In response to Bruce Wichland's Post...

"How do you feel? Do you think this documentary is accurate? Are these issues blown out of proportion? Do we have a spending problem?"

I feel as though the documentary, The Overspent American, did an excellent job demonstrating how many Americans are in debt today due to over spending on wants rather than needs. Just as Bruce mentioned, people do not care if what they are purchasing is impractical, if they are working the long hours each week, they should be able to buy whatever they want. However, with that being the case, these Americans may be working long hours, but they are spending their paychecks too freely. According to the documentary, 25% of Americans with an annual income of $100,000, do not have enough money for basic necessities.

The issues raised throughout the document did not only show Americans trying to "keep up with Jones" but also how important designer names and logos have become among much of today's society. Although it may have seemed as though some of the issues were blown out of proportion throughout the document, in the end it is the brutal truth of how serious of a problem spending has become among our country. Why is it necessary for people to drive SUV's if they do not have a large family or need it for off road use, when they have been proven to cause more damage to an environment and suck up more gas money weekly? What makes the alligator or moose logo on the right corner of a polo so impressive? It is unfortunate to watch middle class families struggle to cover basic necessities because they rather be driving a Escalade. The sad reality is that material objects can ruin an individual's life. I think it is time for Americans to worry less about "keeping up with Jones. Or the Gate's" and worry more about keeping up with their own family's needs.

Do you think there is any hope for Americans to forget about the logos and designers and just settle for what they can afford? Or do you for see the problem growing larger and more out of control?

Consumer Problem-Solving Processes

There are three different types of consumer problem-solving processes: routinized response behavior, limited problem solving, and extended problem solving. Consumers usually rely on routinized response behavior when when buying frequently purchased, low-cost items that require very little search and decision effort. For example, a consumer will usually spend almost no time deciding on what soft drink they want to purchase. Buyers use limited problem solving when purchasing products occasionally or when they need information about an unfamiliar brand in a familiar product category. This problem solving usually requires more time for gathering information and achieving a decision. For example, if Procter & Gamble were to introduce a new laundry detergent, consumers may be interested in it, however they may want to gather more information about the product before purchasing it. Extended problem solving is usually employed when purchasing unfamiliar, expensive, or infrequently bought products. For example, purchasing a car, home or college education requires extensive research and time seeking before a consumer can make their final decision.

What do you think about these three consumer problem-solving processes? Which one seems the most important to you and which one do you use more frequently?