Extended Problem Solving

We know of many theories about the way consumers buy brands and debate still continues about their respective strengths and weaknesses. For example, some argue that brand choice can be explained by what is known as ‘the expectancy value model’. In this model, it is argued that consumers intuitively assign scores to two variables, one being the degree to which they expect a pleasurable outcome the other being the value they ascribe to a favorable outcome. When faced with competing brands, this model postulates that consumers assign scores to these expectancy-value parameters and following an informal mental calculation, make a selection based on highest overall scores.

We find this hard to accept, since people have limited mental processing capabilities and many brands, particularly regularly purchased brands, are bought without much rational consideration. In reality consumers face a complex world. They are limited both by economic resources and by their ability to seek, store and process brand information. For this reason we are also skeptical of the economist’s view of consumer behavior. This hypothesizes that consumers seek information until the marginal value gained is equal to or less than the cost of securing that knowledge.

The stages in the buying process, when consumers seek information about brands and the extent of the information search, are influenced by an array of factors such as time pressure, previous experience, advice from friends, and so on. However, two factors are particularly useful in explaining how consumers decide. One is the extent of their involvement in the brand purchase and their perceptions of any differences between competing brands. For example, a housewife may become very involved when buying a washing machine, because with her large family it is important that she replaces it quickly. She will show active interest in evaluating different brands and will choose the brand, which closely satisfies her needs. By contrast, the same housewife is likely to show limited involvement when buying a packet of bread as they are of little personal important and form only a small chunk of her grocery list. She may perceive minimal difference between competing brands and does not wish to waste time considering different brands.

With the appreciation of the extent of consumer’s involvement when in a purchase decision and their perception of the degree of differentiation between brands, it is possible to categorize the different decision process using the matrix shown below.

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The strength of this matrix, as I will just tell you, is that it illustrates simply the stages through which the consumer is likely to pass when making different types of brand purchases.

Extended problem solving occurs when consumers are involved in the purchase and where they perceive significant differences between competing brands in the same product field. This type of decision process is likely for high-prices brands which are generally perceived as a risky purchase due to their complexity (e.g. washing machines, cars, hi-fi music systems, home computers) or brands that reflect the buyer’s consumers actively searching for information to evaluate alternative brands. When making a complex purchase decision, consumers pass through the five stages shown in the figure.

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Stage 1 – Problem Recognition

The decision process starts when the consumer becomes aware of a problem. For example, a young man may have heard his friend’s new hi-fi music system and become aware of how inferior his own system sounds. This recognition would trigger a need to resolve the problem and, if he feels particularly strongly, he will embark on a course to replace his system. Depending upon his urgency to act and his situation (e.g. time availability, financial situation, confidence, etc) he might take action quickly or more likely he will become more attentive to information about hi-fi and buy a brand some time later.

Stage 2 – Information Search

The search for information would start first in his memory and if he feels confident that he has sufficient information already he will be able to evaluate the available brands. Often, though, consumers do not feel sufficiently confident to rely on memory alone (particularly for infrequently bought brands), so they will begin to scan the external environment (e.g. visit shops, become attentive to certain advertisements, and talk to friends). As they get more information, the highly involved consumer will start to learn how to interpret the information in their evaluation of competing brands.

Even so, consumers do not single-mindedly search for information about one particular purchase. It has been estimated that in one day people are bombarded by over 1000 different marketing messages-of which they are attentive to less than 2 percent. Consumers’ perceptual processes protect them from information overload and help them search and interpret new information.

Stage 3 – Evaluation of Alternatives

As the consumer mentally processes messages about competing brands, he would evaluate them against those criteria deemed to be most important. Brand beliefs are then formed. (e.g. Sony system has a wide range of features; it’s well priced, etc) in turn, these beliefs begin to mould an attitude and if a sufficiently positive attitude evolves, so there is a greater likelihood of a positive intention to buy that brand.

Stage 4 – Purchase

Having decided which brand to buy, the consumer would then make the purchase-assuming a distributor can be found for that particular brand and that the brand is in stock.

Stage 5 – Post-Purchase Evaluation

One the system is installed at home; the consumer would discover its capabilities and assess how well his expectations were met by the brand. He would be undertaking post-purchase evaluation. Satisfaction with different aspects of the brand will strengthen positive beliefs and attitudes towards the brand. If this happens, the consumer would be proud of his purchase and praise its attributes to his peer group. With a high level of satisfaction, the consumer would look favorably at this company’s brands in any future purchase.

In Case of Dissatisfaction

Should the consumer be dissatisfied though, he would seek further information after the purchase to provide reassurance that the correct choice was made. For example, he may go back to the outlet, where the brand was bought, and check that the controls are being used properly and that the speakers are correctly connected. If he finds sufficiently reassuring information confirming a wise brand choice, he will be more satisfied. Without such positive support, he will become disenchanted with the brand and over time will become more dissatisfied. He is likely to talk to others about his experience, not only vowing never to buy that brand again, but also convincing others that the brand should not be bought.

In Case of Satisfaction

In the event that the consumer is satisfied with the brand purchase and repeats it in a relatively short period of time (buys a system for his car of the same brand), he is unlikely to undergo such a detailed search and evaluation process.

Instead he is likely to follow what has now become a more routine problem solving process. Problem recognition would be followed by memory search which, with prior satisfaction would reveal clear intentions, leading to a purchase. Brand loyalty would ensue, which would be reinforced by continued satisfaction (should quality be maintained).

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