What can influence desired and actual states of consumers in the current situation?
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Where can thorough research on Problem Recognition be found?
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What is the difference between low involvement and higher involvement decisions?
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What is the importance of purchase intention?
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What are objections and complaints?
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What are the factors that usually affect the desired state?
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What is the most common source of discrepancy between the desired state and actual state?
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What is autistic thinking?
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What are the factors that usually affect the actual state?
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What is the role of reference groups in consumer behavior?
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Which of the following is NOT true about Problem Recognition in consumer action?
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What can hinder consumer action according to the text?
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What can help minimize resource costs for consumers?
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What can marketers do to activate Problem Recognition when consumers are stuck in inactivity mode?
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What can affect perceptions of desired or actual states?
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When is generic Problem Recognition preferred according to the text?
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What is important for effective appeals in activating Problem Recognition?
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What can hinder consumer action due to lack of information?
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What is the main suggestion made in the article regarding Problem Recognition?
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What is the significance of distinguishing between a condition of 'No Problem Recognition' and 'Problem Recognition on hold'?
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What is an area of investigation that the article suggests would be of particular interest regarding Problem Recognition?
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Study Notes
Problem Recognition in Consumer Decision Process
- The five-stage decision process, introduced by John Dewey in 1910, serves as the central pillar of a popular consumer behavior model.
- The five stages are Problem Recognition, Information Search, Alternative Evaluation, Choice, and Outcomes.
- The Problem Recognition stage is often overlooked in theoretical discussion and empirical support.
- A purchase cannot occur unless a problem is recognized.
- Problem Recognition is based on the interaction between the desired state and the actual state.
- Problem Recognition occurs when a significant difference develops between a person's desired state and actual state with respect to a particular want or need.
- The size of the discrepancy needs to be large enough to be perceived to attract attention.
- There are two types of Problem Recognition: generic and selective.
- Depending on the complexity of the problem, the time it takes to acknowledge the need may be short or long.
- Several authors suggest that the cause of Problem Recognition is departure from homeostasis.
- There are at least two kinds of homeostasis, static and dynamic.
- Dynamic homeostasis can be brought on by changes in either state, and adjustments can occur over time in behavior due to learning.
The Consumer Problem Recognition Process: Determinants and Outcomes
- The Problem Recognition process is complex and involves multiple determinants and paths.
- The process starts with Information Processing based on the consumer's Memory and Motives.
- If there is no perceived discrepancy between the desired and actual state, the consumer experiences the Ideal State.
- A person may perceive a discrepancy but not initiate Consumer Action due to various reasons, including denial, excuses or not seeing it as a consumer problem.
- The Nature of the Discrepancy determines whether Opportunity Recognition or Need Recognition is triggered.
- Consumer Problem Recognition is the "first" stage in consumer decision-making models.
- Problem Recognition and Problem Delineation usually occur simultaneously, but complex problems may require information search.
- After defining the problem, ten distinct outcomes may occur, with four involving No Consumer Action and six involving Consumer Action.
- No Consumer Action may be taken due to an Insufficient Discrepancy, Low Importance, Insufficient Resources or Insufficient Information.
- Insufficient Resources is a common reason for consumer inaction, with consumers desiring but not being able to afford certain goods or services.
- Low Importance is related to Insufficient Resources as a reason for No Consumer Action, with consumers prioritizing needs based on their income.
- Insufficient Information may prevent consumers from taking action on important products or services due to lack of knowledge or guidance.
Consumer Action and Factors Affecting Desired and Actual States
- Low involvement decisions involve limited internal information search and are often unplanned or impulse purchases.
- Higher involvement decisions involve active external information search and consulting friends, ads, and visiting stores.
- Purchase intention is a vital determinant of many later consumer behaviors.
- Consumers may acquire resources needed to buy the desired good or service through saving or borrowing.
- Objections are valid reasons why a person may not yet buy, and complaints may arise from dissonance or dissatisfaction with a past purchase.
- Reference groups, novelty, and thinking are factors that usually affect the desired state.
- Reference groups are an important source of information concerning what one desires.
- Novelty or variation is a common reason for consumers to change brands.
- Autistic thinking, or thinking about possible positive consequences of undertaking behavior, can be a source of arousal of desire.
- Assortment deficiency, arousal of needs, and post-purchase evaluation are factors that usually affect the actual state.
- Assortment deficiency is perhaps the most common source of discrepancy between the desired state and the actual state.
- Post-purchase evaluation can result in satisfaction or unpleasant dissonance or dissatisfaction.
Factors Affecting Problem Recognition in Consumers
- Problem Recognition can be triggered by changes in desired or actual state.
- Financial considerations, such as salary changes, can affect the perceived state.
- Previous decisions and purchases can influence the desired and actual states.
- Family characteristics, such as marriage or having a child, greatly affect desires for products.
- Culture and social class also impact one's perceived state of affairs.
- Individual development, such as maturing, can alter desires for products.
- The current situation, such as limited time or weather, can influence desired and actual states.
- Marketing efforts can influence both desired and actual states.
- Advertising, publicity, personal selling, and displays can impact consumers' perceptions of their desired state.
- Marketers can also influence consumers' perception of the actual state.
- A change in perception of the actual state can lead to Problem Recognition.
- Thorough research on Problem Recognition can be found in the Appendix.
The Importance of Problem Recognition in Consumer Action
- Problem Recognition is necessary but not sufficient for consumer action
- Analyzing consumer problems and activating Problem Recognition are critical marketing activities
- Strategies for triggering Problem Recognition may not work when consumers are stuck in inactivity mode
- Expectations about financial status can affect perceptions of desired or actual states
- Cultural norms serve as guidelines for lifestyle and can affect consumer behavior
- Lack of resources can hinder consumer action, but marketers can minimize costs to the target market
- Loans, savings plans, and adjusting product preparation processes can help minimize resource costs for consumers
- Changing what is important to consumers can be difficult but necessary to activate Problem Recognition
- Insufficient information can hinder consumer action, so providing information is crucial
- Selective Problem Recognition is preferred for brand preference, while generic Problem Recognition can be appropriate in some situations
- Understanding target market style is important for effective appeals in activating Problem Recognition
- Proper channels of information to reach different Problem Recognition Types can be effective, but sources beyond the marketer's control can also be important.
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Description
Test your knowledge on the crucial first stage of the consumer decision process - Problem Recognition. Discover the different types of problem recognition, the role of homeostasis, and the factors that influence how quickly a need is acknowledged. This quiz is perfect for marketing students or professionals looking to strengthen their understanding of consumer behavior.