- Information
- AI Chat
Was this document helpful?
Extensive Problem Solving study notes
Course: International Banking and Finance (BF403)
42 Documents
Students shared 42 documents in this course
University: Midlands State University
Was this document helpful?
What is Extensive Problem Solving?( levels of consumer decision making)
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.
Students also viewed
Related documents
- BM 404 Project Management Module Masukume H
- Bm 404 Project worth - lecture notes and guide for year 2021 to 2022 semesters
- Organisation of International Monetary System(monetary policy)
- Theories of Exchange Rates(how to manage the risks associated)
- Risk Management Framework (risk tackling)
- Risk Hedging and Risk Abitrage (types of risks)