Traditional Problem Solving Approach to Consumer Decision Making Process - Case Study Example

?Comparison of traditional problem solving approach to consumer decision making process and the holiday decision making process: Introduction: Decision making and problem solving are two extremely important skills that an individual requires both in business and everyday life. Decision making and problem solving are related concepts, each of which requires use of innovation and creativity in realizing available options. Brainstorming is commonly employed to achieve this purpose. Problem solving skill itself makes use of the decision making ability, while decision making is required for effective leadership and management. Various models have been conventionally put forward to elaborate the decision making process that an individual may employ for improving the quality of his/her decisions. Good decision making is to much an extent, an in-born quality, though the integrity of a decision can be evaluated against a potential model in order to enhance its quality. It is essentially a human activity (DQI, 2008). This paper aims at comparing the decision making processes described in the case study with the traditional problem solving approach to consumer decision making process. The traditional approach: Before analyzing the way in which traditional decision making process of consumers is conceived and interpreted, it is customary to discuss the traditional problem solving approach as the former gains influence from the latter. Traditional problem solving approach: “The Problem Solving process consists of a sequence of sections that fit together depending on the type of problem to be solved” (Anon., n.d.). There are various stages in the problem solving process (ITS, 2005), that are explained below: 1. Identification of problem: In this step, the problem that an individual faces is identified. 2. Definition of problem: In this step, the individual defines the problem in context of the circumstances and conditions in which it occurs and its gravity is assessed with reference to some commonly acknowledged standards. 3. Selection of solution: There can be one or more than one solutions to a certain problem. The best solution among all is worked out as per its suitability to the context and conditions of the individual in problem. 4. Monitoring of progress: Once the solution has been adopted, its effectiveness is assessed by examining the reduction in the extent or severity of problem. 5. Evaluation of solution: If the problem goes away, the solution works. Else, the solution has to be reselected in the step 3 and steps 4 and 5 should follow until the problem is gone. Traditional decision making process: In the traditional decision making process, consumers are conceived as highly risk averse in nature and rational in their approach. This is the fundamental reason why conventional conceptions about consumer decision making recognize it as information processing or problem solving phenomenon. The traditional models of consumer decision making presents a very logical and rational process, where, the consumer formulates and works upon a logically constructed course of action in an attempt to satisfy the very need. Therefore, the traditional decision making process of consumers consists of five basic steps, namely, need recognition, information search, evaluation of alternatives, product choice, and evaluation of decision (Spielberger, 2004, p. 486). There also exists an alternative model of consumer decision making in which, the cognitive, behavioral and affective responses occur in a hierarchical order. The sequence is commonly known as C-A-B sequence. It is noteworthy here that the steps of the traditional problem solving process greatly resemble those employed in the traditional decision making process. This is the key reason why it is said that traditionally, consumers adopt problem solving approach to make their decisions. Identification of problem is the recognition of need. Information search for making decision is similar to visualizing the problem in context of the background. Alternate decisions are evaluated in a similar manner as alternate solutions to problem are chosen. Steps 4 and 5 also apply in just the same way. Decision making process (tutor2u, n.d.). It can thus be said that the traditional models presented for the consumers’ decision making process make use of the two approaches explained before. In each of them, the process is highly logical, rational and requires risk perception and involvement of the consumer to the greatest extent. There is comprehensive use of problem solving. The information is searched for as a major step of the whole process. Course of action is highly organized and sequential. If the traditional decision making process was ever to be used, going on the holiday would have been the start point of the process. Consumers’ holiday decision making process as assessed in the case study: Background: 27 Belgian households were involved in the study that included singles, couples, friends and families. The households were interviewed for a total of 4 times, thrice before and once after the holiday. This led the researchers to draw conclusions that greatly contradicted the previous general understanding of the consumer behavior in decision making. The researchers found that the holiday decision making process of a vast majority of consumers is considerably irrational and far from its general cognitive image. Majority of consumers involve their emotions, opportunism and adaptability in their holiday decision making. In fact, it is not just to call it one single decision making process when actually, there are several small processes that integrate into the total process. Key traits of consumers’ holiday decision making are discussed below for comparison with the traditional process: Composition: The consumers’ holiday decision making process is an “ongoing process” which may not necessarily be initiated by a firm need. The decision may always be altered after it has been taken as more information pours in. This makes the process constantly evolving and maturing. There is hardly any break in the process. Most of the people interrogated revealed that they started to plan for the next holidays as soon as the previous one lasts, or even when it is in process. Contrary to this, the traditional decision making process is necessarily initiated by a need. The process is composed of well defined steps that flow in a sequence. Commencement of process: The traditional problem solving approach to decision making process has a well defined start. The process starts with the recognition of a problem or need. On the other hand, the holiday decision making process can be considered to start from the consumer’s decision to go for a holiday. However, this decision can not always be deemed as the starting point as it often turns out to be irrelevant. Many consumers plan for the holiday well in advance and abandon their plans at the eleventh hour. Many consumers are skeptical about the usability of holiday leave and tend to undermine it due to more productive ways in which the time can instead be spent. Recognition of need: The traditional problem solving approach to decision making implies the existence of a strong reason which requires selection of a particular course of action to reach at a certain point. The need is well defined and matters to the consumer. The problem solving process is initiated by the existence of a problem and the traditional decision making process is instigated by the existence of a need. However, the holiday decision making process may or may not be instigated by a solid need. Many of the consumers interrogated in the research presented in the case study did not have a sound reason for deciding about going for a holiday. They decided to go because their parents asked them to, or else, they were motivated by some specialties of the area they decided to visit, though the causes of motivation were trivial and their absence in the consumers’ life did not make any difference. Mostly, adults jointly make travel decisions (Robinson, 2008), like a group of friends. This also causes a “gradual loss of independence in decision making” (Krippendorf, 1999, p. 52). Information search: The stage of information search is very different in the traditional process from the way it is in the holiday decision making process. In the traditional process, information pertinent to the problem or need is retrieved from various potential sources of information. The information is stored not just for record, but for practical use. The alternative decisions are selected from the pool of information formerly drawn. The information is checked for validity and it is acted upon one confirmed. However, this is not the case in the holiday decision making process. In the holiday decision making process, the information search is not just a step, it is actually a “sub-process”. It is repetitive and on-going in nature. The process of information search does not even come to a halt after the booking of holiday. A lot of information is collected both during and after the completion of the holiday. This can fundamentally be attributed to the cognitive disagreement and prolonged attachment. Also, the information search in holiday decision making process is not as intensive, meaningful and purposive as it usually is in the traditional problem solving approach to decision making process. A vast majority of the holiday makers involved in the case study were casual information searchers. They did not seek much information because they saw little usability of it. Low information search is actually seen by the holiday makers as a flavor of the holiday mood. Holiday makers prefer not to be much prepared for the holiday as it would serve to reduce the adventure and excitement they otherwise might have. Therefore, in context of holiday making, information search is not a robust pre-requisite. Collecting too much information is also of little use in the whole holiday decision making process because not many plans work out as they were made. The holiday making trend does not necessitate much gathering of prior information. However, information search varies from consumer to consumer depending upon how risk averse and involved a particular consumer is. Though, no matter what the case, the information search in holiday decision making is considerably weak in comparison to the traditional process. Planning: Considering all aspects, it can be safely said that the holiday decision making process lacks adequate planning. Even if there is some, that is often overcome by more important on-the-spot occurrences and decisions. Attitude of a holiday decision maker is usually quite flexible and inviting which compliments the consumers’ normal image of a rigid person who makes calculated decisions, and is not influenced by external factors. Opportunism and adaptability are the cardinal traits of a holiday decision maker. Their strategies mould as per the requirement of the situation they are into and the kind of decision making unit they form part of. There is on-the-spot construction of heuristics. On the other hand, the traditional problem solving approach to decision making has a high respectability for planning and the whole process acts upon the planned course of action. Lack of a strong flavor of planning in the holiday decision making process can also be estimated from the fact that the collection of information is to much an extent, passive and accidental. Information about one thing is accidentally gathered in the course of searching for another something. Overall rules in the holiday decision making process are much simpler and flexible as compared to those in the traditional problem solving approach towards decision making. Dominant factors: Emotional factors were found to be the most dominant and powerful in the consumers’ selection of holiday choices. A vast majority of the consumers involved in the study made holiday decisions following their temporal moods and momentary emotions. Choices are made suddenly and their nature is more often than not, unforeseen. Choices are made according to sudden impulse and pleasure that a consumer feels. External factors may influence and convince a consumer to get driven towards an unlikely choice. In as highly experiential product as holiday, an Affective Choice Mode (ACM) is more applicable for analysis in comparison to the traditional Information Processing Mode (IPM). Here it is customary to briefly discuss both of these modes so that they can adequately be compared with the holiday decision making process: The Information Processing Mode: Bettman (1979 cited in Mittal, 1994) has offered a description for a consumer’s cognitive operations that he/she applies while deciding in context of a brand. The consumer searches for information regarding various traits of a brand, develops criteria for evaluation and analyzes the extent of such traits in all of the selected brands. Once these operations have been performed, the consumer makes use of some heuristic or judgment rule in which he/she combines the studied levels of attributes in order to evaluate the brands as a whole. All of this information processing is essentially descriptive in nature. Consumers traditionally make use of the same information processing while making decisions. The Affective Choice Mode: Zajonc (1980 cited in Mittal, 1994) does not approve the Information Processing Mode (IPM) of decision making. The assumption questioned here is that affect, such as that contained in preferences, is necessarily post cognitive, which implies that a feeling of a preference is generated upon the encoding of the specific properties of the object, after the evaluation of their utilities, and after the computation of the individual component utilities into a joint product that represents the overall preference. (Zajonc and Markus, 1982, p. 125). The Affective Choice Mode (ACM) emphasizes that many psychological processes play a decisive role in determining a consumer’s affect or liking for a particular brand beside the usual cognitive operations illustrated in the Information Processing Mode. Conclusion: An in-depth analysis of the holiday decision making process suggests that it is extremely flexible and emotions driven. Strategies in holiday decision making are adapted as per the changing needs and moods of the situation the consumer finds himself/herself in. Heuristics are not planned formerly and are rather identified on the spot. The reason why holiday decision making process connects desires and necessities with the chosen solutions is simply that both evoke simultaneously. Rules for decision in holiday decision making are simple irrespective of their rationality or applicability. “…vacation DM involves a lot of decisions and subdivisions” (Decrop, 2006, p. 90). There is limited and selective processing, and its amount is often not aligned with the decision alternatives. The reasoning holiday decision makers provide for their decisions is more of qualitative nature. There is little to no quantitative decision making. Alternatives are not sufficiently evaluated so as to gain a firm understanding of each of them before proceeding with the ultimate option. The whole holiday decision making process is made up of a number of sub-processes that keep evolving and modifying continuously. Despite these inconsistencies, some systematic themes do always exist in this process. For example, the plans transform dreams into reality. Consumers frequently commit to their choices. Holiday makers are quite optimistic and idealistic in their planning for holiday. However, after the holiday has been made, they become quite realistic. There is huge difference between the holiday decision making process and the traditional problem solving approach to consumers’ decision making. Traditional process is quite well constructed, well organized, rational and logical. The holiday decision making process has a lower level for all of these characteristics. References: Anon. (n.d.). The Problem Solving Process. Retrieved from http://www.gdrc.org/decision/problem-solve.html. Decision Quality. (2008). Decision Making Process. Retrieved from http://decision- quality.com/intro.php. Decrop, A. (2006). Vacation decision making. CABI Publishing: UK. ITS Tutorial School. (2005). The stages of problem solving. Retrieved from http://www.tuition.com.hk/the-stages-of-problem-solving.htm. Krippendorf, J. (1999). The holiday makers: understanding the impact of leisure and travel. UK: Butterworth-Heinemann. Mittal, B. (1994). A study of the concept of affective choice mode for consumer decisions. 21: 256-263. Retrieved from http://www.acrwebsite.org/volumes/display.asp?id=7601. Robinson, P. (2008). Holiday Decision Making: The Family Perspective. Retrieved from http://www.insights.org.uk/articleitem.aspx?title=Holiday+Decision+Making:+The+Family+Perspective. Spielberger, C. D. (2004). Encyclopedia of applied psychology. Volume 1. Academic Press. Tutor2u. (n.d.). How do customers buy? Retrieved from http://tutor2u.net/business/marketing/buying_decision_process.asp. Zajonc, R. B., and Hazel M. (1982). Affective and Cognitive Factors in Preferences, Journal of Consumer Research. 9: 123-31. Read More