the problem solving benefits that the consumer is really buying

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

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 “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

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

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

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

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.

Share This Book

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Consumer Motivation and Involvement

15 Involvement Levels

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.

Low Involvement Consumer Decision Making

At some point in your life you may have considered products you want to own (e.g. luxury or novelty items), but like many of us, you probably didn’t do much more than ponder their relevance or suitability to your life. 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 a mistake is made in purchasing them.

Consumers often engage in routine response behaviour 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 behaviour. 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 a notable celebrity 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.

High Involvement Consumer Decision Making

By contrast, high-involvement decisions carry a higher risk to buyers if they fail. These are often more complex purchases that may carry a high price tag, such as a house, a car, or an insurance policy. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behaviour 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 post-purchase dissonance, also known as cognitive dissonance which is a form of anxiety consumers experience 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 post purchase dissonance can be a problem. Frequently, marketers try to offer consumers a lot of supporting information about their products, including why they are superior to competing brands and why the consumer won’t be disappointed with their purchase afterwards. Salespeople play a critical role in answering consumer questions and providing extensive support during and after the purchasing stage.

Limited Problem Solving

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 favourite 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.

Distinguishing Between Low Involvement and High Involvement

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 behaviour), 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 (e.g. your evoke set for automobiles). For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s not foreign 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.

Ways to Increase Involvement Levels

Involvement levels—whether they are low, high, or limited—vary by consumer and less so by product. A consumer’s involvement with a particular product will depend on their experience and knowledge, as well as their general approach to gathering information before making purchasing decisions. In a highly competitive marketplace, however, brands are always vying for consumer preference, loyalty, and affirmation. For this reason, many brands will engage in marketing strategies to increase exposure, attention, and relevance; in other words, brands are constantly seeking ways to motivate consumers with the intention to increase consumer involvement with their products and services.

Some of the different ways marketers increase consumer involvement are: customization; engagement; incentives; appealing to hedonic needs; creating purpose; and, representation.

1. Customization

With Share a Coke, Coca-Cola made a global mass customization implementation that worked for them. The company was able to put the labels on millions of bottles in order to get consumers to notice the changes to the coke bottle in the aisle. People also felt a kinship and moment of recognition once they spotted their names or a friend’s name. Simultaneously this personalization also worked because of the printing equipment that could make it happen and there are not that many first names to begin with. These factors lead the brand to be able to roll this out globally ( Mass Customization #12 , 2017).

2. Engagement

Have you ever heard the expression, “content is king”? Without a doubt, engaging, memorable, and unique marketing content has a lasting impact on consumers. The marketing landscape is a noisy one, polluted with an infinite number of brands advertising extensively to consumers, vying for a fraction of our attention. Savvy marketers recognize the importance of sparking just enough consumer interest so they become motivated to take notice and process their marketing messages. Marketers who create content (that isn’t just about sales and promotion) that inspires, delights, and even serves an audience’s needs are unlocking the secret to engagement. And engagement leads to loyalty.

There is no trick to content marketing, but the brands who do it well know that stepping away—far away—from the usual sales and promotion lines is critical. While content marketing is an effective way to increase sales, grow a brand, and create loyalty, authenticity is at its core.

Bodyform and Old Spice are two brands who very cleverly applied just the right amount of self-deprecating humour to their content marketing that not only engaged consumers, but had them begging for more!

Content as a Key Driver to Consumer Engagement

Engaging customers through content might involve a two-way conversation online, or an entire campaign designed around a single customer comment.

In 2012, Richard Neill posted a message to Bodyform’s Facebook page calling out the brand for lying to and deceiving its customers and audiences for years. Richard went on to say that Bodyform’s advertisements failed to truly depict any sense of reality and that in fact he felt set up by the brand to experience a huge fall. Bodyform, or as Richard addressed the company, “you crafty bugger,” is a UK company that produces and sells feminine protection products to menstruating girls and women (Bodyform, n.d.). Little did Richard know that when he posted his humorous rant to Bodyform that the company would respond by creating a video speaking directly at Richard and coming “clean” on all their deceitful attempts to make having period look like fun. When Bodyform’s video went viral, a brand that would have otherwise continued to blend into the background, captured the attention of a global audience.

Xavier Izaguirre says that, “[a]udience involvement is the process and act of actively involving your target audience in your communication mix, in order to increase their engagement with your message as well as advocacy to your brand.” Bodyform gained global recognition by turning one person’s rant into a viral publicity sensation (even though Richard was not the customer in this case).

Despite being a household name, in the years leading up to Old Spice’s infamous “The Man Your Man Should Smell Like” campaign, sales were flat and the brand had failed to strike a chord in a new generation of consumers. Ad experts at Wieden + Kennedy produced a single 30-second ad (featuring a shirtless and self-deprecating Isaiah Mustafa) that played around the time of the 2010 Super Bowl game. While the ad quickly gained notoriety on YouTube, it was the now infamous, “ Response Campaign ” that made the campaign a leader of its time in audience engagement.

3. Incentives

Customer loyalty and reward programs successfully motivate consumers in the decision making process and reinforce purchasing behaviours ( a feature of instrumental conditioning ). The rationale for loyalty and rewards programs is clear: the cost of acquiring a new customer runs five to 25 times more than selling to an existing one and existing customers spend 67 per cent more than new customers (Bernazzani, n.d.). From the customer perspective, simple and practical reward programs such as Beauty Insider—a point-accumulation model used by Sephora—provides strong incentive for customer loyalty (Bernazzani, n.d.).

4. Appealing to Hedonic Needs

A particularly strong way to motivate consumers to increase involvement levels with a product or service is to appeal to their hedonic needs. Consumers seek to satisfy their need for fun, pleasure, and enjoyment through luxurious and rare purchases. In these cases, consumers are less likely to be price sensitive (“it’s a treat”) and more likely to spend greater processing time on the marketing messages they are presented with when a brand appeals to their greatest desires instead of their basic necessities.

5. Creating Purpose

Millennial and Digital Native consumers are profoundly different than those who came before them. Brands, particularly in the consumer goods category, who demonstrate (and uphold) a commitment to sustainability grow at a faster rate (4 per cent) than those who do not (1 per cent) (“Consumer-Goods…,” 2015). In a 2015 poll, 30,000 consumers were asked how much the environment, packaging, price, marketing, and organic or health and wellness claims had on their consumer-goods’ purchase decisions, and to no surprise, 66 per cent said they would be willing to pay more for sustainable brands. (Nielsen, 2015). A rising trend and important factor to consider in evaluating consumer involvement levels and ways to increase them. So while cruelty-free, fair trade, and locally-sourced may all seem like buzz words to some, they are non-negotiable decision-making factors to a large and growing consumer market.

6. Representation

Celebrity endorsement can have a profound impact on consumers’ overall attitude towards a brand. Consumers who might otherwise have a “neutral” attitude towards a brand (neither positive nor negative) may be more noticed to take notice of a brand’s messages and stimuli if a celebrity they admire is the face of the brand.

When sportswear and sneaker brand Puma signed Rihanna on to not just endorse the brand but design an entire collection, sales soared in all the regions and the brand enjoyed a new “revival” in the U.S. where Under Armour and Nike had been making significant gains (“Rihanna Designs…,” 2017). “Rihanna’s relationship with us makes the brand actual and hot again with young consumers,” said chief executive Bjorn Gulden (“Rihanna Designs…,” 2017).

Media Attributions

• The image of two different coloured sneakers is by Raka Rachgo on Unsplash .
• The image of a coffee card in a wallet is by Rebecca Aldama on Unsplash .
• The image of an island resort in tropical destination is by Ishan @seefromthesky on Unsplash .
• The image of a stack of glossy magazine covers is by Charisse Kenion on Unsplash .

Text Attributions

• The introductory paragraph; sections on “Low Involvement Consumer Decision Making,” “High Involvement Consumer Decision Making,” and “Limited Problem Solving” are adapted from Principles of Marketing which is licensed under CC BY-NC-SA 3.0.

About Us . (n.d.). Body Form. Retrieved February 2, 2019, from https://www.bodyform.co.uk/about-us/.

Kalamut, A. (2010, August 18). Old Spice Video “Case Study” . YouTube [Video]. https://youtu.be/Kg0booW1uOQ.

Bernazzani, S. (n.d.). Customer Loyalty: The Ultimate Guide [Blog post]. https://blog.hubspot.com/service/customer-loyalty.

Bodyform Channel. (2012, October 16). Bodyform Responds: The Truth . YouTube [Video]. https://www.youtube.com/watch?v=Bpy75q2DDow&feature=youtu.be.

Consumer-Goods’ Brands That Demonstrate Commitment to Sustainability Outperform Those That Don’t. (2015, October 12). Nielsen [Press Release]. https://www.nielsen.com/us/en/press-room/2015/consumer-goods-brands-that-demonstrate-commitment-to-sustainability-outperform.html.

Curtin, M. (2018, March 30). 73 Per Cent of Millennials are Willing to Spend More Money on This 1 Type of Product . Inc. https://www.inc.com/melanie-curtin/73-percent-of-millennials-are-willing-to-spend-more-money-on-this-1-type-of-product.html.

Izaguirre, X. (2012, October 17). How are brands using audience involvement to increase reach and engagement?   EConsultancy. https://econsultancy.com/how-are-brands-using-audience-involvement-to-increase-reach-and-engagement/.

Rihanna Designs Help Lift Puma Sportswear Sales . (2017, October 24). Reuters. https://www.businessoffashion.com/articles/news-analysis/rihanna-designs-help-lift-puma-sportswear-sales.

Tarver, E. (2018, October 20). Why the “Share a Coke” Campaign Is So Successful . Investopedia. https://www.investopedia.com/articles/markets/100715/what-makes-share-coke-campaign-so-successful.asp.

Low involvement decision making typically reflects when a consumer who has a low level of interest and attachment to an item. These items may be relatively inexpensive, pose low risk (can be exchanged, returned, or replaced easily), and not require research or comparison shopping.

This concept describes when consumers make low-involvement decisions that are "automatic" in nature and reflect a limited amount of information the consumer has gathered in the past.

A type of purchase that is made with no previous planning or thought.

High involvement decision making typically reflects when a consumer who has a high degree of interest and attachment to an item. These items may be relatively expensive, pose a high risk to the consumer (can't be exchanged or refunded easily or at all), and require some degree of research or comparison shopping.

Also known as "consumer remorse" or "consumer guilt", this is an unsettling feeling consumers may experience post-purchase if they feel their actions are not aligned with their needs.

Consumers engage in limited problem solving when they have some information about an item, but continue to gather more information to inform their purchasing decision. This falls between "low" and "high" involvement on the involvement continuum.

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.

Share This Book

Levels of Product and Services

Product planners need to think about products and services on three levels (see ^ Figure 8.1). Each level adds more customer value. The most basic level is the core customer value, which addresses the question What is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. A woman buying lipstick buys more than lip color. Charles Revson of Revlon saw this early: "In the factory, we make cosmetics; in the store, we sell hope." AAnd people who buy a BlackBerry smartphone are buying more than a cell phone, e-mail device, or personal organizer. They are buying freedom and on-the-go connectivity to people and resources.

At the second level, product planners must turn the core benefit into an actual product. They need to develop product and service features, design, a quality level, a brand name, and packaging. For example, the BlackBerry is an actual product. Its name, parts, styling, features, packaging, and other attributes have all been combined carefully to deliver the core customer value of staying connected.

Finally, product planners must build an augmented product around the core benefit and actual product by offering additional consumer services and benefits. The BlackBerry solution offers more than just a communications device. It provides consumers with a complete solution to mobile connectivity problems. Thus, when consumers buy a BlackBerry, the company and its dealers also might give buyers a warranty on parts and workmanship, instructions on how to use the device, quick repair services when needed, and a toll-free telephone number and Web site to use if they have problems or questions.

Consumers see products as complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core customer value that consumers seek from the product. They must then design the actual product and find ways to augment it in order to create this customer value and the most satisfying customer experience.

H* FIGURE I 8,1 Three Levels of Product

Consumer product

A product bought by final consumer for personal consumption.

Convenience product

A consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort.

Shopping product

A consumer product that the customer, in the process of selection and purchase, usually compares on such bases as suitability, quality, price, and style.

Specialty product

A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Unsought product

A consumer product that the consumer either does not know about or knows about but does not normally think of buying.

Continue reading here: Product and Service Classifications

Was this article helpful?

Related Posts

• Products Services and Experiences
• Product Levels - Sales Force
• Consumer Markets and Consumer Buyer Behavior
• Figure 3.1 Actors In The Microenvironment

Readers' Questions

Is each part of levels of product and services equal important?

No, not all parts of levels of products and services are equally important. The importance of each part depends on the product or service, and the customer's individual needs. For example, a customer looking to purchase a car may place more importance on the performance and quality of the car than on the customer service offered by the dealership.

What is level of product and service?

The level of product and service depends on the business and the industry it is operating in. Generally speaking, good products and services are ones that meet customer expectations, offer quality, and provide value for the money. Quality customer service should also be a priority, providing customers with professional, timely, and consistent support.

What are the core, problemsolving benefits or services that consumers seek?

from external advisors Expertise and Guidance: Consumers seek expertise and guidance from external advisors to help them navigate a specialized area of knowledge and to understand their options and make informed decisions. Objectivity: Consumers seek objectivity from external advisors since they may be too emotionally connected to the problem or need an outside perspective to see objectives clearly. Accountability and Support: Consumers also seek external advisors for accountability and support to help ensure that they complete the tasks and make progress toward their goals. Up-to-date Knowledge and Resources: Consumers often rely on external advisors for up-to-date knowledge and resources to help them determind the best course of action.

Definition and examples of the consumer decision-making process

Lucid Content

Reading time: about 6 min

What is the consumer decision making process

The consumer decision-making process involves five basic steps. This is the process by which consumers evaluate making a purchasing decision. The 5 steps are problem recognition, information search, alternatives evaluation, purchase decision and post-purchase evaluation.

5 steps of the consumer decision making process

• Problem recognition : Recognizes the need for a service or product
• Information search : Gathers information
• Alternatives evaluation : Weighs choices against comparable alternatives
• Purchase decision : Makes actual purchase
• Post-purchase evaluation : Reflects on the purchase they made

The consumer decision-making process can seem mysterious, but all consumers go through basic steps when making a purchase to determine what products and services will best fit their needs. 

Think about your own thought process when buying something—especially when it’s something big, like a car. You consider what you need, research, and compare your options before making the decision to buy. Afterward, you often wonder if you made the right call. 

If you work in sales or marketing, make more of an impact by putting yourself in the customer’s shoes and reviewing the steps in the consumer decision-making process.

Steps in the consumer decision process

Generally speaking, the consumer decision-making process involves five basic steps.

1. Problem recognition

The first step of the consumer decision-making process is recognizing the need for a service or product. Need recognition, whether prompted internally or externally, results in the same response: a want. Once consumers recognize a want, they need to gather information to understand how they can fulfill that want, which leads to step two.

But how can you influence consumers at this stage? Since internal stimulus comes from within and includes basic impulses like hunger or a change in lifestyle, focus your sales and marketing efforts on external stimulus. 

Develop a comprehensive brand campaign to build brand awareness and recognition––you want consumers to know you and trust you. Most importantly, you want them to feel like they have a problem only you can solve.

Example: Winter is coming. This particular customer has several light jackets, but she’ll need a heavy-duty winter coat if she’s going to survive the snow and lower temperatures.

2. Information search

When researching their options, consumers again rely on internal and external factors, as well as past interactions with a product or brand, both positive and negative. In the information stage, they may browse through options at a physical location or consult online resources, such as Google or customer reviews.

Your job as a brand is to give the potential customer access to the information they want, with the hopes that they decide to purchase your product or service. Create a funnel and plan out the types of content that people will need. Present yourself as a trustworthy source of knowledge and information. 

Another important strategy is word of mouth—since consumers trust each other more than they do businesses, make sure to include consumer-generated content, like customer reviews or video testimonials, on your website.

Example: The customer searches “women’s winter coats” on Google to see what options are out there. When she sees someone with a cute coat, she asks them where they bought it and what they think of that brand.

3. Alternatives evaluation

At this point in the consumer decision-making process, prospective buyers have developed criteria for what they want in a product. Now they weigh their prospective choices against comparable alternatives.

Example: The customer compares a few brands that she likes. She knows that she wants a brightly colored coat that will complement the rest of her wardrobe, and though she would rather spend less money, she also wants to find a coat made from sustainable materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the purchase. Once they have gathered all the facts, including feedback from previous customers, consumers should arrive at a logical conclusion on the product or service to purchase.

If you’ve done your job correctly, the consumer will recognize that your product is the best option and decide to purchase it.

Example: The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand uses sustainable materials and asking friends for their feedback, she orders the coat online.

5. Post-purchase evaluation

This part of the consumer decision-making process involves reflection from both the consumer and the seller. As a seller, you should try to gauge the following:

• Did the purchase meet the need the consumer identified?
• Is the customer happy with the purchase?
• How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues to have a positive experience with your product. Post-purchase engagement could include follow-up emails, discount coupons, and newsletters to entice the customer to make an additional purchase. You want to gain life-long customers, and in an age where anyone can leave an online review, it’s more important than ever to keep customers happy.

Tools to better understand your customer

Putting yourself in the customer’s shoes can help you steer consumers towards your product. Here are some tools to help you analyze their decision-making process and refine your brand marketing and sales tactics.

Customer journey map

A customer journey map visualizes a hypothetical customer’s actions. Use it to empathize with your customers as they go through a specific process or try to complete a purchase. Map out the actions the customer is likely to take.

Learn how to make a customer journey map to understand the decision-making process for your product/service.

Empathy map

Empathy maps help teams understand the customer’s mindset when dealing with a product or service. They can be used for personas or specific customer types. Empathy mapping is often most helpful at the beginning of a new project. Collaborate as a team to quickly get inside the heads of your customers during every step of product development, testing, and release.

Learn how empathy maps work so you can understand your customers better and make customer-oriented decisions .

User personas

Based on user research or past user interactions, user persona cards construct fictional or composite personas that break down and organize your data into distinctive types of users. Build a more human picture of your users and understand your user base better by creating user personas for the various types of users for your product or service.

Understanding the consumer decision-making process is key if you want to attract more customers and get them to make that crucial purchase. Use this process and the tools above to tune in to consumers and genuinely understand how to reach them.

Visualize your own customer journey map.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

Related articles

How to make a decision tree in excel.

Use this guide to learn how to make a decision tree in Microsoft Excel—either directly in Excel using Shapes or using a simple Lucidchart integration.

9 templates for marketers

Whether you specialize in a specific marketing role or you wear many different hats on a small team, we’ve rounded up nine marketing templates to make your job easier.

Bring your bright ideas to life.

or continue with

By registering, you agree to our Terms of Service and you acknowledge that you have read and understand our Privacy Policy .

Consumer Decision Making In this chapter, we examined consumers’ decision-making processes as they choose between alternative behaviors. Our primary focus was on purchase choices of products and brands. We treated decision making as a problem-solving process in which the consumer’s cognitive representation of the problem is key to understanding the process. Problem representation involves end goals, a goal hierarchy, activated product knowledge, and choice rules and heuristics. For many consumer decisions, the problem representation involves several interrelated subproblems, each with its own set of subgoals, organized as a goal hierarchy. Consumers use simple decision rules called heuristics for finding, evaluating, and integrating beliefs about the alternatives relevant for each subgoal in a goal hierarchy. The entire set of decisions produces a series of behavioral intentions or a decision plan. We also saw that consumers’ problem-solving processes vary widely. Some purchase choices require very extensive problem-solving efforts, while other purchases are made virtually automatically in a highly routinized manner. Many purchases involve limited decision making that falls somewhere between these two extremes. We described how consumers’ end goals, goal hierarchies, product knowledge, and involvement affect the problem-solving process. Then we discussed how various aspects of the decision environment affect the problem-solving process. We concluded by drawing implications of these concepts for marketing strategy. To learn more about the book this website supports, please visit its . and . is one of the many fine businesses of . You must be a registered user to view the in this website. If you already have a username and password, enter it below. If your textbook came with a card and this is your first visit to this site, you can to register. Username: Password: '); document.write(''); } // --> ( ) .'); } else{ document.write('This form changes settings for this website only.'); } //--> Send mail as: '); } else { document.write(' '); } } else { document.write(' '); } // --> '); } else { document.write(' '); } } else { document.write(' '); } document.write(' TA email: '); } else { document.write(' '); } } else { document.write(' '); } // --> Other email: '); } else { document.write(' '); } } else { document.write(' '); } // --> "Floating" navigation? '); } else if (floatNav == 2) { document.write(' '); } else { document.write(' '); } // --> Drawer speed: '; theseOptions += (glideSpeed == 1) ? ' ' : ' ' ; theseOptions += (glideSpeed == 2) ? ' ' : ' ' ; theseOptions += (glideSpeed == 3) ? ' ' : ' ' ; theseOptions += (glideSpeed == 4) ? ' ' : ' ' ; theseOptions += (glideSpeed == 5) ? ' ' : ' ' ; theseOptions += (glideSpeed == 6) ? ' ' : ' ' ; document.write(theseOptions); // --> 1. (optional) Enter a note here: 2. (optional) Select some text on the page (or do this before you open the "Notes" drawer). 3. Highlighter Color: 4. Search for: Search in: Quizzes Instructor Resources More From Forbes How to stand out when your product solves everyday problems. Share to Facebook Share to Twitter Share to Linkedin It’s been said that the best products on the market are those that solve a clear problem for a niche target consumer. After all, consumers will always be motivated to buy their way out of pain as opposed to buying a “nice to have,” or a product that enhances their lives. Since this is an entrepreneurial truth, the market is swarming with products specifically geared toward the everyday problems consumers encounter, from how to clean up spills and messes to even smaller knick knacks made for convenience, like the toothpaste contraptions that ensure you get every last drop.  However, there’s certainly a science to standing out and catching a consumer’s attention. If your product does solve a problem, you’re already up a notch in their book, but you might be competing with a lot of other brands solving the same problem. Here’s how to stand out in the sea of products that solve everyday problems.  How To Stand Out When Your Product Solves Everyday Problems | Stephanie Burns 1. Solve Multiple Problems If the baseline for market competition is your product’s ability to solve a problem, up the ante. Prove that your product can solve multiple problems at once, or the “two birds with one stone” approach. Sure, your product may have been made with just one problem solution in mind. But, get creative with your marketing approach. What other problems could your product’s value proposition solve, even if they are unintended solutions?  If your product includes ingredients, boil this down to the benefits of each ingredient. For example, EarlyBird isn’t just solving the problem of low energy in the morning with their “morning cocktail.” They doubled down on each ingredient, to tackle issues like brain fog and hydration. Now, it doesn’t just solve exhaustion - a problem that any energy drink or coffee could solve - it also solves brain fog and dehydration. Multiple birds, one stone.  When in doubt, do market research to understand why your consumers purchase your product. Survey them. This could yield some funny results: it may look like just a great coffee mug to keep coffee warm on the go, but maybe the top is just wide enough to double as a tripod stand for video creators, who like to prop their phones or cameras on top. Get creative!  Best Tax Software Of 2022 Best tax software for the self-employed of 2022, income tax calculator: estimate your taxes. 2. At-Home Convenience Is Hot When a consumer has a problem, there are multiple ways they could solve them. For example, if their car needs an oil change, they can schedule an appointment with the nearest car maintenance location and drive the car in. What would solve the problem of an oil change necessity even more? Convenience, such as the ability to have a mechanic come to them while they tend to other errands or spend time with family. If you can save your customer time, effort, or an unnecessary trip, you are effectively solving their everyday problems in a way that makes you stand out.  Again, this is about positioning. Your product obviously already solves the problem by nature of its value proposition, but if the above example is marketed in a way that makes it seem like a benefit (convenience) rather than “solving the problem” of lost time with family or getting work done, it’s a less compelling argument . Go for the compelling angle and tell the consumer WHY it helps to save them on something they hope to avoid.  For example, VYBE’s percussion massage gun emphasizes that using their product saves the consumer a trip to the masseuse or a physical therapist. Now, it’s more than a massage gun. It’s a solution to a problem of finding the right service, scheduling an appointment, driving there, and driving back...saving time, money and headaches. 3. Use Better Design Finally, note that while consumers want their problems solved, they also reserve the right to be picky if there are multiple options on the market. If you’re just now thinking about a new product to launch, consider how you can solve major problems, but in a more visually appealing way. Perfect example: fly traps solve the major problem of fly infestation during the summer. However, fly traps are anything but visually appealing, down to the dead flies. Katchy rose to the challenge with the creation of an automatic indoor insect trap. It does the job even better than a fly trap, and isn’t a dead fly eye sore. Ultimately, standing out in a sea of problem-solving products is about seeing how you can solve the problem in a better and more efficient way than the competition, or create the appearance of this through your marketing. To do this, double down on the many ways your product introduces more convenience, a fresher feel, or a “multiple birds with one stone” approach. Stephanie Burns  is the founder of  The Wyld Agency , an amplification and visibility agency focused on building the legacy and personal brands of company founders. Burns also founded  Chic CEO , an online resource for female entrepreneurs. Follow Stephanie on  Instagram ,  Twitter  or  LinkedIn . Editorial Standards Reprints & Permissions BUS602: Marketing Management The Consumer's Decision Making Process Read these sections on the consumer purchase decision process. Consider the degree of involvement in a purchase, and how this would apply to some, but not all purchasing decisions. 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". Figure 3.8 Allstate's "You're in Good Hands" advertisements are designed to convince consumers that the insurance company won't let them down. 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 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 you will 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 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 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 a 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 websites, 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 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. 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 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? 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 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. 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? Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices. 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.” 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. Share This Book Find Flashcards Why It Works Tutors & resellers Content partnerships Teachers & professors Employee training Brainscape's Knowledge Genome TM Entrance exams, professional certifications. Foreign Languages Medical & Nursing Humanities & Social Studies Mathematics, health & fitness, business & finance, technology & engineering, food & beverage, random knowledge, see full index. MMK101 > Chapter 7: Products, Services And Brands: Offering Customer Value > Flashcards Chapter 7: Products, Services And Brands: Offering Customer Value Flashcards What is a product? Anyang that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. What is a service? An activity, benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. What is a key element in the overall market offering? Marketing-mix planning begins with building an offering that brings value to target customers. This offering becomes the basis upon which the company builds profitable customer relationships. How do product planners need to think about products and services? They need to think of them on three levels. Each level adds more customer value. Consumers see products as complex bundles of benefits that satisfy their needs. When developing products, marketers must first identify core customer value that consumer seek from the product. They must them deism the actual product and find ways to augment it in order to create this customer value and the most satisfying customer experience. What are the three levels of products and services? . Core customer value . Actual product . Augmented product Explain the following level of product and services: core customer value. This addresses the question: what is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. Eg. A woman buys lipstick for more than lip colour. Explain the following level of product and services: the actual product. This is where they need to develop product and service features, design, a quality level, a brand name and packaging, Explain the following level of product and services: the augmented product. Product planners must also build an augmented product around the core benefit and actual product by offering additional consumer services and benefits. What are the two broad classes products and services fall into? Products and services fall into two broad classes based on the types of consumers that use them - consumer products and industrial products. Broadly defined, products also include other marketable entities such as experiences, organisations, persons, places and ideas. What are consumer products? A product brought by final consumers for personal consumption. Consumer products include convenience products, shopping products, specialty products and unsought products. These products differ in the ways consumers buy them and, therefore, in how they are marketed. What are convenience products? They are consumer P and S that customers usually buy frequently, immediately and with little comparison or buying effort. Widespread distribution, convenient locations Mass promotion by the producer Eg. Toothpaste, magazines, laundry detergent What are shopping products? These are less frequently purchased consumer P and S that customer compare carefully on suitability, quality, price and style. Higher price Selective distribution in fewer outlets Promotion: Advertising and personal selling by both producer and resellers Eg. Major appliances, television, furniture, clothing What are speciality products? These are consumer P and S with unique characteristics or brand identification for which a significant group of buyers is willing to makers special purchase effort. Little comparison of brands Exclusive distribution in only one or a few outlets per market area More carefully targeted promotion by both producer and resellers Eg. Luxury goods such as Rolex watches or fine crystal What are unsought products? Consumer products that the consumer either does not know about or knows about but does not normally think of buying. Price: varies (as it can include major new innovations) Distribution: varies Promotion: aggressive advertising and personal selling (so consumers become aware of product) by producer and resellers Eg. Life insurance, Red Cross blood donations What are industrial products? Products bought by individuals and organisations for further processing or for use in conducting a business. The three groups of industrial products and services include: . materials and parts, . capitals items and . supplies and services. What are materials and parts? These include raw materials (consists of farm products and natal products) and manufactured materials and parts (consists of component materials and component parts). Most materials and parts are sold directly to industrial users. Price and service are the main marketing factors, branding and advertising tend to be less important. What are capital items? These are industrial products that aid in the buyer’s production or operations, including installations (major purchases such as buildings - factories and offices) and accessory equipment (portable factory equipment and tools, and office equipment). What are supplies and services? Supplies include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms). Supplies are the convenience products of the industrial field because they are usually pitched with a minimum amount of effort or comparison. Business services include maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management consulting, advertising). Such services are usually, supplied under contract. What is social marketing? The use of commercial marketing concepts and rolls in programs designed to influence individuals’ behaviour to improve their well-being and that of society. Includes public health campaigns to reduce smoking, drug abuse and obesity. What is place marketing and what is people marketing? Involves activities undertaken to create, maintain, or change attitudes or behaviour towards particular places/people. Definition is the same. What are the three levels of product and service decisions? . Individual product decisions . Product line decisions . Product mix decisions Explain individual product and service decisions. Individual product and service decisions: product and service attributes. Developing a product or service involves defining the benefits that it will offer. These benefit are communicated and delivered by product attributes such as quality, features style and design. What is product quality? The characteristics of a product or service that beat on its ability to satisfy stated or implied customer needs. Thus,mc loosely linked with customer value and satisfaction. Total quality management is an approach in which al company’s people are involved in constantly improving the quality of products, services and business processes. What are product features? A product can be offered with varying features. Features are a competitive tool for differentiating the company’s product from competitors products. Surveying customers periodically is a great way to decide which new identified features to use. A company would then assess each features value to customers VS its cost to the company. What is product style and design? Individual product and service decisions: what is branding? A name, term, sign, symbol, design, or w combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. Consumers view a brand as an important part of a product, and branding can add value to the product. Individual product and service decisions: what is packaging? The activities of designing an producing the container or wrapper for a product. Increase competition and clutter on retail store shelves mean that packaging is an important marketing tool as well. Individual product and service decisions: what is labelling? They perform several functions. . They identify the product or brand. . They describe several things about the product (who made it, where it was made, when it was made, its contents etc.) . They help promote the brand, support its positioning and connect with customers Individual product and service decisions: what are product support services? A company usually include some support services, which can be a minor or major part of the total offering. Important part of the customers overall brand experience. First step in designing support services is to survey customers periodically - Assess quality of current services and obtain ideas for new ones Explain product line decisions. A product line is a group of profits that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. MMK101 (8 decks) Chapter 1: Marketing - Creating and Capturing Customer Value Chapter 3: Analysing The Marketing Environment Chapter 6: Customer-Driven Marketing Strategy (Creating Value for Target Customers) - incomplete Chapter 7: Products, Services And Brands: Offering Customer Value Chapter 11: Communicating Customer Value: Advertisinf And Public Relations Chapter 12: Personal Selling And Sales Promotion Chapter 13 and 14 Chapter 9: Pricing To Capture Customer Value Corporate Training Teachers & Schools Android App Help Center Law Education All Subjects A-Z All Certified Classes Earn Money! Pardon Our Interruption As you were browsing something about your browser made us think you were a bot. There are a few reasons this might happen: You've disabled JavaScript in your web browser. You're a power user moving through this website with super-human speed. You've disabled cookies in your web browser. A third-party browser plugin, such as Ghostery or NoScript, is preventing JavaScript from running. Additional information is available in this support article . To regain access, please make sure that cookies and JavaScript are enabled before reloading the page. 258 IMAGES PPT Buyer Decision Process as a Model of Consumer Problem Solving (Peter the basic problem solving benefits that consumers are seeking are Consumer Problem Solving Process Ppt Powerpoint Presentation Summary Consumer buying behavior PPT VIDEO Buying into better™: The six forces shaping the future of the consumer industry Quality Practitioner Apprenticeship The Financial and Health Benefits of Not Buying Fast Food Every Day If You Can't Answer These 3 Questions, Don't Start a Business Tri fold rivets |Consumer Price Index| Problem Solving| How to find Consumer Price Index with Example| COMMENTS 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. Levels of Product: Understand Core Benefit, Generic, Expected It constitutes the problem-solving features or basic benefits that consumers seek when they acquire a product. A person buying a car acquires mobility, which enables him to move from one place to another. Theodore Levitt has pointed out that buyers "do not buy quarter-inch drills; they buy quarter-inch holes." 3. Expected Product Marketing Chapter 8 Flashcards Marketing Chapter 8. Core customer value. Click the card to flip 👆. consists o the core problem-solving benefits that consumers seek when they buy a product. What is the consumer really buying? Ex: car. Click the card to flip 👆. 1 / 37. 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. Involvement Levels Salespeople play a critical role in answering consumer questions and providing extensive support during and after the purchasing stage. Limited Problem Solving. Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when ... Levels of Product and Services Each level adds more customer value. The most basic level is the core customer value, which addresses the question What is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. A woman buying lipstick buys more than lip color. Understanding Buyer Behavior: Buyer Behavior as Problem Solving 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 ... Consumer Behavior: Low-Involvement Versus High-Involvement Buying 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. Definition and Examples of the Consumer Decision-Making Process 5 steps of the consumer decision making process. Problem recognition: Recognizes the need for a service or product. Information search: Gathers information. Alternatives evaluation: Weighs choices against comparable alternatives. Purchase decision: Makes actual purchase. Post-purchase evaluation: Reflects on the purchase they made. The consumer ... 3.3: The Consumer Purchasing Decision Process This chapter has examined many of the factors that influence consumer buying behavior, but behind the visible act of making a purchase lies an important decision process that takes place before, during, and after the purchase of a product or service. Figure 3.12 shows the five stages of the consumer decision process. Consumer Decision Making Our primary focus was on purchase choices of products and brands. We treated decision making as a problem-solving process in which the consumer's cognitive representation of the problem is key to understanding the process. Problem representation involves end goals, a goal hierarchy, activated product knowledge, and choice rules and heuristics. chapter 8 Flashcards a form of a product that is an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. experience. goal of the marketer is to try and make the customer have a good experience through a product or service. layers of the product concept (each layer adds more customer value) How To Stand Out When Your Product Solves Everyday Problems 2. At-Home Convenience Is Hot. When a consumer has a problem, there are multiple ways they could solve them. For example, if their car needs an oil change, they can schedule an appointment with ... CH. 8 -MARKETING: Product, Services, and Brands: Building ... The most basic level is the core customer value, which addresses the question: What is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. The Consumer's Decision Making Process: Low-Involvement Versus High 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. 6.3 Types of Consumer Decisions 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 ... 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 ... Chapter 7: Products, Services And Brands: Offering ... This addresses the question: what is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. Eg. A woman buys lipstick for more than lip colour. Intro to Marketing, Ch. 11 Flashcards the core problem-solving services or benefits that customers are really buying when they obtain a product. ... brand name, packaging, and other attributes that combine to deliver core product benefits. Augmented Product. additional consumer services and benefits built around the core and actual products. About us. About Quizlet; How Quizlet works; Understanding Products, Services, and Brands Chapter 7 Chapter Review A product is more than a simple set of tangible features. Each product or service offered to customers can be viewed on three levels. The core customer value consists of the core problem- solving benefits that consumers seek when they buy a product. The actual product exists around the core and includes the quality level, features, design, brand name, and packaging. Marketing Quiz #2 Flashcards Study with Quizlet and memorize flashcards containing terms like Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?" A) an actual product B) an augmented product C) core customer value D) co-branding E) exchange value, Product planners ... Question 1, (c) Flashcards Addresses the question: what is the buyer really buying? When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. Click the card to flip 👆 Mkt Chaper 11 Flashcards A product mix typically consists of ______, or groups of associated items. Product lines. The product ______ is the complete set of all products and services offered by a firm. Mix. Product lines are a part of a product ______. Mix. Consumer packaged goods companies sell products across many different product lines. essay homework paper phd project resume review speech thesis