ppt chapter 4

Promotional StrategyMKT4230

Perspectives on Consumer Behavior

Patricia Knowles, Ph.D.

Associate ProfessorClemson University

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2Promotional StrategyMKT4230 2

Consumer BehaviorA marketer’s success in influencing purchase behavior depends on how well he or she understands consumer behavior. One must know the specific needs consumers are trying to satisfy and how those needs translate into purchase criteria.

For many products and services, purchase decisions are the result of a long, detailed process that may include an extensive information search, brand comparisons and evaluations, and so on. Other purchases are more incidental.

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Consumer Behavior

It is the process and activities people engage in when searching for, selecting,

purchasing, using, evaluating, and disposing of products and services.


Consumer Decision MakingHere are the stages in the consumer decision-making process and the relevant internal psychological processes that relate to each:

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Decision Stage Psychological Process

Problem Recognition Motivation

Information Search Perception

Alternative Evaluation Attitude Formation

Purchase Decision Integration

Post-Purchase Evaluation Learning


Marketing Strategy and AnalysisThis various sources of problem recognition:

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Out of Stock Dissatisfaction New Needsor Wants

Related Products, Purchases

Market-InducedRecognition

NewProducts


Ad Highlighting Consumer DissatisfactionThis visual presents an ad by NicoDerm in which they offer to help those who want to quit smoking. An ad can be used to highlight consumer dissatisfaction. In this case, the ad targets consumers who are dissatisfied with the current state of affairs (their smoking habit) and want to quit.

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Marketer-Induced Problem RecognitionThis visual presents an ad by Splat, which encourages consumers to rebel by changing their hair color. Marketer’s actions can encourage consumers to be unhappy with their current state or situation.

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Ads for personal hygiene products, such as mouthwash and

deodorant, are designed to create insecurities that

consumers can supposedly resolve through the use of the marketer’s products.

Marketers also take advantage of

consumers’ tendency toward novelty-seeking behavior, which leads

them to try new products and different

brands.


Maslow’s Hierarchy of NeedsThis slide presents Maslow’s Hierarchy of Needs, which shows the reasons underlying consumer purchase behavior.

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Maslow’s Hierarchy of Needs theory suggests five basic levels of human needs, arranged in a hierarchy based on their importance.

Social needs (sense of belonging, love)

Safety needs (security, protection)

Physiological needs (hunger, thirst)

Esteem needs (self-esteem, recognition, status)

Self-actualization

needs (self-development

and realization)

Marketers devote considerable attention to examining motives, which are factors that compel a consumer to take a particular action.


To What Need is CHPA Appealing? This ad by the Consumer Healthcare Products Association is designed to appeal to security needs. Marketers appeal to different market segments.


This ad was obviously designed to appeal to

mothers or to families with young children.

Would it be as effective with a young male

audience?


Freudian Psychoanalytic ApproachThis visual represents the psychoanalytic theory pioneered by Sigmund Freud. According to Sigmund Freud’s theory, the underlying motives for human behavior are complex and unclear to both the casual observer and to persons themselves. Motivation research attempts to root out deep motives by probing the subconscious mind.

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Stronginhibitions

Symbolicmeanings

Surrogatebehaviors

Complex and unclear motives

SubconsciousMind


Probing the Minds of ConsumersHere are some of the methodologies used to gain insight into the underlying causes of consumer behavior.


• Consumers prefer large cars because they believe such cars protect them from the “jungle” of everyday living.

• A man buys a convertible as a substitute mistress.

• Women like to bake cakes because they feel like they are giving birth to a baby.

• When people shower, their sins go down the drain with the soap as they rinse.

In-depth interviews

Association tests

Focus groupsProjective techniques


Sexy Ads Get NoticedThis is an ad for Joe’s Jeans. It is an example of the use of sexual appeals and symbols in advertising. Although problematic, psychoanalytic theory has furthered our understanding of consumer behavior. This ad by Joe’s Jeans uses both sex and symbolism to drive consumer purchase decisions.

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Information SearchThis visual shows the various sources consumers use in the information search stage of the decision process.


Market Sources

Personal Sources

Public SourcesPersonal Experience


PerceptionsPerception influences advertising. Knowledge about how consumers acquire and use information from external sources is important to marketers in formulating communication strategies.

Marketers want to know:

• How consumers sense external information• How they select and use sources of information• How information is interpreted and given meaning

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The Perception ProcessPerception is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. It is an individual process and depends on internal factors, such as a person’s beliefs, experiences, needs, moods, and expectations. The process is also influenced by the characteristics of a stimulus, such as its size, color, and intensity, and the context in which it is seen or heard.

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Organize

Interpret

Receive

Select

This is an example of a creative tactic used to get the attention of the consumer.


Gaining Attention with Color

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WE CAN SUM IT UP IN TWO WORDS:EXCEPTIONAL, EXTRAORDINARY, FANTASTIC, FRESH TASTE.

ADMITTEDLY, WE’RE BAD AT SUMMATION.

There just aren’t enough adjectives to describe thestraight-from-the-orange taste of Tropicana Pure Premium.®

Because the perceptual process is influenced by the characteristics of a stimulus, companies often use color in their ads to make a product stand out, thus grabbing the attention of the consumer.

Tropicana uses color to focus attention on orange juice.


What is Sensation?It is important for marketers to understand consumers’ physiological reactions to marketing stimuli. For example, the visual elements of an ad or package design must attract consumers’ favorable attention. This is the definition of a “sensation:”

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Marketers sometimes increase the level of sensory input so their messages get noticed. A common way to do this is with the use of scent strips.

Immediate,direct response

of the senses

Taste

Smell

Sight

Touch

Hearing


Appealing to the SensesHere are some of the tactics marketers use to grab the attention of consumers:

• Bloomingdale’s New York store sprayed Donna Karan’s new perfume, DKNY, onto the sidewalks in front of the store.

• Draft Foods promoted DiGiorno Garlic Bread Pizza with scent strip cards in stores.• Avon uses scent strips for perfumes and bubble bath products in their catalogs.

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Perfume on Sidewalks Scented Cards Product Samples


The Selective Perception ProcessThe selective perception process occurs at the exposure, attention, comprehension, or retention state of perception.

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Consumers do not remember all the information they see, hear, or read, even after paying attention to and comprehending it.

Selective Exposure

Selective Attention

Selective Comprehension

Selective Retention

Consumers choose whether or not to make themselves available to information. For instance, when changing television channels.

The consumer chooses to focus on certain stimuli while excluding others.

Interpreting information on the basis of attitudes, beliefs, motives, and experiences.


Selective Attention to AdvertisingThis ad reminds consumers of how advertising responds to their needs. People focus attention on some things and ignore others.


How much more attentive are you to ads for personal computers, tires, or stereos when you are in the market for one?


Subliminal PerceptionAdvertisers know consumers use selective perception to filter out irrelevant or unwanted advertising messages, so they sometimes use hidden, subliminal audio messages or visual cues to influence consumers.

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Perceiving Stimuli Below the Conscious Threshold of Perception


Evaluation of Alternatives“Evoked set” is merely a subset of all the brands or products that the consumer thinks can solve a consumption problem or satisfy a need. The goal of most advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumer’s evoked set and considered during alternative evaluation. Advertisers use top of mind awareness and reminder advertising to help get their brands into the evoked set.


All Available Brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand I

Brand M

Brand F


Branding and Packaging DecisionsThe visual shows the type of criteria used by consumers to evaluate purchase alternatives. Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives.

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Price

Warranty

Service

Style

Appearance

Image

Objective Subjective

Evaluative Criteria

Subjective

Based on abstract attributes that are

intangible and more subjective in nature,

such as style, appearance, or product image.

Subjective

Based on abstract attributes that are

intangible and more subjective in nature,

such as style, appearance, or product image.


Different Perspectives: Marketer’s ViewThe visuals show how the manufacturer of a riding lawn mower might view the product in terms of functional attributes. Many marketers view their products or services as a bundle of attributes. They understand that consumers evaluate products differently, and often think terms of the consequences or outcomes associated with using the product or service.

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Enough power?

Traction okay?

Too expensive?


Pricing DecisionsThis visual shows how a consumer’s view of products and services differs from that of the marketer. The bubbles contain different thoughts consumers might have when evaluating a riding lawn mower. Consumer thought processes differ from those of marketers. Consumers tend to think of products or services in terms of consequences… specific events or outcomes that consumers experience when they purchase and/or consume a product or service.

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Functional

Will it cutthe taller grass?

How close can I get to shrubs?

Will the neighborsbe impressed?

Will it be asfun to use later this

summer?

Will I havemore time for golf?

Will it pull that trailer I saw at the store?

Psychological


Relating Price to Ads and PromotionsThis visual shows how consumer attitudes can be directed toward a variety of objects and individuals.

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Individuals Products

Brands

Companies

OrganizationsRetailers

Media

Ads

Attitudes Toward


Multi-Attribute Attitude ModelThis is the analytical side of marketing research. According to the model on this slide, consumers have beliefs about specific brand attributes, and they attach different levels of importance to these attributes. To predict attitudes, one must know how much importance consumers attach to each of these attributes (Ei). However, not all of these beliefs are activated in forming an attitude. Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude are called salient beliefs. Saliency varies among different market segments, over time, and across different consumption situations.

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Measuring Components of ModelHow beliefs and the importance attached to a product attribute contribute to a consumer’s attitude toward the product; hence, the likelihood that they would purchase it.

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• Beliefs– How likely is it that Nike running shoes provide good cushioning?

Very likely _ _ _ _ _ _ _ _ _ _ Very unlikely

• Importance– Good cushioning in a running shoe is:

Very important _ _ _ _ _ _ _ _ _ _ Not at all important

• Attitude Toward the Object– How do you feel about purchasing Nike running shoes?

Very good _ _ _ _ _ _ _ _ _ _ Very bad


Ways to Change AttitudesThese are ways in which marketers can influence consumer attitudes. By understanding the beliefs that underlie consumers’ evaluations of a brand, and the importance of various attributes or consequences, a marketer is better able to develop communication strategies for creating, changing, or reinforcing brand attitudes. The multi-attribute attitude model shown on a previous slide provides insights into how marketers can influence consumer attitudes, including:

• Increasing or changing the strength or belief rating of a brand on a particular attribute. For instance, AT&T has the fewest dropped calls.

• Changing consumers’ perceptions of the importance or value of an attribute. For instance, demonstrating the safety of a Mercedes Benz.

• Adding a new attribute to the attitude formation process. For instance, Ragu’s organically grown tomato sauce.

• Changing perceptions of beliefs ratings for a competing brand. For instance, Hyundai’s ads show that their cars are reliable.

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Adding Attributes Changes AttitudesThis is an example of how a company adds a new attribute to a product as a way of influencing consumer attitudes.


In this ad, Michelin stresses higher gas mileage, as well as safety, in order to give consumers an additional attribute on which to evaluate the brand.


The Decision ProcessThese are the last three steps of the consumer decision-making process, which includes integration processes and decision rules, the actual purchase decision, and post-purchase evaluation.


Pre-Evaluation

Integration Processes

Heuristics

Affect Referral Decision Rule

Decision

Purchase Intention

Brand Loyalty

Post-Evaluation

Satisfaction

Dissatisfaction

Cognitive Dissonance


Consumer LearningLearning is the process by which consumers acquire consumption-related knowledge and experience that they apply to future behavior.

The two basic approaches to learning are:

• The behavioral approach… emphasizes the role of external, environmental stimuli in causing behavior, and minimizes the significance of internal psychological processes.

• The cognitive learning theory… assumes that humans are logical beings who make the choices that make the most sense to them.

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How Consumers LearnLearning occurs in one of three ways:


Thinking

Based on intellectual evaluation and

problem solving

Conditioning

Based on conditioning through association or

reinforcement or punishment

Modeling

Based on emulating (copying) of behavior

of others


Classical Conditioning Process (Association)This diagram shows how the classical conditioning process might occur for Lollipop Bling.

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Learning through classical conditioning plays an important role in marketing. Buyers can be conditioned to form favorable impressions and images of various brands through this associative learning process.

Unconditioned Stimulus(Lollipop)

Unconditioned Response(Sweetness)

Conditioned Stimulus(Mariah’s Lollipop Bling)

Conditioned Stimulus(Sweetness)


Lollipop Bling Uses Classical Conditioning Mariah Carey’s new perfume ad associates the perfume with the look and sweetness of lollipops.


Identify the target market for this ad. Best guess is that the target market is pre-teen girls, or mothers and grandmothers of teens who would like them to be sweet and cute.


Instrumental Conditioning ProcessInstrumental Conditioning process is when the consumer is an active participant. His or her response is instrumental in getting a positive reinforcement (reward) or avoiding negative reinforcement (punishment). Instrumental conditioning is dependent on reinforcement. Two concepts relevant to marketers are schedules of reinforcement and shaping.

• Schedules of reinforcement can be continuous or intermittent. Learning occurs rapidly with continuous reinforcement, but the behavior is likely to cease when the reinforcement stops. Learning occurs more slowly with intermittent reinforcement, but the behavior lasts longer.

• Shaping is the reinforcement of successive acts that lead to a desired behavior pattern.


Behavior (Consumer uses product or

service)

Positive or negative consequences occur from use of product, leading to reward or

punishment

Increase or decrease in probability of repeat behavior

(purchase)


Kyocera Focuses on Negative OutcomesA negative consequence can influence consumer behavior.



ShapingThis is the definition of “shaping”:

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Shaping is the reinforcement of successive acts that lead to a desired behavior pattern.


The Shaping ProcessIn a promotional context, shaping procedures are often used as part of the introductory program for new products.



Cognitive Learning TheoryCognitive learning theory focuses on the more complex mental processes that underlie consumer behavior, and it has dominated the field of consumer behavior in recent years. Because consumer behavior typically involves choices and decision making, the cognitive perspective has particular appeal to marketers.

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Insight

Goal Achievement

Goal

Purposive Behavior


External Influences on Consumer BehaviorConsumers do not make purchase decisions in isolation. Any number of external factors may influence consumer decision making, including:


• Culture: Learned meanings, values, norms, and customs shared by a society. It is the broadest and most abstract influence on buyer behavior.

• Subcultures: Smaller groups within cultures whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. Subcultures can be based on age, geography, religion, and ethnicity.

• Social Class: Homogenous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped.

• Reference Groups: A group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions. It is one of the primary factors influencing our purchase decisions.

• Situational Determinants: Specific situation in which consumers make a purchase decision or plan to use a product or service. Situational determinates include the usage situation, the purchase situation, and the communications situation.


Subculture AdsThe three largest subcultures in the United States are African-Americans, Hispanics, and Asians. These subcultures are important to marketers because of their size, growth, purchasing power, and distinct purchasing patterns. There are also three broad levels of social classes in the U.S.:

• Upper class (14%)• Middle class (70%)• Lower class (16 %)


Consumers within each social class often have similar values, lifestyles, and buying behavior.


Reference GroupsA group whose perspectives or values are being used as the basis for one’s…

• Judgments• Opinions• Actions

Types of reference groups:

• Associative• Aspirational• Disassociative



Situational DeterminantsThe specific situation in which consumers plan to use the product directly affects their perceptions, preferences, and purchasing behaviors.

• Usage situation: The circumstance in which the product will be used (Private versus public use, for example).

• Purchase situation: The environment at the time of purchase. Time constraints, store environment, and other factors may all have an impact.

• Communications situation: The condition in which an advertising exposure occurs. For example, listening to the radio with friends.



Alternative ApproachesConsumer researchers complement psychological approaches to understanding consumer behavior with perspectives driven from scientific disciplines. These disciplines include economics, sociology, anthropology, philosophy, semiotics, neuroscience, and history.


Complimentary Approaches

Participant observation

Individual interviews

Ethnographies

New Methodologies

Cultural influences

Social influences

Environmental influences

New Insights