The consumer problem recognition process.
In this issue, we do a deep dive into the consumer psyche showing the steps the consumer takes to recognize his problems.
Welcome to Issue #9 of Market Curve - a weekly newsletter exploring the intersection of marketing with consumer psychology and behavioral economics. Through Market Curve, I hope to offer marketers and founders a different perspective on how to better understand their customers - one that is rooted in science.
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— Shounak
Consumer action is a function of consumer problem recognition. Consumer problem recognition, in turn, is a function of the consumer’s actual and ideal states.
The actual state is the existing status quo of the consumer and the desired state is the aspirational state he wants to move to.
The gap between the two states is what gives rise to consumer problem recognition.
The larger the gap, the greater the recognition of a problem in the minds of the consumers. The larger the degree of awareness of the problem, the greater is the need to find a solution.
Consumer problem recognition is an example of homeostasis and its departure from it. Newton’s first law of motion will explain this perfectly.
Newton’s first law of motion states that a body in motion will always be in motion unless acted upon by an external force.
Similarly, a consumer will always remain in homeostasis unless acted upon by an external force. Without an external force, the consumer problem recognition will not be triggered.
What is the actual state and the desired state?
The consumer, at any point, exists in what is known as the “actual state”. On the other end of the spectrum is the “desired state”.
Without a desired state, there can be no problem recognition. As the name suggests, the desired state is a state of desire. By its very nature, desire is subjective. The basis for desire, however, is one that is objective.
This need to attain the desired state is always present but it only hits “escape velocity” when certain conditions are met - one of which is a significant gap between the two states. Let’s understand this by way of an example - one that is rooted in evolution.
The polar bear is the largest carnivore on the planet and survives in the harsh Arctic conditions.
In our example, let’s assume that he hasn't eaten for 2 weeks. Because of this, he is weak and is desperate for food.
The root cause of his desire is due to the gap between his desired state (to be healthy) and actual state (his weakness).
As a result, he is forced to enter difficult waters - one that is filled with walruses that can cause the bear some serious damage. In any other event, he would not bother to engage in this hunt. Because the gap between the two states is so large, the polar bear is forced to take action.
Much like the polar bear in our example, the consumer also acts in the same way.
When the gap between his desired state and his actual state is too big, he will go out of his way looking for a solution.
The consumer problem recognition process then becomes a factor of 3 things (a) his problems (b) the solutions to his problems and (c) the gap between his problems and solutions.
Unlike the polar bear, our consumer’s problem recognition is triggered in 2 cases:
When the gap is created due to changes in the desired state.
When the gap is created due to changes in the actual state.
Factors causing changes in the actual state:
Arousal of needs.
Post-purchase evaluation.
Factors causing changes in the desired state:
Reference groups
Novelty
Thinking
Factors causing changes in both the actual and desired state:
Financial considerations.
Previous decisions
Family characteristics
Individual development
Social + Economic class
Current situations
Marketing efforts
The consumer performs information processing based on the above factors and on memory and motives. This information processing has one function only : to determine how large the gap really is between the actual and desired state.
If the gap crosses a subjective threshold, there exists what is known as a "perceived discrepancy". If it does not, then actual state equals desired state and homeostasis is maintained.
If the perceived discrepancy is due to the changes in the desired state, then opportunity recognition is triggered. If the perceived discrepancy is due to the changes in the actual state, then the need recognition is triggered.
Once the problem is recognized, it must be defined in such a way that prompts the user to take action. This is known as problem delineation. Keep in mind that at this stage, there exists a minimum gap between the actual and desired states and the customer is inclined to take some action to reduce that gap.
When your customer in this mindset lands on your landing page, you need to write copy that reflects this state of mind. You need to validate his problems and offer him tangible steps he can take to reduce the gap between his actual and desired state.
Depending on his state-gap, the consumer will visit other forums and learn more about you and your competitors. In this information foraging stage, the customer will use decision-making heuristics to assess your product.
This process of writing copy that speaks to the customer is an example of problem delineation. A consumer problem cannot be adequately addressed until it is properly delineated. After you have defined the problem and offered potential solutions to the problem while acknowledging the gap it's time to move on to the action state.
We will study this in the next issue.
Thank you so much for reading! If you want to get in touch, you can respond directly to this email or reach out on Twitter or LinkedIn. Always excited to meet like-minded humans!
Until next week!
— Shounak.