Consumer Behavior
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Consumer Behavior Consumer Behavior Presentation Transcript

  • MAR 4333-521 Promotion Management Fall 2003— Sarasota September 20, 2003 Perspectives of Consumer Behavior Rich Gonzalez University of South Florida
  • URLs (used today)
    • www.smirnoff.com
    • www.diageo.com
    • www.pny.com
  • September 20, 2003--Agenda
    • Quiz # 2
    • Consumer Behavior
    • For September 27
  • For Today: September 20
    • Chapter 4- Perspectives on Consumer Behavior
    • “ Diageo Effort to Revamp Smirnoff Reflects 'Superpremium' Successes,”Deborah Ball, WSJ, September 5, 2003
  • For September 27
    • Chapter 5- The Communications Process
    • “RIAA Takes Off Gloves In Mounting Its Fight Against Music Thieves ,”Lee Gomes, WSJ, September 15, 2003
  • Last Time
    • National Assoc. Realtors—Benefits, Consistency
    • Gateway--Inconsistency
    • Examples of IMC In Ads—New Balance—”Fit”
    • Example of Broad Objective—Ford
    • Advertising & Media Biz Structure
  • Marketing Communication Requirements
    • 1. Clearly Positioned
    • 2. Directed to a Target Market
    • 3. Created to Achieve Objective
    • 4. Accomplishes Objective Within Budget Constraint
    Shimp 2003
  • Ford Brands
    • Jaguar
    • Ford
    • Lincoln
    • Mercury
    • Mazda
    • Volvo
    • Aston-Martin
  • Gateway
    • 9/09/03-- Gateway Inc. …eliminating about 850 jobs … at the Sioux Falls, S.D., plant and an additional 100 workers will be laid off from North Sioux City, S.D. …in Kansas City, Kan.
    • In addition to those 850 … will close its Hampton, Va., plant and lay off 450 … …save the company as much as $130 million a year…
    • … cumulative losses of $1.73 billion since the fourth quarter of 2000.
  • Diageo
    • Biggest Vodka Brand?
    • What Does James Bond Drink?
    • 32% Market Share 6.8 Million Cases (2002) Up 8% in Volume #2 Competitor Behind By 2 Million Cases
    • Worldwide Market Leader Since 1970s
  • Diageo Assignment
    • Why is Smirnoff in trouble?
    • What is Diageo doing about it? List some promotional activities
    • Your opinion on efficacy
    • We’ll open the class on 9/20 discussing this.
  • Diageo--Smirnoff
    • Smirnoff is in trouble because:
    • Share is down to 32% (-36%)
    • Superpremiums: BIG Success
    • Marketing Wasn’t Effective Enough
    • James Bond Dropped Them
    • Relied On “Older” Customers Didn’t Get Younger Ones
    Class Discussion
  • Competitors?
  • Diageo--Smirnoff
    • Diageo is doing:
    • Parties with bartenders, salespeople, waitstaff
    • Teaching specialty drinks
    • Pitching “Neat”
    • Changing Packaging
    • New Commercials (J.Walter Thompson)
    • Sponsoring Music Events
    • Contest Forcing Participation/Consumption
    Class Discussion
  • Diageo--Smirnoff
    • Diageo will (will not) be effective:
    • Courting bartenders is a smart move
    • Changing Package Is Risky
    • Diageo Knows They Need to Change Marketing
    • If commercials use “real people,” will be effective
    • Must innovate to offset the long term trend toward less per capita consump.
    Class Discussion
  • Quiz 2 Q1
    • 1. The consumer decision process, consisting of several stages, begins with the problem recognition stage, then:
    • A) terminates if the interpersonal determinants do not last.
    • B) continues on to search and evaluation of alternatives stages.
    • C) frequently gets cut short due to consumer attitudes.
    • D) the next stage is purchase.
    • E) proceeds to the search stage, then immediately to purchase.
    B: Chap 4 105
  • Quiz 2 Q2
    • 2. Attitudes are learned predispositions to respond to an object. Consumer attitudes are important to marketers because they represent positive or negative feelings ________
    • A) and desires.
    • B) and discretionary income.
    • C) and neutrality.
    • D) which cannot be changed.
    • E) and behavioral tendencies.  
    E: Chap 4 p 117
  • Quiz 2 Q3
    • 3. When consumers engage in information search, they often start with
    • A) external search.
    • B) sensation search.
    • C) TV commercials.
    • D) internal search.
    • E) cognitive dissonance.
    D: Chap 4 p 112
  • Quiz 2 Q4
    • 4. A(n) _____________ is a group whose perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions .
    • A) decision team
    • B) reference group
    • C) purchasing agent
    • D) lead example
    • E) income group
    B: Ch 4 p 129
  • Quiz 2 Q5
    • 5. The various brands identified as purchase options to be considered
    • during the alternative evaluation process is the consumer’s __________
    Evoked Set Ch. 4, P116
  • Brand Equity
    • Awareness
    • Loyalty
    • Quality
    • Associations
  • Promotional Mix
    • Advertising
    • Direct Marketing
    • Interactive/Internet Marketing
    • Sales Promotion
    • Public Relations
    • Personal Selling
  • Consumer Behavior
    • The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and wants.
  • It Would Be Logical
    • Are consumers and buyers like Mr. Spock?
  • The Consumer Decision Process Problem Recognition Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation
  • An Integrated Model of the Consumer Decision Process Problem Recognition Search Alternative Evaluation Purchase Purchase Evaluation Purchase Act
    • Interpersonal Determinants
    • Cultural Influences
    • Social Influences
    • Family Influences
    • Personal Determinants
    • Needs and Motives
    • Perception
    • Attitudes
    • Learning
    • Self-Concept
    Feedback
  • Consumer Decision Process and Relevant Internal Psychological Processes Problem Recognition Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation Motivation Perception Attitude Formation Integration Learning Decision Process Stages Psychological Processes
  • Sources of Problem Recognition
    • Out of stock
    • Dissatisfaction
    • New needs or wants
    • Related product purchase
    • Market-induced recognition
    • New products
  • Floppy Disk
    • Benefits
    • Costs
    • Deficiencies
  • New Product
    • Flash Drive (Thumb Drive)
    • www.pny.com
  • Maslow’s Hierarchy of Needs Physiological needs (hunger, thirst) Safety needs (security, protection) Social needs (sense of belonging, love) Esteem needs (self-esteem, recognition, status) Self-actualization needs (self-development, realization)
  • Pampers appeals to needs for love and belonging in this ad
  • Las Vegas Convention & Visitor’s Bureau
    • View 4 Commercials
    • What is the Objective?
    • Good Taste or Bad Taste?
  • Las Vegas Convention & Visitor’s Bureau
    • Objective(s)
    • Go to Vegas
    • Go to Vegas and be BAD
    • Lose your inhibitions
    • Message: You won’t pay for your actions
    Class Discussion
  • Las Vegas Convention & Visitor’s Bureau
    • Comments
    • Might offend some people
    • A little risque
    • Inconsistent with family positioning
    • No mention of gambling
    • YOUR mental image of what it is that “stays here”
    Class Discussion
  • Probing the Minds of Consumers Psychoanalytic Theory & Motivation Research
    • In-Depth Interviews
      • The consumer talks freely in an unstructured interview to obtain insights into his or her motives, ideas or opinions.
    • Projective Techniques
      • Methods allowing consumers to project values, motives, attitudes or needs on some external object.
    • Association Tests
      • Consumers respond with the first thing that comes to mind when presented with some verbal or pictorial stimulus.
    • Focus Groups
      • A group of consumers with similar backgrounds or interests discuss a product, idea or issue.
  • Information Search
    • Internal Search – information stored in memory
    • External Search – actively seeking information
    • from various sources
    • Personal sources
      • Friends, relatives, co-workers
    • Market-controlled sources
      • Ads, salespeople, in-store displays
    • Public sources
      • Print articles, news reports
    • Personal experience
      • Handling, examining, testing, using
  • Perception
    • Stages in the perception process:
    • Sensation
    • Attending to information
    • Interpreting information
    • Responding to information
    The process by which an individual receives, selects, organizes and interprets information
  • The Selective Perception Process Selective Retention Selective Comprehension Selective Attention Selective Exposure
  • Evaluation of Alternatives Brand B Brand E Brand I Brand M Brand F 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
  • Toothpaste
    • Crest
    • Colgate
    • Aim
    • Pepsodent
    • Mentadent
    • Close-Up
    • Aquafresh
    • Rembrandt
    • Sensodyne
    • Arm & Hammer
    • UltraBrite
  • Evaluative Criteria
    • Criteria - Dimensions or attributes of a product or service used to compare various alternatives
      • Objective criteria - price, warranty, color, size
      • Subjective criteria - style, appearance, image
      • Consequences – outcomes that result from using a product or service
    • Functional consequences – concrete and tangible
    • Pyschosocial consequences – abstract, intangible
  • This ad focuses on the favorable consequences of using Top Flite golf balls
  • Consumer Attitudes
    • Learned predispositions to respond toward an object—an individual’s overall feelings toward or evaluation of an object.
    • Consumers may hold attitudes toward:
    • Individuals
    • Brands
    • Companies
    • Organizations
    • Product categories
    • Retailers
    • Advertisements
    • Media
  • Multiattribute Attitude Model
    • Attitudes are a function of :
    • A = Σ B i X E i
    • A = Attitude
    • B i = Beliefs about brands performance on attribute i
    • E i = Importance attached to attribute i
    • N = Number of salient attributes considered by consumer
  • Ways to Influence or Change Attitudes
    • Increase or change the strength or belief rating of a brand on an important attribute
    • Change consumers’ perceptions of the importance or value of an attribute
    • Add a new attribute to the attitude formation process
    • Change perceptions of belief ratings for a competing brand
  • Integration Processes and Decision Rules
    • Types of decision rules:
    • Heuristics – simple rule of thumb rules that are easy to use and apply
      • Buy least expensive brand
      • Buy brand on sale or for which I have a coupon
    • Affect referral rule – make decision on basis of overall affective impression or feelings about the brand
    • Compensatory rules – evaluate the strengths and weaknesses of each brand
    Integration processes are the way product knowledge, meaning, and beliefs are combined to evaluate alternatives
  • Market leaders such as Budweiser appeal to consumer affect in their advertising
  • St. Elizabeth Health Center
    • Objective: Increase Preference Reach Consumer On Emotional Level
    • View 2 Commercials
    • 1. Heart Surgery--Rational
    • 2. Traumatic Potential—Emotional
  • St. Elizabeth Health Center
    • Consistent?
    • Contrast?
    • Effective?
    Class Discussion
  • Consumer Learning Processes
    • Cognitive Learning
      • Consumers learn through information processing and problem solving
    • Behavioral Learning
      • Learning via association (classical conditioning)
      • Learning via reinforcement (instrumental cond.)
    • Modeling Processes
      • Based on observation of outcomes and consequences experienced by others
  • Cognitive Learning Process Goal Goal achievement Insight Purposive behavior
  • Classical Conditioning Process Association develops through contiguity and repetition Unconditioned stimulus (waterfall) Conditioned stimulus (Brita water filtration pitcher) Unconditioned response (freshness, purity) Conditioned response (freshness, purity)
  • This Brita ad uses classical conditioning
  • Instrumental Conditioning Process Behavior (consumer uses product or service) Increase or decrease in probability of repeat behavior (purchase) Positive or negative consequences occur (reward or punishment)
  • External Influences Subculture Culture Social class Reference groups Situations
  • The Hispanic subculture is a very important market in many parts of the U.S.
  • Variations in Consumer Decision Making
    • Types of Decision Processes:
    • Extended Problem Solving
    • Limited Problem Solving
    • Routine Response Behavior
  • Cholesterol-Free Half & Half
    • Objective: Introduce New Product
    • View 2 Commercials
    • 1. Rational Appeal
    • 2. Emotional Appeal
  • Cholesterol-Free Half & Half
    • Do customers consider cholesterol content in food product purchase decisions?
    • Effective?
    Class Discussion
  • End