Lay’s Wavysalty & sweet

Paulina JaswiecConsumer Behavior MK 527

original potato chip dipped in milk chocolate

Content layout with list

▪ Introduction: Identify Consumer Behavior

▪ How Consumer Behavior contributed & influenced Product Development

▪ Consumer Behavior’s contribution to marketing mix and marketing strategy

▪ Theory of Consumer Behavior to the development & marketing of product

▪ Conclusion and Recommendation

Section Pages

© 2013 Silicon Wharf. Private and confidential

Intro: Consumer Behavior

The term refers to:

Human thought & action

A field of study

“Consumer behavior as a human behavior is the set of value seeking activities that take place as people go about addressing realized needs”

What is Consumer behavior?Decision process

Physical activity individuals engage in when evaluating, acquiring, using or disposing of a good or service

Dynamic interaction

Consumer Behavior

Lifestyle and its influence on consumer behavior / AIOD

what is Consumer Behavior

Blend of: Psychology, Sociology, Social Anthology

Process on: Consumer & Society • People, Groups,

Organizations

ServiceProductExperience

Satisfy Need, Utility, Impact

Buying behavior (marketing is a influence)- helps predict/expect outcome of consumer

THE PRODUCT LIFE CYCLE

CONSUMER

PERCEPTION/SENSATION

COGNITION

AFFECT

BELIEFS

SOCIAL ANDOTHER INFLUENCE

INFOSEARCH

CHOICES

PREFERENCES

COMMUNICATION

MARKETRESEARCH

STRATEGY

Influences on and of Consumer Behavior

Understanding

Consumer Behavior JMD (Just meaningful difference)

represents the smallest amount of change in a stimulus that would influence consumer consumption and choice.

influences on Product Development

*Responsive *Digital_Natives

Results*Trend Hunter*Social MediaTarget *High Purchasing

powerPower

The world is getting smaller

Millennial Influence1980- 2000Power to influence

TRENDS influenced on product development

Millennial Influence

• Experiment w/ boundaries

• Social media voice

• YouTube- cook 411• Fusion- birth of experimentation

• Ethnically & racially diverse (in history)

• Melting pot of worldly people (taste bugs)

• Designed for them (1 size fits all)• Value Unique • Choice’s

CUSTOMIZATION

COMBINING FLAVOR

Value- AUTHENTICITY

Age of customer CONTROL

(choc wine, sour sweet candy, ketchup bears)

contribution to marketing mix & marketing strategy

Target Season Time

TIME

TIME

Psychological principle of SCARCITY

1

2

limit on products

limited offers

Assign more value to things then they become less available

▪ Difficult to obtain = more valuable

▪ Less available = threat

▪ Motivated @ thought of loosing

▪ Testing consumer response

▪ Responsive response

LAY’S ‘time’ strategy focus on

TIME

SEASON

COMMERCIAL nature of Christmas

1

2

Sales Tool

limited offers(competitive prices)

Shoppers are more emotionally engaged brand must create hallmark moments

▪ Every1 is a seasonal shopper▪ Better chance at capturing more consumers

▪ $$$ = higher investment in marketing

▪ Royal wrapping paper -Packaging

▪ Bring to family gathering -Exposure

▪ desert & Snack- 2 food categories

LAY’S ‘time’ strategy focus on

TIME

TARGET

Picking the right target to CHANNEL

1

2

Holiday marketing High Traffic

Holidays bring out all shoppers

Target is either cheap or over priced

▪ Store sells: food, clothes, furniture.(allows for unnecessary purchases)

▪ Global expansion- possibilities

▪ Large US Footprint of stores

▪ Already had contract (existing inventory)

LAY’S ‘time’ strategy focus on

VALUE

▪ Both are responsible for creating customer value.  

▪ Customer value: the difference between what a customer acquires (receives) from a product, and all the costs associated with getting it.

▪ Marketers have to adapt and develop marketing campaigns and marketing strategies in order to efficiently react to the consumers’ needs and to beat its competition.

▪ Flexibility beats stereotype

Marketing & Marketing Strategies

Various Influences

on consumer behavior Consumer

Behavior

MARKETING STRATEGIES

REGULATORY POLICIES

Pier Influence

Purchase and use behavior

Needs, wants amd values

Demographics

Wide variety of different flavors of chip, that are always supported by a

great style & design

Comparable to its competitors (goal-high quality snack at good price)

* New product (diff strategy) exclusive, unique and limited

product will not be cheap. 5 oz bag at $3.49

The New Product*Unique

*Time Exclusive

Even though, companies products are being sold in different locations & are easy to find, the new product will be

sold in Target only.

LAY’S

PRODUCT

PLACE

PRICE

PROMOTION

Marketing Mix

Twitter Mixed Reactions

How Theory of CB contributes to the development and marketing of products

Why it is important for marketers to understand how end users learn about product & services?“Learning is relatively permanent change in behavior that experience causes”

 Behavioral Learning Theories

Learning takes place as the result of responses to external events.

“Black box” approach: 

Stimulus Consumer Response

Classical ConditioningRepetition:

▪ To create awareness of the brand, product..▪ Demonstrate relevance to the consumer▪ Remind about benefit▪ Disadvantage: advertising wear-outStimulus Generalization: ▪ Family branding▪ Product line extension▪ Licensing▪ Look-alike packagingStimulus Discrimination

▪  

conditioned & unconditioned stimulusBehavioral Learning Theory

“Occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own.”

Instrumental Conditioning

▪ Positive reinforcement

▪ Negative reinforcement

▪ Punishment

▪ Fixed-interval reinforcement -> seasonal sale

▪ Variable-interval reinforcement -> secret shopper

▪ Fixed-ratio reinforcement -> to collect stamps to get a prize

▪ Variable-ratio reinforcement -> slot machines

▪ Frequency marketing -> frequent flyer

Behavioral Learning Theory

“we learn to perform behaviors that produce positive outcomes

and avoid ….negatives”

Cognitive Learning Theory

Attention

Retention

Production Processes

Motivation

Observational Learning

References

• Babin, B., Harris, E.,(2008)”CB”.• Evon, D. (2013, November 2). Lays Chocolate-Covered

Potato Chips Get Mixed Reactions On Twitter. Retriever on November 7, 2013 from http://socialnewsdaily.com/18762/lays-chocolate-covered-potato-chips-get-mixed-reactions-on-twitter/

• Solomon, M.R., (2007). Consumer Behavior (9th ed.). Prentice Hall

• Millennial Behaviors: http://www.bizjournals.com/seattle/print-edition/2013/09/27/millennials-power-brand-influence.html?page=3