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Mkt3050 – consumer behavior week 2 march 26, 2012
 

Mkt3050 – consumer behavior week 2 march 26, 2012

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  • Welcome to Week 2 of MKT 3050 – Consumer Behavior. This week, our objective is to evaluate the reasons why people buy. We’ll review theories about motivation and examine how consumers learn and how we can reach them. We’ll also talk about why these topics are important.
  • We talked last week about why people buy. Consumers engage in a consumption process that’s all about getting value. Value is made up of basic benefits (the TV itself) plus the ‘feel’ benefits (a 60” TV means I’m successful, I’ll be more popular with my family). We talked too, that value incorporates what you give up to get these benefits.
  • So why do people seek value? Because they are motivated to get their needs met. Motivations are the drivers behind actions…. We are motivated to either maintain what we have – the status quo – I want to buy another pair of my favorite jeans OR to improve (I want to get a better car).
  • This is the Consumer Value Framework. We’ll cover these elements over the next few weeks, starting with how people learn and remember. At the center is the desire for value – let’s talk a little more about motivation – a key driver for this framework.
  • There are several theories about motivation… one of the most common is Maslow’s hierarchy of human development… this theory says that we are first motivated to get our physiological needs met – we need food, clothing and shelter…. We aren’t motivated to get other needs met until this first, basic level is satisfied. Once we have food and shelter, then we become concerned about safety and security. When we feel safe, we’re motivated to have relationships that help us feel like we are loved and belong. Then we are motivated to think about our self esteem…. And finally, if we’re fortunate, we become motivated to reach self-actualization – all our fundamental needs are met and we can plan a vacation to Europe, or a trip to a museum, or take an art class. You’ll notice the value scale to the right of this ladder – it starts with utiltarian value and moves up to hedonic value.
  • This Utilitarian vs Hedonic value scale is a more basic theory of motivation. It states that consumers are motivated based on purpose or pleasure.
  • Take a look at these images… would the china in the upper left serve as utilitarian (purpose) – or pleasure? Wouldn’t it be both??.... Plates for the purpose of eating – fine china for pleasure… And toothpaste?.. Yes, purchasing this has a utilitarian motive. How about scotch tape? … yes, this is utilitarian. What about the ring with diamonds?.... Likely a hedonic purchase, motivated to get pleasure. And the fishing boat? … this too, might be both – utilitarian if you are the owner – maybe hedonic if you are a passenger being take out to deep waters to catch the big fish. And the candy bar? This is largely hedonic – for pleasure – but how is Snickers advertising it’s chocolate bar? So this simple theory ends up giving us some muddy results.
  • So a more inclusive theory about motivation deals with low vs high involvement. The level of involvement – mental and emotional – affects behavior. Involvement is based on how important the decision is to you. If it’s a low involvement decision it tends to be quicker – you have few alternatives to consider – and importantly, there’s not much risk of making a wrong choice. In contrast, a high involvement decision takes longer to make – you have more alternatives to consider and you place a high level of importance on making the right choice. We’ll have a discussion board about this theory after the lecture.
  • So how do consumers get involved? Well, they can get involved with the product itself – some people REALLY like Starbucks coffee. Others get involved with the shopping experience – treasure hunting for the best deals motivates many consumers to get up at 3 a.m the day after Thanksgiving. Involvement with a situation tends to be temporary – choosing a hospital to deliver a baby gets consumers highly involved – but only until the baby arrives. Consumers get involved with emotional benefits of the product – ‘every Kiss begins with “K” advertising for K jewelers promises emotional connection. And finally, consumers can have a long-term relationship with the product – they are loyal – you’ll see this level of involvement with some car buyers – sticking with Cadillacs or BMWs – some people will only buy a certain brand of mayonnaise or cereal.
  • You may have noticed in the examples I just covered that emotion plays a BIG role in motivation and involvement… emotions can drive a decision as shown in the graph on the left == for example, if a parent is concerned about their teenagers safety while driving, then they may buy a car like a Volvo or Ford – something highly rated for value. – OR a decision will be made to deliver emotions – for example, I’m going to join Lifetime Fitness because I need to be in better shape so I can feel better about myself so I can feel more attractive. Note that emotions are longer-lasting than moods!
  • Thinking back about our consumer behavior timeline, here’s where marketers borrow from psychology == trying to measure emotions. We can use galvonometers (lie detectors) to try to measure emotions…. Or even facial recognition patterns – but these measurements tend to be intrusive. Watch this video about a tv show that focused on measuring emotions. (:34)
  • Marketers also ask consumers to self report their emotions…. Asking them to rate the extent of their feelings using these adjectives and a positive / negative scale… .but this measurement is problematic – can you feel both ashamed AND confident??
  • So this led to the development of a different scale – anchored by a positive / negative on each side. Still, this relies on consumers to self-report – and sometimes we won’t be honest if we feel we’ll be judged on our responses… How do you feel about Crest toothpaste? – this scale isn’t likely to get very useful results.
  • So what’s next? Well if emotions lead to motivation and involvement – then as marketers, we want to tap into emotions so consumers will buy our product. How can we do that? We need to understand how consumers learn so we can deliver information that they’ll understand – and information that tells them about the value of our product.
  • Learning starts with awareness – we become aware through our 5 senses – sight, hearing, touch, taste, feel – this is called ‘sensory memory’ – it tends to be short term. Once we become aware, then we begin to perceive and comprehend or understand what we’ve noticed. Understanding reflects how we interpret the information – do we recognize what we notice? And is it similar or different from what we already know? And understanding also reflects how we organize information – this understanding results in a reaction ….
  • Let’s talk a bit more about how we organize information. Our brains are like a computer – we have lots of files where we store information… we organize our files based on a system that makes sense to us. Each time we become aware of new information, and perceive it, we try to find something similar in our files that is similar to this new piece of information – this is our workbench memory, where we label the new information. We will sometimes flip through our files looking for associations to this new information… this is our long-term memory. Marketers can help consumers remember by making messaging consistent.
  • For example, we can use repetition to build associations for consumers. We can tap into 2 or more senses – visual and hearing for example. We can show relationships between new and existing information – if you like Special K, then try Kroger brand. And we can ‘chunk’ information for consumers – talking about the cost of the car, the safety of the car, the features of the car – to help them remember.
  • Here are examples of advertising that was effective at building associations for consumers… and as a result, developed memorable brands. Mikey: 30 Maytag: 30 For the Life commercial – the tag line, ‘he likes it, Hey Mikey” – combined with the visual of the little boy enjoying the cereal creating an association of good taste. For the Maytag commercial, the lonely repairman let consumers know the Maytag equipment didn’t need repairs very often – it was dependable. Notice that both messages required some level of engagement for consumers to ‘get the point.’
  • Improving long term memory can also be achieved by tapping into current associations – when asked about fast food, most consumers name McDonald’s – note that these ‘gold standards’ will vary based on your audience. For some, ice cream may be more associated with Haagan Daz or Baskin Robbins.
  • We can also improve memory by tapping into episodic memories – showing families around the Thanksgiving table, or at the beach – will evoke feelings that marketers may want to have associated with their product. In this example, Stetson focuses on playing cowboy, along with the stereotype of cowboys as masculine – letting consumer elaborate through visuals and through memories – “I liked pretending to be a cowboy, cowboys are masculine – if I use Stetson cologne, I’ll be more masculine.” -- now this thinking process isn’t that deliberate for most consumers… it happens in seconds and many times without conscious thought – but the association of Stetson as masculine has been created – and will be remembered.
  • We’ve talked about how to improve memory… but how do we improve comprehension – or the understanding of information? We need to consider 3 elements: the characteristics of the message – the characteristics of the receiver (the consumers) – and the environment in which the message occurs.
  • First message characteristics – this includes graphic elements – the intensity of colors, the colors themselves, the size and type of font we use (in print ads), whether we use numbers and the overall spacing within the ad or commercial.
  • Look at this packaging and assess it’s message characteristics. What does white convey? Did you pick up on the “Fat Free” label. Does this ‘message’ communicate good taste to you?
  • Message placement is also important to helping consumers understand…. Placing 3 hair care ads back-to-back is less likely to encourage understanding than having different ads – in the first example, we see shampoo, shampoo, shampoo… it’s tough to see the brand name. In the second example, the hair ad stands out more – we see detergent and a car… we’re likely to differentiate L’Oreal from the other items.
  • The figure/ground principle puts the message in a context that helps consumers make associations… do you see that these are camouflage pants?
  • Finally, we can improve understanding by having a likeable, attractive, trustworthy source deliver the message.
  • The second aspect of improving understanding deals with the message receiver – the consumer. We need to take into account the intelligence of our audience – how much do they know about our product? Is this a high or low involvement product? What do they expect from this type of product. Are they a visual or verbal target – This information will help us develop a message our audience will understand.
  • The third factor affecting consumer understanding is the environment in which the message is delivered… playing advertising in a busy airport is less likely to be noticed than in a quiet doctor’s office. If we want to reach our audience in an airport, we may want to consider delivering it on the airplane (a captive audience), or through the in-flight magazine.
  • We want to link memories with emotions – because emotion leads to motivation and involvement (purchase!). We want to present information that evokes emotion – put people into a good mood, help them remember happy times, and link our ideas with favorable associations.
  • We can also link memory with emotions by linking with self-consciousness – is the ad at right showing a beautiful woman? Or one that needs beautifying? The ad causes readers to stop, look, think/ remember, and feel – And we can try to link the product with specific emotions. Take a look at this commercial as an example of linking products with emotions. 2:12
  • We want to make sure our message gets through to consumers! Remember, the first step in learning is generating awareness. So we need to consider the source, the message, the way we deliver it or the medium – like print or tv – and the receiver or consumer. We can increase the appeal of a message – helping boost awareness – using elements like sex appeal or romance, humor – remember, a consumer in a good mood is more likely to react favorably to the message AND remember it!. We can also use fear to generate awareness – think of some of the anti-smoking commercials on air today.
  • When you create a message, you can either present the conclusion first….. Or allow consumers to reach their own conclusion. Building to the conclusion is more persuasive when you have a high involvement purchase… for example, showing the jeep offroad, on a city street, on a beach – demonstrates to the consumer the vehicle is versatile. You also need to consider whether you’ll make comparisons to competitive products…. Think about where important information should be placed… if you’ll have a simple or complex message… and if you use a source, who you’ll use to create positive associations to your product.

Mkt3050 – consumer behavior week 2 march 26, 2012 Mkt3050 – consumer behavior week 2 march 26, 2012 Presentation Transcript

  • MKT3050 – Consumer Behavior Week 2 – March 26, 2012
  • Objectives
      • At the end of this week, you’ll be able to evaluate the reasons why people buy
      • We’ll address the following topics:
      • Why do people buy?
      • Theories about motivation
      • How do consumers learn?
      • How do we reach consumers?
    • And you’ll learn why these topics are important to the marketing process.
  • Why do people buy?
    • To get value ….
      • Value = basic benefits + “feel” benefits
  • Why do people buy?
    • Because they are motivated to address their needs….
      • Motivations – driving forces behind actions
        • People are motivated to either:
          • Maintain the status quo (favorite pair of jeans)
          • OR
          • Improve (better car)
    • What are motivations??
    Consumer Value Framework (CVF)
  • Theories about Motivation
    • One of the most common theories: Maslow’s hierarchy of human development
  • Theories about Motivation
    • A more basic theory:
    • Purpose Pleasure
    Utilitarian Hedonic
  • Theories about Motivation
    • A more inclusive theory is based on involvement. The level of involvement -- both mental and emotional – affects behavior. Involvement is based on the relevance or importance of the decision.
    • Low importance High importance
    • Quicker decision Longer-term decision
    • Consider few alternatives More alternatives
    • Not much risk of making the Value is strongly ‘wrong’ choice connected to
    • making the ‘right’ choice
    Low involvement High involvement
  • How do consumers get involved?
    • With the product – a personal attachment leads to involvement
    • With the shopping experience – seeking the best deals
    • With the situation – involvement is temporary / situational
    • With the emotional benefit(s) of the product – intensity
    • With the long-term relationship to the product – the continuing interest in the product and a desire to remain involved with it through purchase and consumption
  • Motivation / Involvement is linked to emotion
    • Consumers react to their feelings
    • Which leads to behaviors
    • To seek value
    • NOTE: emotions are different than moods which are temporary and less intense
    Behaviors will be pursued if they Bring value that creates Desirable emotions
  • Can we measure emotions?
    • Autonomic measures (visceral)
      • GSR / lie detector
      • Facial recognition patterns
      • Intrusive!
      • http://www.youtube.com/watch?v=jXytQOkNaq4
  • Can we measure emotions?
    • Self-reported, based on recall
      • PANAS – positive affect – negative affect scale
  • Can we measure emotions?
    • Self-reported, based on recall
      • PAD – pleasure – arousal - dominance
  • What’s Next?
    • If emotions lead to motivation and involvement, how do we tap into emotions so consumers behave positively (they purchase!) toward our product ??
    • We need to understand how consumers learn so we can:
        • Deliver information they understand
        • Deliver information that communicates appropriately about the benefits (value) of our product
  • Learning
    • Learning starts with:
      • 1) Awareness
          • We are exposed to information through 5 senses
            • This is called our ‘sensory memory’ – it has unlimited capacity but is short term
          • It captures our attention
    • Which leads to….
      • 2) Perceptions or comprehension
          • How we interpret information
            • Easily recognized
            • And either similar (accommodating) or different (contrasting)
          • How we organize it (remember it / memory)
    • That creates a…..
      • 3) Reaction
  • Learning
    • Which leads to….
      • 2) Perceptions or comprehension
          • How we interpret information
            • Easily recognized
            • And either similar (accommodating) or different (contrasting)
          • How we organize it (remember it / memory)
    • Memory:
      • Workbench memory – where we encode information for future use. This is short term, limited capacity, and affected by our level of involvement
      • Long-term memory – where we scan for information. This memory has unlimited capacity and includes an associative network.
        • We can help consumers remember by making messages consistent
  • How do we improve workbench memory?
    • Memory:
      • Workbench memory – where we encode information for future use. This is short term, limited capacity, and affected by our level of involvement
    • Make Associations!
      • Repetition
      • Dual coding – use 2 different senses with the memory
      • Meaningful encoding – create relationships between new and existing information
      • Chunking – grouping information into meaningful bundles
  • http://www.youtube.com/watch?v=aXFkREnrWUY http://www.youtube.com/watch?v=vYEXzx-TINc&feature=fvwp&NR=1
  • How do improve long-term memory?
    • Memory:
      • Long-term memory – where we scan for information. This memory has unlimited capacity and includes an associative network.
        • We can help consumers remember by making messages consistent
    • Tap into consumers’ associations
    • Identify ‘gold standards’
  • How do improve long-term memory? Episodic Memory, Social Schemata, and Elaboration IMAGE COURTESY OF THE ADVERTISING ARCHIVES Episodic memory may elicit fond childhood memories of playing cowboy. Stetson is relying on the social schema or stereotype of the cowboy to provide meaning. Elaboration allows the consumer to picture himself using the cologne resulting in better recall.
  • How do we improve comprehension?
  • How do we improve comprehension? Consider Physical Characteristics of the Message Intensity Color Font Numbers Spacing ©JONATHAN LARSEN/DIADEM IMAGES/ALAMY
  • How do we improve comprehension? Consider Simplicity/Complexity Simple phrases such as “fat free” often communicate more clearly than detailed information. ©JAMES F. QUINN/CHICAGO TRIBUNE
  • How do we improve comprehension? Consider Congruent or Incongruent Message Sequences? PR NEWSWIRE IMAGE COURTESY OF THE ADVERTISING ARCHIVES
  • How do we improve comprehension?
  • How do we improve comprehension? Consider Message Source Factors Likeability Expertise Trustworthiness Attractiveness COURTESY OF GEICO INSURANCE, INC.
  • How do we improve comprehension? Consider Message Receiver Characteristics
    • Intelligence/Ability
    • Prior Knowledge
    • Involvement
    • Familiarity/Habituation – (frame of reference – what do they expect)
    • Expectations
    • Physical Limits
    • Brain Dominance – right brain (visual) vs left brain (verbal)
  • How do we improve comprehension? Consider Environmental Characteristics
    • Information Intensity
      • How much detail
    • Framing
      • What is the context
    • Timing –
      • How much time consumer has available to process a message
      • The point in time when message is received
  • How can we link memory to emotions? ( since emotion leads to motivation and involvement )…
    • Present information in a way that evokes mild levels of emotions
      • 1) induce a good mood!
      • 2) evoke nostalgia
      • 3) tie into pre-existing schemas OR make it more favorable
  • How can we link memory to emotions? ( since emotion leads to motivation and involvement )…
    • Present information in a way that evokes mild levels of emotions
      • 4) link message with self-conscious emotions
      • 5) boost emotional / product links
        • Emotional response / product handling by one person affects consumer response.
    http://www.youtube.com/watch?v=7ZdIjnkDpMo
  • How can we make sure our messages get through to consumers?
    • First need to understand how communication works!
      • Starts with a ‘source’….
      • Who delivers a message….
      • Through some medium…
      • To a receiver
    • So how can we make a message appealing (persuasive)?
      • Sex appeal / romance
      • Humor – ‘good mood’ !
      • Fear
  • How can we make sure our messages get through to consumers?
    • Building a message to be persuasive
      • Consider order of the message
        • You can either present the conclusion first or allow consumers to reach their own conclusion
          • Allowing consumers to reach their own conclusion is persuasive with high involvement purchases
      • Decide if you are going to use comparative ads
      • Decide where important information should be placed
      • Determine if message will be simple or complex
      • Consider your source – their credibility, attractiveness, likeability, meaningfulness to the product