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Lay’s Wavysalty & sweet
Paulina JaswiecConsumer Behavior MK 527
original potato chip dipped in milk chocolate
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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
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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
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Consumer Behavior
Lifestyle and its influence on consumer behavior / AIOD
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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
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CONSUMER
PERCEPTION/SENSATION
COGNITION
AFFECT
BELIEFS
SOCIAL ANDOTHER INFLUENCE
INFOSEARCH
CHOICES
PREFERENCES
COMMUNICATION
MARKETRESEARCH
STRATEGY
Influences on and of Consumer Behavior
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Understanding
Consumer Behavior JMD (Just meaningful difference)
represents the smallest amount of change in a stimulus that would influence consumer consumption and choice.
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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
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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)
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contribution to marketing mix & marketing strategy
Target Season Time
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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
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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
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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
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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
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Various Influences
on consumer behavior Consumer
Behavior
MARKETING STRATEGIES
REGULATORY POLICIES
Pier Influence
Purchase and use behavior
Needs, wants amd values
Demographics
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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
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Twitter Mixed Reactions
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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
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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.”
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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”
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Cognitive Learning Theory
Attention
Retention
Production Processes
Motivation
Observational Learning
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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