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Buyer Behaviour & Market Research Portfolio

Buyer Behaviour & Market Research Portfolio



Portfolio of Level 2 Advertising work

Portfolio of Level 2 Advertising work



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    Buyer Behaviour & Market Research Portfolio Buyer Behaviour & Market Research Portfolio Document Transcript

    • BuyerBehaviour &Market ResearchPortfolioName: Charlotte Louise SmithCode: MKT2013MTutor: Alison CheesemanUnit Coordinator: Renate SmithHand in Date: 14/05/2010 1
    • Contents PagePreface…………………………………………………………………………………………………….4Consumers Choice Cognition & Affection;Introduction (wheel of consumer analysis)……………………………………………...5-7Marketing Strategy and Consumer Research……………………………………….....8-14–personal introspectionConsumer Analysis ………………………………………………………………………………....15-20-Market Research ProcessInfluences on Behaviour………………………………………………………………………....21-24-Schemas and ScriptsProduct Knowledge & Involvement………………………………………………………....25-33-Means End Chain theory, MECCAProduct Knowledge & Involvement continued……………………………………......34-42-Laddering interviewsConsumer Cognition Processes in Decision making……………………………...…43-46-exposure to informationAttitudes & Intentions………………………………………………………………………….....47-57-Multi Attribute ModelOvert Behaviour………………………………………………………………………………........58-63-ConditioningVicarious Learning………………………………………………………………………………....64-68Consumers & Motivation, Categorising PeopleMotivation…………………………………………………………………………………………......69-75-VALS 2
    • Market Research processes…………………………………………………………………....76-85-SurveysConsumers and their contextsIn store Behaviour……………………………………………………………………………….....86-92-Observation techniquesIn-store stimuliCustomer Satisfaction & loyalty……………………………………………………………...93-99-Critical Incident TechniqueCritical evaluation of research methods……………………………………………….…100-103Conclusion……………………………………………………………………………………………...104Bibliography…………………………………………………………………………………………...105-106 3
    • Preface“Consumers decision-making is a hideously complex and difficult subject. The range ofinfluences that may lead to almost any individual purchase is wide, and the ways in whichthey interact can be literally unpredictable: the same consumer, faced on two separate dayswith exactly the same choice, may well make a different decision.” (Roderick White 2007)1Consumer behaviour involves the thoughts, feelings and environmental influences thatpeople experience during the consumption process.Many different factors are involved when making even the simplest of purchase decisions.The mental processes that are involved are just as much emotional and rational (includinginfluences from family and friends etc) meaning consumers are very vulnerable to beinginfluenced, including by advertising.This portfolio will cover what consumer behaviour is, why it is important for marketers andexamine a variety of market research activities which explore the complexity of consumerbuying behaviour. These marketing research techniques, which will be critically analysedand applied, will uncover how an understanding of buyer behaviour can be utilised bymarketers to develop competitiveness.1 Roderick White, Admap issue 489 (December 2007) ‘decisions decisions…’ (library and learning resources, e-library, Warc.com)http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=INDEXSEARCH87580&Tab=A [Accessed on 27April 2010] 4
    • IntroductionThe following collection of work is a reflection of various research methods and techniquesused to understand buyer behaviour and use this understanding to develop marketingstrategies.Topics include:  The market research process and its importance in developing strategies  An understanding and appreciation of some of the various research instruments and various qualitative and quantitative techniques that are used to investigate buyer behaviour, including Personal Introspection, Measuring Means-End Chains, Laddering Interviews, Attitude measurement – Multi Attribute Model, VALS type Survey, Questionnaires, Critical Incident Technique and Observation.The structure for this portfolio will follow the wheel of consumer analysis as the underlyingframework for this study.The Wheel of Consumer AnalysisThroughout this portfolio, the wheel of consumer analysis will act as a framework for researching,analysing and understanding consumers to help marketers develop more effective strategies.Therefore it is important to introduce the three elements of the wheel that should be researchedand developed into effective marketing strategies. 5
    • Consumer Affect and CognitionAffect and cognition refer to two types of mental responses consumers show towardsstimuli and events in their environment. Affect relates to their feelings towards something,whether they like or dislike a product. Whereas cognitive refers to what the consumerthinks about something, their beliefs about a particular product.Affective responses include emotions such as love or anger, satisfaction or frustration. Affectincludes moods such as boredom or relaxation, and also overall attitudes such as liking McDonald’sFrench fries or disliking Diet Coke. Marketers will try to develop strategies to create positive affectsfor their products or brands to Increase the chances that consumers will buy them.Cognition relates to the mental structures ad processes involved when a consumer thinks and triesto understand then interpret stimuli and events. Cognition includes knowledge, meaning and beliefsthat consumers have developed from experiences that are stored in their memories. Cognitionincludes the processes associated with attention, decisions and choices. Some thought processes areconscious and some are automatic. Marketers must tune into consumers attention to increase theirproduct knowledge about their brands.Consumer BehaviourAlso called overt behaviour to distinguish it from mental activities that cannot be observed directly.For instance deciding to go to Marks and Spencer in town involves overt behaviour because it cannotbe observed by others. Although many marketing strategies are designed to influence affect andcognition, these responses must ultimately result in overt consumer behaviour. Therefore it iscritical for marketers to understand overt behaviour; this can be done by offering the consumer lowprices, (money supermarket.com) superior quality (Toyota), greater convenience (moonpig.com) andeasier availability. (Coke is sold internationally in every store and vending machine.)Consumer EnvironmentThe consumer environment refers to everything externally that influences what they think, feel anddo. Including social stimuli such as the actions of others in cultures, subcultures, social classes,reference groups, families. The external environment includes physical stimuli such as products,adverts, billboards and stores that can influence consumer’s thoughts, feelings and actions. Theenvironment is the medium in which marketers use to place stimuli to influence the consumer. Forexample marketers can send free samples, catalogue s and adverts by direct mail to get theirproducts or brands into the consumers environment. Adverts such as Galaxy, fabric softener, antiwrinkle cream are targeted at woman during popular TV shows such as soaps like Coronation Street,to inform persuade and remind them to buy certain products ad brands. 6
    • All three elements in the wheel are connected by a two-headed arrow because any element can beeither a cause or an effect of a change in one or more of the other elements. For example aconsumer receives a sample of a new shower gel in a magazine, (the consumers environment) theyuse the shower gel, the consumer likes the smell and the feel of the product,(affect and cognition)they feel it makes their skin softer, this led to a change in behaviour (the consumer bought the newbrand) This can occur in reverse, where the consumer is dissatisfied with the sample of shower gelwhich creates a disliking of the brand and stored knowledge of this negative feeling therefore theconsumer will not be buying that particular product or brand in the future.The Wheel of Consumer Analysis will be applied throughout each topic of this portfolio. 7
    • Market Strategy & Consumer ResearchSo, Buyer Behaviour, what’s it all about?Marketers want to know what goes on in the consumers mind before, during and afterpurchasing. It is essential they have some understanding of what influences their decision,What gets into their minds (perception)What stays in their minds (Learning & Memory) Howconsumers use this information (thinking, reasoning, communicating) and essentially why consumersdo what they do (Motivation and Emotion)Can we categorize people through individual differences and tastes-yes!So what creates consumer behaviour?  Thoughts, feelings people experience in the actions they perform in the consumption process  All things in the environment that influence these thoughts, feelings and actions  Consumer Behaviour is dynamic, interactive, involves exchangesFor example sally wants to buy some shampoo, the primary function is to keep her hair clean, butwhat else is she looking for? Sally is a carefree student living in shared accommodation, she buys herown shampoo for only herself to use. Sally wants a shampoo that will smell nice, make hair appearshiny and smooth, and protect her hair from all the styling it goes through.What do marketers need to know?  The internal characteristics of the consumer-affect and cognition-(feelings and thinking) wheel of consumer analysis  Overt Behaviour-behaviour that is easily observed by others  Environmental factors-physical and social  Marketing Strategies (physical and social aspects of environment under the control of marketing managers)THE MARKETING STRATEGY(The design, implementation and control of a plan to influence exchanges to achieve organisationobjectives)Understanding consumers is a critical element in developing successful marketing strategies‘The purpose of a business is to create and keep a customer’ T.Levitt 8
    • (However this does not necessarily mean that marketers create the fundamental needs, which theirproducts can then satisfy. Creating a customer means to consummate the market exchange. Thisoccurs when marketers meet a variety of consumer needs (for the right product, at the right time, inthe right place, at the right price). Creating a customer means transforming an ordinary person intoa customer of your company’s products or services. This transformation occurs when the personmakes a purchase)THE MARKETING CONCEPTSatisfy consumer needs and wants, using research for designing entire marketing and organisationstrategyNeed for sophisticated approaches and detailed dataSo, first research technique; Personal IntrospectionPersonal IntrospectionA customer experience research method  Asking people independently their own individual feelings (gives you the reality) it is open ended –no influences on the experiment by friends family etc no ‘varnishing’ texture of ‘experimental behaviour’As many companies struggle to compete in the ever increasing ‘experience economy’ (Pine &Gilmore 1999) One of Liverpool’s oldest and most famous department stores faced the harsh realityof ‘subjective and personal customer experience’. Lewis’s Department store , which firstopened in 1856, was introduced to subjective personal introspection by several marketers in orderfor them to use as an example for the basis of the research technique; personal introspection.Personal introspection has become an accepted marketing research technique withinconsumer research . The technique aims to discover “personal experience unknowable toanyone else” (Stern 2000:72) 2and is not only becoming popular with academics but brandssuch as Sainsbury’s.In this case study, Patterson, Hodgson & Shi, recruited 232 (marketing students) researchintrospectees. The group consisted of an equal gender split with a mixture of all age groupsand ethic varieties. No specific instructions were given as introspection is entirely open-ended. However they were asked to visit Lewis’s store alone (no peer influences) the ideawas to gain the plain and simple truth, and hopefully find recurring themes and patterns ofcustomers experience of Lewis’s department store. Unfortunately for Lewis’s, “in almost 2  Patterson, A, Hodgson, J, Shi, J, (2008) Chronicles of Customer Experience : The Downfall of Lewis’s Foretold, Journal of Marketing Management, Vol. 24, No. 1-2, pp. 29-45 9
    • every respect they thought it to be plain awful, woefully inadequate, and irredeemablyflawed.” Hodgson et al (Vol 24, 5:2008) 3After the researchers visited the store, the difference between their experience expectationand its reality was recorded; “the dilapidated store environment; its disorganised, randomhaphazardness; the pile-it high, jam-it-in-anywhere merchandising policy; the impressionthat the place was an unmapped muddle; poor product range; and the unengaged,unmotivated and plain lazy staff; and finally, the abject lack of any discernible customerexperience.”Customers had expected the store to be similar to that of high street department storesthey have previously visited such as Selfridges, John Lewis’s department and Debenhams.“I had to take a step back to really take in its grandeur and to get a better look at DickieLewis, the naked statue that stands above the main entrance welcoming shoppers! I’mNot quite sure what its purpose or origin is, but he sure as hell makes an impression onPassers by. I was expecting great things on the inside but was decidedly disappointed.The moment I walked through the entrance and into the store I was baffled by what I sawBecause there was a huge contrast between the exterior and interior.”(Male, 18)“I walked around admiring the non-trendy woollen jumpers and flat caps, that evenmy granddad wouldn’t wear! Surprisingly these are situated directly next to a standcovered in animated so-called humorous socks saying ‘Sexy Devil’! The socks and flatcaps, obviously being matching Christmas presents for granddads, weird! Even moredisturbing, not far from the stands were mannequins modelling man thongs! Werethese advertised for presents for granddads?! I seriously hope not! Again, it doesn’ttake a rocket scientist to understand that the layout just isn’t right!”(Male, 24)The purpose of the article, from the author’s perspective, was to provide a chronicle of howmultiple subjective personal introspections can illustrate ‘the unvarnished reality’ ofconsumers experiences. Something the marketing authors of this article believe should bepursued by researchers further. Introspection, they believe, ‘is a much more refreshing andhonest technique than traditional customer satisfaction surveys, that currently dominateservices marketing literature.’ 3  Patterson, A, Hodgson, J, Shi, J, (2008) Chronicles of Customer Experience : The Downfall of Lewis’s Foretold, Journal of Marketing Management, Vol. 24, No. 1-2, pp. 29-45 10
    • Personal Introspection; is it appropriate?As this method was used to determine personal experiences of customer service withinLewis’s department store, it was possibly a much more insightful research techniquecompared to that of questionnaires and surveys. Whereas with surveys and questionnaires,the questions are already determined, the researcher may not include questions onparticular subjects they may not have originally thought about, therefore missing out onmajor findings.Introspection has the major advantage of detailing the ‘unvarnished reality’ of customer’sthoughts, feelings and opinions on a particular subject/brand or product. Introspectiontechnique is a great tool for researching consumers affect and cognitive responses and theaffect this has on buying behaviour.“I have to say that as I progressed towards the rear of the ground floor, my enthusiasmRapidly declined. All of a sudden colours didn’t match and there were all sorts of randomproducts stacked and shelved in the same area. I honestly felt like I was standing inthe middle of a really bad charity shop (apart from the prices). There were Christmasdecorations dangling next to ladies tights and birthday cards, and adjacent there weresome scarily fluffy children’s slippers in all sorts of colours and designs… a little furtheron, an entire trolley of strange goblin looking ornaments!! ... utter chaos!”(20yr old females personal introspective of her experience), The example above shows thatthis particular customer noticed the colour scheme of the store, particularly on the groundfloor, this seemed to have a negative effect on her mood, she did not appreciate the un-matching colour scheme, This should be considered by marketers and included in strategies,as colour is often an important attribute within consumers attitudes.The appearance in the environment of the department store seemed to have a depressingaffect on this customer’s feelings and thoughts about the store. “my enthusiasm rapidlydeclined” The random assortment of products within the store, re-instated her negativethoughts of Lewis’s as she works her way through the departments, her bad experience ofthis store will probably mean she never enters Lewis’s again, affecting her buyer behaviour.Marketing implicationsUnderlying motives, beliefs, attitudes and preferences can be uncovered and evaluatedthough personal introspection. There is no bias or potential bias caused by the researcher.This technique clearly describes customers’ cognition and affection and how they determinetheir behaviour. Like the example above, the customer has pointed several marketingstimuli, which although wasn’t done well by lewis’s, the technique itself prompted affective 11
    • responses from the consumer. This technique allowed researchers to almost look throughthe eyes of the consumer and understand the buying behaviour process in much moredepth.However, is it because of this case study that personal introspection seems so successful?Lewis’s was one really obviously bad example of customer experience. It is often the casethat it is much easier for customers to talk about their bad experiences than there goodones. People often know what they dislike and why much more than the underlying reasonswhy they like something.Personal introspection continued…my shopping tripI recently visited Tesco’s express in Lincoln not long after it opened last month, it is onlyround the corner from where I live and therefore very convenient for food shopping. I havebeen to larger Tesco stores previously so I have some idea of what to expect.As I walk through the store my first thoughts are that the store colour scheme andatmosphere is like most other Tesco stores, it is fairly warmer than outside and I recognisethe smell, I can’t pin point exactly what the smell is, it is not like fresh bread or somethingyou might expect in that respect but simply the ‘Tesco’s smell’ As well as the generalenvironment of the store, the layout springs to my attention. The first couple of aislespresented to me where full of magazines and sweets, I could appreciate that this was aconvenience store and therefore Tesco must expect that many people simply come for smallamenities such as bread, milk, magazine, sweets or cigarettes, similar to a small newsagents(the one directly opposite, Tesco’s will probably be put out of business now) however thepurpose of my trip was that I wanted something relatively quick to cook for tea, but thatwas particularly healthy. I walked past the first two aisles to find the next one wascompletely covered in crisps, which I didn’t want either, but I noted that there were a largevariety and on my way past noticed that they sold microwavable popcorn, which me and my 12
    • flatmates had wanted from Somerfield a couple of months ago and couldn’t find any. Wewere too lazy to walk to Morrisons which would probably have sold the popcorn too.I reach the vegetables aisle which is directly opposite the spices and pasta foods, I pick upsome asparagus because I remembered am article I had read in a health magazine my friendhad left that had said they had been titled as another ‘super food’ a cancer fighting vitaminfilled vegetable, plus they were reduced to 90p. At the same time I recalled an image of aprawn noodle dish with asparagus, probably from one of the various Jamie Olivers we havelying around the kitchen. I go in search of a noodles, I wanted rice noodles but I knew Tescoexpress probably wouldn’t sell them so I just went straight for a packet of microwavableones that were low in fat, they were Tesco’s own, I didn’t want any added flavours that youget with Pot noodle and plain noodles are all the same aren’t they?I can see a couple of frozen refrigerators and decide to look for a bag of frozen prawns, sothat I have more on another occasion, whilst walking past some other fridges I noticed asmall fresh pot of prawns were £2.99, forget that! I had to pass the biscuits and cereals onmy way to the frozen bit, if I had more will power I would have probably walked straightpassed, but I spent 5minutes looking for biscuits, which in the end I didn’t get because idscared myself with calorie content, stupid Laura and her weight watchers talk. 1 digestivewas 100 calories, not worth it.I eventually found my way to the freezer part and found a reasonably sized bag of frozenprawns for £1.99 probably stretch 4 prawn meals out of that, I noticed some frozen peas butthem remembered I had some already in the freezer at home. On my way to the till I walkedpast concentrated juices and alcohol, I was going out to engine shed tomorrow night andfancied a bottle of wine before I went out, I briefly looked over the shelves filled withvarious reds and whites but most drinks were over £5 and I didn’t want to spend more thanthat on something which I was only drinking to temporarily comatose myself.I got to the checkout point and my stomach sank when I realised it was self service with 2 ofthose self scanning machines (there were also 2 human cash points available but no onewas serving) even though there was only 3 people in front of me also waiting, the twopeople both using the self scanners were at least over 50 and were taking a ridiculousamount of time to scan some chicken legs and various other products. Another customerwho looked like a fellow student in the que tutted at the slow progress. Although I wasannoyed, I was slightly anxious as I knew I was equally as slow. I hated those machines andalways tried to avoid them.When it was my turn to use the machine, it started having a heart attack because theasparagus was reduced and it kept shouting for an assistant. There were now severalimpatient people behind me, I waited about 2minutes for an assistant to show up (a bit toolong when all eyes are on you) the person beside me using her self-scanner was happilyhumming along scanning her items easily. The assistant who appeared didn’t seem to have 13
    • had much experience with these machines and had to call over another woman, I wasn’tangry at him because I figured as the store hadn’t been open long he had probably only hada few hours training and there were numerous things that could set these machines off.Eventually the problem was solved and I quickly scanned my other items and left, on my outI walked past several stands selling packs of Twix’s for half the original price, although Icould really do with chocolate right now, or that wine, I wasn’t going back to that stupidmachine, next time I’m going to Somerfield.Reference list 1  Patterson, A, Hodgson, J, Shi, J, (2008) Chronicles of Customer Experience : The Downfall of 2 Lewis’s Foretold, Journal of Marketin Management, Vol. 24, No. 1-2, pp. 29-45 Patterson, A, Hodgson, J, Shi, J, (2008) Chronicles of Customer Experience : The Downfall of Lewis’s Foretold, Journal of Marketing Management, Vol. 24, No. 1-2, pp. 29-45 14
    • Consumer AnalysisPeter and Olson’s wheel of consumer analysisAffect & Cognition- emotion and thinkingConsumer Behaviour- Physical actions of the consumerBuyer behaviour and market research framework, consumer’s research and marketing strategyMarket Research  Problem definition and design-Consumers choice, cognition and affection -decision making, product knowledge and involvement-consumer innovators, perception, learning and memory, attitudes and behaviour  Sampling Frameworks -Consumers and motivation categorizing people –personality, Lifestyle and motivation theory  Quantitative/Qualitative research techniques, statistical tools and techniques -consumers and their contexts-retail buying, atmosphere in store behaviour-crowding, consumer participation and productivity, consumer satisfaction and loyalty, long term relationships and networks 15
    •  Evaluation and analysis -Consumers and society environmental context-impact of class, culture, peers, family, technology Top 10 cool brands 1. Iphone 2. Aston Martin 3. Apple 4. Ipod 5. Nintendo 6. YouTube 7. Blackberry 8. Google 9. BANG & OLUFSEN 10. PlaystationResearch helps us understand consumers, find the reasons why they buy, what goes on in theconsumers mind before, during and after purchase, what influences their decision?Research helps us identify criteria they use to make decisions and identify situations in whichconsumers are more likely to purchase and use products/brandsWhat can we do to satisfy and even delight consumers with our brand so that they become loyalcustomers?Problem Identification ResearchGoing below the surface to identify the true underlying problem as often the problem is not readilyapparent or may arise in the future, for exampleMay be designed to: estimate market potential, market share of the brand or company image,market characteristics, sales analysis short range forecasting, long range forecasting, uncoveringbusiness trendsUsed to access environment and diagnose problemsSo once the problem or opportunity has been identified, the segmentation, product, pricing,promotion and distribution can be addressedFor example Crunchy Nut RedThe challenge was to revive low cereal salesProblem identification research included:-interviews with decision makers within the company 16
    • -interviews with industry experts-analysis of secondary data-Qualitative research and surveys with customers about their perceptions and preferences forcerealsProblems identified:-Current products were targeted at children-Bagels and muffins were becoming more favoured breakfasts- High prices were turning people to generic brands-quick breakfast foods that required little or no preparation were becoming more popularDefining the problemKellogg’s were not creative enough in introducing new products to meet the needs of adultcustomersThrough product research Kellogg’s developed new flavours and through promotions researchKellogg’s needed to implement optimal promo mix and creative advertising testingThe Outcome - Increase in sales - Increase in consumption of cereal at times other than breakfastPurchase Decision in relation to the wheel of consumer analysisMy purchase decision was a still water with added fruit *Drink this water(Owned by innocent-franchise partners with *this water)Major drivers of Behaviour - Thirst-wanted something refreshing, fairly healthy and not fizzy, cold but didn’t just want water (decisions made before even reaching drinks refrigerator) - When reaching the drinks available, looked for something which fitted my criteria and wasn’t prepared to pay over £1 as I would have had to break into a £10 note which I would of rather spent of clothes, make-up - The cabinet displayed many drinks that were fizzy, few that were still, and that were in a bottle, i did not want a can as I was shopping and didn’t want to have to finish drink quickly, also wanted a fairly large drink but not too big, wanted to put it into shopping bag and carry it - *this water was on offer for 99p and fitted my description perfectly - Contributing factors were that I recognised the brand, have previously bought this drink for a higher price of something like £1.50 at train station services, wasn’t happy about it at the 17
    • time, but still didn’t want to buy a fizzy drink however was not going to pay more than £1 this time. - The packaging was very attractive, came across healthy-even if it wasn’t but it was as I had checked nutritional information for percentage of water and fruit juice Vs sugar content (another contributing factor) ingredients were in-fact water, lime juice and sweeteners.Environmental factors-Within Superdrug, very relaxed calm atmosphere, fait sound of music playing in the background,Drinks display quite colourful, surrounded by pink coloured Superdrug promotions, not too ‘in yourface’ not a rushed decision, had plenty of time to browse at the different drinks on offerConsumer affect and cognitionThought process=thirsty, want a cold drink, in a bottle with unscrew-able lid, under the cost of £1,healthy but with flavour, wanted a still drink not fizzyThe marketing strategy involved from *this water(4ps) Price-99p Promotion- on offer normal RRP £1.20-£1.50Place-drinks refrigerator, within SuperdrugPackaging-simple colours and pictures of rainclouds and sun, gives the idea of innocence, healthy,the product was in a bottle, I didn’t want a can, although their wasn’t the choice of a can for thisparticular product, other products such as Coca Cola offer their products in cans, screw tops insmall, medium and large bottles and multipacks. Marketers must take into account the type ofcontainer the product comes in.Product features are a massive part of the product strategy, for example, the new Ipod nano,promotes the new applications to the nano which is video and large colour choice, apple would havecarried out a huge amount of research in order to find out that its customers wanted Ipods in a widerange of colours and the advert depicts this. Therefore Colour is an important attribute of theproduct. In order to measure the effectiveness of this, apple will be looking into which colours selland which don’t. 18
    • Marketing Implications of the wheel of consumer analysisThe consumer process represents a reciprocal system. This means that affect & cognition,environment or behaviour can be either a cause or change on each other. Viewing the consumerprocess in this way creates 5 implications. First of all, any comprehensive analysis of consumers mustconsider all three elements and the relationships between them. Only considering 2 of theseelements would be incomplete, underestimating the dynamic nature of the consumer buyerbehaviour process. Secondly, marketers simply don’t know which one of the elements consumersthink about first. Some people purchase products from overt behaviours, others because of pressurefrom environmental factors, but the consumption process can occur because of feeling and emotion.Regardless of the starting point, all three elements need to be considered.Thirdly, the wheel of consumer analysis recognises that consumers can continuously change andtherefore marketers need to keep up to date with consumers, which requires costly and timeconsuming, continuous research.Because the wheel of consumer analysis takes into account more than just the single consumer, itcan be applied to target markets which make up an industry or entire society. The approach is usefulfor all these types of marketing strategies.Finally, analysing consumer research is essential in order to develop marketing strategies, consumerresearch includes a variety of studies including such as test marketing, advertising pre-tests, salespromo effects, analysis of sales and market share data, traffic and shopping patterns and surveys.For instance Peter and Olson establish a logical sequence to create the marketing strategy.4 Firstly research and analyse what consumers think, feel and do relative to a brand compared to thecompetitions offerings. In addition analyse the environment to understand what factors areinfluencing consumers and what changes are occurring. Finally based on this research, a marketingstrategy can be developed, objectives can be set; specifying an appropriate target market andmarketing mix to influence it. Stimuli should be placed within the consumers environment which willhopefully become part of the targets markets environment and ultimately influence their behaviour.(P&O 26:2008)4 Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (26:2008) 19
    • Marketing implications for *this waterHowever consumer research and analysis should not end there,in the case of innocents *this water, they could try to increasetheir market share by placing their products In chilled vendingmachines, in cans, they could differentiate their product byselling it in a different kind of packaging to its competitors.Packaging designers Pearlfisher have been helping Innocentmanage its phenomenal impact on the smoothie sector over thepast few years.Recent work has involved rebranding Innocent’s Juicy Waterrange. The relatively new brand – This Water, “focuses on the ubiquity and versatility ofwater, and features a hand-scribbled observation and image on each pack.” Its fresh andcharming personality clearly references Innocent but also has the potential to become itsown brand. 5For example, several years ago, Nescafe looked into selling their coffee in vending machines in cans,when a ‘reactor button’ was pushed and the can was opened it would cause a chemical reaction tooccur within the can and the can would heat up, however after consumer analysis showed that themarket was simply not ready for this product at the time, andconsumers weren’t prepared to pay the suggested price, theproduct idea was dropped.Marketing strategy should be a continuous process ofresearching, analysing, developing and implanting as well ascontinuously improving strategies.Reference list1 2 Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (26:2008) Research on packaging;Introduction on packaging design http://gdpackaging.wordpress.com/2010/03/01/introduction-to-packaging-design-article/5 Research on packaging; Introduction on packaging designhttp://gdpackaging.wordpress.com/2010/03/01/introduction-to-packaging-design-article/ 20
    • Influences on Behaviour  Schemas & scripts Schema- episodic and semantic (Episodic- memory of events)Semantic-understandings in the memory along with general knowledge make up a memory of factsScripts-networks of procedural knowledgeSemantic memory-theoretical knowledge independent of time and place e.g. an apple is a fruitEpisodic memory- factual knowledge of personal experience in a specific time and place e.g.yesterday I bought a snickers bar from the sparSo types of knowledge and associations- Nikon cameras are expensive, a clothing store is up for sale,the clothing store is having a saleProcedural knowledge-‘I am not happy with the service-I will not leave a tip’General and procedural knowledge is organized to form structures of knowledge in memory - whencombined, can affect overt behavior • Cognitive systems create associative networks that organize and link many types of knowledge together. • Part of the knowledge structure may be activated on certain occasionsAn associative network of knowledge or schema of Nike running shoes66 Consumer Behaviour and marketing strategy, P.J Peter and C.J Olson pg 56 (2008) 21
    • Graphic representation of eating in a fast food restaurant7Types of Knowledge Structures-Marketing Implications • To understand consumers’ behavior, marketers need to know the product knowledge consumers have acquired and stored in memory • Marketers may need information on: – Contents of consumers’ product schemas or shopping scripts – Types of knowledge likely to be activated by particular marketing strategies • Cognitive learning occurs when people interpret information in the environment and create new knowledge or meaning • This can occur in three ways: – Direct personal use experience – Vicarious product experiences7 Consumer Behaviour and marketing strategy, P.J Peter and C.J Olson pg 57 (2008) 22
    • – Interpret product-related information Three types of cognitive learning… Accretion, tuning and restructuring Marketers often: a. Present simple informational claims about their products b. Hope that consumers will accurately interpret the information and add this knowledge to their knowledge structures Marketers may: c. Sometimes try to stimulate consumers to tune their knowledge structures d. Rarely encourage consumers to restructure their knowledge Recently purchased product-an associative network Place Batiste (logo) Dry Shampoo Superdrug-cheaper, closer Boots-boots advantage card- Cost can earn points on card £1.99-£2.99-Superdrug/BootsPackaging Or smaller size £1.49Smaller size-convienentfor Gym, handbag, Use-larger size lasts loner Refreshes hair in-betweenClourful-colours washes , makes hairrepresent smell-pink- voluminous-does notpineapple, yellow- promise this but workstropical, Blue-original- well on my fine, thin hair,no smell can see it working New Product- Makes me feel refreshed, Brown packaging- good about myself- for darker confident coloured hair Other products- Boots own-cheaper by 30p not very Pineapple works effective, makes hair powdery, not best in my blonde aware of any other products hair-smells nicest- my preferred product 23
    • Product use situationPurchasing BatisteEnter Superdrug Search shampoo isle look for Batiste (usually at bottom of theshelf) choose from batiste product range (small or large can, choice of 5 scents) usuallybuy pink, one small can for the gym and one large can for home may smell others if Iwant a change, usually go for pink works the best go to counter to pay for productlook at display at front of counter, usually don’t buy anything just like to look pay forproductEmotional marketing as new persuasion in global marketing;emotional appeals in advertsThe Jaguar tried to reposition the brand launching its XF model with the advertising campaign usingsemiotics. The advert which shows a young couple driving the car, whilst scenes of the coupledancing flash on the screen, the song the advert plays to is ‘hush’ as the advert tries to make youquiet and listen to the advert. It is a very seductive and sexual advert with an exciting fast pace. Themarketing strategy for this advert is affective, but what comes first? Emotion or thinking?Reference list1 2 Consumer Behaviour and marketing strategy, P.J Peter and C.J Olson pg 56 (2008) Consumer Behaviour andmarketing strategy, P.J Peter and C.J Olson pg 57 (2008) 24
    • Product Knowledge and InvolvementConsumers have three types of product knowledge; 1. knowledge about attributes (a factor of an object) so characteristics of products 2. The positive consequences of using the products 3. The values the product helps satisfy or achieveBundle of AttributesConsumers think about products and brands as bundles of attributes, they have different knowledgeof different attributes.Concrete attributes-tangible physical characteristics of a product. E.g. the front seat leg room in a carAbstract attributes-Intangible characteristics E.g. the stylishness or comfort of a carBundles of BenefitsConsequences-the outcomes that occur when the product is purchased, can be positive or negativeE.g. a facial cream might cause an allergic reaction or cost too much-perceived risks but it might alsoilluminate skinAmount of perceived risk can be influenced by; degree of unpleasantness of the negativeconsequences or the likelihood that these negative consequences will occur .Consumers can bedivided through a process called benefit segmentationValue SatisfactionPeoples broad life goals (I want to be successful; I need security) values often involve the emotionalaffect associated with such goals and needs.Classifying values:Instrumental values are preferred modes of conduct, ways of behaving that have positive value for aperson (having a fun time, acting independent, showing self-reliance)Terminal values are preferred states of being or psychological states (happy, successful)Means end Chains (MEC)Means End Chain theory describes the individual consumers associations between productattributes, their consequences and the consumer’s personal values. 25
    • (P&O 2008:79)8 Exhibit 4.5 Examples of means end chainsMeans End Chains are measured through one-on- one personal interview, involving 2 steps: 1. Researcher must identify product attributes most important to each consumer 2. A laddering interview designed to reveal how the consumer links product attributes to more abstract consequences and values. Marketing Implications  Provide a deeper understanding of consumers product knowledge  Gives insights into consumers purchase motivations  Identifies consumers product relationshipMeans End Chain Twin 1, aged 18 Brand Attributes Functional Psychosocial Values Consequences ConsequencesXbox 360 Game range Better gaming Feel satisfied in Relaxed not experience completing stressed something Respected challenging High Price Excellent Feel respected by Self-esteem performance friends8 th Consumer Behaviour and Marketing Strategy, 8 edition, P.J Peter and C.J Olson (79:2008) 26
    • Means End Chain Twin 2, aged 18 Brand Attributes Functional Psychosocial Values Consequences ConsequencesPS3 Game Range Limited edition Respected by Self-esteem games, better other with quality expensive console experience Durability Excellent Feel like good Satisfied Performance for value for money long timeInterviewer: Why do you buy this particular type of games console?Consumer: (Xbox 360) Much better game variety for the Xbox 360, especially Dead Rising (a game hewanted which can only be played on the Xbox 360)Interviewer: Why is it important to you to have this game and a wide variety to choose from?Consumer: Dead Rising is the sequel to the first game, which came with the earlier Xbox console(Xbox) I really enjoy the game and similar games (first person shooter games) which Xbox 360 has awide variety ofInterviewer: why do you play these particular types of games?Consumer: The games are challenging and I can play against my mates online or at homeInterviewer: Why is it important that the games are challenging?Consumer: Otherwise I’ll get bored and look for another console, plus I’m better than my friends andbrother at those gamesInterviewer: Is it important to you that you are better than your friends and family?Consumer: Yeah, it’s my thing, I’m really good at gaming, and they respect meInterviewer: You said price was important, why is this?Consumer: If the console was less than £150 I would think it was cheap and tacky, probablysomething wrong with itInterviewer: Cheap and tacky? So you’re bothered about the appearance of the console?Consumer: erm yeah, more bothered about the quality of the console, because I’m paying a lot ofmoney for it, but with the Xbox 360, you can buy the console and choose from 3 upgrades, I chosethe middle one, I couldn’t afford the most expensive and the cheapest one doesn’t look as nice, themiddle option came in silver, it was a limited edition 27
    • Interviewer: So how important is appearance of the console?Consumer: Yeah quite important, my friends all have the first edition; they were impressed with thelimited edition. Also I don’t want it to look cheap.Interviewer: so your friends’ opinions are quite important to youConsumer: YeahConsumer analysisBoth consumers (who were twin brothers) are very big gamers, spent a lot of time and money ongames consoles. One brother much preferred the Xbox 360 and the other the PS3.Both are major competitors in the gaming market.Twin 1 said who prefers the Xbox 360 said he owned the older model previous to its upgrade and thegames he played on that console, were offering sequels on the newer models and therefore this wasa major factor for him to buy the game. The games also came with points and extras and otherrewards which appealed to him.The other twin who favours the PS3 said although there were much more games for the Xbox 360,the games that were released for the PS3 were more exclusive, the games took longer to create andtherefore were better quality than Xbox 360 games. The PS3 he said started off with a badreputation because of these lack of products but this twin researched about the products, Sony (whoowns PS3) have a ten year plan of upgrades for the PS3 so he wouldn’t have to buy another consolefor almost a decade, and there will be plenty of upgrades.He also said that he prefers Sony to Microsoft products, likes Sony’s previous products such as thePS1 & PS2 and PSP. He would always buy a Sony product over a Microsoft product if he had thechoice, when asked why he had to think for a while and simply said he preferred the brand and hasalways had good quality products from Sony.MECCAS Model (Means-End Conceptualization of the Components of Advertising Strategy Model)Components of one or more of the identified means-end chains derived from a laddering intervieware utilized in the development of an ad 1. The product feature identified by the consumer becomes part of the ‘message elements’ of the ad or brand attributes that are depicted in the ad. 2. The benefit associated with that feature by the consumer becomes the ‘consumer benefit’ or the major positive consequence of using the brand, as depicted in the ad. 3. The valued end state identified by the consumer becomes the ‘driving force’ of the ad or the end goal that serves as a motivation for purchase. 4. The way in which the valued end state is associated with. Or linked to, the identified brand attributes is called the ‘leverage point’. 5. The type of advertisement employed to communicate all of these points is called the ‘executional framework’. 28
    • Xbox 360 examplePart of the MECCAS model would be:Message element: join the games experience previous xbox message ‘jump in’Consumer Benefit: enjoyment, relaxation, challenge, socialising, newDriving force: social approval, enjoyment, game with friendsLeverage point: In one particular Xbox advert (2006) there are a group of young people (all mixedethical backgrounds and sex) playing with a large skipping rope, people circle around the skippingrope while different people jump in, some two at a time, one person with a bike, one person backflips in others simply jump, a fairly hip hop tune is being played in the background and everyone ishaving fun and enjoying themselves. The advert is quite enjoyable to watch and at the end of theadvert the line ‘jump in’ appears then disappears to show the words ‘Xbox 360’Executional framework: comparative advertisement, the advert, clearly aimed at young people,including that of our interviewee, shows different people with different abilities jumping into theskipping rope, much like gaming which can be played online with anyone in the world. Everyone isdifferent, some are better than others; some seek more of a challenge than others. In the advertwhen someone does something really impressive in the skipping rope the audience clap and cheer,recognising when someone is good, hopefully appealing to gamers.Model-based development and testing of advertising messages: Acomparative study of two campaign proposals; The MECCAS modeland the conventional approach 9Aim of both approaches is to increase people consumption among young Danes aged 18-35One of the proposals is the result of an inductive creative approach and the other through MECCA.Through a means End Chain and laddering interviews.Advertising practitioners often discard theoretical models they believe message development is amuch more ‘magical process’ beyond analysis and academic interference. Therefore theory-baseddata is often neglected by advertising agencies.  9 BechLarsen, T., (2001) ‘Model Based Development and Testing of Advertising Messages: A Comparative Study of Two Campaign Proposals Based on the Meccas Model and a Conventional Approach’, International Journal of Advertising Vol 20 No 4 accessed through business source permier, e-library accessed on 20/10/09 29
    • Other models such as (Fishbine & Ajzen 1975)- Multi-Attribute Model and Affective Reaction models(Holbrook & Baltra 1987) are affective and cognitive aspects of information processing as well as theELM (Elaboration Likelihood Model (Petty & Cacioppo 1986)Petty & Cacioppo 1986 and their ELM explains 2 routes to persuasion 1. Central Route (focused on brand/product information) 2. Peripheral route (message form, tone, style)P&C propose that the central route leads to stronger and more persistent attitudes than theperipheral route.These models tend to neglect the fact that advertising can create affective and cognitive responsessimultaneously.MECCA is based on Means End Chain theory, which describes the individual consumers associationsbetween product attributes, there consequences and the consumer’s personal values.Attributes and consequences are primarily cognitive where as affective processes are involved whenthe associations between consequences and personal values are created.MECCAS model recommends that an advertising message must:  Be based on message-relevant knowledge (cognitive)  Enforce a full MEC that contains product attributes and consequences and personal values.  Relate the MEC to the object/product/brand/personLaddering Interviews are where respondents are probed for more abstract meanings andimplications (consequences & values) of attributes by a sequence of ‘why’ questions.Presented by hierarchical value maps which have represented the most typical MEC structures of thetarget group with regard to the object/product/brand.Using MEC data together with the MECCA guidelines can overcome the dilemma between creative’sand planners who often ‘need to keep the creative’s on track’ (Burnett & Moriarty 1997)Due to recent focus and attention of advertising effectiveness multiple measures and model basedtesting, which have been introduced as standard services by some of the larger research agencies.Elam model enables assign the degree to which an advertising message is centrally or peripherallyprocessed.Group 1 the MECCAS groupIntroduced to MEC & MECCA principlesThe group was given hierarchical value map constructed from 50 laddering interview results aboutthe consumption of apples. Groups where then asked to create a message strategy based on theresults using MECCAS guidelines. 30
    • The group came up with a play on words between 2sources of energy-apples and nuclear powerKerne is the homogenous meaning; nuclear and seed pit 31
    • Group 2 The conventional GroupTo create a message that could sell more apples to young people using an inductive approach.Consisted of 2 focus groups of the target segment, following the focus groups was a brief discussionof the results.The young people regarded apples as a tasty snack which was wholesome, easy to bring along butrather old fashioned, the phrase ‘an apple a day keeps the doctor away’ came up amounts thegroup.The second group established the idea that having an apple could cure hangovers, the story boredthey came up with displayed a humours ad of a man falling from a tree, with various information onapples nutritional benefit.Interviews of each group leader took place after the focus groups and MECConclusionThe leader of the MECCAs group was very positive about the experience with the MECCAsguidelines. He stressed that the method kept the team focused on the importance of linking themessage to the product in the targets minds.Although the leader of this group appreciated the relevant strategy alternatives he felt the ladderinginterviews and the hierarchical value map was insufficient. He suggested the laddering interviews besupplemented with other kinds of consumer studies and contextual information. E.g. focus groupinterviews.The conventional approach leader, although the group did contain a good description of the targetgroup, there was little strategic content which caused confusion and ‘lack of precision’ 32
    • Comments were made as t whether teenagers would really believe that apples could curehangovers.Summary of the MECCAs guidelinesCould the MECCAs procedure for advertising improve advertising efficiency and effectiveness?  From the interviews, client and agency confirmed that the MECCAs model did improve goal persistency in the creative process  Common ground for communication between Client and Agent  Led to stronger product-value associations and a higher level of central processing.The results of the study generally supports the notion that a model based approach to messagedevelopment such as MECCAs can enhance agency-client communication as well as target groupeffectiveness.LimitationsThe pre-test situation is very different from an authentic message reception and study needs to bereplicated on a broader scale.Reference list  1 Consumer Behaviour and Marketing Strategy, 8th edition, P.J Peter and C.J Olson (79:2008) 2 BechLarsen, T., (2001) ‘Model Based Development and Testing of Advertising Messages: A Comparative Study of Two Campaign Proposals Based on the Meccas Model and a Conventional Approach’, International Journal of Advertising Vol 20 No 4 accessed through business source permier, e-library accessed on 20/10/09 33
    • Product Knowledge and InvolvementContinued  Involvement with products, brands, and activities/behaviours  Intrinsic and situational (sources of) self-relevance  Involvement and brand loyaltyDigging for deeper consumer understandingThe means-end or laddering approach allows marketers to ‘dig’ below consumers’ surfaceknowledge about product attributes and consequences to understand their psychosocialconsequences and value satisfactions; however for many marketing problems this is not deepenough.10 ZMET (the Zaltman Metaphor Elicitation Technique) an innovative qualitative interview methodwas developed by professor Gerald Zaltman to obtain deep consumer understanding.ZMET elicits metaphors from consumers that reveal their deep meanings (both cognitive & affective)Consumers basically find pictures that express their thoughts and feeling about a topic, such as ‘yourexperience of heartburn and indigestion’ or ‘the role of peanut butter in your life’During the interview, the trained interviewer spends about 2 hours with each consumer exploringthe meaning of his/hers pictures. These are several of the steps followed In ZMET:  The pre-interview instruction-several days previous to the interview, consumers are asked to select 6-8 pictures from any source, e.g. magazines that express how they feel about a topic or issue. For example consumers might be asked to express their thoughts about a brand such as Pepsi-cola, or the idea such as ‘the meaning of Donald duck’  Storytelling-Consumers ‘tell stories’ about each picture they have chosen, explaining the cognitive and affective meanings of that visual metaphor.  Expand the frame-the interviewer then asks the consumer to imagine a frame around their picture that expands to reveal a larger picture, the interviewer then asks what kinds of people or things that might come into view that would help me understand your thoughts and feelings about Donald duck.  Sensory Images-Consumers are asked to describe a scent, sound, taste and touch that would express their thoughts and feelings about the topic  Consumers are asked to create a short movie creating a product or brand as a character in the story and treat it as though it were alive (metaphorically)10 Consumer Behaviour and Marketing Strategy, 8th edition, P.J Peter and C.J Olson (83:2008) 34
    •  Digital Image-The final step involves consumers creating a collage of the most meaningful pictures (metaphors) they brought to the interview (this can be done on a computer by scanning the images) when done the consumer narrates a detailed description of the image and its meaning.Often ZMET is able to uncover knowledge that consumers do not know they know.Marketing ImplicationsCan stimulate managers imaginations and guide their strategic thinking, for example using the‘dentist journey’ as one of the issues which revealed that for some consumers the waiting roomrevealed feelings of anxiety and fear therefore one implication of this study was to redesign waitingrooms. Playing soft music in the waiting room, which could be painted in soothing colours, mayreduce anxiety.InvolvementInvolvement refers to consumers perceptions of importance for an object, event or activity.Involvement is a motivational state that energises and directs consumers’ cognitive and affectiveprocesses and behaviours as they make decisions.Consumers do not continually experience feelings of involvement; people feel involved withproducts on certain occasions when the means end knowledge about the importance/personalrelevance of these products is activated.Factors influencing involvementIntrinsic self-relevance is based on consumers’ means-end knowledge stored in memory. Consumersacquire this knowledge through their past experiences with a product. When observing others usingthe product, consumers learn about certain product attributes.Researchers have identified four market segments with different levels of intrinsic self-relevance fora product category.Brand loyalists, Routine brand buyers, information seekers and brand switchers.Linking involvement with product knowledge and decision making process… • Limited decision making – Amount of effort ranges from low to moderate – Involves less search for information than extensive decision making – Choices typically carried out fairly quickly • Routinized choice behavior 35
    • – Requires very little cognitive capacity or conscious controlHigh and Low product Involvement • Low involvement, low knowledge • Low involvement, high knowledge • High involvement, high knowledge • High involvement, low knowledge 36
    • Laddering InterviewsLaddering; consumers associations between specific attributes and general consequences areuncovered. Consumers are helped to climb up a ‘ladder’ of abstraction that connects functionalproduct attributes with desired end-states. (204:2010) 11Laddering interviewsProduct Involvement (high involvement product)Imagine you were going to buy a camera. What characteristics would you consider in selecting abrand of camera to buy for yourself?Quality, trust, price, warranty, durability, featuresWhat are the two (or three) most important characteristics you would consider?Quality and priceWhy is quality important to you?Because I want to know the camera is going to be good, give me decent pictures without any hassleof blurriness or red eye or any flash problems, im handing my camera around for others to takepictures a lot, like friends and stuff on nights out and I want people to just take the photo and thenhand me back the camera without having to stand there for half an hour until we get a good picture.Especially with family. I would defietly buy a Nikon camera if I had the moneySo you would say you want the camera to be easy to use and convienient?Yeah but still with good quality picturesWhy is quality so important?Because I will be sing the camera lot for my course at uni, and I want the best I can get out of thepictures, especially if its going to improve my mark!You said you would definitely buy a Nikon, What does Nikon offer you?Trust, my dad has a Nikon camera and it’s excellent, he’s had it more than three years and has neverhad a problem with it, I also think Nikon is more of a professional brand.Why do think Nikon is a more professional brand?Erm… I guess because of my course and I know a lot of professional photographers use Nikon, andNikon always seems to get recommended to me.You said the other most important characteristic was price, why?11 th (204:2010) Consumer Behaviour, A European Perspective, 4 edition Solomon et al 37
    • Because I don’t have a lot of money to play with, not enough to chuck around on an expensivecamera that turns out to be rubbish, but I wouldn’t mind paying a lot for a quality and trustworthycamera like Nikon.Why?Because, even though they are expensive cameras I know I would get a really camera and plus theywould probably offer me a deal or at least throw in a camera bag or a lens or somethingHow do you know that?Because people I know, including my dad who have bought Nikons have been offered free gear andcheaper stuff when they have spent a lot of money on a camera.Would this be a big incentive for you, free stuff?Yea definitely, more for your moneyIt seems like you know a lot of people with Nikon cameras, do you think that this has influenced youto buy a Nikon rather than any other brand?Umm, well I know your getting at the fact that I’m probably influenced by my peers and that but Iknow friends with Cannons and other brands, it’s just that I’ve messed around with both and Nikonseems the best. Plus I just like the way it looks better than a cannon.Is the cameras appearance important to you?I guess it is if that’s the only difference between the two cameras but its certainly not a massivefactor I consider when buying a camera.Thank-you for your answerslow involvement product.Imagine you were going to buy some chocolate. What characteristics would you consider in selectinga brand of chocolate to buy for yourself?Taste, price, but mostly priceOk so these are the two most important factors to you, so why is price so important, chocolates notthat expensive?Well I like Somerfield’s own brand of chocolate, it’s cheap and it tastes niceBut a bar of let’s say dairy milk, doesn’t cost that much more, so why don’t you spend that little bitmore when you suspect it might taste better?Because I’m a tight b****d and I think dairy milks to milkyOk so there must be another brand of chocolate out there, that you’ve tried and wouldn’t mindpaying that bit extra for? 38
    • Well I do like white chocolate but you just can’t get in big enough bars, not for good value for moneyanyway.Ok so you also think taste is important, why?Well no one wants to put something that tastes bad in their mouth, never mind pay money for it.Ok well you said you prefer white chocolate, why?Because it’s really sweet and full of sugar and reminds me of my childhoodReally? That’s not something I expected you to say, you know what I’m going to ask next don’t you?Yeah, why? Well I guess it’s nice having those home comforts and especially when I’m at uni, youknow? if I’m having a crap day it reminds me of home I guessYou say it reminds you o fhome, is this because your parents used to buy you white chocolate orsomething?I don’t really remember, I guess it makes me feel youthfulYouthful? But your only 20?Aww I dunno I just like white chocolateOk I’ll stop there, thank-you for your time, it was quite fun!LimitationsThe laddering technique may generate invalid answers. Not only can consumers end up being toopushed by too strong an emphasis on the sequence in the means-end chain. Consumers may find itdifficult to really get to terms with ‘why?’ and may often find questions frustrating. Consumersshould be allowed to jump back and forth, which requires more skill on the interviewer butrepresents a much more accurate thought process. It has been argued that in researching thedemand for status goods using laddering techniques can be seen as problematic since motivationsfor prominent consumption are difficult for consumers to express. 12Environmental effectsEnvironmental effects can disrupt the problem-solving process and therefore affect he consumerdecision making process.There are 4 types of disruptive events or interrupts: – Unexpected information-that is inconsistent with already established knowledge – Prominent environmental stimuli-in store advertisements of shelf tags may disrupt an ongoing problem solving situation12 th (206:2010) Consumer Behaviour, A European Perspective, 4 edition Solomon et al 39
    • – Affective states-such as moods and physiological states-hungry, sleepy, thirsty – Conflicts-approach-approach conflict e.g. Susan can’t decide between buying either a digital camera or a new stereo because each product can satisfy a desirable goal. Avoidance-avoidance conflict where consumers must choose between two alternatives with different negative consequences, for instance Sam is trying to decide whether to buy a new bike, he is embarrassed by his old one but doesn’t want to spend the money on a new one. Finally approach-avoidance conflicts where consumers consider both positive and negative consequences, for instance, Paul is trying to decide about a new PM3 player that is on sale for a low price but he is worried the quality may be low.Implications for marketing strategyRoutinised choice behaviour-consumer choice that is routinised; where the consumer does notsearch for any new information because they think they know all they need to know about a productcategory. Marketers of established brands must maintain their brands in the evoked sets of asignificant segment of consumers. However marketers of new brands or brands with little marketshare must somehow interrupt consumers automatic problem-solving process, they may developstrategies involving prominent environmental stimuli such as large visual displays withinsupermarkets or bogoff promotions, the goal for marketers is to get consumers to consciouslyconsider new brands when making the decision making process.Limited Decision making- Most consumers already have a lot of information about products fromprevious experiences. The marketing strategy here is to increase TOMA topic mind awarenessthrough advertising to help get a brand into the evoked set of choice alternatives. Marketers maytry to design a store layout that stimulates impulsive purchases.Extensive Decision making-Where consumers knowledge is low consumers need information abouteverything. Motivated consumers may seek information from many sources. Interrupting problem-solving decisions with promotions is easier when consumers are searching for information,marketers my take advantage of consumers receptivity by offering free samples or coupons.The means-end basis for involvement • A consumers’ level of involvement or self-relevance depends on two aspects of the means- end chains that are activated – Importance of self-relevance of the ends – Strength of connections between the product knowledge level and the self- knowledge levelGraphic representation of means-end chain for involvement 40
    • Factors influencing involvement: • Person’s level of involvement influenced by two sources of self-relevance – Intrinsic – Situational • What marketers need to understand – Focus of consumers’ involvement – Sources that create itSO…Campaign ads intended to increase consumers’ involvement with the brand…Simple says… ‘kind to skin’ there most recent ad campaign promises no colours or perfumes onlyingredients ‘skin wants’ appealing in particular to people with sensitive skin. Whilst the woman in 41
    • the advert wearing just a shirt and belt, with naturally clear looking skin and bright blue eyes andblonde hair walks through a very green grassy field, the sun is brightly shining, there are severalclose ups of her skin, she uses the product on her face in a very gentle way. All the details of theadvert were planned to come across gentle, delicate, healthy and natural, matching with the productthey are trying to sell. Simple is trying to involve consumers with its ‘natural, healthy’ moisturiser.‘we believe in goodness’ the marketing strategy was aimed to make consumers aware that simplemoisturiser is good for your skin.GHD….GHD understand the importance of hair to woman, by placing themselves in most professional hairsalons, spotting itself as a specialised styling tool used by professional stylists. The brand fits in withthe fashion orientated industry that is hairdressing. GHD have also set up a special GHD connoisseurin the U.K. where creative ideas, product knowledge and GHD styling techniques of the country’sbest hair dressers can be shared with GHD salon hair dressers. This helps the hair dresserunderstand the needs of their clients better.Reference list1 Consumer Behaviour and Marketing Strategy, 8th edition, P.J Peter and C.J Olson (83:2008) 2(204:2010) Consumer Behaviour, A European Perspective, 4th edition Solomon et al 3 (206:2010)Consumer Behaviour, A European Perspective, 4th edition Solomon et al 42
    • Consumers Cognitive processes indecision makingImportant aspects of the cognitive system that influence how consumers interpret information  Interpretation=Knowledge information from the environment = schema/ script knowledge structures  The activated knowledge influences which information consumers tune into to and how they comprehend its meaning  Cognitive systems have limited capacity- consumers can only consciously tune into small amounts of information at a time  Much attention and comprehension processing occurs quickly and automatically with little or no conscious awareness. 43
    • Exposure to information2 types of exposure; purpose/Intentional exposure and random/accidental exposureConsumers are exposed to some marketing information because they are searching for marketinginformation (goal-directed search behaviour)Research shows that consumer search behaviour and levels of intentional exposure are relativelylow; most exposures are random or occur through ‘accidental’ contact with marketing information.For in instance when ‘browsing’ either in-store or online consumers will come across promotions,new products or new retail outlets.Some retailers design their store environments to encourage browsing and maximise the amount oftime consumers spend in the store. Rodney Fitch (research design consultant)Fitch describes supermarkets as often places of confusion ‘a promotional fog which creates a mist ofmiss-information’ (super markets super profits, ITV, viewed 30/03/10 7.30pm) 13The recession, which officially began in April 2008, has claimed thousands of businesses includingmany high street names. However the supermarkets sector is excelling. According to Rodney Fitchthis is because supermarkets have always focused completely on the customer, they are quicker toreact to changes than almost any other sector because they monitor the customer spending soclosely,’ on a week to week basis they can detect what the British public is thinking’“In the last two years, the supermarkets have been working extremely hard to make sureconsumers, worried about money, turn to them.”Consumers eating habits have changed in the last year, eating more at home and a little less in pubsand restaurants. This coincided with the highest period of food inflation at almost 10% so peopledidn’t spend too much more on food in 2008 however in 2009 consumers people who were stillworking realised they were actually better off because of very low interest rates and petrol prices.Spending in supermarkets increased as a result however Joanna Blythman, journalist andsupermarket critic believes “believes that the recession has presented supermarkets with anopportunity they have grabbed with both hands. When we were searching for ways to save money,the supermarkets were among the first to present them as the place we could save money.”Selective Exposure to informationConsumers do not intentionally seek out exposure, for instance many people often throw away junkmail opened. People go to the toilet or make a cup of tea when adverts come on, with advancingtechnology, people with sky plus who have recorded TV programmes can fast-forward adverts,people streaming or downloading material from the internet miss these adverts, many consumersdelete emails without reading them but from reading the subject title. People are also becomingmuch more advertising savvy they are aware of the influence advertisers and marketers are trying tocreate, therefore marketers must develop new, interactive and appealing ways of attracting theircustomers attention, as well as building the relationship with their customers.13 http://www.itv.com/news/tonight/episodes/supermarketssuperprofits/) 44
    • Marketing Implications • Strategies to enhance consumers exposure to information and products: – Facilitate intentional exposure – Maximize accidental exposure – Create appropriate level of exposure – Maintain exposure • Marketers should place their information in environmental settings to maximize accidental exposure. A long-standing strategy to increase accidental exposure to a brand is placing adverts within popular TV shows and in filmsRecently some of the UKs biggest advertisers have been demanding clear guidelines on productplacement within TV shows, with the possible introduction of paid-for product placement. Carl Pring,Sonys head of brand advertising is sceptical about the benefits of product placements in third-partyprogramming, although Sony products are already highly visible in many Sony picture film. Pringstates “With general entertainment such as Coronation Street and The X Factor, it is much harder togauge the return on investment, because we just dont know what visibility the products willreceive”While some brands, including Asda, Coca-Cola, have welcomed the development“We welcome innovation in the industry and await to hear any news from government in this area.Product placement certainly presents marketers with opportunities to reach audiences in differentways, as weve seen in other countries. We would need to ensure that what we do is relevant andresponsible, that were adding value and upholding the quality of programming. Ultimately we wouldconsider it, as we do with all our marketing activity, if it works for our brands and our consumers.”Cathryn Sleight, marketing director, Coca-Cola Great Britain and Ireland 1414 Consumer choice 9- http://www.marketingmagazine.co.uk/news/938268/Brands-seek-clarity-TV-product-placement-U-turn product placement (near corrie pic) By Fiona Ramsay, marketingmagazine.co.uk, 15September 2009, 08:35am accessed [7/10/2009] 45
    • Attention Processes-cognitive processesOnce consumers have been exposed to marketing information the interpretation andcomprehension process begins. Attending to certain information involves selection. Selectiveattention is highly influence by the consumers’ goals that are activated I the situation. (P&O,109:200?) To attend to stimuli the consumer must be consciously aware of it. Consumers must befairly alert and aroused to consciously attend to something. Their level of alertness affects howmuch of the information they process. For example if the consumer is in a noisy crowded store, theconsumer is tired and frustrated, their arousal levels are low and therefore attention andcomprehension suffer.Consumers’ attention may vary from a highly automatic, unconscious level (preconscious attention)where the consumer uses little or no cognitive capacity to a controlled more focused attention (focalattention) where the consumer uses activated knowledge from their long term memory.InvolvementInvolvement is a motivational state that guides the selection of stimuli for focal attention andcomprehension. The level of involvement a consumer feels is determined by the means-end chainsactivated from memory.ComprehensionThe interpretation processes where consumers make sense of their own behaviours and relevantparts of their environment. When consumers focus their attention on specific stimuli in theenvironment salient knowledge structures (schemas & scripts) are activated from long termmemory. So new information in the consumers environment is interpreted through their previous‘old’ knowledge activated from memory, the newly formed meanings are incorporated into existingknowledge structures in memory. If these knowledge structures are activated in the future they willinfluence the interpretation of the new information and the comprehension process continues.Marketers need to understand consumer comprehension processes so they can design effectivemarketing strategies that the consumer will interpret appropriately. This means marketers need toconsider their target consumers and their environment in which they are exposed to theinformation.Reference list  1 http://www.itv.com/news/tonight/episodes/supermarketssuperprofits/) 2 Consumer choice 9- http://www.marketingmagazine.co.uk/news/938268/Brands-seek-clarity-TV-product-placement-U- turn product placement (near corrie pic) By Fiona Ramsay, marketingmagazine.co.uk, 15 September 2009, 08:35am accessed [7/10/2009] 46
    • Attitudes & IntentionsWhat is an attitude?Olson…“A person’s overall evaluation of a concept” 15Evaluations are affective responses –usually relatively low levels of intensity and arousal, created byboth affective and cognitive systems.An overall evaluation is made when a consumer combines knowledge, meanings or beliefs about aconcept and determines whether it is favourable or unfavourable.Whether the attitude will affect the interpretation process will depend on its accessibility in thememory or probability of activation. There are many factors which can influence the accessibility ofattitudes. Influences: salience or importance, frequency of previous activation, strength ofassociation between a concept and its attitude.We know it’s about feeling but how do we activate this?Attitudes can be measured by asking consumers to evaluate the concept of interest.Feeling the bond between mother and child15 th Consumer Behaviour and Marketing Strategy, 8 edition, P.J Peter and C.J Olson (2008:130) 47
    • Marketers can use measures of consumers attitudes to indicate the success of marketing strategiesby attitude tracking studies.So for the relationship between salient beliefs of Johnson’s baby lotion and attitude toward theobject. Beliefs might be that Johnsons is good for my babies skin, undergoes rigorous clinical testing,locks in 10 times more moisture, therefore mine and my babies skin will be more healthier andhealthy looking. Salient beliefs create a person’s attitude toward that object and will be activated ina situation and become salient determents of AoAttitudes towards what?-Various physical and social objects-Intangible objects-Behaviours or actionsBMV realised a long time ago that it’s about what makes people feel.The brand must identify what is important to the customer and incorporate this into the advertisingcampaign and the make-up of the product.Brand equity  Involves a strong, positive brand attitude  Based on favourable meanings and beliefs  Accessible in memory  Creates a strong, favourable consumer brand relationship  Can be built or borrowed.Salient beliefs-the important ones! The closes to the reflection of the brand.Activated beliefs which create a personal attitude toward that object.Many factors influence which beliefs about an object will be activated in a situation and thusbecome salient determinants of AoSalient beliefs vary over time or situations for some products 48
    • Fishbines multi attribute model, the most influential model in marketing • Focus on consumers’ beliefs about multiple product or brand attributesThe key proposition is Fishbines theory is that the evaluations of salient beliefs cause overallattitude. – People tend to like objects that are associated with ‘good’ characteristics and dislikeobjects they believe to have ‘bad’ attributes. In the model, Overall attitude toward an object is afunction of two factors: the strengths of the salient beliefs and the evaluations of those beliefs. Themodel does not claim that customers add up products belief strength and evaluation when formingattitudes but he model is simply used to predict the attitude produced by the integration process,the multi attribute model is a useful tool in marketing for investigating attitude formation andpredicting attitudes.Marketing implicationsUnderstanding customers, Diagnosis of marketing strategy, understanding situational influences(situations in which the product is used) 49
    • Research revealed boots came out on top when consumers were asked about the most trustingbrand. Researchers also revealed that colour is very important, adding a new salient belief aboutthe attitude toward the object. Attitude change strategies A marketer has 4 possible attitude-change strategies: • Adding a new salient belief about the attitude object • Changing the strength of already salient beliefs • Changing the evaluative aspect of an existing, strongly held belief • Making an existing favorable belief more salient 50
    • Adding a new salient belief…Cheryl Cole, L’Oreal Elvive full restoreCheryl: “My hair feels stronger, full of life, replenished with a healthy shine. Its got its mojo back.”‘Marketers have been using celebrities in commercials, print campaigns and promotions foryears, because, done properly, it works.’16The general belief is that advertising messages delivered by celebrities provide a higherdegree of appeal, attention and, possibly, message recall than those delivered by non-celebrities.Marketers also claim celebrities affect the credibility of claims made, increase thememorability of the message and create a positive halo effect that can be generalised to thebrand.Crunchy Nut17A physical change in the product, the word crunchy is now an attribute added to many foods,e.g. crunchy nut Kellogg‟s, crunchy cookie crisps and nestle white crunch.People in general have positive feelings towards the words „crunchy and crispy‟ whichseemed to be linked to feelings of freshness, fun and stress relief.“I don‟t know if it is the word or what but crunchy foods are satisfying”In crunchy nut advert man make crunching noises whilst eating cereal, which are made a lotlouder in the advert.16 Brandrepublic) http://www.brandrepublic.com/News/950142/LOrEal-cashes-Cole-factor/17 Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (143:2008) 51
    • Theory of reasoned actionFishbine realised that peoples attitude toward an object may not be strongly related to their specificbehaviours but rather whether the consumer will engage in a particular behaviour is their intentionto engage in that behaviour. Fishbine extended his multi attribute model to relate consumers’beliefs and attitudes to their behavioural intentions. This model, theory of reasoned action, assumesthat consumers consciously consider the consequences of alternative behaviors and choose the onethat leads to the most desirable consequence.So does the consumer think ‘if I buy this product, then A or B will happen to me.For example 52
    • Semiotics-a form of communication through signs and symbols and often produces underlyingmeaning.Semiotics is used the CoCo Channel campaign. The advert and billboard picture above shows KeriaKnightly, a young popular actress amongst older but more specifically a younger generation lateteens to late twenties. Joss Stone’s track ‘love’ played throughout the advert, particular points of theadvert have matched particular lines in the track. ‘L...is for the way you look at me’ as she looks intothe eye of the man later in the advert and teases him. Keria knightly first enters building comingdown the stairs, through the window, half dressed in a man’s shirt and bowler hat which she throwsoff as she put on a very vibrant red dress, Red signifies love, passion danger and confidence. Sheputs on a anklet, associated with gypsy, often a lady who ‘gets about town’ later she holds theperfume in her hand behind her back teasing the good looking man, throughout the advert keria islaughing, free and mischievous.Marketers aim to achieve these almost subconscious messages in order to unlock attitudes andbeliefs about the CoCo Channel brand. • Factors that can weaken the relationship between measured behavioral intentions and the observed behaviors of interest – Intervening time – Different levels of specificity – Unforeseen environmental event – Unforeseen situational context • Despite less-than-perfect accuracy, measures of purchase intentions are often the best way to predict future purchase behaviors • Certain behaviors just cannot be accurately predicted from beliefs, attitudes, and intentions 53
    • Problems in measuring behavioural intentionsFor example, buying a carSo a new car will:  Will give me a mode of transportation  Will put me in financial difficulty  Will lead to high upkeep costs  Will cost more now than later  Will lead to high insurance rates  Other people will respect me if I buy this particular brand of car.Certain factors can weaken the relationship between measured behavioural intentions and theactual behaviour because of intervening time.The consumer may intend to buy the car but for some reason, don’t get round to it. This may bebecause of:  Unforeseen environment event  Unforeseen situational context  Degree of voluntary control  Stability of intentions  New informationGenerally time is the major factor which reduces consumers intentions. Like other cognitive factorsintentions change over time, the longer the intervening period the more potential exposure ofcompetitor marketing strategies which can change or alter the consumers original purchaseintentions.Multi-attribute model of attitude measurementThe types of information we collect when assessing consumer attitudes through the use of the multi-attribute model are fairly standard. There are many different ways, however, in which to gather theinformation. The following is an example of how researchers might use specific question s to collectinformation regarding attitudes toward three brands of pizzas.We are interested in understanding the importance and desirability of different features of homedelivered pizzas. Please divide 10 points among the following features to reflect their relativeimportance to you in making a purchase decision:Price ____5_______Quality of Ingredients ____4_______Promptness of delivery ____1_______ 10 Points 54
    • Please place an X on each of the following scales to reflect your beliefs regarding how three brandsof pizza delivery’s rate on these features:1. I believe Dominos pizzas are priced reasonably. Strongly Disagree X Strongly Agree 1 2 3 4 5 6 72. I believe pizza huts pizzas are priced reasonably. Strongly Disagree X Strongly Agree 1 2 3 4 5 6 73. I believe Pizza Express pizzas are priced reasonably. Strongly Disagree X Strongly Agree 1 2 3 4 5 6 74. I believe Dominos pizza uses quality ingredients in their pizzas Strongly Disagree X Strongly Agree 1 2 3 4 5 6 75. I believe the Pizza Huts uses quality ingredients in their pizzas Strongly Disagree X Strongly Agree 1 2 3 4 5 6 76. I believe the Pizza Express uses quality ingredients in their pizzas Strongly Disagree X Strongly Agree 1 2 3 4 5 6 77. I believe Dominos Pizza delivery service is very reliable Strongly Disagree X Strongly Agree 1 2 3 4 5 6 78. I believe Pizza Huts delivery service is very reliableStrongly Disagree X Strongly Agree 1 2 3 4 5 6 7 55
    • 9. I believe Pizza Express delivery service is very reliable Strongly Disagree X Strongly Agree 1 2 3 4 5 6 7Thank-youEvaluationDomino’sReasonably priced?Our participant scored domino’s 3, which suggests they do not thinkDominos is reasonably price.Quality ingredients?The participant scored 4, in the middle of the scale, this could suggest they haven’t had muchexperience with Domino’s or they may fairly agree neither fairly disagreeReliable?The participant scored a 6 for this question; they clearly agree that domino’sare a reliable delivery service.Pizza HutReasonably price?The participant scored a 2; lower than Domino’s suggesting that this personbelieves pizza hut is fairly expensiveQuality Ingredients?4, again the same as dominos, does this person consider dominos and pizza hut to have similarattributes?Reliable?The participant scored a 3, either they have had a bad experience at delivery r they are not veryaware of pizza hut’s delivery service, this could be the case as Pizza Hut are more popular asrestaurants, where as Domino’s specialise at their delivery experience.Pizza ExpressReasonably Priced?Pizza Express was scored a 3 for this question, suggesting they do not believepizza express is reasonably priced. 56
    • Quality Ingredients?The participant scored this question a 6, the highest of all three brands, this suggests this person hasstrong cognitive processes when it comes to pizza express’s food ingredients.Reliable?Again this score was relatively low and only scored a 3, suggesting poor service or lack of awareness.Marketing ImplicationsAlthough this technique does indicate the consumers attitudes towards the brands, this persondoesn’t seem to think much of Pizza Hut overall, they believe Pizza Express uses quality ingredientsbut not a reliable delivery service, only slightly better than Pizza Hut, however Dominos was giventhe highest score, this person thought although they were not reasonably priced, Dominos delivereda reliable service and they used quality ingredients in their pizzas. However if we look at where theparticipant allocated scores, he used half his points on price, this is the most important attributewhen considering pizza, quality of ingredients was also important to this consumer and they onlyallocated 1 point to delivery promptness.This research technique has its limitations as it does not explain why the participant has given thesescores. The researcher could mistake a low score to mean a bad experience with service; however itcould be that the consumer has not had any experience ordering pizza from this particular brand.Reference List1 th 2 Consumer Behaviour and Marketing Strategy, 8 edition, P.J Peter and C.J Olson (2008:130) Brandrepublic)http://www.brandrepublic.com/News/950142/LOrEal-cashes-Cole-factor/3 Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (143:2008) 57
    • Overt Behaviour-ConditioningOvert BehaviourObservable and measurable responses or actions of consumers. They are external and are notaffective and cognitive processes because behaviour can be observed directly instead of through aninternal psychological process.However overt behaviour can often cause implications for marketers; consumers often gavefavourable attitudes about products and stores but that doesn’t mean they buy them or shop inthem. Behaviour often proceeds and causes affective and cognitive responses, for example a personmay try out their friends new mobile phone, they think it’s so great that they go out and buythemselves one the next day, however when it comes to low involvement products consumers aremore likely to try them first, decide whether they like them and then buy (or not) buy them again.Market strategies don’t work if they cannot influence overt behaviour. Many market researchtechniques are designed to asses overt behaviour in stores and product purchase, many strategiesare designed to increase these behaviours.Traditional models of purchase process usually treat the buying process as a chain of cognitiveprocesses. AIDA; Attention, Interest, Desire and ActionAlthough these traditional models are valuable, the purchasing process can be analysed through asequence of behaviours.For example Peter & Olson’s Behaviour model PrepurchaseInformation contact Funds access Store Contact product contact From newspapers, Withdrawn from cash Locate, travel, Locate product magazines, billboards, point, write cheque, enter store in store, take radio, & TV adverts, credit or debit card to checkout salesperson, friends Communication Consumption & Disposition Transaction Tell others of product Consume/use Exchange funds experience, fill out product, dispose of for product, take warranty cards, and packaging/used product home provide other product repurchase information to the firm 58 Post purchase
    • 18 Adapted from Peter & Olson (196:2008)Not every purchase follows this process and the model above only illustrates one type of behaviourfor retail purchases. The time it takes for a consumer to perform the steps above depends on thesituation. A consumer purchasing a high involvement product such as a car will spend more time perstage and more time will elapse between each stage than a consumer purchasing a watch.The model of overt consumer behaviour, as shown above, has several implications for marketers.Each type of behaviour listed above needs to be broken down further for more detailed analysis.Marketing strategies are designed to alter aspects in the environment to increase cognitive andaffective activity and therefore influence overt behaviour.Classic conditioningThe process where a neutral stimulus becomes capable of reaching a response because it wasrepeatedly paired with a stimulus that naturally causes the response. Natural stimulus responsesare called unconditional stimuli, for example when someone rings the doorbell most people will lookup automatically on hearing it. When the repeated neutral stimuli cause similar responses then it isknown as a conditioned response.The process of classical conditioningUnconditioned stimulus Unconditioned responseUnconditioned stimuli + neutral stimuli Unconditioned response Conditioned Stimuli Conditioned ResponseConditioned behaviours are controlled by stimuli that occur before the behaviour and thesebehaviours are assumed to be under control of the automatic nervous system, thus thesebehaviours are not under the control of the individual.Marketing implicationsClassical conditioning isn’t effective for every type of response; marketers need to recogniseautomatic responses to environment stimuli. Only fairly simple responses can be classicallyconditioned.Operant conditioningThe process of altering probability of behaviour being emitted by changing the consequences of thebehaviour.Behaviour Consequence increased/decreased probability of behaviour18 th Exhibit 8.2 adapted from Consumer Behaviour and Marketing Strategy, 8 edition, P.J Peter and C.J Olson(196:2008) 59
    • Different from classical conditioning because it deals with behaviours assumed to be underconscious control of the individual. Behaviours are emitted because of consequences that occurafter the behaviour.Some consequences such as rewarded behaviour will increase the frequency that a given behaviourwill be repeated, for example if a customer received store money off vouchers they are more likelyto re-visit that store. In this case, because the reward increases the probability of the behaviourbeing repeated, it is called positive reinforcement.For example Boots not only offer a loyalty card point’s scheme but offer customers (including bothnon advantage card holders) Boots vouchers for money off selected brands within the store.The frequency of consumer behaviour can also be increased by removing aversive stimuli. Known asNegative reinforcement. For example if a sales person is particularly pushy and the individual feelsforced to buy the product the consumer will be negatively reinforced.If the environment is arranged so that a particular response results in neutral consequences then,over time, response will diminish in frequency. This is referred to as extinction. For example, A&Pgrocery chain was the largest retailer in the world until it overstocked its own brands (which hadhigher profit margins) and customers who were loyal to nationally branded products stoppedshopping at A&P because they could not obtain their favourite brands. A&P inadvertently usedextinction on its own customers.If a response is followed by an aversive event such as rude sales staff this would probably decreasethe chances of the individual re-visiting the store.Conditions can be arranged so that a positive reminder is administrated after every desiredbehaviour, known as Reinforcement schedules. There are three types of reinforcement schedule;continuous, fixed ratio and variable ratio. Continuous reinforcement is where marketers try tomaintain a constant high quality of their products and services so they can constantly reinforce afterevery service. This is difficult to do particularly within the services sector.Fixed or ratio schedule is where conditions are arranged so many times the behaviour is reinforced. 60
    • Variable ratio schedules where desired behaviours occur but not necessarily every second or thirdtime, for example gambling slot machines. Slot machines generate high rates of response evenunder conditions that offer financial loss. It is important to keep this in mind as the example suggestsa lot of desired behaviour can be developed and held with small infrequentrewards.Coca Cola are currently offering customers rewards and prizes from collectingpoints on coke zone on their website. The points can be found on various cokeproducts (diet coke, coke zero and coca cola bottles) After registering andentering promotional codes the customer can gain more points are swap themfor prizes such as gig tickets, money off vouchers, games, Sony televisions oreven Wayne Rooney’s boots. Customers can also enter competitions where theywill receive more points for entering and are entered into a prize draw to winvarious prizes such as holidays or World Cup tickets.ShapingShaping involves a process of arranging conditions that change the probabilitiesof certain behaviours. Not an end in themselves, but to increase probabilities of other behaviours.For example free trial periods may be attempts to shape behaviour, as the user will come intocontact with the product and therefore reinforce properties. For example Lovefilm.com offerscustomers a two month free trial of their DVD postal service.Descriptive stimuliThe mere presence of absence of stimuli can serve to change the probabilities of behaviour, Stimulican be presented before behaviour and can influence whether behaviour occurs. For example, ifdomino’s pizza offers a free bottle of coke with orders over £10, the offer may increase the 61
    • probability of purchasing an order over the cost of ten pounds but the offer itself is not a reinforce since its offered before the behaviour. Marketing implications If carefully designed, marketing strategies and tactics consistent with operant conditioning tactics can be very effective in influencing behaviour. Many marketing strategies offer rewards after purchases to increase probability or behaviour in the future. Many marketing strategies offer continuous reinforcement schedule others offer partial reinforcement. Finally shaping is used to develop earlier behaviours in order to increase the chances of future behaviours. Scenarios 1. Bob has three children and he likes to rent movies for the whole family to watch. When he sees the sign for the Video Department while shopping at the grocery store, he wanders in to see what new videos they have and ends up renting one. He has a store customer card, so every tenth video rental is free. He is much too busy to keep track of how many rentals he has to date, but he is pleasantly surprised when he is told that he video he is renting will be free of charge. In the future, he will rent more videos there at the grocery store, rather that at the chain video rental place they sometimes use. Operant Conditioning Classical ConditioningBehaviour Video department sign, Uncond. Stimulus store card for video rentalsConsequence Free video rental Neutral/Cond. StimulusExpected Change Will rent more at grocery Uncond./Cond. Response store than at video rental place Reasoning The consumer behaviour of seeing the environment stimuli of the video department sign led Bob to the rental department where he bought a film, his customer store card allows his to get his tenth video rental for free and so led to the positive reinforcement consequence of savings. This positive consequence has influenced Bob to change his behaviour and order his rentals from the grocery store instead of the video rental, where he usually goes. 62
    • Operant Conditioning Classical ConditioningBehaviour Uncond. Stimulus Happy memoriesConsequence Neutral/Cond. Stimulus Charge ColaExpected Change Uncond./Cond. Response Good feelings 2. Whenever Richard hears the nostalgic music that plays in the background of the Charge Cola ad, it makes him remember his buddies from high school and some of the good times he had with them. When he goes to the grocery store to do the shopping for his family, he scans the soda isle and then chooses Charge Cola rather than all the other similar sodas; he just feels best about the Charge Cola brand. Reference List 1 th Exhibit 8.2 adapted from Consumer Behaviour and Marketing Strategy, 8 edition, P.J Peter and C.J Olson (196:2008) 63
    • Vicarious LearningVicarious learning is about people changing their behaviours because they observed theactions of other people and the consequences that occurred. Vicarious learning, also knownas modelling, is caused by perceptual and cognitive experiences and social and culturalinteractions. The three major approaches to vicarious learning involve classic conditioning;When applying a stimuli and associating it to something else several times, operantconditioning; A certain consequent is learnt from a certain behaviour and the cognitiveprocess; thinking, feeling and remembering. For example, Bonjela Spike, (see picture) is the characterisation of a mouth ulcer; annoying, sore and slightly painful. Until the man in the advert puts a dab of Bonjela onto the ulcer which immediately soothes the mouth ulcer. With the tag line, ‘don’t put up with it, Bonjela it!’ 64
    • Marketing strategyThere are three major uses if vicarious learning in marketing strategy;  Developing new responses- developing new responses that were previously not in the consumers behavioural repertoire  Inhibiting undesired responses-modelling can decrease the probability of undesired behaviours  Response facilitation-can facilitate desires already in consumers repertoireAffective---Affective responses---consumers emotions, feelings, moods and evaluations----classicallyconditioning emotions to products 65
    • Cognitive---cognitive responses----consumers knowledge, meanings and beliefs----providinginformation highlighting competitive advantagesBehavioural---behavioural responses---consumers overt behaviour---positive reinforcement,modelling desired behavioursInfluencing consumers behaviours…After consumer research establishes information on consumers affect, cognition and behaviourrelative to the product or brand of concern, various promotional marketing stimuli aredesigned/changed and placed in the consumers environment. This marketing mix stimuli can includesuch things as packaging, advertisements, price tags, vouchers, store signs/boards. They aredesigned to influence behaviour without directly affective affect and cognitive responses.Sales PromotionTrade promotions & Consumers promotionsAdvertising vouchers, free samples orIn store displays 66
    • Most consumer promotions are designed to influence the probability of purchase withoutnecessarily altering prepurhase attitudes about a brand.For a new brand, promotion may lead to future postpurchase attitudes and purchases. If thepromotion is for an already well established brand, consumers with neutral or slightly positiveattitudes may use the promotion to reduce purchase risk and try the brand, for loyal consumers, apromotion may be an added incentive to remain loyal.Types of consumer promotionsSampling; trial sizes of the productPrice deals; discounted productsBonus packs; additional amounts of the productRebates and refunds; consumers are given cash reimbursements for purchasing productsSweepstakes and contests; competitions where consumers are offered chances to win cash orprizes.Premiums; A reward of gift that comes free with the productVouchers: usually money off incentives 67
    • Marketing StrategiesMarketing managers will develop strategies with objectives such as increase market share by 10% bythe end of 2010, or increase year on year sales by 20% over the next 5 years. To accomplish theseobjectives marketers focus on influencing consumers affect, cognitive and behavioural responses.Influencing these factors can either be through short-term or long-term objectives in order to gainobjectives.Regardless whether the objectives are short term or long term, marketers need to understandconsumers affect, cognitions and behaviours to develop strategies to influence them. 68
    • Motivation-Market ResearchPersonality-lifestyle-motivationMotivation“Motivation occurs when a need is aroused that the consumer wishes to satisfy” (177:2010) 19Once this need has been activated, the consumer experiences a state of tension, the driving forcethat will either reduce or eliminate that need. The need can be either utilitarian (a desire thatsatisfies a functional or practical benefit) or the need may be hedonic (involving emotions orfantasies)The desired end state is the consumers end goal. Marketers try to create products and services inorder to satisfy the consumers’ desired benefits.Whether utilitarian or hedonic, the tension the consumer experience determines the urgency tosatisfy that need. This degree of arousal is called a drive. A consumers need can be satisfied in avarious number of ways, what influences the path they choose to satisfy this need can rely on theirprevious experiences and values formed from their cultural, religious, ethnic or national background.These personal and cultural factors combine to create a want. For example, hunger is a need; thelack of food creates a tension state that can be reduced by eating. The specific route to drivereduction is culturally and individually determined. Once the goal has been achieved, the tensiontemporarily subsides and motivation recedes.A goal can be positive or negative. Consumers will direct their behaviour to seek out products thatwill help them reach the positively outcome. Consumers may be motivated to avoid negativeoutcomes and will guide their purchase behaviours to reduce the chance of attaining this result.Products such as mouthwash, spot creams and deodorants frequently rely on consumers’ negativemotivation by creating adverts that depict the social consequences or underarm odour, spots/acneor bad breath.19 th Consumer Behaviour, A European perspective, Solomon et, 4 edition pg 177 (2010) 69
    • Because marketers are attempting to satisfy consumers’ needs, they can provide possiblesolutions to these dilemmas. Three types of motivational conflicts can occur; approach-approach,approach-avoidance and avoidance-avoidance. (When a consumer must choose between two desirable alternatives) (When a consumer desires something which has negative consequences attached to them as well.) (When a consumer faces a choice between two undesirable alternatives)There has been much research on classifying human needs; some psychologists have tried to definea list of all needs that can virtually explain all human behaviour. Henry Murray defines 20psychogenic needs that result in specific behaviours. These needs include dimensions such as 70
    • autonomy (being independent) defendance (defending self against criticism) even play (engaging inpleasurable activities) (2010:184)20 An influential approach to motivation was introduced byAbraham Maslow. Maslow proposed a hierarchy of needs. The order of needs suggests thedevelopment of each is fixed. Marketers have embraced Maslow’s theory because it specifies certaintypes of potential product benefits people might be looking for, depending on the different stages indevelopment and environmental conditions.The implication of this theory is that the individual must satisfy basic needs before progressing upthe stages. I.e. a starving man is not going to be interested in status symbols. This suggests thatconsumers value different product attributes depending on what is currently available to them.The hierarchy has been criticised for being somewhat simplistic. Solomon et al argues that oneproduct or service can satisfy a number of different needs. I.e. eating is necessary for survival but itcan also be a social act (belongingness) The same goes for safety needs, a house acts as security butit can also be seen as a space for ‘actualising our personal aspirations’ (2010:187) 21Solomon also argues that Maslow’s hierarchy is too culture-bound. Restricted to the materialisticwestern culture.Ernest Dichter identified 12 major motives for consumption. Power (masculinity virility) security,eroticism, moral purity (cleanliness) social acceptance, individuality, status, femininity, reward,2 3 th , Consumer Behaviour, A European perspective, Solomon et al 4 edition pg 184,187 (2010) 71
    • mastery over environment, desalination (a desire to feel connectedness to things) and magic(mystery)Sigmund Freud’s interpretation of motivation theory; Freudian theory. The idea that much humanbehaviour stems from a fundamental conflict between a person’s desire to satisfy their personalneeds and the necessity to function as a responsible member of society. The conscious andunconscious dimensions of the mind. The struggle between these two conflicts is carried out amongthree systems; the id, the ego and the superego.The id, the ‘party animal’ of the mind; operates according to the pleasure principle-the primarydesire to maximise pleasure and avoid pain, the id is selfish and illogical.The superego is the counterweight to the id, working to prevent the id from the selfish gratification.Essentially the individual’s conscience.The ego is the in-between, Soloman refers to the ego as the referee in the fight between temptationand virtue. Balancing the two forces and finds ways of satisfying the id wants that will be acceptableto the outside world.Marketing ImplicationsThe battle between these conflicts occur unconsciously to the consumer and therefore theconsumer is not necessarily aware of the underlying reasons for their behaviour. Therefore ifconsumers cannot identify their true motivations for choosing products then marketers need to findways, of acquiring consumers underlying desires.Motivational researchFreudian theories were first applied to understand deeper meanings behind buying behaviour in the1950s. The basic assumption was that socially unacceptable needs were channelled into acceptableoutlets. “Product use or avoidance is motivated by unconscious forces which are often determinedin childhood.” (2010:188)22The research took the form of in-depth interviews probing deep into the individuals purchasemotivations in an attempt to uncover consumers suppressed and repressed motives. Othertechniques included word association tests, projective techniques; Rorschach ink-blot tests,imaginary buying situations, picture story test, cartoon tests, and ascribing personality to brands.22 th Consumer Behaviour, A European perspective, Solomon et, 4 edition pg 188 (2010) 72
    • (Example of Rorschach ink-block test)Motivational research-does it work?Motivational research has been criticised for working too well, whilst others feel it doesn’t work atall. Critics argued that the method gave advertisers too much manipulating power, consumerresearch felt the methods lacked in validity as many of the interpretations were subjective andindirect. The technique is very difficult and time consuming and because of the small number ofpeople who are subjected to these methods, researchers are doubtful whether this technique can beapplied to a large market.However motivational research tends to be less expensive than large-scale quantitative survey dataas interviewing and data processing costs are relatively small. The techniques are useful foruncovering information that is normally suppressed by consumers in normal everyday life.The use of both direct observation and oblique methods of data gathering continues and hasresulted in classification of consumer segments based on consumers’ overall lifestyle patterns.Lifestyle“Patterns in which people live and spend time and money” (448:1995)23 Lifestyles reflect a person’sactivities, interests and opinions (AIOs)Lifestyles are changing more rapidly, marketers need to track trends in lifestyles of key targetmarkets and reflect these lifestyles in their adverts.PsychographicsAn operation technique used to measure lifestyles. The technique provides quantitative measuresand can be used with the large samples needed for definition of market segments.Using consumer interviews, verbatim statements recorded in focus groups; researchers write largenumber of statements to reflect AIOs of consumersLarge, representative examples of consumers are asked via questionnaires to indicate the extent towhich they agree or disagree with each statement using 5 - 7 point Likert type scales.Psychographic analysis allows marketers to understand consumer lifestyles of core customers,allowing them to communicate more effectively with people in that segment. The objective is todevelop a marketing strategy that is consistent with the AIOs of the target market.VALS (Values and Lifestyles) and the Nine American Lifestyles 24“VALS uses proprietary psychometric technology to measure concepts that—researchers haveproved empirically—correlate with consumer behaviour.”VALS segments U.S. adults into eight distinct types, or mindsets, using a specific set of psychologicaltraits and key demographics that drive consumer behaviour.23 th Consumer behaviour, international edition, 8 edition, Engel et al (488:1995)24 http://www.sric-bi.com/VALS/types.shtml 73
    • The purpose of VALS is to find identify the VALS type of person taking the study. That is to find outabout a persons product ownership, media preferences, hobbies, additional demographics, orattitudes (for example, about global warming)Originally VALS combined two perspectives to create lifestyle clusters, one was based on Maslow’shierarch of needs and the second was based on the distinction made by David Riesman betweeninner-directed people and out-directed people.In response to criticism as well as changing social values, researchers updated the system. Thecurrent VALS system divides US adults into 8 groups (used to be 9) determined by both psychologicalcharacteristics and ‘resources’ including factors such as income, education, energy levels andeagerness to buy. The framework which can be seen below shows that innovators, positioned at thetop because they have the highest level of resources, innovators are described as ‘taking charge’attitude to life, open to new ideas and technology, being active consumers with varying tastes forniche products and services.The nest three groups have sufficient resources but differ in motivation and the three groups belowthat; believers, strivers, and makers, have few resources and again differ in primary motivation.Survivors at the bottom of the structure, they have very little resources and their main concern issafety and security. Looking for needs rather than desires. 2525 Strategicbusiness.com (http://www.strategicbusinessinsights.com/vals/ustypes.shtml) [accessed 10/11/09] 74
    • Marketing implicationsA number of companies who track changes in values through large-scale surveys sell VALS results tomarketers who often pay a fee to receive regular updates on changes and trends.The latest extension of lifestyle marketing is behavioral targeting. This involves presenting peoplewith adverts based on their internet use. With recent technology it has become relatively easy formarketers to tailor adverts you see to websites you have visited. Although this raises issues ofprivacy, a survey from 2006 issued on this problem revealed that 57% of consumers said they werewilling to provide demographic information in exchange for personalized online experience. 26Microsoft combines data from 263 million users of its free hotmail e-mail service. (The biggest in theworld) It monitors information from searches and when you sign up your required to fill out yourage, occupation and address. (Although you are not required to answer) Microsoft’s behavioraltargeting system allows its advertising clients to send different adverts to each person surfing theweb.MySpace uses personal details of its users to sell highly targeted advertising in ten broad categories;finance, autos, fashion and music. Facebook is at work doing the same thing although they arelooking at a more sophisticated software used to decide how effective advertising will actually beamongst individuals and their groups of friends.Reference List1 th 2 3 Consumer Behaviour, A European perspective, Solomon et, 4 edition pg 177 (2010) , Consumer th 4Behaviour, A European perspective, Solomon et al 4 edition pg 184,187 (2010) Consumer Behaviour, A th 5 thEuropean perspective, Solomon et, 4 edition pg 188 (2010) Consumer behaviour, international edition, 8 6 7edition, Engel et al (488:1995) http://www.sric-bi.com/VALS/types.shtml Strategicbusiness.com 8(http://www.strategicbusinessinsights.com/vals/ustypes.shtml) [accessed 10/11/09] Solomon, M.R., thBamossy, G., Askegaard, S., Hogg, M.K. (587:2010) Consumer Behaviour – A European Perspective, 4 Ed, FTPrentice Hall26 Solomon, M.R., Bamossy, G., Askegaard, S., Hogg, M.K. (587:2010) Consumer Behaviour – A European thPerspective, 4 Ed, FT Prentice Hall 75
    • Market Research ProcessSo far we have discussed how marketers have designed strategies focused on elements of the wheelof consumer analysis, to influence consumer buying behaviour. We have focused on market researchtechniques which have tried to analyse and influence consumers affective responses; emotions,moods feelings and evaluations, Consumers cognitive processes; their knowledge meanings andbelief and finally behavioural responses; influencing consumers over behaviours. Of course morethan one of these elements can be activated at the same time and marketers can try to influencethese multiple consumer responses.The steps in creating marketing strategies, in order to influence these elements are shown below: Measure current levels of consumer affect, cognition, behaviour Analyse consumers and markets Select and implement influence strategy Measure strategic effects Desired influence effects Evaluate for performance improvement 76
    • Methods of measuring consumers affect and cognition • Means-End Chains - Laddering Interviews • Understanding product knowledge and involvement (consequences and values) • Identification of attributes most important to consumers • Understanding situational influencesMarket ResearchReview of the marketing researchprocess27Market Research and Papa JohnsManagement Decision problem:Should Papa John’s use text messaging and other mobile applications?Research ProblemWhat are attitudes of consumers towards receiving marketing communications via mobile phone?Specific components:27 Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, RenateSmith (Blackboard, Semester A) 77
    •  What are attitudes towards using mobile phones?  What are attitudes towards Papa John’s?  What are attitudes towards receiving text messages from Papa John’s?Approach  Objective evidence and theory  Theory guides collection of data  Attitude theory  Analytical model  Research question  Refined statements of specific components of problemResearch DesignA research design is a framework for conducting a market research project. The design approachesthe necessary procedures to obtain market information that will solve the market researchproblem/s. The design basically sets out a framework for conducting the project. According toMalhotra & Birks a research design involves the following tasks: (58:2003)28  Define the information needed  Decide whether the overall design is to be exploratory, descriptive or casual.  Design the sequence of techniques of understanding/measurement  Construct and pre-test an appropriate form for data collection or questionnaire  Specify quantitative and/or qualitative sampling process and sampling size  Develop a plan of quantitative and/or qualitative data analysis.Research Designs may be broadly classified as either exploratory or conclusiveThe differences are summarised below: Exploratory ConclusiveObjectives To provide insights and understanding of the To test specific hypotheses and nature of marketing phenomena. To understand examine relationships. To measureCharacteristics  Information needed may be loosely  Information needed is defined. clearly defined  Research process is flexible,  Research processes is unstructured and may evolve formal and structured  Samples are small  Sample is large and  Data analysis can be qualitative or aims to be quantitative representative  Data analysis is quantitativeFindings/results -Can be used in their own right -can be used in their own right28 nd Marketing Research, an applied approach, 2 European edition, K. N Malhotra & F.David Birks (2003) pg 58 78
    • -may feed into conclusive research May feed into exploratory -may illuminate specific conclusive findings research -may set a context to exploratory findingsMethods Expert surveys/pilot surveys/ secondary Surveys/ secondary data/ data/qualitative interviews/ unstructured databases/ panels/structured observations/ quantitative exploratory observations/experiments multivariate methods29(63:2003) Marketing Research, an applied approach Naresh K. Malhotra & David F. Birks 30 Descriptive Research Type of conclusion research where the major objective is the description of something, usually market characteristics or functions. A descriptive research design specifies the methods for selecting the sources of information and for the collecting data from those sources. In Papa John’s case, the descriptive studies involve media consumption attitudes towards mobile phone advertising. Cross-Sectional Design A type of research design involving the collection of information from any given sample of population can be either single cross-sectional designs or multiple cross-sectional designs. In single, only one sample of respondents are drawn from target population. (Sample survey research designs) In multiple, two or more samples of respondents are used; often information from different samples is obtained at different times.29 nd Marketing Research, an applied approach, 2 European edition, K. N Malhotra & F.David Birks (2003) pg 6330 Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, RenateSmith (Blackboard, Semester A) 79
    • Longitudinal Designs A type of research design involving a fixed sample of population elements measured repeatedly. The same sample is used within the research, so providing a series of pictures that, when viewed together, show an illustration of the situation ad changes that are taking place. Conclusive-descriptive-cross-sectional The descriptive research design for Papa John’s, methods of research-quantitative surveys Classification of SurveysResearch Methods; Surveys INTERNET 3131 Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, RenateSmith (Blackboard, Semester A) 80
    • 32Method Advantages DisadvantagesTelephone Fast, good sample control, No use of physical stimuli, good response rate, limited to simple questions, moderate cost low quantity of dataIn-home Complex questions can be Low control of field force, asked, good for physical high social desirability, stimuli, good sample control, potential for interviewer bias, high quantity of data, very most expensive, some good response rate, longer samples difficult to access, interviews can be done long time to collect dataMall intercept (shopping) Complex questions can be High social desirability, asked, good physical stimuli, potential for interviewer bias, good control of moderate quantity of data, environment, good response high cost rateCAPI (Computer assisted Complex questions can be High social desirability,personal interviewing) asked, good for physical moderate quantity of data, stimuli, control of high cost environment, good response rate, low potential for interviewer biasMail No field force problems, no Limited/simple control, low interviewer bias, moderate- sample control for cold mail, high quality of data, low no control of environment, social desirability, low cost low response rate for cold mail, low speed.Mail panel (nationally No field-force problems, no Limited/simple questions,representative samples) interviewer bias, high quality not suitable for household of data, low social surveys, no control of desirability, low/moderate environment, low/moderate cost, good sample control speedElectronic-E-mail No interviewer bias, low Low sample control, no cost, low social desirability, control of environment, low high speed, contact hard-to- response rate, moderate reach respondents, large quantity of data, security sample available concernsElectronic -internet No interview bias, low cost, Low sample control, no low social desirability, high control of environment, low speed, visual appeal and response rate, moderate interactivity, personalised, quantity of data. flexible questioning, can contact hard-to-reach respondents32 nd Table 7.1 (185:2006) Basic Marketing Research, a decision making approach,2 edition, N.K Malhotra,M.Peterson 81
    • Quantitative SurveysInterviews with a large number of respondents using a predesigned questionnaire.Advantages of using questionnaires: • Interviewer bias • Social Desirability • Speed/length of interview • Sample Control • Control of Field Force • Control of environment • Response rate • Cost • Quantity of data • Use of physical stimuli • Visual appeal and interactivity • Contact hard to reach respondentsDisadvantages of using questionnaires  Respondents don’t write desired answers or simply don’t answer  Respondents may not be consciously aware of the underlying reasons of their buyer behaviour  Unwilling to expose personal information ; religious beliefs  Structured data collection databases may mean loss in validity such as responses about beliefs and feelingsQuestionnaire designNeeds to address research objectives - collect valid and reliable data to address research problemclearlyFactors that need to be considered when forming the questionnaire • Determine content of individual questions • Design questions to overcome respondent’s inability to answer • Design questions to overcome respondent’s unwillingness to answer • Decide on question structure • Determine question wording • Arrange questions in proper order • Choose Form and Layout 82
    • Despite disadvantages, the survey is still the most common primary data collection method inmarketing research.When choosing quantitative techniques, the salient factors, advantages and disadvantages will beconsidered and certain factors may mean a survey is the natural choice.33 Researching attitudes using quantitative techniquesStudies implementing quantitative research are often concerned with distinguishing ‘typical’ and‘atypical’ behaviours and attitudes amongst the population using attitude statements.There are several different scaling techniques available to researchers; scaling techniques areclassified as either comparative or noncompartive.Comparative scaling; the direct comparison of two or more objects, for example respondents maybe asked if they prefer Coke or Pepsi.In comparative scaling small differences between objects can be detected as it forces respondents tochoose between two products. Comparative scales include paired comparisons, rank or constantsum scales.Comparative scaling is easy to understand and apply. They also reduce any carryover effects thatearly judgements influence over later judgements.However comparative scaling has its limitations when it comes to analysing ordinal data. Thistechnique does not allow for generalisation, using the coke and Pepsi example, if these brands werelater being compared to RC cola a new study would have to be undertaken.However these disadvantages are overcome by the noncomparative scaling techniques.Noncomparaitve scaling; one of two types of scaling, where each stimulus object is scaledindependently of the others.For example respondents may be asked to evaluate coke on a scale of 1-7)1 not at all preferred and7 greatly preferred) this would be carried out for both Pepsi and RC cola. Non comparative scalingcan be either continuous rating or itemised rating scales. The itemised rating scales can be furtherclassified as Likert, Semantic Differential or staple scales.Noncomparatie scaling is the most widely-used scaling technique in market research.Non comparative techniques:  Continuous rating scale-where the respondent marks a point along a line running between two extreme points. An itemised scale is set out similar however the respondent is asked to circle a number between these two points. The points may also be brief descriptions rather than numbers for example.How would you rate Head & Shoulders shampoo? Place a cross at any point along the line.33 nd (181:2006) Basic Marketing Research, a decision making approach,2 edition, N.K Malhotra, M.Peterson 83
    • Poor- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -ExcellentOrPoor- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Excellent 1 10 20 30 40 50 60 70 80 90 100Or Neither good Very Very Bad nor bad GoodPoor- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Excellent 1 10 20 30 40 50 60 70 80 90 100Easy to construct, scoring can be difficult and unreliable, unless constructed using computerisedequipment. Can be easily filled out on the internet. The computer can automatically score the scalevalues increasing speed and accuracy of processing the data. Continuous scales are becomingincreasing popular and are useful for evaluating things such as TV adverts, continuously over time.Itemised Rating Scales: Semantic Differential, Stapel or LikertSemantic DifferentialUsually a 7-point scale with bipolar labels. Often used to research brands, products and companyimages. Although they are versatile they are difficult to construct.Staple scales, unipolar 10 point scale (-5 to +5) without a zero point. Used for measuring attitudesand images, easy to construct and administered via telephone, however they are often confusingand difficult to apply.Likert scales, usually presented on a degree of agreement scale, 1 (strongly disagree-5 stronglyagree) useful for measuring attitudes, easy to administer, construct and understand, however theyare often time consuming.The researcher should consider reliability, validity and practical factors when selecting scalingtechniques. Practical problems should also be considered such as the level of measurement desired;nominal, ordinal, interval or ratio as well as the level of experience the respondents have with theresearch technique, the difficulty involved in administering the scaling techniques and the context.Researchers need to appoint a sampling procedure“A good sampling design, carefully executed is a key to obtaining high quality data. Too often thisis taken for granted, and the results can be profound. ”(David Fruend, Director and manager, Market Research, Progress Energy, Inc) (320:2006) 84
    • The sampling design process:  Define population  Determine sampling frame  Select sampling technique/s  Determine sample size  Execute sampling processSelecting a sampling technique.NonProbability or probabilityNonprobability-sampling that relies on the personal judgement of the researcher. Examples includeinterviewing people on the high street, retail stores or shopping centres. This technique producesgood estimates of population characteristics, the techniques are limited. NonProbability samplingtechniques consist of convenience sampling, judgement sampling, quota sampling and snowballsampling.In probability sampling samples are selected by chance-randomly. Probability sampling techniquesconsist of simple random sampling, systematic, stratified and cluster sampling.Choosing between probability sampling and nonprobability sampling is based on the nature of theresearch, the error contributed by the sampling process relative to the non sampling error andstatistical considerations.Reference list1 Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, Renate 2 ndSmith (Blackboard, Semester A) Marketing Research, an applied approach, 2 European edition, K. N 3 ndMalhotra & F.David Birks (2003) pg 58 Marketing Research, an applied approach, 2 European edition, K. N 4Malhotra & F.David Birks (2003) pg 63 Lecture notes, Strategic model for influencing consumer behaviour, 5appropriate research methods, Renate Smith (Blackboard, Semester A) Lecture notes, Strategic model for 6influencing consumer behaviour, appropriate research methods, Renate Smith (Blackboard, Semester A) ndTable 7.1 (185:2006) Basic Marketing Research, a decision making approach,2 edition, N.K Malhotra, 7 ndM.Peterson (181:2006) Basic Marketing Research, a decision making approach,2 edition, N.K Malhotra,M.Peterson 85
    • Consumer Context- In store Behaviour Consumer Behaviour Influence strategies The model below shows how marketers can influence overt behavioursInformation about Marketing mix stimuli Influence consumers Influence consumersconsumers affects placed in the affect and cognitions overt behaviourscognitions and behaviours environment Consumer research data 34 sales, market share data Based on the information that marketers have obtained about consumers affect, cognition and behaviour relative to the product, service store or brand, various marketing mix stimuli are designed or changed and placed in the consumers environment. This stimuli includes things such as products, brands marking, packaging, advertisements, price tags, in store signs and sales vouchers. These stimuli are designed to influences consumers affect and cognition in positive ways to increase overt behaviour. Measuring this change results in feedback in the form of consumer research data as well as market share information. The process continues and marketing mix stimuli are redesigned to influence further consumers. Shopping with consumers, usage of past, present and future research techniques (Otnes, McGrath, Lowery) Observation techniques (Methods of finding shoppers behaviours; autodriving, ethnography, introspective phenomenology, phenonomenoloigical interviewing & projective techniques.) Research methods: Experiment (includes labs and field experiments) survey, interviews personal-at home or in-store panel, diaries, observation, focus groups. Research methods put into practice Pennigton (1968) Used salesmen wearing wireless microphones while completing transactions in the store. Whilst Hill (1973) transported shoppers to grocery stores, waited for them to finish shopping and then immediately interviewed them about their shopping trip. 34 Approaches to influencing overt consumer behaviour, Exhibit 10.1 Consumer behaviour and marketing strategy (2008:234) 86
    • Olshavsky (1973) Recorded complete verbal transactions that involved actual purchases ofrefrigerators and colour televisions.Grffen & Sturdivant (1973) employed consumers as ‘test’ couples who pretended to shop for mobilehomes and collected information from dealers for researchers. Houston & Stanton (1984) had tworesearchers record the travel times from neighbourhoods to different locations of a conveniencestore to develop a retail site model of a convenience store. Frenzen & Davis (1990) and Gainer &Fischer (1991) designed home shopping parties to explore buyer behaviour.The research techniques above seem rather bizarre and they don’t actual accompany consumers inthe retail settings or examine shopping behaviour from consumers perspectiveIn comparison there has been a fair amount of work conducted by anthropologists and sociologiststhat has explored aspects of market place activities.‘The vulnerable consumer’Caplovitz (1963, 73,74,79) examined how consumers coped with economic downturns and thosethat live in low-income areas who are discriminated against through unfair pricing or creditpractices.Caplovitz used a single research technique-interviewing. He interviewed in alternative market placessuch as flea markets, second hand shops and shopping parties.Prus & Frisby (1990) carried out interviews and observation techniques. They worked at craft showsin order to gain an understanding of how vendors interact and influence each other at these events.Milher (1993,4) conducted an in-depth ethnographic project, immersing himself in the lives of hisinformants. Milher doesn’t claim to have shopped with customers although he did act as aparticipant observer in the buying and selling area. His study was too broad ad limited to a small partof his analysis.Alexis et al (1968) Accompanies accompanied two subjects into stores, observing them as they madeclothing purchases. Both were given specific amounts of money to spend. Told they could shop foritems in 5 product categories. (A few logistical problems arose) people were happy to have theresearchers accompany them around the store. The research revealed that price did not predict thechoice of woman’s clothing.The observers noted that price was often the last attribute considered. Issues such as fit, colour andstyle emerged as more salient in terms of determining purchasing.Researchers said that giving the participants money did not make them behave in their usualdecision process.King (1969) examined information retrieved while shopping using tapped protocols from 4consumers who were asked to explain their choices while they shopped. The researchers wanted alltheir thoughts whilst they were shopping. Which they then created a flow diagram of choicebehaviour. King didn’t impose external constraints upon shoppers unlike Alexis et al in 1968. 87
    • Brettman (1970) wished to model shoppers decision making strategies by examining three types of ?E.g. product vs. environmental from memory whilst shopping.He conducted a study with 5 grocery shoppers accompanying them into stores over a 6-8 weekperiod, taping protocols on these trips and modelled two shoppers behaviour.Brettmens research revealed factors influencing decisions for low risk products were different fromhigh risk products and that shopping with consumers proved an excellent way of examiningcustomer shopping styles.Brettmen & Zins (1977) focused on consumer heuristics method to overcome a solution in particularwhether consumer’s heuristics stored in memory or they construct the rules they use on the spot.The researchers noted that on-store protocols appear to feature more constructive methods ifprotocols were taken when the shoppers list was being prepared outside the store.Sherry (1990) Understanding sociocultural significance of the flea market as an alternative marketingsystem. Sherry engaged in participant observation and in-directive interviewing.‘ I shopped with consumers, sold with dealers and made rounds with managers and retailers’ Sherrys‘passive-observer stance’ gave him access to aspects of the flea market that might otherwise haveremained hidden. He observed that consumers engage in three main patterns of behaviour;Searching, dickering and socialising. He noted how young mothers in their early thirties enjoyed‘catching up on gossip’ whilst finding bargains.So shopping with consumers as a means of collecting market research. There didn’t seem to bemuch difficulty recruiting consumers to be accompanied whilst shopping. Consumers were amenableto being ‘rigged’ with equipment such as microphones, tape recorders in-store and participating inlongitudinal studies.However some researchers suspected protocols generated in the store may not be trulyrepresentative of the consumer decision making process and may have shopped differently.Therefore all data collected natural-istic retail contexts are not necessarily ‘natural’ thus shoppingwith consumers is not best for studying ‘real-world’ consumer behaviour.Advantages of shopping with consumersGreat for the interpretative researcher to record accurately and thoroughly informant drivenexperiences in the retail setting.Another advantage is the benefit of proximity. Gives the researcher the ability to questioninformants about shopping behaviour that they have witnessed. As consumers may simply forgetdetails about a shopping trip that they may deem unimportant.Passive observation cannot obtain the customer itinerary with any validity therefore for researchersinterested in capturing detailed accounts of consumers shopping strategies should prove to be morethorough and credible than other secured methods.Lowery et al (1995) the role of values in consumers shopping tasks 88
    • The informants establish agendas for all shopping trips as it enables the researcher to recordinformation driven experiences, future interaction specifically when couples with in-depthinterviews.It was noted that shopper who agreed to these studies tended to be interested in both shopping andhuman behaviour. As it helped them define their own activities and rationales and motives. Incontrast researchers who employ only passive observation in stores probably will have no furtherinteractions with focal shoppers.Therefore the stationary method cannot explore longitudinal changes. Likewise the researchersemploying a series of interviews will not witness real-world shopping experiences that can providethem with relevant and current topics for future discussions.Building trusting relationships with informantsLaura doesn’t like dad’s new girlfriend, bought her a sweater then poured out purchase information.Consumers often invited researchers into their homes and asked them to watch their children whilstrunning errands.In conclusion there is a great deal of potential when shopping with consumer s-can record accurately driven experiences with consumers-close proximityYields a detailed understanding of informant-driven agendasPotential for future interactions.DisadvantagesEffectiveness as a stand-alone method-best elicited in a structured phenomenological interviewrather than the retail environment itself.Costs-need financial incentivesThe shopper may find the shopping styles of some consumers exhaustingNeed a large amount of patience and timeDo researchers have the time, money and temperament to employ this research method. 3535 Otnes C, McGrath, M A, Lowrey, T M 1995 Shopping with ConsumersUsage as Past, Present and Future Research Technique, Journal of Retailing and Consumer ServicesVol 2, No 2. pp. 97 110, 1995 89
    • Store related affect and cognition Store Image What consumers think about a particular store. Including perceptions and attitudes based on sensations of store related stimuli received through the 5 senses. Previous store image studies have focused on merchandise, service, clientele, physical facilities, promotion and convenience. Store image research involves consumers explaining their perceptions and attitudes about particular store dimensions. These dimensions are typically broken down into a number of store attributes. For example merchandise might be studied in terms of quality, assortment, fashion, guarantees and pricing. Developing store image is an important and common goal for retailers. Store images are regularly changed to adapt to changes in consumers shopping habits in competitive position. It is important the general store image remains fairly consistent despite small store changes. This involves coordinating the various aspects of store image to appeal to specific market segments. Store Atmosphere There is much debate as to whether store atmosphere involves primarily affect in the form of in- store emotional states that consumers may not be fully conscious when shopping. The model below (Peter & Olson) illustrates that environmental stimuli does affect consumers’ emotional states which in turn affect approach or avoidance behaviours. (Approach behaviour-moving toward environments and stimuli) (Avoidance behaviours-moving away from various environments and stimuli) 36Environmental Stimuli Approach or avoidance responses Emotional states Pleasure Arousal Dominance Four types of approach avoidance behaviours related to retail stores: Physical approach (store patronage intentions) exploratory (in-store search, and exposure to a broad or narrow range of offerings) communication (interactions with sales personnel and floor staff) Performance and satisfaction (frequency of repeat shopping and reinforcement of time and money expenditures in the store) 36 Exhibit 19.2 A model of store atmosphere effects, Consumer behaviour and marketing strategies, pg (472:2008) 90
    • In-Store StimuliWithin most environments an n endless number of stimuli can influence affect, cognition andbehaviour. Retail environments are no exception. Store has various stimuli influencing theconsumer: Other shoppers, salespeople, lighting, noises, smalls, temperature, shelf-space anddisplays, signs, colours and products.“Retailers have absolute control over the response of their customers” Joseph Weishar (author ofDesign for effective selling space. Weishar believes shoppers move in predictable patterns, responding predictably to light and colourstimuli. “The right store can turn a browser into a customer… if you can get the customers to seewhat you want them to see, they will probably buy what you want them to sell them”Signs and price informationMcKinnon et al conducted an experiment investigating the use of signs within sore environments.Studying consumer behaviour and price information displayed on signs. The study revealed thatprice influences sales more than sign type doesAt regular prices, the sign did not increase sales, but when an item is on sale a price sign will increasesalesA benefit sign (displaying product benefits only)increased sales at both regular and sale prices, but ata greater rate when the item is on sale.Benefit signs were more effective than a price-only sign at both regular and sale price.The research suggests that signs affect consumers’ cognition (they processed different signinformation) which increased behaviour (sales increased with the use of certain types of signs)Colour -look at colour article (library)Joseph Bellizzi et al studied the effects of colour on consumer perceptions. An interesting findingwas that consumers were drawn to warm colours (red & yellow) but felt that warm colourenvironments were generally unpleasant. Cool colours (blue & green) did not draw consumers butwere rated as pleasant.Shelf Space & DisplaysResearch generally supports the view that the more shelf space and in-store displays increase sales.Comparisons made between a regular shelf space and an expanded display (regular shelf space plusspecial end of aisle product arrangement) although the increases varied between products, theexpanded shelf’s consistently increased sales and outperformed the regular shelved products.MusicConsiderable research supports the view that background music played in retail environmentsinfluences attitudes and behaviour. Ronald Milliman examined the effects of music tempo onsupermarket shopping behaviour. Three variations were tested; no music, slow music and fastmusic. The pace of in-store behaviour was slowest under the slow tempo treatment and fastest 91
    • under the faster tempo. The slow music lead to higher sales as consumers spent more time withinthe store and therefore more money. On average sales were 38.2% greater under the slow tempocondition than under the faster tempo condition. However when consumers were questioned aboutthe music, they seemed to have little awareness of the music that had been playing in the store.ScentThe smell of particular products such as leather goods, flowers, fresh bread, chocolate and coffeecan attract consumers to come into contact and purchase these products. Ambient scent caninfluence shopper behaviour.A study by Eric Spangenberg found that lavender, ginger, spearmint and orange scents had a greaterinfluence on shopping behaviour than no scent at all. Using distinctive smells within stores coulddifferentiate them from their competitors and increase shopping time and therefore sales.Marketing ImplicationsAs research has shown, marketing stimuli can have a great impact on consumer affect, cognitive andbehaviour. Although these almost subconscious influences seem to increase market sales it doesseem unethical playing slower music and dispersing nice smells into store in order to keep customersshopping for longer. Although much more research needs to be conducted in this area to reallysupport these findings, if research indicates a direct relation between, for instance, slow music paceresulting in higher pace, marketers need to implement this within their marketing strategies and in-store designs.Reference List1 Approaches to influencing overt consumer behaviour, Exhibit 10.1 Consumer behaviour and marketing 2strategy (2008:234) Otnes C, McGrath, M A, Lowrey, T M 1995 Shopping with Consumers Usage as Past,Present and Future Research Technique, Journal of Retailing and Consumer Services Vol 2, No 2. pp. 97 110,1995 92
    • Customer Satisfaction and LoyaltyWhat makes customers loyal?Why does it matter?More complex than you might assume and difficult to measure • People are very different • What we say is not what we mean • Lack of depth of understanding • Need to link overt behavior to affect and cognitive componentsHas led to a new ‘branch’ of marketing: ‘relationship marketing’ • The cost of acquiring a new customer is 5-7 times greater than retaining a current one (better to keep them) • Satisfied (loyal) customers tell 5 other people about their good treatment (positive W.O.M) • Dissatisfied customers tell 9 other people (negative W.O.M) 93
    • The recovery ParadoxThe initially disappointed customer who has experienced good service recovery might be even moreloyal than they were before the initial failureMarketing Strategies to keep customers loyalAs previously said, it is generally less expensive to keep hold of present customers than to attractnew ones. Therefore it is important that marketers include customer loyalty strategies within theirbusinesses. A loyalty card appears in the consumers’ environment to aid positive affect and understandingwhich is said to lead to increased behaviour. Ultimately, a loyalty card is a way of rewarding asatisfied consumer- the more you shop, the more you get back. According to (Consumer loyalty toretailers, 2002) “The UK has 35 million loyalty cards in use on a regular basis. Most consumers havemore than one loyalty card making for multiple usage.” 37Many supermarket chains have adopted the idea of loyalty cards. The most famous example isTesco’s Clubcard.37 Consumer loyalty to retailers (2002) does consumer Loyalty to Retailers have a Future? [online] Availablefrom: http://www.cm4p.com/art004.html [Accessed Tuesday 9th February 2010] 94
    • Introduced 14 years ago, now “has an estimated 16 million members, equating thethree-quarters of all Tesco shoppers in the UK each week.” (Tesco uses loyalty scheme todrive growth: Warc, 2009) 38Tesco’s have successfully exploited this information gathered by the loyalty clubcards andhave carefully used it to customise different types of personalised mailings to theircustomers. The company has over 4million variations for each mailing.Research suggests that loyalty programmes properly designed and targeted can serve 5goals. ‘Keep customers from defecting; win greater share of wallet; prompt customers tomake additional purchases; yield insights into customer behaviour; and help turn a profit’(2010:73) 39Other Brands which have jumped on the loyalty card bandwagon are Boots. “The biggest pharmacy in the county wanted to build a bridge between their brand attribute trust and understanding. They felt that their store environment needed to deliver the same trust that consumers get from the brand and to do this required the development of more active customer loyalty” (Shopping, the purest pleasure of all with a Boots Advantage card: 1998) 40 . The Advantage Card was consequently launched after a successful pre-test in Norwich andPlymouth. Boots wanted to; 1. Increase profitability per customer by increasing basket size/frequency of visit. 2. Provide an overt manifestation of the ‘look good, feel good’ strategy – an inspirational, female focus. 3. Afford more informed decision making. 4. Enable BTC to leverage incremental revenue on database exploitation via:  analysis;  promotions;  Mailings.  Grow shareholder value in the long term38 Tesco uses Loyalty Scheme to drive growth (2009) [online] Available from:http://www.warc.com/ArticleCenter/Default.asp?CType=N&NID=WORDSEARCH25779&Tab=A [Accessed thTuesday 9 February 2010]39 Consumer behaviour, a European perspective (2010:73) M.R Solomon, G. Bamossy, S. Askegaard, M.K Hogg40 Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’s the pioneers that get scalped[online] Available from:http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A th[Accessed Wednesday 10 February 2010] 95
    • “Ownership of an Advantage Card meant that store visits had increased, as well as the tendency topurchase from Boots.” “Consumer research was conducted which showed that consumers would stopto think whether they could purchase the same product from Boots to get their points in return” 41However researchers have warned of the potential dangers of designing schemes whichreward loyalty; ‘reward volume over profit; give too much away in terms of profit margin;and promise more than can be delivered’ (2010:74)Databases and customer profiling is a good idea in terms of keeping customers loyalalthough brands and businesses need to be careful not to annoy their customers and sendthem too much marketing promotion via email or post. This annoyance will cease loyaltyand loose customers.Relationship Marketing“To establish maintain and enhance relationships with customers and other partners at aprofit so that the objectives of the parties involved are met. This is achieved by mutualexchange and fulfilment of promises.” (Gronroos (1997:327) 42The relationship ladder 4341 Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’s the pioneers that get scalped[online] Available from:http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A [Accessed thWednesday 10 February 2010]42 Grönroos, C. (1997), "Value-driven relational marketing: from products to resources and competencies",Journal of Marketing Management, No.13, pp.407-1943 Relationship Marketing, Malcolm Taft, lecture notes, 12/04/2010 (blackboard, university of Lincoln) 96
    • The relationship ladder illustrates stages of the relationship between customers andbusinesses/brands/products. As customers use a particular business, they form a relationship with it,after the ‘meeting’ stage; hopefully customers will repeat business and move up stages in the ladder.At ‘engagement’ and ‘marriage’ stage the relationship is at its peak. If brands/businesses/productsfail to keep the relationship going or have or customers have gone elsewhere, leading to the‘divorce’ stage of the ladder.Critical Incident TechniqueThere has been a substantial growth in services in the last two decades; healthcare, legal,amusement & recreation, accounting, engineering, business, automotive and hospitality serviceshave all grown in double the rate compared to other industries. The service economy will continue togrow in western society as more of our income is spent on services rather than manufactured goods.Critical incident Technique (CIT) allows marketers to investigate and gain a greater understanding ofsituations where quality fails within services. I.e. where a critical incident occurs. Among the datacollection techniques which can be used are personal interviews, focus group interviews and director participatory observation.The main advantages of CIT are that it generates detailed descriptions of critical incidents of thoseinterviewed. The customer has the opportunity to describe the situation in their own words. Theaccounts given describe the micro processes in the relationship between the consumer and theproducer.Although the method has its limitations, the interviewer can misrepresent, filter or simply miss-understand the respondent. To ensure this does not happen it is essential the interviewer remainsfully aware with the service being studied. There is also the danger of the interviewers pre-understanding opinions which may steer the collection of data to become bias.In order to gain as much validity as possible the interviewer must describe the accounts asunambiguous as possible. It is important that the researcher asks specific questions about incidentsthat the interviewee remembers well and that the questions are followed up further to ensure theinterviewee has given a comprehensive and detailed account of the incident in question. Theaccount should be written down directly and read back to the interviewee to check that it is correctand complete.The interviewer may use a simple model of CIT to use as a sort of guide for the interview.Data collection and Analytical model example (case study) 44In 1989 four students made a survey of Critical incidents in an airline. Only negative critical incidentswere studied. The sample consisted of 320 business passengers and 80 employees. The respondents44 Edvardsson, B., (1992) Service Breakdowns: A study of Critical Incidents in an Airline, Journal ofService Industry Management, Vol 3 No 4 97
    • were selected at random at 4 different airports. The data was collected over several different timesover the course of a month. The respondents were asked to give information on two criticalincidents. Cause-course-result. The advantage of interviewing both employees and customers gaveresearchers in depth insights into the differences in their attitudes to ordinary problems in theservice. The respondents were interviewed in detail about their critical incidents they hadexperienced. The critical incidents were broken down into main categories, for example airtransport, and also sub-categories occurring at the airport or on board the aircraft. The subcategories were; delayed flight, cancelation, delayed luggage, over booking and lack of information.CauseThe results showed that the most common critical incidents occurred within air transport. Theconditions causing the CI were delays (114) cancellation (112) delayed or damaged luggage (26)overbooking (14) and other sources (8)CourseIn most cases the business passengers said they were passive, and did not try to do anything to try toresolve the problem which arose from the critical incident. They appeared to have confidence in theemployees.ResultsThe results showed that in 80% of cases the customers did not change their attitudes and therelationship with the air company. In 16% of cases relationships were weakened. In 4% of cases itactually strengthened the relationship.After interviewing both customers and airline staff the results showed a considerable difference inthe ways business passengers viewed the service and how staff perceived the service. The studyrevealed that staff was not aware of the importance of clear and correct information when criticalincidents occur. The customer needs to know why there is a problem and what the likely outcome is.It would allow the customer with the opportunity to influence their own situation. The resultsrevealed that the airline should train its own staff especially with communication techniques.EvaluationThe study shows that Critical Incident Technique is a useful research tool providing interesting andmeaningful information about customers, as well as useful in trying to involve employees with thequality of their work. The difficulty with CIT is that it involves a lot of classifying and interpretationof the incidents which as previously mentioned can affect validity. In this case CIT has proved auseful method of identifying and analysing defects in quality.However according to the article, most companies marketing strategies are primarily concerned withattracting new customers. And only recently ahs the attention been directed at looking after existingcustomers. 98
    • Reference List1 Consumer loyalty to retailers (2002) does consumer Loyalty to Retailers have a Future? [online] Available 2from: http://www.cm4p.com/art004.html [Accessed Tuesday 9th February 2010] Tesco uses Loyalty Schemeto drive growth (2009) [online] Available from:http://www.warc.com/ArticleCenter/Default.asp?CType=N&NID=WORDSEARCH25779&Tab=A [Accessed th 3Tuesday 9 February 2010] Consumer behaviour, a European perspective (2010:73) M.R Solomon, G. 4Bamossy, S. Askegaard, M.K Hogg Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’sthe pioneers that get scalped [online] Available from:http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A [Accessed th 5Wednesday 10 February 2010] Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’sthe pioneers that get scalped [online] Available from:http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A [Accessed th 6Wednesday 10 February 2010] Grönroos, C. (1997), "Value-driven relational marketing: from products toresources and competencies", Journal of Marketing Management, No.13, pp.407-197 Relationship Marketing, Malcolm Taft, lecture notes, 12/04/2010 (blackboard, university of Lincoln)8 Edvardsson, B., (1992) Service Breakdowns: A study of Critical Incidents in an Airline, Journal of ServiceIndustry Management, Vol 3 No 4 99
    • Critical Evaluation of Research MethodsWhat we have done, Research Techniques:  Personal Introspection  Measuring Means-End Chains  Laddering Interviews  Attitude measurement – Multi Attribute Model  VALS type Survey  Questionnaires  Critical Incident Technique  ObservationWhen are the techniques appropriate?This will depend on the nature of research problem. However in this case we are looking atconsumers affect, cognition, environment and behaviour. The researcher is interested in variousfactors related to these elements such as attitudes and intentions. For this type of researchqualitative techniques are most useful.Qualitative techniques allow researchers to study the behaviour of individuals in all the complexityof their real-life situations. Popular Qualitative research techniques include focus groups, interviewsand observation techniques. In this portfolio I have evaluated several methods of research in orderto gain in-depth information about consumers buying behaviour.For instance, personal introspection; where researchers shop with consumers with as littleinterference as possible and then will often interview them straight after their shopping experience.This technique is great because it gives the researcher a real proximity to the consumer who willnotice purchase behaviour more typically than the consumer, which the researcher can then askquestions about later. In a lot of the previous cases where introspection has been used, consumershave often felt open and chatted away to researchers which gave them an insightful view of theinfluences on the consumer. Similar observation techniques are useful to marketers although theydo not allow any interference from the researcher in any way, they simply record what they observe.This highly flexible method allows researchers to record a wide variety of consumer phenomena.Other techniques analysed were the use of laddering interviews and means end chains. Means endchains illustrate the consumers’ individual associations between product attributes, theirconsequences and their personal values. Means –end chain results can become the basis of MECCA’smodel which can lead to the advertisement or the focus of the campaign.One of the most influential models within marketing; Fishbines Multi Attribute model, which focuseson consumers beliefs about multiple product or brand attributes. The Multi Attribute model is auseful tool in marketing for investigating attitude formation and predicting attitudes. 100
    • Critical Incident technique is primarily used for understanding where quality fails within services. Thetechnique involves interviewing respondents in order to reveal any critical incidents they haveexperienced, and what affect this has had on their attitudes and beliefs towards the company/brandin question. This technique is useful because consumers give detailed accounts of their experiences.CIT can reveal issues companies may not have known about previously.VALS identifies the psychological motivations that can predict consumer differences. Dividing USadults into 8 different kinds of mindsets. Psychographics analysis allows marketers to understandconsumer lifestyles of core customers, allowing them to communicate more effectively with peoplein that particular segment.Many large companies such as Microsoft and Facebook sell consumer information to marketers sothat advertisers can personailse adverts to particular types of people.Traditional quantitative research such as questionnaires are popular a marketing research method.Most consumers are familiar with questionnaires, the researcher has control in the specificquestions they want to ask, it is a relatively low cost technique and technology has certainly made iteasier to reach larger samples and ensure high quantities of data.In general these techniques encourage participants to expand on their responses, unlike surveys;their responses can open up new topic areas which marketers may initially not have thought of.Participants can give researchers a detailed picture about particular behaviours and feelings aboutthese actions.What are the limitations?Personal IntrospectionAlthough consumers give detailed information about their shopping experiences, the reasons for theparticular behaviours and attitudes and values cannot be obtained without further probing. It can bea particular lengthy written process.Means End Chains & LadderingWhen constructing laddering interviews, the consumer may struggle to understand why they behavein particular ways, the process can often become frustrating. Consumers minds don’t work one way,there are hundreds of conscious and unconscious factors affecting attitudes and beliefs, the fact isthat the consumer is simply not aware of many of these. The researcher has to be especially skilledin order to carry out these interviews otherwise the process can be simply a waste of time andresources.Multi-attribute modelConsumers’ evaluations of salient beliefs are not necessarily fixed over time and vary acrossdifferent situations. In order to keep up to date with consumers attitudes and beliefs research mustbe regular. The Multi-attribute model is simply a guide for devising strategies. 101
    • Critical incident techniqueCIT involves a lot of classifying and interpretation of the incidents and the interviewer may miss-interpret the respondent. To ensure this does not happen it is essential the interviewer remains fullyaware with the service being studied. There is also the danger of the interviewers pre-understandingopinions, which may steer the collection of data to become bias.ObservationThis method is unstructured and generally not used for recording behaviour as it occurs, theunstructured format can lead to observation bias, Also the data and the researchers interpretationare highly subjective therefore limiting validity.QuestionnairesRespondents often don’t write down desired answers or sometimes no answers at all. Respondentsmay be unaware of underlying reasons for their buyer behaviour, often, if a question is too difficultthe respondent will simply ignore the question. People are often unwilling to provide personalinformation such as religious beliefs. Because of the way structured data bases are set out, certainphrases or words may be lost during the data collection, and therefore limit validity about beliefsand feelings.Usually these types of studies are very time consuming and therefore unless time, staff and budget isendless, it means that only small samples are studied. Because so few people are studied it is notpossible to generalise results to that of the population, numbers are reported instead of percentagesin these cases. It is difficult to make systematic comparisons if people give widely differingresponses. The success of these techniques are dependent on the skills of the researcher,particularly in means end chains, laddering interviews and focus groups.How do the techniques fit into framework for research? The above techniques, particularly qualitative methods such as means-end chain and laddering focus on the strengths and evaluation of salient beliefs. The multi attribute model that follows on from these techniques is very useful for marketers to explore consumer behaviour and develop marketing strategies. Observation techniques are good for studying shopper’s behaviour and through the use of both quantitative and qualitative research can discover various patterns to behaviour. Means end chains and laddering interviews can support the cognitive 102
    • affects that affect the behaviour, these techniques can also help understand environmentalinfluences from subjective norms and various marketing stimuli which again affect overt behaviour.How do I choose a research method?In order to gain a deep understanding of consumer behaviour, researchers need to choose a varietyof both quantitative and qualitative techniques. If possible, a mixture of the above techniques willprovide the marketer with an understanding of consumers affect, cognition and behaviour and theinfluences the environment has on these elements. Resources need to be considered and a budgethas to be set. Time limits will also depend on which research methods are selected. After weighingup the advantages and disadvantages for both, management should allocate an experiencedresearch team to carry out the research methods effectively. 103
    • ConclusionThis portfolio has examined various aspects of consumer behaviour in relation to the wheel ofconsumer analysis. Covering elements of consumers’ choice cognition and affection; looking atconsumers decision making product knowledge, involvement and attitudes and intentions. I havestudied consumers motivations and personality and considered behaviour within the retail space,and the various marketing stimuli within that environment. The portfolio applies theory andtechniques to real life marketing strategies and there implications. Throughout this collection ofwork there has been a significant emphasis on consumer research methods, involving the differenttypes of qualitative and quantitative techniques and the variety of methods available to theresearcher. This study has only just scratched the surface of the complexity of the consumer buyerbehaviour process and the influences on it. The wheel of consumer research is a very usefulframework when investigating consumer behaviour and developing marketing strategies. 104
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    •  Sampling for qualitative research using quantitative methods. 1. Measuring GPs attitudes towards discussing smoking with patients Coleman T, Williams M and Wilson A. Family Practice 1996; 13: 526-530. http://fampra.oxfordjournals.org/cgi/reprint/13/6/526.pdf [Accessed 12/05/2010]Online & Broadcast references  http://www.marketingmagazine.co.uk/news/938268/Brands-seek-clarity-TV-product- placement-U-turn product placement By Fiona Ramsay, marketingmagazine.co.uk, 15 September 2009, 08:35am [Accessed 7/10/2009]  Brand republic (library & learning resources, e-library) http://www.brandrepublic.com/News/950142/LOrEal-cashes-Cole-factor/ [Accessed 3/11/2009]  Supermarkets Superprofits (April2010) itv1 http://www.itv.com/news/tonight/episodes/supermarketssuperprofits/  Quantitative & Qualitative techniques http://www.learnhigher.ac.uk/analysethis/main/qualitative1.html [Accessed 10/05/10] 106