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This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/eb024733. When citing the article, please cite: Gordon C. Bruner II, Richard J. Pomazal, (1988), “PROBLEM RECOGNITION: THE CRUCIAL FIRST STAGE OF THE CONSUMER DECISION PROCESS”, Journal of Services Marketing, Vol. 2 Iss: 3, pp. 43 - 53.

Since 1910, when John Dewey first introduced the five‐stage decision process, it has been a widely accepted concept and still serves as the central pillar of a popular consumer behavior model. These stages are Problem Recognition, Information Search, Alternative Evaluation, Choice, and Outcomes. The importance of these stages is attested to by the considerable attention devoted to most of them in numerous textbooks and journal articles. Such attention, however, has not come to the Problem Recognition stage. While some texts provide hypothetical descriptions of this “trigger” of the decision process, theoretical discussion and empirical support are surprisingly lacking. Journal literature fares even worse, with articles on the topic almost non‐existent. Lack of information on the topic is even more ironic when one considers that a purchase cannot occur unless a problem is recognized! The purpose of this article is to provide a detailed explanation of the Problem Recognition process. The results of the few empirical studies that have been done will be examined. In addition, a proposed model of the Problem Recognition process is presented. The implications of this material will be discussed as it relates to marketing.

Explains how little attention has traditionally been given to the stage of Problem Recognition, one of the five stages of the decision process evaluated by John Dewey, finding this lack of information even more ironic when it is remembered that a purchase will not occur unless a problem has been identified. Provides a detailed explanation of the Problem Recognition process and examines the results of the few empirical studies which have been carried out. Proposes a model for the Problem Recognition process. Concludes with a discussion of the implications of the material for marketing and advocates further research.

Proposes that service quality can be improved by focusing on customer problems. Describes a problem‐centred research program used to establish the types and pervasiveness of customer problems and to evaluate the effect of each on customer satisfaction. Makes it possible to identifycritical problem areas and to establish service priorities accordingly. Offers recommended guidelines for designing and conducting problem‐centred consumer research.

This paper represents a discussion of transfer pricing (TP). Key factors are identified and propositions developed from tax accounting and other perspectives. Stages of the TP decision process are identified along with the critical factors directly affecting sales and a TP audit. Propositions are derived which show relationships among these variables and tax rates, competition, and TP methodologies. Finally, academic research implications are suggested.