Describe the main characteristics of the extended problem solving decision approach. When do consumers use this approach. Give examples.

Product Level of involvement Habitual Decision Making Box of cereal Low (unimportant decision) Low (simple, low-cost product) Respond to environmental cues (store signage or displays) Perceived risk Extended Problem Solving New car High (important decision) High (expensive, complex product) Careful processing of information (search advertising, magazines, car dealers, Web sites) Cognitive learning (use insight and creativity to use information found in environment) Provide information via advertising, salespeople, brochures, Web sites. Educate consumers to product benefits, risks of wrong decisions, etc. Information processing Learning model Behavioral learning (ad shows product in beautiful setting, creating positive attitude) Provide environmental cues at point-of-purchase, such as product display Needed marketing actions