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6.3 Types of Consumer Decisions

As you read through the stages of the decision making process, did you think “Wait a minute. I do this sometimes but not all the time”? That is indicative of the different levels of involvement within the decision making process. In this section, we will examine this difference in more detail and how it may impact the marketing strategy.

Levels of Involvement in Decision Making

As you have seen, many factors influence a consumer’s behavior. Depending on a consumer’s experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The  level of involvement  reflects how personally important or interested you are in consuming a product and how much information you need to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product, although some products such as purchasing a house typically require a high-involvement for all consumers. Consumers with no experience purchasing a product may have more involvement than someone who is replacing a product.

You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives. As Nike would put it, you “just do it.” Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if they makes a mistake by purchasing them.

Consumers often engage in routine, or habitual, behavior when they make low-involvement decisions—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying. While you’re waiting to check out at the grocery store, perhaps you see a magazine with the latest celebrity or influencer on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them.

By contrast, high-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

High-involvement decisions can cause buyers a great deal of cognitive (postpurchase) dissonance (anxiety) if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople may be utilized to answer questions and do a lot of customer “hand-holding.”

A window with the Allstate insurance company logo.

Allstate’s “You’re in Good Hands” advertisements are designed to convince consumers that the insurance company won’t let them down.

Mike Mozart –  Allstate,  – CC BY 2.0.

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers, often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible.  Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the manufacturers of products that are typically high-involvement decisions can’t become complacent about the value of their brands.

You Try It!

Marketing Copyright © by Kim Donahue is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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3.2 Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process

Learning objectives.

  • Distinguish between low-involvement and high-involvement buying decisions.
  • Understand what the stages of the buying process are and what happens in each stage.

As you have seen, many factors influence a consumer’s behavior. Depending on a consumer’s experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The level of involvement reflects how personally important or interested you are in consuming a product and how much information you need to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product, although some products such as purchasing a house typically require a high-involvement for all consumers. Consumers with no experience purchasing a product may have more involvement than someone who is replacing a product.

You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives. As Nike would put it, you “just do it.” Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them.

Consumers often engage in routine response behavior when they make low-involvement decisions—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you’re waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be.

By contrast, high-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving , where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

High-involvement decisions can cause buyers a great deal of postpurchase dissonance (anxiety) if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that postpurchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople may be utilized to answer questions and do a lot of customer “hand-holding.”

Allstate's logo

Allstate’s “You’re in Good Hands” advertisements are designed to convince consumers that the insurance company won’t let them down.

Mike Mozart – Allstate, – CC BY 2.0.

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the manufacturers of products that are typically high-involvement decisions can’t become complacent about the value of their brands.

1970s American Cars

(click to see video)

Today, Lexus is the automotive brand that experiences the most customer loyalty. For a humorous, tongue-in-cheek look at why the brand reputation of American carmakers suffered in the 1970s, check out this clip.

Stages in the Buying Process

Figure 3.9 “Stages in the Consumer’s Purchasing Process” outlines the buying stages consumers go through. At any given time, you’re probably in a buying stage for a product or service. You’re thinking about the different types of things you want or need to eventually buy, how you are going to find the best ones at the best price, and where and how will you buy them. Meanwhile, there are other products you have already purchased that you’re evaluating. Some might be better than others. Will you discard them, and if so, how? Then what will you buy? Where does that process start?

Figure 3.9 Stages in the Consumer’s Purchasing Process

Stages in the Consumer's Purchasing Process

Stage 1. Need Recognition

You plan to backpack around the country after you graduate and don’t have a particularly good backpack. You realize that you must get a new backpack. You may also be thinking about the job you’ve accepted after graduation and know that you must get a vehicle to commute. Recognizing a need may involve something as simple as running out of bread or milk or realizing that you must get a new backpack or a car after you graduate. Marketers try to show consumers how their products and services add value and help satisfy needs and wants. Do you think it’s a coincidence that Gatorade, Powerade, and other beverage makers locate their machines in gymnasiums so you see them after a long, tiring workout? Previews at movie theaters are another example. How many times have you have heard about a movie and had no interest in it—until you saw the preview? Afterward, you felt like you had to see it.

Stage 2. Search for Information

For products such as milk and bread, you may simply recognize the need, go to the store, and buy more. However, if you are purchasing a car for the first time or need a particular type of backpack, you may need to get information on different alternatives. Maybe you have owned several backpacks and know what you like and don’t like about them. Or there might be a particular brand that you’ve purchased in the past that you liked and want to purchase in the future. This is a great position for the company that owns the brand to be in—something firms strive for. Why? Because it often means you will limit your search and simply buy their brand again.

If what you already know about backpacks doesn’t provide you with enough information, you’ll probably continue to gather information from various sources. Frequently people ask friends, family, and neighbors about their experiences with products. Magazines such as Consumer Reports (considered an objective source of information on many consumer products) or Backpacker Magazine might also help you. Similar information sources are available for learning about different makes and models of cars.

Internet shopping sites such as Amazon.com have become a common source of information about products. Epinions.com is an example of consumer-generated review site. The site offers product ratings, buying tips, and price information. Amazon.com also offers product reviews written by consumers. People prefer “independent” sources such as this when they are looking for product information. However, they also often consult non-neutral sources of information, such advertisements, brochures, company Web sites, and salespeople.

Stage 3. Product Evaluation

Obviously, there are hundreds of different backpacks and cars available. It’s not possible for you to examine all of them. In fact, good salespeople and marketing professionals know that providing you with too many choices can be so overwhelming that you might not buy anything at all. Consequently, you may use choice heuristics or rules of thumb that provide mental shortcuts in the decision-making process. You may also develop evaluative criteria to help you narrow down your choices. Backpacks or cars that meet your initial criteria before the consideration will determine the set of brands you’ll consider for purchase.

Evaluative criteria are certain characteristics that are important to you such as the price of the backpack, the size, the number of compartments, and color. Some of these characteristics are more important than others. For example, the size of the backpack and the price might be more important to you than the color—unless, say, the color is hot pink and you hate pink. You must decide what criteria are most important and how well different alternatives meet the criteria.

Figure 3.10

A man with an Osprey backpack

Osprey backpacks are known for their durability. The company has a special design and quality control center, and Osprey’s salespeople annually take a “canyon testing” trip to see how well the company’s products perform.

melanie innis – break – CC BY-NC-ND 2.0.

Companies want to convince you that the evaluative criteria you are considering reflect the strengths of their products. For example, you might not have thought about the weight or durability of the backpack you want to buy. However, a backpack manufacturer such as Osprey might remind you through magazine ads, packaging information, and its Web site that you should pay attention to these features—features that happen to be key selling points of its backpacks. Automobile manufacturers may have similar models, so don’t be afraid to add criteria to help you evaluate cars in your consideration set.

Stage 4. Product Choice and Purchase

With low-involvement purchases, consumers may go from recognizing a need to purchasing the product. However, for backpacks and cars, you decide which one to purchase after you have evaluated different alternatives. In addition to which backpack or which car, you are probably also making other decisions at this stage, including where and how to purchase the backpack (or car) and on what terms. Maybe the backpack was cheaper at one store than another, but the salesperson there was rude. Or maybe you decide to order online because you’re too busy to go to the mall. Other decisions related to the purchase, particularly those related to big-ticket items, are made at this point. For example, if you’re buying a high-definition television, you might look for a store that will offer you credit or a warranty.

Stage 5. Postpurchase Use and Evaluation

At this point in the process you decide whether the backpack you purchased is everything it was cracked up to be. Hopefully it is. If it’s not, you’re likely to suffer what’s called postpurchase dissonance . You might call it buyer’s remorse . Typically, dissonance occurs when a product or service does not meet your expectations. Consumers are more likely to experience dissonance with products that are relatively expensive and that are purchased infrequently.

You want to feel good about your purchase, but you don’t. You begin to wonder whether you should have waited to get a better price, purchased something else, or gathered more information first. Consumers commonly feel this way, which is a problem for sellers. If you don’t feel good about what you’ve purchased from them, you might return the item and never purchase anything from them again. Or, worse yet, you might tell everyone you know how bad the product was.

Companies do various things to try to prevent buyer’s remorse. For smaller items, they might offer a money back guarantee or they might encourage their salespeople to tell you what a great purchase you made. How many times have you heard a salesperson say, “That outfit looks so great on you!” For larger items, companies might offer a warranty, along with instruction booklets, and a toll-free troubleshooting line to call or they might have a salesperson call you to see if you need help with product. Automobile companies may offer loaner cars when you bring your car in for service.

Companies may also try to set expectations in order to satisfy customers. Service companies such as restaurants do this frequently. Think about when the hostess tells you that your table will be ready in 30 minutes. If they seat you in 15 minutes, you are much happier than if they told you that your table would be ready in 15 minutes, but it took 30 minutes to seat you. Similarly, if a store tells you that your pants will be altered in a week and they are ready in three days, you’ll be much more satisfied than if they said your pants would be ready in three days, yet it took a week before they were ready.

Stage 6. Disposal of the Product

There was a time when neither manufacturers nor consumers thought much about how products got disposed of, so long as people bought them. But that’s changed. How products are being disposed of is becoming extremely important to consumers and society in general. Computers and batteries, which leech chemicals into landfills, are a huge problem. Consumers don’t want to degrade the environment if they don’t have to, and companies are becoming more aware of this fact.

Take for example Crystal Light, a water-based beverage that’s sold in grocery stores. You can buy it in a bottle. However, many people buy a concentrated form of it, put it in reusable pitchers or bottles, and add water. That way, they don’t have to buy and dispose of plastic bottle after plastic bottle, damaging the environment in the process. Windex has done something similar with its window cleaner. Instead of buying new bottles of it all the time, you can purchase a concentrate and add water. You have probably noticed that most grocery stores now sell cloth bags consumers can reuse instead of continually using and discarding of new plastic or paper bags.

Figure 3.11

Recycling center pile

The hike up to Mount Everest used to be pristine. Now it looks more like this. Who’s responsible? Are consumers or companies responsible, or both?

jqpubliq – Recycling Center Pile – CC BY-SA 2.0.

Other companies are less concerned about conservation than they are about planned obsolescence . Planned obsolescence is a deliberate effort by companies to make their products obsolete, or unusable, after a period of time. The goal is to improve a company’s sales by reducing the amount of time between the repeat purchases consumers make of products. When a software developer introduces a new version of product, it is usually designed to be incompatible with older versions of it. For example, not all the formatting features are the same in Microsoft Word 2007 and 2010. Sometimes documents do not translate properly when opened in the newer version. Consequently, you will be more inclined to upgrade to the new version so you can open all Word documents you receive.

Products that are disposable are another way in which firms have managed to reduce the amount of time between purchases. Disposable lighters are an example. Do you know anyone today that owns a nondisposable lighter? Believe it or not, prior to the 1960s, scarcely anyone could have imagined using a cheap disposable lighter. There are many more disposable products today than there were in years past—including everything from bottled water and individually wrapped snacks to single-use eye drops and cell phones.

Figure 3.12

An old trench art lighter

Disposable lighters came into vogue in the United States in the 1960s. You probably don’t own a cool, nondisposable lighter like one of these, but you don’t have to bother refilling it with lighter fluid either.

Europeana staff photographer – A trench art lighter – public domain.

Key Takeaways

Consumer behavior looks at the many reasons why people buy things and later dispose of them. Consumers go through distinct buying phases when they purchase products: (1) realizing the need or wanting something, (2) searching for information about the item, (3) evaluating different products, (4) choosing a product and purchasing it, (5) using and evaluating the product after the purchase, and (6) disposing of the product. A consumer’s level of involvement is how interested he or she is in buying and consuming a product. Low-involvement products are usually inexpensive and pose a low risk to the buyer if he or she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.

Review Questions

  • How do low-involvement decisions differ from high-involvement decisions in terms of relevance, price, frequency, and the risks their buyers face? Name some products in each category that you’ve recently purchased.
  • What stages do people go through in the buying process for high-involvement decisions? How do the stages vary for low-involvement decisions?
  • What is postpurchase dissonance and what can companies do to reduce it?

Principles of Marketing Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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How to Conduct a Problem-Solving Session in Marketing?

First Multilingual Learning Coach for CIPD Qualifications

In today’s competitive business world, marketing professionals face numerous challenges that require effective problem-solving skills. From developing successful marketing strategies to overcoming obstacles, problem-solving plays a crucial role in achieving marketing success. In this article, we will explore the importance of problem-solving in marketing and provide practical techniques for conducting problem-solving sessions.

Understanding the Importance of Problem-Solving in Marketing

Problem-solving is an essential aspect of marketing as it allows businesses to identify and overcome obstacles that hinder their progress. By addressing problems head-on, marketing professionals can improve their strategies, develop innovative solutions, and drive business growth. Effective problem-solving enables marketers to identify opportunities, make informed decisions, and stay ahead of the competition.

In today’s fast-paced and ever-evolving business landscape, problem-solving has become a crucial skill for marketers. It goes beyond simply identifying issues; it involves analyzing data, conducting market research, and applying critical thinking to find the most effective solutions. Successful problem-solving in marketing requires a combination of creativity, analytical skills, and a deep understanding of consumer behavior.

One of the key benefits of problem-solving in marketing is the ability to identify opportunities. By actively seeking out and addressing challenges, marketers can uncover untapped markets, niche segments, and new ways to reach their target audience. This proactive approach allows businesses to stay ahead of the curve and capitalize on emerging trends.

The Role of Problem-Solving in Marketing Success

Problem-solving plays a critical role in achieving marketing success. It helps marketers identify and address the root causes of issues, allowing them to develop targeted solutions. By resolving problems, marketing professionals can enhance customer satisfaction, improve brand reputation, and increase sales. Problem-solving also fosters creativity and innovation, enabling businesses to stay relevant and adapt to changing market demands.

When faced with a marketing challenge, problem-solving allows marketers to think outside the box and come up with unique solutions. It encourages them to explore alternative strategies, experiment with different approaches, and take calculated risks. This mindset of continuous improvement and adaptability is essential in today’s dynamic business environment.

Moreover, problem-solving in marketing is not limited to addressing external issues. It also involves internal problem-solving, such as improving team collaboration, streamlining processes, and optimizing resource allocation. By identifying and resolving internal bottlenecks, marketers can create a more efficient and productive work environment, leading to better overall marketing performance.

Key Challenges in Marketing Problem-Solving

Marketing problem-solving presents unique challenges that require careful consideration. Some of the common challenges include limited resources, time constraints, and conflicting opinions among team members. Additionally, identifying the underlying causes of problems can be complex, as multiple factors often contribute to marketing issues. Overcoming these challenges requires a systematic approach and effective communication within the team.

Limited resources, such as budget constraints or a shortage of skilled personnel, can hinder problem-solving efforts in marketing. Marketers must find creative ways to maximize their resources and prioritize their efforts to achieve the best possible outcomes. Time constraints also pose a challenge, as marketers often face tight deadlines and the need for quick decision-making. Effective time management and prioritization skills are crucial in such situations.

Another common challenge in marketing problem-solving is dealing with conflicting opinions and perspectives within the team. Different team members may have varying ideas on how to approach a problem, which can lead to disagreements and delays. Effective communication and collaboration are essential to overcome these challenges and ensure that everyone is aligned towards a common goal.

Furthermore, identifying the underlying causes of marketing problems can be complex. Issues may arise from a combination of factors, such as market trends, consumer behavior, or internal processes. Marketers need to conduct thorough research, gather data, and analyze information to gain a comprehensive understanding of the problem. This analytical approach helps in developing targeted solutions that address the root causes and deliver long-term results.

In conclusion, problem-solving is a fundamental skill for marketers, enabling them to overcome obstacles, identify opportunities, and drive business success. By embracing a proactive and systematic approach to problem-solving, marketers can enhance their strategies, improve customer satisfaction, and stay ahead of the competition in today’s dynamic marketing landscape.

Preparing for a Problem-Solving Session

Before conducting a problem-solving session, it is crucial to lay the groundwork for success. This involves several key steps that ensure the session is focused and productive.

One important aspect of preparing for a problem-solving session is creating an environment that fosters creativity and collaboration. This can be achieved by setting up a comfortable and well-equipped meeting space, providing ample whiteboards or flipcharts for brainstorming, and ensuring that everyone has access to the necessary materials and resources.

Another crucial step in preparing for a problem-solving session is conducting thorough research and analysis. This includes gathering relevant data, analyzing market trends, and understanding customer feedback. By taking the time to gather and analyze this information, marketers can gain valuable insights into the problem at hand and identify potential solutions.

Identifying the Marketing Problem

The first step in preparing for a problem-solving session is to clearly identify the marketing problem at hand. This involves gathering relevant data, analyzing market trends, and understanding customer feedback. By clearly defining the problem, marketers can focus their efforts on finding solutions that address the root cause rather than merely addressing symptoms.

During the problem identification phase, it is important to involve key stakeholders and decision-makers. This ensures that all perspectives are taken into account and that the problem is thoroughly understood from various angles. By involving stakeholders early on, marketers can also gain buy-in and support for the problem-solving process.

Additionally, conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) can provide valuable insights into the marketing problem. This analysis helps identify internal and external factors that may impact the problem and can guide the problem-solving session towards effective solutions.

Assembling the Right Team

Successful problem-solving sessions require a diverse team with complementary skills and expertise. It is essential to assemble a group of individuals who can bring different perspectives to the table. Including team members from various departments such as marketing, sales, and research and development ensures a well-rounded approach to problem-solving.

When assembling the team, it is important to consider each individual’s strengths and areas of expertise. This ensures that the team has the necessary skills to tackle the problem at hand and can provide valuable insights and ideas. Additionally, fostering a collaborative and inclusive team culture encourages open communication and idea-sharing, leading to more effective problem-solving.

Furthermore, it can be beneficial to include individuals who have experience in similar problem-solving sessions or have a track record of innovative thinking. Their past experiences and knowledge can provide valuable guidance and help the team avoid common pitfalls.

Setting Clear Objectives for the Session

Establishing clear objectives is crucial for guiding the problem-solving session. Clearly defined goals help team members stay focused and ensure that the session remains on track. Setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives provides a framework for success.

During the objective-setting phase, it is important to involve the entire team in the process. This ensures that everyone has a shared understanding of the desired outcomes and can contribute their ideas and suggestions. By involving the team in setting the objectives, it also increases their ownership and commitment to achieving the goals.

Additionally, it can be helpful to prioritize the objectives based on their importance and impact. This allows the team to allocate their time and resources effectively and ensures that the most critical issues are addressed first.

Furthermore, setting milestones and checkpoints throughout the problem-solving session can help track progress and make adjustments if needed. Regularly reviewing and reassessing the objectives ensures that the team stays on course and can adapt to any unforeseen challenges.

Techniques for Effective Problem-Solving in Marketing

Once the groundwork is laid, it’s time to dive into the problem-solving process. There are various techniques that marketing professionals can employ to generate innovative ideas and find effective solutions.

Brainstorming and Idea Generation

Brainstorming is a tried-and-true method for generating creative ideas and solutions. By encouraging free thinking and suspending judgment, brainstorming allows team members to share their thoughts openly. This technique often leads to unexpected connections and breakthrough solutions.

The Six Thinking Hats Technique

The Six Thinking Hats technique, developed by Edward de Bono, is a powerful tool for problem-solving. It involves assigning different “hats” to each team member, representing different modes of thinking (e.g., logic, creativity, emotions). This approach helps teams thoroughly analyze problems from various perspectives and make more robust decisions.

The Five Whys Technique

The Five Whys technique is a simple yet effective method for uncovering the root cause of a problem. It involves asking “why” up to five times to drill down to the underlying issues. By repeatedly asking “why,” marketers can uncover deeper insights and develop solutions that address the core problem.

Implementing Solutions and Monitoring Progress

Once potential solutions are identified, it’s crucial to prioritize and implement them effectively. Additionally, monitoring progress and measuring success ensure that the implemented solutions yield the desired outcomes.

Prioritizing and Selecting Solutions

Not all solutions are equal in terms of feasibility and impact. It’s vital to prioritize potential solutions based on various factors such as their alignment with objectives, available resources, and potential risks. Selecting the most suitable solutions requires careful evaluation and consensus among team members.

Creating an Action Plan

An action plan outlines the steps required to implement the chosen solutions. It specifies responsibilities, timelines, and key milestones. A well-defined action plan ensures that the implementation process is efficient and that progress can be effectively monitored.

Tracking Progress and Measuring Success

Monitoring progress is essential to ensure that the implemented solutions are achieving the desired outcomes. Key performance indicators (KPIs) should be established to measure success and track progress over time. Regular evaluation and adjustment of strategies are crucial to stay on track and continually improve marketing efforts.

Conducting problem-solving sessions in marketing is vital for identifying and overcoming obstacles that hinder success. Understanding the importance of problem-solving, preparing for sessions, employing effective techniques, and implementing solutions are all critical steps in the process. By embracing problem-solving as an integral part of marketing, professionals can drive innovation, enhance competitiveness, and achieve business growth.

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4.3: Buyer behavior as problem solving

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  • Page ID 21352

  • John Burnett
  • Global Text Project

Consumer behavior refers to buyers who are purchasing for personal, family, or group use. Consumer behavior can be thought of as the combination of efforts and results related to the consumer's need to solve problems. Consumer problem solving is triggered by the identification of some unmet need. A family consumes all of the milk in the house or the tires on the family care wear out or the bowling team is planning an end-of-the-season picnic. This presents the person with a problem which must be solved. Problems can be viewed in terms of two types of needs: physical (such as a need for food) or psychological (for example, the need to be accepted by others).

Although the difference is a subtle one, there is some benefit in distinguishing between needs and wants. A need is a basic deficiency given a particular essential item. You need food, water, air, security, and so forth. A want is placing certain personal criteria as to how that need must be fulfilled. Therefore, when we are hungry, we often have a specific food item in mind. Consequently, a teenager will lament to a frustrated parent that there is nothing to eat, standing in front of a full refrigerator. Most of marketing is in the want-fulfilling business, not the need-fulfilling business. Timex does not want you to buy just any watch, they want you to want a Timex brand watch. Likewise, Ralph Lauren wants you to want Polo when you shop for clothes. On the other hand, the American Cancer Association would like you to feel a need for a check-up and does not care which doctor you go to. In the end, however, marketing is mostly interested in creating and satisfying wants.

The decision process

Exhibit 10 outlines the process a consumer goes through in making a purchase decision. Each step is illustrated in the following sections of your text. Once the process is started, a potential buyer can withdraw at any stage of making the actual purchase. The tendency for a person to go through all six stages is likely only in certain buying situations—a first time purchase of a product, for instance, or when buying high priced, long-lasting, infrequently purchased articles. This is referred to as complex decision making .

For many products, the purchasing behavior is a routine affair in which the aroused need is satisfied in a habitual manner by repurchasing the same brand. That is, past reinforcement in learning experiences leads directly to buying, and thus the second and third stages are bypassed. This is called simple decision making . However, if something changes appreciably (price, product, availability, services), the buyer may re-enter the full decision process and consider alternative brands. Whether complex 0r simple, the first step is need identification. 1.

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Need identification

Whether we act to resolve a particular problem depends upon two factors: (1) the magnitude of the discrepancy between what we have and what we need, and (2) the importance of the problem. A consumer may desire a new Cadillac and own a five-year-old Chevrolet. The discrepancy may be fairly large but relatively unimportant compared to the other problems he/she faces. Conversely, an individual may own a car that is two years old and running very well. Yet, for various reasons, he/she may consider it extremely important to purchase a car this year. People must resolve these types of conflicts before they can proceed. Otherwise, the buying process for a given product stops at this point, probably in frustration.

Once the problem is recognized it must be defined in such a way that the consumer can actually initiate the action that will bring about a relevant problem solution. Note that, in many cases, problem recognition and problem definition occur simultaneously, such as a consumer running out of toothpaste. Consider the more complicated problem involved with status and image–how we want others to see us. For example, you may know that you are not satisfied with your appearance, but you may not be able to define it any more precisely than that. Consumers will not know where to begin solving their problem until the problem is adequately defined.

Marketers can become involved in the need recognition stage in three ways. First they need to know what problems consumers are facing in order to develop a marketing mix to help solve these problems. This requires that they measure problem recognition. Second, on occasion, marketers want to activate problem recognition. Public service announcements espousing the dangers of cigarette smoking is an example. Weekend and night shop hours are a response of retailers to the consumer problem of limited weekday shopping opportunities. This problem has become particularly important to families with two working adults. Finally, marketers can also shape the definition of the need or problem. If a consumer needs a new coat, does he define the problem as a need for inexpensive covering, a way to stay warm on the coldest days, a garment that will last several years, warm cover that will not attract odd looks from his peers, or an article of clothing that will express his personal sense of style? A salesperson or an ad may shape his answers.

Information search and processing

After a need is recognized, the prospective consumer may seek information to help identify and evaluate alternative products, services, and outlets that will meet that need. Such information can come from family, friends, personal observation, or other sources, such as Consumer Reports , salespeople, or mass media. The promotional component of the marketers offering is aimed at providing information to assist the consumer in their problem solving process. In some cases, the consumer already has the needed information based on past purchasing and consumption experience. Bad experiences and lack of satisfaction can destroy repeat purchases. The consumer with a need for tires may look for information in the local newspaper or ask friends for recommendation. If he has bought tires before and was satisfied, he may go to the same dealer and buy the same brand.

Information search can also identify new needs. As a tire shopper looks for information, she may decide that the tires are not the real problem, that the need is for a new car. At this point, the perceived need may change triggering a new informational search.

Information search involves mental as well as the physical activities that consumers must perform in order to make decisions and accomplish desired goals in the marketplace. It takes time, energy, money, and can often involve foregoing more desirable activities. The benefits of information search, however, can outweigh the costs. For example, engaging in a thorough information search may save money, improve quality of selection, or reduce risks. As noted in the integrated marketing box, the Internet is a valuable information source.

Information processing

When the search actually occurs, what do people do with the information? How do they spot, understand, and recall information? In other words, how do they process information? This broad topic is important for understanding buyer behavior in general as well as effective communication with buyers in particular, and it has received a great deal of study. Assessing how a person processes information is not an easy task. Often observation has served as the basis. Yet there are many theories as to how the process takes place. One widely accepted theory proposes a five-step sequence. 2.

• Exposure . Information processing starts with the exposure of consumers to some source of stimulation such as watching television, going to the supermarket, or receiving direct mail advertisements at home. In order to start the process, marketers must attract consumers to the stimulus or put it squarely in the path of people in the target market.

• Attention . Exposure alone does little unless people pay attention to the stimulus. At any moment, people are bombarded by all sorts of stimuli, but they have a limited capacity to process this input. They must devote mental resources to stimuli in order to process them; in other words, they must pay attention. Marketers can increase the likelihood of attention by providing informational cues that are relevant to the buyer.

• Perception . Perception involves classifying the incoming signals into meaningful categories, forming patterns, and assigning names or images to them. Perception is the assignment of meaning to stimuli received through the senses. (More will be said about perception later.)

• Retention . Storage of information for later reference, or retention, is the fourth step of the information-processing sequence. Actually, the role of retention or memory in the sequence is twofold. First, memory holds information while it is being processed throughout the sequence. Second, memory stores information for future, long-term use. Heavy repetition and putting a message to music are two things marketers do to enhance retention.

• Retrieval and application . The process by which information is recovered from the memory storehouse is called retrieval . Application is putting that information into the right context. If the buyer can retrieve relevant information about a product, brand, or store, he or she will apply it to solve a problem or meet a need.

Variations in how each step is carried out in the information-processing sequence also occur. Especially influential is the degree of elaboration. Elaborate processing, also called central processing, involves active manipulation of information. A person engaged in elaborate processing pays close attention to a message and thinks about it; he or she develops thoughts in support of or counter to the information received. In contrast, nonelaborate, or peripheral, processing involves passive manipulation of information 3. It is demonstrated by most airline passengers while a flight attendant reads preflight safety procedures. This degree of elaboration closely parallels the low-involvement, high-involvement theory, and the same logic applies.

Identification and evaluation of alternatives

After information is secured and processed, alternative products, services, and outlets are identified as viable options. The consumer evaluates these alternatives, and, if financially and psychologically able, makes a choice. The criteria used in evaluation varies from consumer to consumer just as the needs and information sources vary. One consumer may consider price most important while another puts more weight upon quality or convenience.

The search for alternatives and the methods used in the search are influenced by such factors as: (a) time and money costs; (b) how much information the consumer already has; (c) the amount of the perceived risk if a wrong selection is made; and (d) the consumer's pre-disposition toward particular choices as influenced by the attitude of the individual toward choice behavior. That is, there are individuals who find the selection process to be difficult and disturbing. For these people there is a tendency to keep the number of alternatives to a minimum, even if they have not gone through an extensive information search to find that their alternatives appear to be the very best. On the other hand, there are individuals who feel it necessary to collect a long list of alternatives. This tendency can appreciably slow down the decision-making function.

Product/service/outlet selection

The selection of an alternative, in many cases ,will require additional evaluation. For example, a consumer may select a favorite brand and go to a convenient outlet to make a purchase. Upon arrival at the dealer, the consumer finds that the desired brand is out-of-stock. At this point, additional evaluation is needed to decide whether to wait until the product comes in, accept a substitute, or go to another outlet. The selection and evaluation phases of consumer problem solving are closely related and often run sequentially, with outlet selection influencing product evaluation, or product selection influencing outlet evaluation.

The purchase decision

After much searching and evaluating, or perhaps very little, consumers at some point have to decide whether they are going to buy. Anything marketers can do to simplify purchasing will be attractive to buyers. In their advertising marketers could suggest the best size for a particular use, or the right wine to drink with a particular food. Sometimes several decision situations can be combined and marketed as one package. For example, travel agents often package travel tours.

To do a better marketing job at this stage of the buying process, a seller needs to know answers to many questions about consumers' shopping behavior. For instance, how much effort is the consumer willing to spend in shopping for the product? What factors influence when the consumer will actually purchase? Are there any conditions that would prohibit or delay purchase? Providing basic product, price, and location information through labels, advertising, personal selling, and public relations is an obvious starting point. Product sampling, coupons, and rebates may also provide an extra incentive to buy.

Actually determining how a consumer goes through the decision-making process is a difficult research task. As indicated in the Newsline box, there are new research methods to better assess this behavior.

Postpurchase behavior

All the behavior determinants and the steps of the buying process up to this point are operative before or during the time a purchase is made. However, a consumer's feelings and evaluations after the sale are also significant to a marketer, because they can influence repeat sales and also influence what the customer tells others about the product or brand.

Keeping the customer happy is what marketing is all about. Nevertheless, consumers typically experience some postpurchase anxiety after all but the most routine and inexpensive purchases. This anxiety reflects a phenomenon called cognitive dissonance . According to this theory, people strive for consistency among their cognitions (knowledge, attitudes, beliefs, values). When there are inconsistencies, dissonance exists, which people will try to eliminate. In some cases, the consumer makes the decision to buy a particular brand already aware of dissonant elements. In other instances, dissonance is aroused by disturbing information that is received after the purchase 4. The marketer may take specific steps to reduce postpurchase dissonance. Advertising that stresses the many positive attributes or confirms the popularity of the product can be helpful. Providing personal reinforcement has proven effective with big-ticket items such as automobiles and major appliances. Salespeople in these areas may send cards or may even make personal calls in order to reassure customers about their purchase.

Capsule 8: Review

Influencing factors of consumer behavior

While the decision-making process appears quite standardized, no two people make a decision in exactly the same way. As individuals, we have inherited and learned a great many behavioral tendencies: some controllable, some beyond our control. Further, the ways in which all these factors interact with one another ensures uniqueness. Although it is impossible for a marketer to react to the particular profile of a single consumer, it is possible to identify factors that tend to influence most consumers in predictable ways.

The factors that influence the consumer problem-solving process are numerous and complex. For example, the needs of men and women are different in respect to cosmetics; the extent of information search for a low-income person would be much greater when considering a new automobile as opposed to a loaf of bread; a consumer with extensive past purchasing experience in a product category might well approach the problem differently from one with no experience. Such influences must be understood to draw realistic conclusions about consumer behavior.

For purpose of discussion, it may be helpful to group these various influences into related sets. Exhibit 11 provides such a framework. Situational, external, and internal influences are shown as having an impact on the consumer problem solving process. Situation influences include the consumer's immediate buying task, the market offerings that are available to the consumer, and demographic traits. Internal influences relate to the consumer's learning and socialization, motivation and personality, and lifestyle. External influences deal with factors outside the individual that have a strong bearing on personal behaviors. Current purchase behavior is shown as influencing future behavior through the internal influence of learning. Let us now turn to the nature and potential impact of each of these sets of influences on consumer problem solving. Exhibit 11 focuses on the specific elements that influence the consumer's decision to purchase and evaluate products and services.

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Situational influences

Buying task

The nature of the buying task has considerable impact on a customer's approach to solving a particular problem. When a decision involves a low-cost item that is frequently purchased, such as bread, the buying process is typically quick and routinized. A decision concerning a new car is quite different. The extent to which a decision is considered complex or simple depends on (a) whether the decision is novel or routine, and on (b) the extent of the customers' involvement with the decision. A great deal of discussion has revolved around this issue of involvement. High-involvement decisions are those that are important to the buyer. Such decisions are closely tied to the consumer's ego and self-image. They also involve some risk to the consumer; financial risk (highly priced items), social risk (products important to the peer group), or psychological risk (the wrong decision might cause the consumer some concern and anxiety). In making these decisions, it is worth the time and energies to consider solution alternatives carefully. A complex process of decision making is therefore more likely for high involvement purchases. Low-involvement decisions are more straightforward, require little risk, are repetitive, and often lead to a habit: they are not very important to the consumer 5. Financial, social, and psychological risks are not nearly as great. In such cases, it may not be worth the consumer's time and effort to search for information about brands or to consider a wide range of alternatives. A low involvement purchase therefore generally entails a limited process of decision making. The purchase of a new computer is an example of high involvement, while the purchase of a hamburger is a low-involvement decision.

When a consumer has bought a similar product many times in the past, the decision making is likely to be simple, regardless of whether it is a high-or low-involvement decision. Suppose a consumer initially bought a product after much care and involvement, was satisfied, and continued to buy the product. The customer's careful consideration of the product and satisfaction has produced brand loyalty, which is the result of involvement with the product decision.

Once a customer is brand-loyal, a simple decision-making process is all that is required for subsequent purchases. The consumer now buys the product through habit, which means making a decision without the use of additional information or the evaluation of alternative choices.

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Market offerings

Another relevant set of situational influences on consumer problem solving is the available market offerings. The more extensive the product and brand choices available to the consumer, the more complex the purchase decision process is likely to be.

For example, if you already have purchased or are considering purchasing a DVD (digital versatile disc), you know there are many brands to choose from—Sony, Samsung, Panasonic, Mitsubishi, Toshiba, and Sanyo, to name several. Each manufacturer sells several models that differ in terms of some of the following features–single or multiple event selection, remote control (wired or wireless), slow motion, stop action, variable-speed scan, tracking control, and so on. What criteria are important to you? Is purchasing a DVD an easy decision? If a consumer has a need that can be met by only one product or one outlet in the relevant market, the decision is relatively simple. Either purchase the product or let the need go unmet.

This is not ideal from the customer's perspective, but it can occur. For example, suppose you are a student on a campus in a small town many miles from another marketplace. Your campus and town has only one bookstore. You need a textbook for class; only one specific book will do and only one outlet has the book for sale. The limitation on alternative market offerings can clearly influence your purchase behavior.

As you saw in the DVD example, when the extent of market offerings increases, the complexity of the problem-solving process and the consumers' need for information also increases. A wider selection of market offerings is better from the customer's point of view, because it allows them to tailor their purchases to their specific needs. However, it may confuse and frustrate the consumer so that less-than-optimal choices are made.

Demographic influences

An important set of factors that should not be overlooked in attempting to understand and respond to consumers is demographics. Such variables as age, sex, income, education, marital status, and mobility can all have significant influence on consumer behavior. One study showed that age and education have strong relationships to store selection by female shoppers. This was particularly true for women's suits or dresses, linens and bedding, cosmetics, and women's sportswear.

DeBeers Limited, which has an 80 per cent share of the market for diamonds used in engagement rings, employed a consumer demographic profile in developing their promotional program. Their target market consists of single women and men between the ages of 18 and 24. They combined this profile with some lifestyle aspects to develop their promotional program.

People in different income brackets also tend to buy different types of products and different qualities. Thus various income groups often shop in very different ways. This means that income can be an important variable in defining the target group. Many designer clothing shops, for example, aim at higher-income shoppers, while a store like Kmart appeals to middle-and lower-income groups.

External influences

External factors are another important set of influences on consumer behavior. Among the many societal elements that can affect consumer problem solving are culture, social class, reference groups, and family.

A person's culture is represented by a large group of people with a similar heritage. The American culture, which is a subset of the Western culture, is of primary interest here. Traditional American culture values include hard work, thrift, achievement, security, and the like. Marketing strategies targeted to those with such a cultural heritage should show the product or service as reinforcing these traditional values. The three components of culture-beliefs, values, and customs-are each somewhat different. A belief is a proposition that reflects a person's particular knowledge and assessment of something (that is, "I believe that ..."). Values are general statements that guide behavior and influence beliefs. The function of a value system is to help a person choose between alternatives in everyday life.

Customs are overt modes of behavior that constitute culturally approved ways of behaving in specific situations. For example, taking one's mother out for dinner and buying her presents for Mother's Day is an American custom that Hallmark and other card companies support enthusiastically.

The American culture with its social values can be divided into various subcultures. For example, African-Americans constitute a significant American subculture in most US cities. A consumer's racial heritage can exert an influence on media usage and various other aspects of the purchase decision process.

Social class

Social class , which is determined by such factors as occupation, wealth, income, education, power, and prestige, is another societal factor that can affect consumer behavior. The best-known classification system includes upper-upper, lower-upper, upper-middle, lower-middle, upper-lower, and lower-lower class. Lower-middle and upper-lower classes comprise the mass market.

The upper-upper class and lower-upper class consist of people from wealthy families who are locally prominent. They tend to live in large homes furnished with art and antiques. They are the primary market for rare jewelry and designer originals, tending to shop at exclusive retailers. The upper-middle class is made up of professionals, managers, and business owners. They are ambitious, future-oriented people who have succeeded economically and now seek to enhance their quality of life. Material goods often take on major symbolic meaning for this group. They also tend to be very civic-minded and are involved in many worthy causes. The lower-middle class consists of mid-level white-collar workers. These are office workers, teachers, small business people and the like who typically hold strong American values. They are family-oriented, hard-working individuals. The upper-lower class is made up of blue-collar workers such as production line workers and service people. Many have incomes that exceed those of the lower-middle class, but their values are often very different. They tend to adopt a short-run, live-for-the-present philosophy. They are less future-oriented than the middle classes. The lower-lower class consists of unskilled workers with low incomes. They are more concerned with necessities than with status or fulfillment.

People in the same social class tend to have similar attitudes, live in similar neighborhoods, dress alike, and shop at the same type stores. If a marketer wishes to target efforts toward the upper classes, then the market offering must be designed to meet their expectations in terms of quality, service, and atmosphere. For example, differences in leisure concerts are favored by members of the middle and upper classes, while fishing, bowling, pool, and drive-in movies are more likely to involve members of the lower social classes.

Reference groups

Do you ever wonder why Pepsi used Shaquille O'Neal in their advertisements? The teen market consumes a considerable amount of soft drinks. Pepsi has made a strong effort to capture a larger share of this market, and felt that Shaquille represented the spirit of today's teens. Pepsi is promoted as "the choice of a new generation" and Shaquille is viewed as a role model by much of that generation. Pepsi has thus employed the concept of reference groups.

A reference group helps shape a person's attitudes and behaviors. Such groups can be either formal or informal. Churches, clubs, schools, notable individuals, and friends can all be reference groups for a particular consumer. Reference groups are characterized as having individuals who are opinion leaders for the group. Opinion leaders are people who influence others. They are not necessarily higher-income or better educated, but perhaps are seen as having greater expertise or knowledge related to some specific topic. For example, a local high school teacher may be an opinion leader for parents in selecting colleges for their children. These people set the trend and others conform to the expressed behavior. If a marketer can identify the opinion leaders for a group in the target market, then effort can be directed toward attracting these individuals. For example, if an ice cream parlor is attempting to attract the local high school trade, opinion leaders at the school may be very important to its success.

The reference group can influence an individual in several ways 6. :

• Role expectations: The role assumed by a person is nothing more than a prescribed way of behaving based on the situation and the person's position in the situation. Your reference group determines much about how this role is to be performed. As a student, you are expected to behave in a certain basic way under certain conditions.

• Conformity: Conformity is related to our roles in that we modify our behavior in order to coincide with group norms. Norms are behavioral expectations that are considered appropriate regardless of the position we hold.

• Group communications through opinion leaders: We, as consumers, are constantly seeking out the advice of knowledgeable friends or acquaintances who can provide information, give advice, or actually make the decision. For some product categories, there are professional opinion leaders who are quite easy to identify–e.g. auto mechanics, beauticians, stock brokers, and physicians.

One of the most important reference groups for an individual is the family. A consumer's family has a major impact on attitude and behavior. The interaction between husband and wife and the number and ages of children in the family can have a significant effect on buying behavior.

One facet in understanding the family's impact on consumer behavior is identifying the decision maker for the purchase in question. In some cases, the husband is dominant, in others the wife or children, and still others, a joint decision is made. The store choice for food and household items is most often the wife's. With purchases that involve a larger sum of money, such as a refrigerator, a joint decision is usually made. The decision on clothing purchases for teenagers may be greatly influenced by the teenagers themselves. Thus, marketers need to identify the key family decision maker for the product or service in question.

Another aspect of understanding the impact of the family on buying behavior is the family lifecycle . Most families pass through an orderly sequence of stages. These stages can be defined by a combination of factors such as age, marital status,and parenthood. The typical stages are:

• The bachelor state; young, single people.

• Newly married couples; young, no children.

• The full nest I and II; young married couples with dependent children:

• Youngest child under six (Full nest I)

• Youngest child over six (Full nest II)

• The full nest III; older married couples with dependent children.

• The empty nest I and II; older married couples with no children living with them:

• Adults in labor force (Empty nest I)

• Adults retired (Empty nest II)

• The solitary survivors; older single people:

• In labor force

• Retired

Each of these stages is characterized by different buying behaviors. For example, a children's clothing manufacturer would target its efforts primarily at the full nest I families. Thus, the family cycle can be helpful in defining the target customers.

Internal influences

Each customer is to some degree a unique problem solving unit. Although they can be grouped into meaningful segments, in order to fully appreciate the totality of the buying process, a marketer needs to examine the internal forces that influence consumers. They are learning/socialization, motivation and personality, and lifestyle.

Learning and socialization

As a factor influencing a person's perceptions, learning may be defined as changes in behavior resulting from previous experiences. However, learning does not include behavior changes attributable to instinctive responses, growth, or temporary states of the organism, such as hunger, fatigue, or sleep. It is clear that learning is an ongoing process that is dynamic, adaptive, and subject to change. Also, learning is an experience and practice that actually brings about changes in behavior. For example, in order to learn how to play tennis, you might participate in it to gain experience, be exposed to the different skills required, the rules, and so forth. However, the experience does not have to be an actual, physical one. It could be a conceptualization of a potential experience. In other words, you could learn to play tennis by reading about how to play without actually doing it. This is called nonexperiential learning .

Nonexperiential learning is particularly relevant in consumer behavior. For example, assume you are considering purchasing a bottle of Zinfandel wine. You ask the salesclerk what it tastes like, and he tells you it tastes like a strong ginger ale. Not liking the taste of ginger ale, you reject the purchase. Thus you have learned that you do not like Zinfandel wine without having a direct taste experience. A great deal of our learning is of this type. This may be one reason why marketers try to identify opinions leaders who in turn tell others in the market about the benefits of the product.

Another characteristic of learning is that the changes may be immediate or anticipated. In other words, just because we do not see immediate evidence that learning has taken place is no reason to assume that learning has not occurred. We can store our learning until it is needed, and frequently do this in terms of making purchase decisions. For example, we are willing to learn about many product attributes even though we do not expect to buy the product in the near future.

As new information is processed and stored over time, consumer learning takes place There are several theories of learning: one of the most useful to marketers is that of socialization. Socialization refers to the process by which persons acquire the knowledge, skills, and dispositions that make them more or less able members of their society. The assumption made is that behavior is acquired and modified over the person's lifecycle.

The social learning approach stresses sources of influence–"socialization agents" (i.e. other people)–that transmit cognitive and behavioral patterns to the learner. In the case of consumer socialization, this takes place in the course of the person's interaction with other individuals in various social settings. Socialization agents might include any person, organization, or information source that comes into contact with the consumer.

Consumers acquire this information from the other individuals through the processes of modeling, reinforcement, and social interaction Modeling involves imitation of the agent's behavior. For example, a teenager may acquire a brand name preference for Izod from friends. Marketers can make use of this concept by employing spokespersons to endorse their products and services who have strong credibility with their target consumers, as in the case of Bill Cosby (Jell-O). Reinforcement involves either a reward or a punishment mechanism used by the agent. A parent may be reinforced by good product performance, excellent post-purchase services, or some similar rewarding experience. The social interaction mechanism is less specific as to the type of learning involved; it may include a combination of modeling and reinforcement. The social setting within which learning takes place can be defined in terms of variables such as social class, sex, and family size.

These variables can influence learning through their impact on the relationship between the consumer and others. It should be noted that an individual who promotes learning can be anyone—such as parent, friend, salesperson, or television spokesperson.

Motivation is a concept that is difficult to define. In fact, the difficulty of defining motives and dealing with motivation in consumer research accounts for its limited application. For the most part, the research in motivation involves benefit segmentation and patronage motives. Patronage motives typically concern the consumer's reasons for shopping at a particular outlet. Consumers are classified, for example, as price-conscious, convenience-oriented, service-oriented, or in terms of some other motivating feature.

A motive is the inner drive or pressure to take action to satisfy a need. To be motivated is to be a goal-oriented individual. Some goals are positive, some are negative, some individuals have a high level of goal orientation, some have a very low level. In all cases, the need must be aroused or stimulated to a high enough level so that it can serve as a motive. It is possible (and usual) to have needs that are latent (unstimulated) and that therefore do not serve as the motive of behavior. The sources of this arousal may be internal (people get hungry), environmental (you see an ad for a Big Mac), or psychological (just thinking about food can cause hunger). It is possible (and usual) to have needs that are latent (unstimulated) and that therefore do not serve as the motive of behavior.

For motivation to be useful in marketing practice, a marketing manager must understand what motives and behaviors are influenced by the specific situation in which consumers engage in goal-directed, problem-solving behavior.

Motivation flows from an unmet need, as does all consumer problem solving. Perhaps the best known theory dealing with individual motivation is provided in the work of A H Maslow. One of the most important parts of Maslow's theory is his development of a model consisting of several different levels of needs that exist in a human being and relate to each other via a "need hierarchy”. Maslow has differentiated between five levels of needs. The first of these concerns itself with physiological needs; that is, hunger, thirst, and other basic drives. All living beings, regardless of their level of maturity, possess physiological needs. Physiological needs are omnipresent and are of a recurrent nature7.

Safety and security needs are second in Maslow's hierarchy. The difference between physiological needs and safety and security needs is somewhat hazy. Safety and security imply a continued fulfillment of physiological needs. This is an extension of the more basic needs.

Third in Maslow's hierarchy of needs are the love needs. These are the needs for belonging and friendship. They involve a person's interaction with others. The fourth level of needs in Maslow's hierarchy is the esteem needs. These are needs related to feeling good about oneself and having a positive self-image.

The fifth and highest level in Maslow's needs hierarchy is the need for self-actualization or self-fulfillment. This need can be defined as the need of a person to reach his full potential in terms of the application of his own abilities and interest in functioning in his environment.

It is important in discussing these levels of Maslow's hierarchy to point out two additional factors. First, Maslow has clearly indicated that these five levels of needs operate on an unconscious level. That is, the individual is probably not aware of concentration upon one particular need or one assortment of needs. One of the misunderstandings associated with Maslow's theory is that he believes the five needs to be mutually exclusive. That, in fact, is not the intent of Maslow. To the contrary, several of these needs may occur simultaneously for any one individual; the relative importance of each need for any one individual determines the hierarchy involved.

When we attempt to integrate Maslow's needs hierarchy with the concept of segmentation, we can see that a manager might find certain subgroups that fit together because of some homogeneity of needs. For example, a marketer may target a group with strong self-esteem needs in designing a promotional program for cosmetics. Appeals to higher-order needs are important for many products and services, even basic commodities.

Personality is used to summarize all the traits of a person that make him/her unique. No two people have the same traits, but several attempts have been made to classify people with similar traits. Perhaps the best-known personality types are those proposed by Carl Jung, as is a variation on the work of his teacher, Sigmund Freud. His personality categories are introvert and extrovert . The introvert is described as defensive, inner-directed, and withdrawn from others. The extrovert is outgoing, other-directed, and assertive. Several other more elaborate classifications have also been devised.

Various personality types, like people with various motives, are likely to respond in different ways to different market offerings. For example, an extrovert may enjoy the shopping experience and rely more on personal observation to secure information; thus, in-store promotion would become an important communication tool. Knowing the basic personality traits of target customers can be useful information for the manager in designing the marketing mix. Marketers have, however, found personality to be difficult to apply in developing marketing strategy. The primary reason for this is the lack of good ways to measure personality traits. Most available measures were developed to identify people with problems that needed medical attention. These have little value with consumers who are mentally healthy. As a result, most marketers have turned to lifestyle analysis.

One of the newer and increasingly important set of factors that is being used to understand consumer behavior is lifestyle. Lifestyle has been generally defined as the attitudes, interests, and opinions of the potential customer. Such variables as interest in hunting, attitude toward the role of women in society, and opinion on the importance of dressing well can be used to better understand the market and its behavior.

It is the multifaceted aspect of lifestyle research that makes it so useful in consumer analysis. A prominent lifestyle researcher, Joseph T Plummer, summarizes the concept as follows:

...life style patterns, combines the virtues of demographics with the richness and dimensionality of psychological characteristics....Life style is used to segment the marketplace because it provides the broad, everyday view of consumers life style segmentation and can generate identifiable whole persons rather than isolated fragments. 8.

A useful application of the lifestyle concept relates to consumer's shopping orientation. Different customers approach shopping in very different ways. They have different attitudes and opinions about shopping and different levels of interest in shopping. Once people know their alternatives, how do they evaluate and choose among them? In particular, how do people choose among brands of a product? Current description of this process emphasizes the role of attitudes. An attitude is an opinion of a person, idea, place, or thing. Attitudes range based on a continuum from very negative to very positive. Traditionally, an attitude is broken down into three components: cognitive, affective, and behavioral. That is, an attitude is first what we know/believe, followed by what we feel, and ending with an action. Thus, we have learned that a particular company has been polluting a local river; we feel very strongly that business should not do this and feel very angry; and we boycott the product made by that company.

A great deal of marketing strategy is based on the idea that the cognitive, affective, and behavioral components of an attitude tend to be consistent. Thus, if it is possible to change what people believe about Yamaha CD players, their feelings and their actions may eventually change as well. However, this relationship among the three components of an attitude seems to be situation–or even product–specific. For example, attitudes tend to predict behavior better in high-involvement decisions. Thus, if someone has a strong attitude about wearing stylish clothes, then it is possible to predict that the person will restrict purchases to a particular set of brands. Furthermore, we do not react to products in isolation. The situation, or our attitude toward the situation, plays an important role in how well attitudes predict behavior. For example, assume that a consumer likes pizza but does not like Pizza Inn pizza. In a social setting where everyone wants to go to Pizza Inn for pizza, this person might eat this brand rather than not have pizza at all.

Despite limitations on the predictive power of attitudes, attitudes can help us understand how choices are made. However, we need to carefully assess the validity of the attitude-behavior relationships for each situation and product.

Capsule 9: Review

Given the hypothesis that attitudes influence buying behavior, how can a company bring its products and consumers' attitudes into a consistent state; that is, into a situation where consumers evaluate a given product or brand as satisfying their need? Marketers have two choices: either they can change consumers' attitudes to be consistent with their product, or they can change the product to match attitudes. It is easier to change the product than to change consumers' attitudes. Nevertheless, attitudes can sometimes be modified. Modifying attitudes might be the only reasonable choice, as when a firm is introducing a truly new product or an unusual new use for an existing one. Marketers should nevertheless face the fact that it is extremely difficult to change consumers' attitudes. If there is to be change, it is most likely to occur when people are open-minded in their beliefs or when an existing attitude is of weak intensity; that is, when there is little information to support the attitude or very little ego involvement on the individual's part. The stronger a person's loyalty to a certain brand, for example, the more difficult it is to change that attitude.

1. [1] Sources : Jennifer Gilbert, "New Teen Obsession," Advertising Age, February 14, 2000, p. 8; "School Daze," American Demographics, August 1999, p. 80; Krestina Filiciano, "Just Kidding," Adweek, May 1, 2000, p. 58.

2. [2] Sources : Joanne Gordon, "Shrink Rap," Fortune, February 7, 2000, pp. 110-111; Ronald B. Liebier, "Storytelling: A New Way to Get Close to the Customer," Fortune, February 3, 1997, pp. 102-105; Kendra Darko, "Zooming In On What's Important." American Demographics, August 1999, pp. 46-47.

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  • Principles of Marketing

Types of Consumer Decision - Explained

What types of decisions do Consumers Make?

routine problem solving marketing example

Written by Jason Gordon

Updated at August 22nd, 2021

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Table of Contents

What are the types of consumer decisions.

Consumer decisions can be categorized into three primary types: 

  • Routinized Response - This is the kind of decision where you don't really have to think much about it. 
  • Limited Problem Solving - This type of purchase decision involves a little more thinking or a little more consideration. 
  • Extensive Problem Solving - This is when we're making a decision to purchase and we are really going to labor over that decision. 

Each of these is discussed further below. 

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What is a Routinized Response?

This is the kind of decision where you don't really have to think much about it. That is, it's a routine. In the context of making a purchase, this is when we make the decision to purchase without going through the consumer decision-making process. Generally, it means we simply follow or repeat a previous course of action. Think of going to the store and buying the same type or brand of grocery item that you buy every week. You do this as a routine, rather than identifying alternatives and comparing them. 

What is Limited Problem Solving?

This type of purchase decision involves a little more thinking or a little more consideration. Maybe we consider different products in making our purchase. Maybe we consider how much to buy. Whatever our considerations, we're going to spend more time and effort making this decision or making this purchase. 

What is Extensive Problem Solving?  

This is when we're making a decision to purchase and we are really going to labor over that decision. That is, we are really going to consider it thoroughly. We may do a great deal of research. We may consult friends or look at customer reviews. We generally use this approach when it is something that we have never bought before, its very technical in nature,  or when it is a very expensive item (like a car). Generally, this type of decision involves the most time, information, and effort in the evaluation of alternatives.

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Individual Consumer Decision Making

29 Consumer Decision Making Process

An organization that wants to be successful must consider buyer behavior when developing the marketing mix. Buyer behavior is the actions people take with regard to buying and using products. Marketers must understand buyer behavior, such as how raising or lowering a price will affect the buyer’s perception of the product and therefore create a fluctuation in sales, or how a specific review on social media can create an entirely new direction for the marketing mix based on the comments (buyer behavior/input) of the target market.

The Consumer Decision Making Process

Once the process is started, a potential buyer can withdraw at any stage of making the actual purchase. The tendency for a person to go through all six stages is likely only in certain buying situations—a first time purchase of a product, for instance, or when buying high priced, long-lasting, infrequently purchased articles. This is referred to as complex decision making .

For many products, the purchasing behavior is a routine affair in which the aroused need is satisfied in a habitual manner by repurchasing the same brand. That is, past reinforcement in learning experiences leads directly to buying, and thus the second and third stages are bypassed. This is called simple decision making .

However, if something changes appreciably (price, product, availability, services), the buyer may re-enter the full decision process and consider alternative brands. Whether complex or simple, the first step is need identification (Assael, 1987).

A comparison between the "simple" and "complex" decision making process a consumer would experience depending on involvement and purchase.

When Inertia Takes Over

Need Recognition

Whether we act to resolve a particular problem depends upon two factors: (1) the magnitude of the discrepancy between what we have and what we need, and (2) the importance of the problem. A consumer may desire a new Cadillac and own a five-year-old Chevrolet. The discrepancy may be fairly large but relatively unimportant compared to the other problems they face. Conversely, an individual may own a car that is two years old and running very well. Yet, for various reasons, they may consider it extremely important to purchase a car this year. People must resolve these types of conflicts before they can proceed. Otherwise, the buying process for a given product stops at this point, probably in frustration.

Once the problem is recognized it must be defined in such a way that the consumer can actually initiate the action that will bring about a relevant problem solution. Note that, in many cases, problem recognition and problem definition occur simultaneously, such as a consumer running out of toothpaste. Consider the more complicated problem involved with status and image–how we want others to see us. For example, you may know that you are not satisfied with your appearance, but you may not be able to define it any more precisely than that. Consumers will not know where to begin solving their problem until the problem is adequately defined.

Marketers can become involved in the need recognition stage in three ways. First they need to know what problems consumers are facing in order to develop a marketing mix to help solve these problems. This requires that they measure problem recognition. Second, on occasion, marketers want to activate problem recognition. Public service announcements espousing the dangers of cigarette smoking is an example. Weekend and night shop hours are a response of retailers to the consumer problem of limited weekday shopping opportunities. This problem has become particularly important to families with two working adults. Finally, marketers can also shape the definition of the need or problem. If a consumer needs a new coat, do they define the problem as a need for inexpensive covering, a way to stay warm on the coldest days, a garment that will last several years, warm cover that will not attract odd looks from their peers, or an article of clothing that will express their personal sense of style? A salesperson or an ad may shape their answers

Information Search

After a need is recognized, the prospective consumer may seek information to help identify and evaluate alternative products, services, and outlets that will meet that need. Such information can come from family, friends, personal observation, or other sources, such as Consumer Reports, salespeople, or mass media. The promotional component of the marketers offering is aimed at providing information to assist the consumer in their problem solving process. In some cases, the consumer already has the needed information based on past purchasing and consumption experience. Bad experiences and lack of satisfaction can destroy repeat purchases. The consumer with a need for tires may look for information in the local newspaper or ask friends for recommendation. If they have bought tires before and was satisfied, they may go to the same dealer and buy the same brand.

Information search can also identify new needs. As a tire shopper looks for information, they may decide that the tires are not the real problem, that the need is for a new car. At this point, the perceived need may change triggering a new informational search. Information search involves mental as well as the physical activities that consumers must perform in order to make decisions and accomplish desired goals in the marketplace. It takes time, energy, money, and can often involve foregoing more desirable activities. The benefits of information search, however, can outweigh the costs. For example, engaging in a thorough information search may save money, improve quality of selection, or reduce risks. The Internet is a valuable information source.

Evaluation of Alternatives

After information is secured and processed, alternative products, services, and outlets are identified as viable options. The consumer evaluates these alternatives , and, if financially and psychologically able, makes a choice. The criteria used in evaluation varies from consumer to consumer just as the needs and information sources vary. One consumer may consider price most important while another puts more weight (importance) upon quality or convenience.

Using the ‘Rule of Thumb’

Consumers don’t have the time or desire to ponder endlessly about every purchase! Fortunately for us, heuristics , also described as shortcuts or mental “rules of thumb”, help us make decisions quickly and painlessly. Heuristics are especially important to draw on  when we are faced with choosing among products in a category where we don’t see huge differences or if the outcome isn’t ‘do or die’.

Heuristics are helpful sets of rules that simplify the decision-making process by making it quick and easy for consumers.

Common Heuristics in Consumer Decision Making

  • Save the most money: Many people follow a rule like, “I’ll buy the lowest-priced choice so that I spend the least money right now.” Using this heuristic means you don’t need to look beyond the price tag to make a decision. Wal-Mart built a retailing empire by pleasing consumers who follow this rule.
  • You get what you pay for: Some consumers might use the opposite heuristic of saving the most money and instead follow a rule such as: “I’ll buy the more expensive product because higher price means better quality.” These consumers are influenced by advertisements alluding to exclusivity, quality, and uncompromising performance.
  • Stich to the tried and true: Brand loyalty also simplifies the decision-making process because we buy the brand that we’ve always bought before. therefore, we don’t need to spend more time and effort on the decision. Advertising plays a critical role in creating brand loyalty. In a study of the market leaders in thirty product categories, 27 of the brands that were #1 in 1930 were still at the top over 50 years later (Stevesnson, 1988)! A well known brand name is a powerful heuristic .
  • National pride: Consumers who select brands because they represent their own culture and country of origin are making decision based on ethnocentrism . Ethnocentric consumers are said to perceive their own culture or country’s goods as being superior to others’. Ethnocentrism can behave as both a stereotype and a type of heuristic for consumers who are quick to generalize and judge brands based on their country of origin.
  • Visual cues: Consumers may also rely on visual cues represented in product and packaging design. Visual cues may include the colour of the brand or product or deeper beliefs that they have developed about the brand. For example, if brands claim to support sustainability and climate activism, consumers want to believe these to be true. Visual cues such as green design and neutral-coloured packaging that appears to be made of recycled materials play into consumers’ heuristics .

The search for alternatives and the methods used in the search are influenced by such factors as: (a) time and money costs; (b) how much information the consumer already has; (c) the amount of the perceived risk if a wrong selection is made; and (d) the consumer’s predisposition toward particular choices as influenced by the attitude of the individual toward choice behaviour. That is, there are individuals who find the selection process to be difficult and disturbing. For these people there is a tendency to keep the number of alternatives to a minimum, even if they have not gone through an extensive information search to find that their alternatives appear to be the very best. On the other hand, there are individuals who feel it necessary to collect a long list of alternatives. This tendency can appreciably slow down the decision-making function.

Consumer Evaluations Made Easier

The evaluation of alternatives often involves consumers drawing on their evoke, inept, and insert sets to help them in the decision making process.

The brands and products that consumers compare—their evoked set – represent the alternatives being considered by consumers during the problem-solving process. Sometimes known as a “consideration” set, the evoked set tends to be small relative to the total number of options available. When a consumer commits significant time to the comparative process and reviews price, warranties, terms and condition of sale and other features it is said that they are involved in extended problem solving. Unlike routine problem solving, extended or extensive problem solving comprises external research and the evaluation of alternatives. Whereas, routine problem solving is low-involvement, inexpensive, and has limited risk if purchased, extended problem solving justifies the additional effort with a high-priced or scarce product, service, or benefit (e.g., the purchase of a car). Likewise, consumers use extensive problem solving for infrequently purchased, expensive, high-risk, or new goods or services.

As opposed to the evoked set, a consumer’s inept set represent those brands that they would not given any consideration too. For a consumer who is shopping around for an electric vehicle, for example, they would not even remotely consider gas-guzzling vehicles like large SUVs.

The inert set represents those brands or products a consumer is aware of, but is indifferent to and doesn’t consider them either desirable or relevant enough to be among the evoke set. Marketers have an opportunity here to position their brands appropriately so consumers move these items from their insert to evoke set when evaluation alternatives.

The selection of an alternative, in many cases, will require additional evaluation. For example, a consumer may select a favorite brand and go to a convenient outlet to make a purchase. Upon arrival at the dealer, the consumer finds that the desired brand is out-of-stock. At this point, additional evaluation is needed to decide whether to wait until the product comes in, accept a substitute, or go to another outlet. The selection and evaluation phases of consumer problem solving are closely related and often run sequentially, with outlet selection influencing product evaluation, or product selection influencing outlet evaluation.

While many consumers would agree that choice is a good thing, there is such a thing as “too much choice” that inhibits the consumer decision making process. Consumer hyperchoice is a term used to describe purchasing situations that involve an excess of choice thus making selection for difficult for consumers. Dr. Sheena Iyengar studies consumer choice and collects data that supports the concept of consumer hyperchoice. In one of her studies, she put out jars of jam in a grocery store for shoppers to sample, with the intention to influence purchases. Dr. Iyengar discovered that when a fewer number of jam samples were provided to shoppers, more purchases were made. But when a large number of jam samples were set out, fewer purchases were made (Green, 2010). As it turns out, “more is less” when it comes to the selection process.

The Purchase Decision

After much searching and evaluating, or perhaps very little, consumers at some point have to decide whether they are going to buy.

Anything marketers can do to simplify purchasing will be attractive to buyers. This may include minimal clicks to online checkout; short wait times in line; and simplified payment options. When it comes to advertising marketers could also suggest the best size for a particular use, or the right wine to drink with a particular food. Sometimes several decision situations can be combined and marketed as one package. For example, travel agents often package travel tours with flight and hotel reservations.

To do a better marketing job at this stage of the buying process, a seller needs to know answers to many questions about consumers’ shopping behaviour. For instance, how much effort is the consumer willing to spend in shopping for the product? What factors influence when the consumer will actually purchase? Are there any conditions that would prohibit or delay purchase? Providing basic product, price, and location information through labels, advertising, personal selling, and public relations is an obvious starting point. Product sampling, coupons, and rebates may also provide an extra incentive to buy.

Actually determining how a consumer goes through the decision-making process is a difficult research task.

Post-Purchase Behaviour

All the behaviour determinants and the steps of the buying process up to this point are operative before or during the time a purchase is made. However, a consumer’s feelings and evaluations after the sale are also significant to a marketer, because they can influence repeat sales and also influence what the customer tells others about the product or brand.

Keeping the customer happy is what marketing is all about. Nevertheless, consumers typically experience some post-purchase anxiety after all but the most routine and inexpensive purchases. This anxiety reflects a phenomenon called cognitive dissonance . According to this theory, people strive for consistency among their cognitions (knowledge, attitudes, beliefs, values). When there are inconsistencies, dissonance exists, which people will try to eliminate. In some cases, the consumer makes the decision to buy a particular brand already aware of dissonant elements. In other instances, dissonance is aroused by disturbing information that is received after the purchase. The marketer may take specific steps to reduce post-purchase dissonance. Advertising that stresses the many positive attributes or confirms the popularity of the product can be helpful. Providing personal reinforcement has proven effective with big-ticket items such as automobiles and major appliances. Salespeople in these areas may send cards or may even make personal calls in order to reassure customers about their purchase.

Media Attributions

  • The graphic of the “Consumer Decision Making Process” by Niosi, A. (2021) is licensed under CC BY-NC-SA and is adapted from Introduction to Business by Rice University.

Text Attributions

  • The sections under the “Consumer Decision Making Process,” “Need Recognition” (edited), “Information Search,” “Evaluation of Alternatives”; the first paragraph under the section “Selection”; the section under “Purchase Decision”; and, the section under “Post-Purchase Behaviour” are adapted from Introducing Marketing [PDF] by John Burnett which is licensed under CC BY 3.0 .
  • The opening paragraph and the image of the Consumer Decision Making Process is adapted from Introduction to Business by Rice University which is licensed under a Creative Commons Attribution 4.0 International License .
  • The section under “Using the ‘Rule of Thumb'” is adapted (and edited) from Launch! Advertising and Promotion in Real Time [PDF] by Saylor Academy which is licensed under CC BY-NC-SA 3.0 .

Assael, H. (1987). Consumer Behavior and Marketing Action (3rd ed.), 84. Boston: Kent Publishing.

Green, P. (2010, March 17). An Expert on Choice Chooses. The New York Times. https://www.nytimes.com/2010/03/18/garden/18choice.html.

Consumer purchases made when a (new) need is identified and a consumer engages in a more rigorous evaluation, research, and alternative assessment process before satisfying the unmet need.

Consumer purchases made when a need is identified and a habitual ("routine") purchase is made to satisfy that need.

Purchasing decisions made out of habit.

The first stage of the Consumer Decision Making Process, need recognition takes place when a consumer identifies an unmet need.

The second stage of the Consumer Decision Making Process, information search takes place when a consumer seeks relative information that will help them identify and evaluate alternatives before deciding on the final purchase decision.

The third stage of the Consumer Decision Making Process, the evaluation of alternatives takes place when a consumer establishes criteria to evaluate the most viable purchasing option.

Also known as "mental shortcuts" or "rules of thumb", heuristics help consumers by simplifying the decision-making process.

A small set of "go-to" brands that consumers will consider as they evaluate the alternatives available to them before making a purchasing decision.

The brands a consumer would not pay any attention to during the evaluation of alternatives process.

The brands a consumer is aware of but indifferent to, when evaluating alternatives in the consumer decision making process. The consumer may deem these brands irrelevant and will therefore exclude them from any extensive evaluation or consideration.

A term that describes a purchasing situation in which a consumer is faced with an excess of choice that makes decision making difficult or nearly impossible.

A type of cognitive inconsistency, this term describes the discomfort consumers may feel when their beliefs, values, attitudes, or perceptions are inconsistent or contradictory to their original belief or understanding. Consumers with cognitive dissonance related to a purchasing decision will often seek to resolve this internal turmoil they are experiencing by returning the product or finding a way to justify it and minimizing their sense of buyer's remorse.

Introduction to Consumer Behaviour Copyright © 2021 by Andrea Niosi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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routine problem solving marketing example

Module 4: Consumer Behavior

Low-involvement versus high-involvement buying decisions, learning objectives.

  • Distinguish between low-involvement and high-involvement buying decisions.
  • Understand what the stages of the buying process are and what happens in each stage.

As you have seen, many factors influence a consumer’s behavior. Depending on a consumer’s experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The level of involvement reflects how personally important or interested you are in consuming a product and how much information you need to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product, although some products such as purchasing a house typically require a high-involvement for all consumers. Consumers with no experience purchasing a product may have more involvement than someone who is replacing a product.

You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives. As Nike would put it, you “just do it.” Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them.

Consumers often engage in routine response behavior when they make low-involvement decisions—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you’re waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be.

By contrast, high-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving , where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

High-involvement decisions can cause buyers a great deal of postpurchase dissonance (anxiety) if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that postpurchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople may be utilized to answer questions and do a lot of customer “hand-holding.”

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the manufacturers of products that are typically high-involvement decisions can’t become complacent about the value of their brands.

Today, Lexus is the automotive brand that experiences the most customer loyalty. For a humorous, tongue-in-cheek look at why the brand reputation of American carmakers suffered in the 1970s, check out this clip.

Stages in the Buying Process

The figure below outlines the buying stages consumers go through. At any given time, you’re probably in a buying stage for a product or service. You’re thinking about the different types of things you want or need to eventually buy, how you are going to find the best ones at the best price, and where and how will you buy them. Meanwhile, there are other products you have already purchased that you’re evaluating. Some might be better than others. Will you discard them, and if so, how? Then what will you buy? Where does that process start?

Stage 1. Need Recognition

You plan to backpack around the country after you graduate and don’t have a particularly good backpack. You realize that you must get a new backpack. You may also be thinking about the job you’ve accepted after graduation and know that you must get a vehicle to commute. Recognizing a need may involve something as simple as running out of bread or milk or realizing that you must get a new backpack or a car after you graduate. Marketers try to show consumers how their products and services add value and help satisfy needs and wants. Do you think it’s a coincidence that Gatorade, Powerade, and other beverage makers locate their machines in gymnasiums so you see them after a long, tiring workout? Previews at movie theaters are another example. How many times have you have heard about a movie and had no interest in it—until you saw the preview? Afterward, you felt like you had to see it.

Stage 2. Search for Information

For products such as milk and bread, you may simply recognize the need, go to the store, and buy more. However, if you are purchasing a car for the first time or need a particular type of backpack, you may need to get information on different alternatives. Maybe you have owned several backpacks and know what you like and don’t like about them. Or there might be a particular brand that you’ve purchased in the past that you liked and want to purchase in the future. This is a great position for the company that owns the brand to be in—something firms strive for. Why? Because it often means you will limit your search and simply buy their brand again.

If what you already know about backpacks doesn’t provide you with enough information, you’ll probably continue to gather information from various sources. Frequently people ask friends, family, and neighbors about their experiences with products. Magazines such as Consumer Reports (considered an objective source of information on many consumer products) or Backpacker Magazine might also help you. Similar information sources are available for learning about different makes and models of cars.

Internet shopping sites such as Amazon.com have become a common source of information about products. Epinions.com is an example of consumer-generated review site. The site offers product ratings, buying tips, and price information. Amazon.com also offers product reviews written by consumers. People prefer “independent” sources such as this when they are looking for product information. However, they also often consult non-neutral sources of information, such advertisements, brochures, company Web sites, and salespeople.

Stage 3. Product Evaluation

Obviously, there are hundreds of different backpacks and cars available. It’s not possible for you to examine all of them. In fact, good salespeople and marketing professionals know that providing you with too many choices can be so overwhelming that you might not buy anything at all. Consequently, you may use choice heuristics or rules of thumb that provide mental shortcuts in the decision-making process. You may also develop evaluative criteria to help you narrow down your choices. Backpacks or cars that meet your initial criteria before the consideration will determine the set of brands you’ll consider for purchase.

Evaluative criteria are certain characteristics that are important to you such as the price of the backpack, the size, the number of compartments, and color. Some of these characteristics are more important than others. For example, the size of the backpack and the price might be more important to you than the color—unless, say, the color is hot pink and you hate pink. You must decide what criteria are most important and how well different alternatives meet the criteria.

Companies want to convince you that the evaluative criteria you are considering reflect the strengths of their products. For example, you might not have thought about the weight or durability of the backpack you want to buy. However, a backpack manufacturer such as Osprey might remind you through magazine ads, packaging information, and its Web site that you should pay attention to these features—features that happen to be key selling points of its backpacks. Automobile manufacturers may have similar models, so don’t be afraid to add criteria to help you evaluate cars in your consideration set.

Stage 4. Product Choice and Purchase

With low-involvement purchases, consumers may go from recognizing a need to purchasing the product. However, for backpacks and cars, you decide which one to purchase after you have evaluated different alternatives. In addition to which backpack or which car, you are probably also making other decisions at this stage, including where and how to purchase the backpack (or car) and on what terms. Maybe the backpack was cheaper at one store than another, but the salesperson there was rude. Or maybe you decide to order online because you’re too busy to go to the mall. Other decisions related to the purchase, particularly those related to big-ticket items, are made at this point. For example, if you’re buying a high-definition television, you might look for a store that will offer you credit or a warranty.

Stage 5. Post-purchase Use and Evaluation

At this point in the process you decide whether the backpack you purchased is everything it was cracked up to be. Hopefully it is. If it’s not, you’re likely to suffer what’s called post-purchase dissonance . You might call it buyer’s remorse . Typically, dissonance occurs when a product or service does not meet your expectations. Consumers are more likely to experience dissonance with products that are relatively expensive and that are purchased infrequently.

You want to feel good about your purchase, but you don’t. You begin to wonder whether you should have waited to get a better price, purchased something else, or gathered more information first. Consumers commonly feel this way, which is a problem for sellers. If you don’t feel good about what you’ve purchased from them, you might return the item and never purchase anything from them again. Or, worse yet, you might tell everyone you know how bad the product was.

Companies do various things to try to prevent buyer’s remorse. For smaller items, they might offer a money back guarantee or they might encourage their salespeople to tell you what a great purchase you made. How many times have you heard a salesperson say, “That outfit looks so great on you!” For larger items, companies might offer a warranty, along with instruction booklets, and a toll-free troubleshooting line to call or they might have a salesperson call you to see if you need help with product. Automobile companies may offer loaner cars when you bring your car in for service.

Companies may also try to set expectations in order to satisfy customers. Service companies such as restaurants do this frequently. Think about when the hostess tells you that your table will be ready in 30 minutes. If they seat you in 15 minutes, you are much happier than if they told you that your table would be ready in 15 minutes, but it took 30 minutes to seat you. Similarly, if a store tells you that your pants will be altered in a week and they are ready in three days, you’ll be much more satisfied than if they said your pants would be ready in three days, yet it took a week before they were ready.

Stage 6. Disposal of the Product

There was a time when neither manufacturers nor consumers thought much about how products got disposed of, so long as people bought them. But that’s changed. How products are being disposed of is becoming extremely important to consumers and society in general. Computers and batteries, which leech chemicals into landfills, are a huge problem. Consumers don’t want to degrade the environment if they don’t have to, and companies are becoming more aware of this fact.

Take for example Crystal Light, a water-based beverage that’s sold in grocery stores. You can buy it in a bottle. However, many people buy a concentrated form of it, put it in reusable pitchers or bottles, and add water. That way, they don’t have to buy and dispose of plastic bottle after plastic bottle, damaging the environment in the process. Windex has done something similar with its window cleaner. Instead of buying new bottles of it all the time, you can purchase a concentrate and add water. You have probably noticed that most grocery stores now sell cloth bags consumers can reuse instead of continually using and discarding of new plastic or paper bags.

Other companies are less concerned about conservation than they are about planned obsolescence . Planned obsolescence is a deliberate effort by companies to make their products obsolete, or unusable, after a period of time. The goal is to improve a company’s sales by reducing the amount of time between the repeat purchases consumers make of products. When a software developer introduces a new version of product, it is usually designed to be incompatible with older versions of it. For example, not all the formatting features are the same in Microsoft Word 2007 and 2010. Sometimes documents do not translate properly when opened in the newer version. Consequently, you will be more inclined to upgrade to the new version so you can open all Word documents you receive.

Products that are disposable are another way in which firms have managed to reduce the amount of time between purchases. Disposable lighters are an example. Do you know anyone today that owns a nondisposable lighter? Believe it or not, prior to the 1960s, scarcely anyone could have imagined using a cheap disposable lighter. There are many more disposable products today than there were in years past—including everything from bottled water and individually wrapped snacks to single-use eye drops and cell phones.

Key Takeaways

Consumer behavior looks at the many reasons why people buy things and later dispose of them. Consumers go through distinct buying phases when they purchase products: (1) realizing the need or wanting something, (2) searching for information about the item, (3) evaluating different products, (4) choosing a product and purchasing it, (5) using and evaluating the product after the purchase, and (6) disposing of the product. A consumer’s level of involvement is how interested he or she is in buying and consuming a product. Low-involvement products are usually inexpensive and pose a low risk to the buyer if he or she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.

Review Questions

  • How do low-involvement decisions differ from high-involvement decisions in terms of relevance, price, frequency, and the risks their buyers face? Name some products in each category that you’ve recently purchased.
  • What stages do people go through in the buying process for high-involvement decisions? How do the stages vary for low-involvement decisions?
  • What is postpurchase dissonance and what can companies do to reduce it?
  • Provided by : Lumen Learning. Located at : http://lumenlearning.com . License : CC BY: Attribution
  • Marketing Principles. Authored by : Anonymous. Located at : http://2012books.lardbucket.org/books/marketing-principles-v2.0/ . License : CC BY-NC-SA: Attribution-NonCommercial-ShareAlike
  • 1970s American Cars Damning Review. Authored by : Top Gear. Located at : http://youtu.be/pjzpx_jUUA0 . License : All Rights Reserved . License Terms : Standard YouTube License

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8 Ways to Solve Prospects' Problems Through Your Marketing

Corey Wainwright

Updated: August 26, 2017

Published: May 14, 2012

You're in business because you provide solutions. You've got answers. You're the (wo)man with the plan. Let's take a look at some of our customers, for example. AmeriFirst Home Mortgage helps home buyers find the right mortgage for them. In The News helps businesses memorialize their accomplishments with custom lamination and engraving. HubSpot helps marketers get an end-to-end view of their marketing activities to determine which channels provide the most ROI.

routine problem solving marketing example

Notice how none of those explanations of what each company provides focused on the specific product or service? That's because the product or service isn't what makes a lead want to be your customer -- it's a solution to their problem that people care about. Your business is successful because it provides some solution, but if your campaigns seem to be flailing a bit, it may be because you haven't applied that problem-solving principle to your marketing.

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Not yet, anyway. This post will give you plenty of ideas to implement that will make your marketing more solution-oriented. That way, your prospects see you as a helpful problem solver they actually like and trust ... not just a peddler of your product or service!

How to Inject Problem Solving Into Your Marketing

1) Create how-to blog content. As most inbound marketers know, success starts with content; so begin by writing blog posts that solve peoples' problems! If you'll allow me to get meta for a minute, this very blog post about how to be a problem solver is, well, solving a problem. People reading this presumably want to know how to inject more problem solving into their marketing, and this post is providing solutions to that problem. When writing your how-to blog content, focus on providing actionable advice. There's already a ton of content out there that says a lot without really saying anything at all. But you want your content to give you credibility and authority ; you can do that by making sure your reader walks away from the blog post with at least one thing he or she can do to be better.

2) Create lead gen offers that make people's lives easier. Helpful content doesn't end with blog posts, nor does successful marketing. You need to convert that blog traffic into leads, and if you've written some amazing content, your readers will probably want to learn more from you. Create lead gen content that will help your readers be more successful -- at work, at home, whatever it is your customers need. For example, HubSpot has released tons of ebooks that show marketers how to do something, like set up their Facebook page timeline , for instance. Or perhaps you'd like to create some templates for your audience, like we did with our downloadable leads waterfall graph that we encourage all marketers to use . If you're looking for some inspiration, we've written an entire guide to creating lead gen offers quickly .

3) Source problems to feed your content. I'm asking you to create all this content, but where will the topics come from? You should be speaking with the people on the front lines of your business on a daily basis -- employees working in Services, Support, and Sales hear questions from prospects and customers during every conversation. Ask all employees to document these questions and problems and send them your way to feed your solution-oriented content. And if any of them fancy themselves a writer, they can document their answers, too, for a guest spot on your blog! ( Tip: As you write this content, be sure to keep other departments in the know. Sales, Services, and Support should be equipped with an arsenal of content they can send to their prospects and customers that answers their questions. This will not only establish trust and authority between employees and your prospects and customers, but for Sales, it could shorten the buying cycle, too.)

4) Leverage the brainpower of your community. Part of being a helpful, solution-oriented marketer is connecting people with content that solves their problems ... regardless of the source. Look, nobody knows everything. You're surrounded by people that have data, research, insights, and experiences from which your audience would benefit. Tap into that brainpower, and be the one to share it with the rest of your community! We're doing this now, in fact, with our push for our social media community to contribute ideas for our next blog post.

Greatest list of marketing pet peeves - HubSpot

Not only is this an excellent way to build strong relationships with others in your industry, but it also shows that you're committed to providing answers for people regardless of the source.

5) Monitor and respond to social media inquiries. Speaking of social media, your active presence on social sites can contribute to your reputation as a thought leader, problem solver, and all around awesome business. This means more than just monitoring your Twitter stream for questions you can answer, though. Think outside of the box a bit! Visit places like LinkedIn Answers , Quora, and industry forums to see what problems people are having. Take a look at how HubSpotter Meghan Keaney Anderson improved both HubSpot's clout, and her own, by answering Scott's question on Quora. Take special note of how she linked back to a blog post HubSpot wrote that answers his question, too!

What is a content map - insights from HubSpot's product marketing manager

6) Optimize for long-tail search. Long-tail search is a critical component of any well-rounded SEO and content strategy, and it provides tremendous opportunity for marketers that are looking to be more solution-oriented with their content. That's because many long-tail keywords are centered around interrogative queries, like "what makes a good blog post," or "where should I host my blog," or "how to start a blog." Not only does centering content and SEO around long-tail keywords of this nature give you another avenue to assert yourself as a helpful marketer instead of a pushy salesperson, but it also helps you achieve higher search rankings quicker, and with a more niche market than short-tail and head terms allow. And if the keywords provide solutions to evergreen problems -- in other words, problems that your audience will always face -- your website will also enjoy ongoing organic traffic as a result of your high ranking for these long-tail queries!

7) Nurture leads with emails based on their problems. Now that you have all of this fantastic, solution-oriented content, you should use it to nurture your leads! After all, you can't have a successful lead nurturing program without a full arsenal of content. Consider segmenting your lists and creating lead nurturing tracks that address specific buyer problems. You can identify the problems right in your landing page forms. Take a look at the optional field we at HubSpot include on almost all of our landing pages to allow us to do this type of nurturing.

lead generation form field

By asking leads to identify their biggest marketing challenge, we get a better idea of what problems our audience face so we can create content to address it, and simultaneously target prospects in our email sends according to the problems they need an answer to.

8) Create apps and tools that help solve a problem. Tools and apps -- especially free ones -- are mutually beneficial for businesses and their audience. Let's take one of HubSpot's free tools, Marketing Grader , as an example. Marketing Grader helps solve a problem many marketers face ... they don't know how good their marketing is. When you enter your website into the free tool, you get a comprehensive report that tells you not just an arbitrary grade, but also actionable advice on exactly what areas of your marketing need improvement, and how you can do it. It even provides links to content that helps solve your problems. So ask yourself: "Self, is there a tool or mobile app I could develop to help my leads and customers?" If there's a problem people in your industry face, make your business the one that solves it!

How do you inject problem solving into your marketing to gain the trust and loyalty of your prospects?

Image credit: Tomasz Stasiuk

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Extensive Problem Solving - Definition, Importance & Example

What is extensive problem solving.

Extensive problem solving is the purchase decision marking in a situation in which the buyer has no information, experience about the products, services and suppliers. In extensive problem solving, lack of information also spreads to the brands for the product and also the criterion that they set for segregating the brands to be small or manageable subsets that help in the purchasing decision later. Consumers usually go for extensive problem solving when they discover that a need is completely new to them which requires significant effort to satisfy it.

The decision making process of a customer includes different levels of purchase decisions, i.e. extensive problem solving, limited problem solving and routinized choice behaviour.

Elements of Extensive Problem Solving

The various parameters which leads to extensive problem solving are:

1. Highly Priced Products: Like a car, house

2. Infrequent Purchases: Purchasing an automobile, HD TV

3. More Customer Participation: Purchasing a laptop with selection of RAM, ROM, display etc

4. Unfamiliar Product Category: Real-estate is a very unexplored category

5. Extensive Research & Time: Locality of buying house, proximity to hospital, station, market etc.

All these parameters or elements leads to extensive problem solving for the customer while taking a decision to make a purchase.

Extensive Problem Solving

Importance of Extensive Problem Solving

It is very important for marketers to know the process that customers go through before purchasing. They cannot rely upon re-buys and word of mouth all the time for acquiring new customers. The customer in general goes through problem recognition, information search, evaluation, purchase decision and post-purchase evaluation. Closely related to a purchase decision is the problem solving phase. A new product with long term investment leads to extensive problem solving from a customer. This signifies that not all buying situations are same. A rebuy is very much different from a first choice purchase. The recognition that a brand enjoys in a customer’s mind helps the customer to make purchase decisions easily. If the brand has a dedicated marketing communication effort, whenever a consumer feels the need for a new product, they instantly go for it.

To help customers in extensive problem solving, companies must have clear transparent communication. It is thus very important for marketers to use a proper marketing mix so that they can have some cognition from their customers when they think of new products. With the advent of social media, the number of channels for promotion have hugely developed and they require a clear understanding on the segment of customer that each channel serves. The communication channels should lucidly differentiate themselves from other brands so that they are purchased quickly and easily.

Example of Extensive Problem Solving

Let us suppose, that Amber wants to buy a High Definition TV. The problem being, she has no idea regarding it. This is a case of extensive problem solving as the amount of information is low, the risk she is taking is high as she is going with the opinion that she gathers from her peers, the item is expensive and at the same time it also demands huge amount of involvement from the customer. Similarly, buying high price and long-term assets or products like car, motorcycle, house etc leads to extensive problem solving decision for the customers.

Hence, this concludes the definition of Extensive Problem Solving along with its overview.

This article has been researched & authored by the Business Concepts Team . It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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Interview Questions

Comprehensive Interview Guide: 60+ Professions Explored in Detail

26 Good Examples of Problem Solving (Interview Answers)

By Biron Clark

Published: November 15, 2023

Employers like to hire people who can solve problems and work well under pressure. A job rarely goes 100% according to plan, so hiring managers will be more likely to hire you if you seem like you can handle unexpected challenges while staying calm and logical in your approach.

But how do they measure this?

They’re going to ask you interview questions about these problem solving skills, and they might also look for examples of problem solving on your resume and cover letter. So coming up, I’m going to share a list of examples of problem solving, whether you’re an experienced job seeker or recent graduate.

Then I’ll share sample interview answers to, “Give an example of a time you used logic to solve a problem?”

Problem-Solving Defined

It is the ability to identify the problem, prioritize based on gravity and urgency, analyze the root cause, gather relevant information, develop and evaluate viable solutions, decide on the most effective and logical solution, and plan and execute implementation. 

Problem-solving also involves critical thinking, communication, listening, creativity, research, data gathering, risk assessment, continuous learning, decision-making, and other soft and technical skills.

Solving problems not only prevent losses or damages but also boosts self-confidence and reputation when you successfully execute it. The spotlight shines on you when people see you handle issues with ease and savvy despite the challenges. Your ability and potential to be a future leader that can take on more significant roles and tackle bigger setbacks shine through. Problem-solving is a skill you can master by learning from others and acquiring wisdom from their and your own experiences. 

It takes a village to come up with solutions, but a good problem solver can steer the team towards the best choice and implement it to achieve the desired result.

Watch: 26 Good Examples of Problem Solving

Examples of problem solving scenarios in the workplace.

  • Correcting a mistake at work, whether it was made by you or someone else
  • Overcoming a delay at work through problem solving and communication
  • Resolving an issue with a difficult or upset customer
  • Overcoming issues related to a limited budget, and still delivering good work through the use of creative problem solving
  • Overcoming a scheduling/staffing shortage in the department to still deliver excellent work
  • Troubleshooting and resolving technical issues
  • Handling and resolving a conflict with a coworker
  • Solving any problems related to money, customer billing, accounting and bookkeeping, etc.
  • Taking initiative when another team member overlooked or missed something important
  • Taking initiative to meet with your superior to discuss a problem before it became potentially worse
  • Solving a safety issue at work or reporting the issue to those who could solve it
  • Using problem solving abilities to reduce/eliminate a company expense
  • Finding a way to make the company more profitable through new service or product offerings, new pricing ideas, promotion and sale ideas, etc.
  • Changing how a process, team, or task is organized to make it more efficient
  • Using creative thinking to come up with a solution that the company hasn’t used before
  • Performing research to collect data and information to find a new solution to a problem
  • Boosting a company or team’s performance by improving some aspect of communication among employees
  • Finding a new piece of data that can guide a company’s decisions or strategy better in a certain area

Problem Solving Examples for Recent Grads/Entry Level Job Seekers

  • Coordinating work between team members in a class project
  • Reassigning a missing team member’s work to other group members in a class project
  • Adjusting your workflow on a project to accommodate a tight deadline
  • Speaking to your professor to get help when you were struggling or unsure about a project
  • Asking classmates, peers, or professors for help in an area of struggle
  • Talking to your academic advisor to brainstorm solutions to a problem you were facing
  • Researching solutions to an academic problem online, via Google or other methods
  • Using problem solving and creative thinking to obtain an internship or other work opportunity during school after struggling at first

You can share all of the examples above when you’re asked questions about problem solving in your interview. As you can see, even if you have no professional work experience, it’s possible to think back to problems and unexpected challenges that you faced in your studies and discuss how you solved them.

Interview Answers to “Give an Example of an Occasion When You Used Logic to Solve a Problem”

Now, let’s look at some sample interview answers to, “Give me an example of a time you used logic to solve a problem,” since you’re likely to hear this interview question in all sorts of industries.

Example Answer 1:

At my current job, I recently solved a problem where a client was upset about our software pricing. They had misunderstood the sales representative who explained pricing originally, and when their package renewed for its second month, they called to complain about the invoice. I apologized for the confusion and then spoke to our billing team to see what type of solution we could come up with. We decided that the best course of action was to offer a long-term pricing package that would provide a discount. This not only solved the problem but got the customer to agree to a longer-term contract, which means we’ll keep their business for at least one year now, and they’re happy with the pricing. I feel I got the best possible outcome and the way I chose to solve the problem was effective.

Example Answer 2:

In my last job, I had to do quite a bit of problem solving related to our shift scheduling. We had four people quit within a week and the department was severely understaffed. I coordinated a ramp-up of our hiring efforts, I got approval from the department head to offer bonuses for overtime work, and then I found eight employees who were willing to do overtime this month. I think the key problem solving skills here were taking initiative, communicating clearly, and reacting quickly to solve this problem before it became an even bigger issue.

Example Answer 3:

In my current marketing role, my manager asked me to come up with a solution to our declining social media engagement. I assessed our current strategy and recent results, analyzed what some of our top competitors were doing, and then came up with an exact blueprint we could follow this year to emulate our best competitors but also stand out and develop a unique voice as a brand. I feel this is a good example of using logic to solve a problem because it was based on analysis and observation of competitors, rather than guessing or quickly reacting to the situation without reliable data. I always use logic and data to solve problems when possible. The project turned out to be a success and we increased our social media engagement by an average of 82% by the end of the year.

Answering Questions About Problem Solving with the STAR Method

When you answer interview questions about problem solving scenarios, or if you decide to demonstrate your problem solving skills in a cover letter (which is a good idea any time the job description mention problem solving as a necessary skill), I recommend using the STAR method to tell your story.

STAR stands for:

It’s a simple way of walking the listener or reader through the story in a way that will make sense to them. So before jumping in and talking about the problem that needed solving, make sure to describe the general situation. What job/company were you working at? When was this? Then, you can describe the task at hand and the problem that needed solving. After this, describe the course of action you chose and why. Ideally, show that you evaluated all the information you could given the time you had, and made a decision based on logic and fact.

Finally, describe a positive result you got.

Whether you’re answering interview questions about problem solving or writing a cover letter, you should only choose examples where you got a positive result and successfully solved the issue.

Example answer:

Situation : We had an irate client who was a social media influencer and had impossible delivery time demands we could not meet. She spoke negatively about us in her vlog and asked her followers to boycott our products. (Task : To develop an official statement to explain our company’s side, clarify the issue, and prevent it from getting out of hand). Action : I drafted a statement that balanced empathy, understanding, and utmost customer service with facts, logic, and fairness. It was direct, simple, succinct, and phrased to highlight our brand values while addressing the issue in a logical yet sensitive way.   We also tapped our influencer partners to subtly and indirectly share their positive experiences with our brand so we could counter the negative content being shared online.  Result : We got the results we worked for through proper communication and a positive and strategic campaign. The irate client agreed to have a dialogue with us. She apologized to us, and we reaffirmed our commitment to delivering quality service to all. We assured her that she can reach out to us anytime regarding her purchases and that we’d gladly accommodate her requests whenever possible. She also retracted her negative statements in her vlog and urged her followers to keep supporting our brand.

What Are Good Outcomes of Problem Solving?

Whenever you answer interview questions about problem solving or share examples of problem solving in a cover letter, you want to be sure you’re sharing a positive outcome.

Below are good outcomes of problem solving:

  • Saving the company time or money
  • Making the company money
  • Pleasing/keeping a customer
  • Obtaining new customers
  • Solving a safety issue
  • Solving a staffing/scheduling issue
  • Solving a logistical issue
  • Solving a company hiring issue
  • Solving a technical/software issue
  • Making a process more efficient and faster for the company
  • Creating a new business process to make the company more profitable
  • Improving the company’s brand/image/reputation
  • Getting the company positive reviews from customers/clients

Every employer wants to make more money, save money, and save time. If you can assess your problem solving experience and think about how you’ve helped past employers in those three areas, then that’s a great start. That’s where I recommend you begin looking for stories of times you had to solve problems.

Tips to Improve Your Problem Solving Skills

Throughout your career, you’re going to get hired for better jobs and earn more money if you can show employers that you’re a problem solver. So to improve your problem solving skills, I recommend always analyzing a problem and situation before acting. When discussing problem solving with employers, you never want to sound like you rush or make impulsive decisions. They want to see fact-based or data-based decisions when you solve problems.

Next, to get better at solving problems, analyze the outcomes of past solutions you came up with. You can recognize what works and what doesn’t. Think about how you can get better at researching and analyzing a situation, but also how you can get better at communicating, deciding the right people in the organization to talk to and “pull in” to help you if needed, etc.

Finally, practice staying calm even in stressful situations. Take a few minutes to walk outside if needed. Step away from your phone and computer to clear your head. A work problem is rarely so urgent that you cannot take five minutes to think (with the possible exception of safety problems), and you’ll get better outcomes if you solve problems by acting logically instead of rushing to react in a panic.

You can use all of the ideas above to describe your problem solving skills when asked interview questions about the topic. If you say that you do the things above, employers will be impressed when they assess your problem solving ability.

If you practice the tips above, you’ll be ready to share detailed, impressive stories and problem solving examples that will make hiring managers want to offer you the job. Every employer appreciates a problem solver, whether solving problems is a requirement listed on the job description or not. And you never know which hiring manager or interviewer will ask you about a time you solved a problem, so you should always be ready to discuss this when applying for a job.

Related interview questions & answers:

  • How do you handle stress?
  • How do you handle conflict?
  • Tell me about a time when you failed

Biron Clark

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  3. 5 Easy Steps to Solving Any Marketing Problem

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  4. 7 Steps to Improve Your Problem Solving Skills

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  6. Top 10 Skills Of Problem Solving With Examples

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COMMENTS

  1. 6.3 Types of Consumer Decisions

    Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.

  2. 7 Problem Solving Skills Marketing Managers Need & How to Improve Them

    4. Communication. Communication skills are the foundation of problem solving and one of the top leadership skills. As a manager, you need to be able to articulate your opinions, brainstorm with a colleague, and give feedback to a direct report. Being a good communicator also helps you relay your decision on a solution and align everyone to ...

  3. Principles of Marketing: Buyer Behavior

    Problem-Solving. When consumers realize they have an unmet need, they choose to begin a purchase process. In this process, the consumer will face one of three levels of problem-solving. These include: Routine problem-solving—This is a situation wherein consumers are typically purchasing low-priced, frequently purchased items. It is also ...

  4. 3.2 Low-Involvement Versus High-Involvement Buying Decisions and the

    Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.

  5. How to Conduct a Problem-Solving Session in Marketing?|Avado

    Understanding the Importance of Problem-Solving in Marketing. Problem-solving is an essential aspect of marketing as it allows businesses to identify and overcome obstacles that hinder their progress. By addressing problems head-on, marketing professionals can improve their strategies, develop innovative solutions, and drive business growth.

  6. 4.3: Buyer behavior as problem solving

    Global Text Project. Consumer behavior refers to buyers who are purchasing for personal, family, or group use. Consumer behavior can be thought of as the combination of efforts and results related to the consumer's need to solve problems. Consumer problem solving is triggered by the identification of some unmet need.

  7. Types of Consumer Decision

    Consumer decisions can be categorized into three primary types: Routinized Response - This is the kind of decision where you don't really have to think much about it. Limited Problem Solving - This type of purchase decision involves a little more thinking or a little more consideration. Extensive Problem Solving - This is when we're making a ...

  8. The Consumer Decision Process

    Unlike routine problem solving, extended or extensive problem solving comprises external research and the evaluation of alternatives. Whereas, routine problem solving is low-involvement, inexpensive, and has limited risk if purchased, extended problem solving justifies the additional effort with a high-priced or scarce product, service, or ...

  9. PDF Problem Solving and Marketing Science

    Hence problem solving behavior is the basic subject of study in marketing science. Psychology, sociology, and anthropology, as they move toward an integrated science of human behavior, give greater prominence to the functionalist viewpoint. The second main line of advance is toward a steady improvement in problem solving as a systematic process.

  10. Problem Solving Techniques for Better Marketing Strategy

    Problem solving techniques can help you improve your marketing strategy by enabling you to identify, analyze, and resolve the issues that affect your marketing performance and customer ...

  11. 29 Consumer Decision Making Process

    29 Consumer Decision Making Process . An organization that wants to be successful must consider buyer behavior when developing the marketing mix. Buyer behavior is the actions people take with regard to buying and using products. Marketers must understand buyer behavior, such as how raising or lowering a price will affect the buyer's perception of the product and therefore create a ...

  12. How to Solve Problems Effectively as a Marketer

    What are the most effective problem solving techniques for marketing professionals? Powered by AI and the LinkedIn community. 1. Define the problem. 2. Generate ideas. 3. Evaluate and select ideas.

  13. Low-Involvement versus High-Involvement Buying Decisions

    Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.

  14. 8 Ways to Solve Prospects' Problems Through Your Marketing

    By asking leads to identify their biggest marketing challenge, we get a better idea of what problems our audience face so we can create content to address it, and simultaneously target prospects in our email sends according to the problems they need an answer to. 8) Create apps and tools that help solve a problem.

  15. Is Your Marketing Solving The Right Problems?

    Here are some ways to ensure that problem definition sits at the heart of your marketing: Resist the urge to race to solutions. Identifying and defining problems require discipline and an approach ...

  16. Extensive Problem Solving

    Extensive problem solving is the purchase decision marking in a situation in which the buyer has no information, experience about the products, services and suppliers. In extensive problem solving, lack of information also spreads to the brands for the product and also the criterion that they set for segregating the brands to be small or manageable subsets that help in the purchasing decision ...

  17. 26 Good Examples of Problem Solving (Interview Answers)

    Examples of Problem Solving Scenarios in the Workplace. Correcting a mistake at work, whether it was made by you or someone else. Overcoming a delay at work through problem solving and communication. Resolving an issue with a difficult or upset customer. Overcoming issues related to a limited budget, and still delivering good work through the ...

  18. PDF Routine and non-routine problem solving Routine problem solving

    Problem 2. Place the numbers 1 to 9, one in each circle so that the sum of the four numbers along any of the three sides of the triangle is 20. There are 9 circles and 9 numbers to place in the circles. Each circle must have a different number in it. Notice that addition is required for both problems.

  19. Marketing Chapter 5 Homework

    1) Explain the differences between routine problem solving, limited problem solving, and extended problem solving. Give an example of when each might be used. Routine problem solving describes a habitual process in which a consumer recognizes a problem, makes a decision, and spends little effort in seeking external information. Routine problem ...

  20. Marketing Exam #1 Example Questions Flashcards

    Marketing Exam #1 Example Questions. Get a hint. Consumer behavior refers to. Click the card to flip 👆. the actions a person takes in purchasing and using products and services, including the mental and social processes before and after them. Click the card to flip 👆. 1 / 33.

  21. More effective solutions? Senior managers and non‐routine problem solving

    1 INTRODUCTION. Solving problems effectively represents an important source of value creation for firms (Cyert & March, 1963; Foss, Frederiksen, & Rullani, 2016; Nickerson & Zenger, 2004).Especially non-routine problem-solving offers considerable opportunities to develop and renew organizational knowledge and capabilities. Non-routine problems are those where the current organizational ...