Buyer Behaviour & Market Research Portfolio


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Buyer Behaviour & Market Research Portfolio

  1. 1. BuyerBehaviour &Market ResearchPortfolioName: Charlotte Louise SmithCode: MKT2013MTutor: Alison CheesemanUnit Coordinator: Renate SmithHand in Date: 14/05/2010 1
  2. 2. 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
  3. 3. 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
  4. 4. 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, [Accessed on 27April 2010] 4
  5. 5. 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
  6. 6. 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 superior quality (Toyota), greater convenience ( 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
  7. 7. 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
  8. 8. 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
  9. 9. (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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16.  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
  17. 17. -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
  18. 18. 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
  19. 19. 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
  20. 20. 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 Research on packaging; Introduction on packaging design 20
  21. 21. 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
  22. 22. 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
  23. 23. – 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
  24. 24. 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
  25. 25. 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
  26. 26. (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
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. 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
  35. 35.  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
  36. 36. – 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
  37. 37. 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
  38. 38. 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
  39. 39. 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
  40. 40. – 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
  41. 41. 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
  42. 42. 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
  43. 43. 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
  44. 44. 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 44
  45. 45. 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- product placement (near corrie pic) By Fiona Ramsay,, 15September 2009, 08:35am accessed [7/10/2009] 45
  46. 46. 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 2 Consumer choice 9- turn product placement (near corrie pic) By Fiona Ramsay,, 15 September 2009, 08:35am accessed [7/10/2009] 46
  47. 47. 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
  48. 48. 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
  49. 49. 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
  50. 50. 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
  51. 51. 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) Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (143:2008) 51
  52. 52. 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
  53. 53. 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. ‘ 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