what is extended problem solving

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Extensive Problem Solving

This article covers meaning, importance & example of Extensive Problem Solving from marketing perspective.

What is Extensive Problem Solving?

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

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

Elements of Extensive Problem Solving

The various parameters which leads to extensive problem solving are:

1. Highly Priced Products: Like a car, house

2. Infrequent Purchases: Purchasing an automobile, HD TV

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

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

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

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

• Problem Recognition
• Problem Solution Approach

Importance of Extensive Problem Solving

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

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

Example of Extensive Problem Solving

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

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

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team . The content on MBA Skool has been created for educational & academic purpose only.

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Four Modes of Consumer Decision Making

Extended problem solving

Extended problem solving customer decision – making mode relates to a situation where customers lack experience in a specific consumption setting, nevertheless, the setting is perceived by them as a highly involving. The products are usually of a high value and they also contribute to an individual’s social status, however, their purchase is often associated with significant amount of risk in terms of making improper purchase decision. Purchasing the first car or the first house can be mentioned as instances for extended problem solving.

Limited problem solving

Customer decision – making mode of limited problem solving , relates to a situation where both, customer experience, as well as, the level of their involvement are low. Considered to be the most common mode of decision – making, it lacks systematic approach in terms of decision – making. Examples for this mode of decision – making might include searching for and purchasing products and services associated with pest control within private properties.

In other words, as Perrey and Spillecke (2011) confirm, limited problem – solving customer decision – making mode relate to situations where customers are attempting to find appropriate solutions to their unpleasant issues. Retailers often attempt to attract such type of customers by employing a range of marketing techniques that include introducing discount vouchers, offering free samples etc.

Habit or variety seeking

Habit or variety seeking is the customer decision – making mode where a decision is not involving, however, there are high amount of repeated purchases from a specific brand. For example, the purchase of a specific brand of a dishwasher gel can be repeated over a long period of time in a habitual manner, without re-considering the value associated with the brand even when there are more valuable alternatives have emerged in the market.

Variety seeking relates to instances where customer moves to another brand within a given product category. At the same time, interestingly, “from one purchase occasion to the next, the individual  will switch brands from within this set, just for the sake of variety” (O’Guinn et al, 2011, p.175).

Brand loyalty

Customers with a decision – making mode of brand loyalty practice high level of involvement in decision – making and they also possess high level of experience with a particular brand. Instances of brand loyalty customer decision – making mode include using specific brand of cigarettes for a long period of time.

According to Cant et al (2009), factors effecting customer brand loyalty in retail setting include brand name, the quality of products and services, price and style of products, environment of the store, the level and nature of promotion offered, and the quality of customer services provided. Considerable amount of financial resources are usually invested by leading retailers in order to enhance their brand image and therefore increase their long-term growth prospects.

• Cant, M.C., Strydom, J.W. & Jooste, C.J. (2009) “Marketing Management” Juta Publications
• O’Guinn, T.C., Allen, C.T. & Semenik, R.J. (2011) “Advertising and Integrated Brand Promotion” Cengage Learning
• Perrey, J & Spillecke, D. (2011) “Retail Marketing and Branding: A Definitive Guide to Maximising ROI” John Wiley & Sons

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Meaning of extensive problem solving in English

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Module 4: Identifying and Understanding Customer Behavior

Increasing sales with extended problem solving, learning objectives.

• Describe how a retailer can increase sales from customers engaged in extended problem solving

Consumers with an extended problem solving mindset put a great deal of effort into their purchase decision, gathering information through research and taking care to evaluate all options, before arriving at a decision. Because of the time and energy committed to the search, this diligence is more likely dedicated to the selection and purchase of high-consideration or high-value items like cars, electronics and appliances. Or, it may be focused on something that is new or infrequently purchased. Thus, the consumer feels compelled to do more research to ensure their needs will be satisfied.

While it may be tempting to assume that these shoppers are mostly concerned with quantitative assessment of the alternatives, motivations can also be qualitative, building on external influences like cultural norms and family influences. Yet, it should be noted that these customers are deliberate in their process and are unlikely to be swayed directly by advertising, merchandising and promotion. As such, salespeople can be important in helping the consumer arrive at a decision.

For these shoppers, a salesperson will need to be able to engage the consumer to understand what their specific needs and concerns are, relative to the purchase. That is, what are they specifically hoping to get by buying the product– not the item itself, but what benefits it will provide? Further, the salesperson will need to be able to speak to how well specific features will meet the consumer’s stated needs. And, they will need to be educated on the features & benefits of both the goods they’re selling and those of competitive items, as they will likely need to compare and contract specific differences.

Because these consumers with an extended problem solving mindset are deliberate in their shopping process, salespeople should expect that they will not “close the sale,” during their first interaction. Instead, they may need to nurture the relationship with the customer, helping them arrive at their purchase decision over time. Thus, effective salespeople will be those who engage in follow-up with the shopper, making themselves available to answer questions or provide perspective.

Practice Questions

Candela citations.

• Increasing Sales with Extended Problem Solving. Authored by : Patrick Williams. Provided by : Lumen Learning. License : CC BY: Attribution

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That actually explain what's on your next test, extensive problem-solving, from class:, honors marketing.

Extensive problem-solving is a decision-making process that consumers engage in when they are faced with high-involvement purchases, where the stakes are significant, and the decision requires considerable thought and research. This type of problem-solving typically occurs when a consumer is buying complex products or services, such as cars or homes, which often involve high financial commitments and emotional investment. It is characterized by extensive information search, evaluation of alternatives, and a careful consideration of the potential consequences of each option.

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5 Must Know Facts For Your Next Test

• Consumers engage in extensive problem-solving when the purchase decision is significant enough to require thorough research and consideration of various options.
• This process usually involves multiple steps, including recognizing the need, searching for information, evaluating alternatives, making the purchase decision, and reflecting on the post-purchase experience.
• The emotional and financial implications of the purchase often lead consumers to gather detailed information from various sources such as online reviews, expert opinions, and personal recommendations.
• High-involvement products typically associated with extensive problem-solving include automobiles, real estate, electronics, and luxury items.
• Understanding extensive problem-solving helps marketers tailor their strategies to better connect with consumers during these high-stakes decisions.

Review Questions

• Extensive problem-solving is characterized by high involvement in the decision-making process due to significant financial or emotional stakes. In contrast, limited problem-solving involves moderate involvement and requires less effort in gathering information or evaluating options. While extensive problem-solving may lead to thorough research and evaluation of alternatives, limited problem-solving typically results in quicker decisions based on brand familiarity or prior experiences.
• In extensive problem-solving, the information search phase is crucial as consumers seek detailed insights into their options before making a decision. This can involve looking at product specifications, customer reviews, expert articles, and even visiting multiple stores. The thoroughness of this search impacts their ultimate choice significantly because informed consumers are more likely to feel satisfied with their purchase. A well-executed information search can help reduce cognitive dissonance after a purchase.
• Understanding extensive problem-solving allows marketers to design targeted strategies that address the complexities of high-involvement purchases. Marketers can create comprehensive content that informs potential customers about product features and benefits while offering comparisons with competitors. By providing transparent information and facilitating easy access to resources such as customer testimonials or expert opinions, marketers can build trust with consumers during their extensive evaluation process. This tailored approach not only enhances customer satisfaction but also encourages loyalty among informed buyers.

Related terms

A decision-making process used for purchases that require moderate involvement and less extensive research compared to extensive problem-solving, such as buying groceries.

Routine Problem-Solving : A simplified decision-making process for low-involvement purchases where consumers rely on habit or brand loyalty rather than extensive research.

Consumer Involvement : The level of interest and personal relevance a consumer feels towards a product or service, which influences their decision-making process.

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• Consumer Behavior

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Extensive Problem Solving

In the choice process, extensive problem solving includes those consumer decisions requiring considerable cognitive activity, thought, and behavioral effort as compared to routinized choice behavior and habitual decision making . [1]

This type of decision making is usually associated with high-involvement purchases and when the customer has limited experience with the product category. [2]

• ^ American Marketing Association. AMA Dictionary.
• ^ Govoni, N.A. Dictionary of Marketing Communications, Sage Publications, (2004)

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4.21: Increasing Sales with Extended Problem Solving

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Learning Objectives

• Describe how a retailer can increase sales from customers engaged in extended problem solving

Consumers with an extended problem solving mindset put a great deal of effort into their purchase decision, gathering information through research and taking care to evaluate all options, before arriving at a decision. Because of the time and energy committed to the search, this diligence is more likely dedicated to the selection and purchase of high-consideration or high-value items like cars, electronics and appliances. Or, it may be focused on something that is new or infrequently purchased. Thus, the consumer feels compelled to do more research to ensure their needs will be satisfied.

While it may be tempting to assume that these shoppers are mostly concerned with quantitative assessment of the alternatives, motivations can also be qualitative, building on external influences like cultural norms and family influences. Yet, it should be noted that these customers are deliberate in their process and are unlikely to be swayed directly by advertising, merchandising and promotion. As such, salespeople can be important in helping the consumer arrive at a decision.

For these shoppers, a salesperson will need to be able to engage the consumer to understand what their specific needs and concerns are, relative to the purchase. That is, what are they specifically hoping to get by buying the product– not the item itself, but what benefits it will provide? Further, the salesperson will need to be able to speak to how well specific features will meet the consumer’s stated needs. And, they will need to be educated on the features & benefits of both the goods they’re selling and those of competitive items, as they will likely need to compare and contract specific differences.

Because these consumers with an extended problem solving mindset are deliberate in their shopping process, salespeople should expect that they will not “close the sale,” during their first interaction. Instead, they may need to nurture the relationship with the customer, helping them arrive at their purchase decision over time. Thus, effective salespeople will be those who engage in follow-up with the shopper, making themselves available to answer questions or provide perspective.

Practice Questions

https://assessments.lumenlearning.co...sessments/9168

Contributors and Attributions

• Increasing Sales with Extended Problem Solving. Authored by : Patrick Williams. Provided by : Lumen Learning. License : CC BY: Attribution

Extended Problem Solving

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

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

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

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

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

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

Stage 1 – Problem Recognition

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

Stage 2 – Information Search

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

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

Stage 3 – Evaluation of Alternatives

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

Stage 4 – Purchase

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

Stage 5 – Post-Purchase Evaluation

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

In Case of Dissatisfaction

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

In Case of Satisfaction

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

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

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What is the difference between extended versus limited problem solving?

Limited problem solving is used when products are purchased on a regular basis or when buyers need to learn more about an unfamiliar brand in a different product category. When purchasing an unfamiliar, expensive, or infrequently purchased product, consumers engage in extended problem solving.

In the same vein, what is extended problem-solving? the process of a customer attempting to obtain all of the information they require in order to make a decision about which brand of product they want to purchase: When a customer purchases a product they have never purchased before, extensive problem solving is likely to occur. Also, how do you deal with the problem? Definition: Problem Recognition Problem recognition occurs when a consumer recognizes a significant difference between what appears to be the actual product and the product he or she wants to purchase, which has a direct impact on the customer’s decision-making during the purchasing process.

Aside from that, what is limited decision-making? Limited decision-making is a type of consumer decision-making that occurs when purchasing products that require a small amount of time and effort to compare models and brands prior to making a decision. Why do people spend so much time thinking about problems? because they have no knowledge of the product

A type of product or behavior that is temporarily adopted by a large number of people because the product, service, or behavior is thought to be socially acceptable for the time and place.

What exactly is integrated problem-solving?

Individuals can better understand who they are, their natural strengths and challenges, and become more of who they can be through Integrated Problem-SolvingTM (IPS), a teaching modality developed by Wellness Resources of Vermont.

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What is the scope of problem-solving?

Limited is a problem-solving process in which consumers are unmotivated to look for information or evaluate each alternative rigorously; instead, they use simple decision rules to make a purchase decision.

What exactly is routine problem-solving?

For each type, the goals and strategies used to solve problems are different. Problem solving is a common occurrence. Routine problem solving, from a curricular standpoint, entails using at least one of the four arithmetic operations and/or ratios to solve practical problems.

What exactly is extended decision-making?

”Extended decision-making is the response to a high level of purchase involvement; an extensive internal and external information search is followed by a complex evaluation of multiple options; after the purchase, there is likely to be uncertainty about its correctness; and a thorough evaluation of the purchase will take place.

What is a non-emergency issue?

Any complex problem that requires some level of creativity or originality to solve is referred to as a non-routine problem. Non-routine problems usually do not have a clear strategy for resolving them right away. These issues can often be resolved in a variety of ways.

What are the different types of decisions that can be made?

Programmed and non-programmed decisions: Routine and strategic decisions: Tactical (Policy) and operational decisions: Organizational and personal decisions: Major and minor decisions: Individual and group decisions

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