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Ppt chapter 4

  1. 1. Promotional Strategy MKT4230 Perspectives on Consumer Behavior Patricia Knowles, Ph.D. Associate Professor Clemson University 1
  2. 2. 2 Promotional Strategy MKT4230 2 Consumer Behavior A marketer’s success in influencing purchase behavior depends on how well he or she understands consumer behavior. One must know the specific needs consumers are trying to satisfy and how those needs translate into purchase criteria. For many products and services, purchase decisions are the result of a long, detailed process that may include an extensive information search, brand comparisons and evaluations, and so on. Other purchases are more incidental. Textbook Page 110 Consumer Behavior It is the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services.
  3. 3. 3 Promotional Strategy MKT4230 3 Consumer Decision Making Here are the stages in the consumer decision-making process and the relevant internal psychological processes that relate to each: Textbook Page 111 / Figure 4 - 1 Decision Stage Psychological Process Problem Recognition Motivation Information Search Perception Alternative Evaluation Attitude Formation Purchase Decision Integration Post-Purchase Evaluation Learning
  4. 4. 4 Promotional Strategy MKT4230 4 Marketing Strategy and Analysis This various sources of problem recognition: Textbook Pages 112 - 113 Out of Stock Dissatisfaction New Needs or Wants Related Products, Purchases Market-Induced Recognition New Products
  5. 5. 5 Promotional Strategy MKT4230 5 Ad Highlighting Consumer Dissatisfaction This visual presents an ad by NicoDerm in which they offer to help those who want to quit smoking. An ad can be used to highlight consumer dissatisfaction. In this case, the ad targets consumers who are dissatisfied with the current state of affairs (their smoking habit) and want to quit. Textbook Page 112 / Exhibit 4 - 2
  6. 6. 6 Promotional Strategy MKT4230 6 Marketer-Induced Problem Recognition This visual presents an ad by Splat, which encourages consumers to rebel by changing their hair color. Marketer’s actions can encourage consumers to be unhappy with their current state or situation. Textbook Page 112 / Exhibit 4 - 3 Ads for personal hygiene products, such as mouthwash and deodorant, are designed to create insecurities that consumers can supposedly resolve through the use of the marketer’s products. Marketers also take advantage of consumers’ tendency toward novelty-seeking behavior, which leads them to try new products and different brands.
  7. 7. 7 Promotional Strategy MKT4230 7 Maslow’s Hierarchy of Needs This slide presents Maslow’s Hierarchy of Needs, which shows the reasons underlying consumer purchase behavior. Textbook Pages 113 – 114 / Exhibit 4 - 2 Maslow’s Hierarchy of Needs theory suggests five basic levels of human needs, arranged in a hierarchy based on their importance. Social needs (sense of belonging, love) Safety needs (security, protection) Physiological needs (hunger, thirst) Esteem needs (self-esteem, recognition, status) Self- actualization needs (self-development and realization) Marketers devote considerable attention to examining motives, which are factors that compel a consumer to take a particular action.
  8. 8. 8 Promotional Strategy MKT4230 8 To What Need is CHPA Appealing? This ad by the Consumer Healthcare Products Association is designed to appeal to security needs. Marketers appeal to different market segments. Textbook Page 114 / Figure 4 - 5 This ad was obviously designed to appeal to mothers or to families with young children. Would it be as effective with a young male audience?
  9. 9. 9 Promotional Strategy MKT4230 9 Freudian Psychoanalytic Approach This visual represents the psychoanalytic theory pioneered by Sigmund Freud. According to Sigmund Freud’s theory, the underlying motives for human behavior are complex and unclear to both the casual observer and to persons themselves. Motivation research attempts to root out deep motives by probing the subconscious mind. Textbook Page 115 Strong inhibitions Symbolic meanings Surrogate behaviors Complex and unclear motives Subconscious Mind
  10. 10. 10 Promotional Strategy MKT4230 10 Probing the Minds of Consumers Here are some of the methodologies used to gain insight into the underlying causes of consumer behavior. Textbook Pages 115 - 116 • Consumers prefer large cars because they believe such cars protect them from the “jungle” of everyday living. • A man buys a convertible as a substitute mistress. • Women like to bake cakes because they feel like they are giving birth to a baby. • When people shower, their sins go down the drain with the soap as they rinse. In-depth interviews Association tests Focus groups Projective techniques
  11. 11. 11 Promotional Strategy MKT4230 11 Sexy Ads Get Noticed This is an ad for Joe’s Jeans. It is an example of the use of sexual appeals and symbols in advertising. Although problematic, psychoanalytic theory has furthered our understanding of consumer behavior. This ad by Joe’s Jeans uses both sex and symbolism to drive consumer purchase decisions. Textbook Pages 116 - 117 / Exhibit 4 - 6
  12. 12. 12 Promotional Strategy MKT4230 12 Information Search This visual shows the various sources consumers use in the information search stage of the decision process. Textbook Pages 117 - 118
  13. 13. 13 Promotional Strategy MKT4230 13 Perceptions Perception influences advertising. Knowledge about how consumers acquire and use information from external sources is important to marketers in formulating communication strategies. Marketers want to know: • How consumers sense external information • How they select and use sources of information • How information is interpreted and given meaning Textbook Page 118
  14. 14. 14 Promotional Strategy MKT4230 14 The Perception Process Perception is the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. It is an individual process and depends on internal factors, such as a person’s beliefs, experiences, needs, moods, and expectations. The process is also influenced by the characteristics of a stimulus, such as its size, color, and intensity, and the context in which it is seen or heard. Textbook Page 119 Organize Interpret Receive Select
  15. 15. This is an example of a creative tactic used to get the attention of the consumer. 15 Promotional Strategy MKT4230 15 Gaining Attention with Color Textbook Pages 118 / Exhibit 4 - 7 WE CAN SUM IT UP IN TWO WORDS: EXCEPTIONAL, EXTRAORDINARY, FANTASTIC, FRESH TASTE. ADMITTEDLY, WE’RE BAD AT SUMMATION. There just aren’t enough adjectives to describe the straight-from-the-orange taste of Tropicana Pure Premium.® Because the perceptual process is influenced by the characteristics of a stimulus, companies often use color in their ads to make a product stand out, thus grabbing the attention of the consumer. Tropicana uses color to focus attention on orange juice.
  16. 16. 16 Promotional Strategy MKT4230 16 What is Sensation? It is important for marketers to understand consumers’ physiological reactions to marketing stimuli. For example, the visual elements of an ad or package design must attract consumers’ favorable attention. This is the definition of a “sensation:” Textbook Page 118 Marketers sometimes increase the level of sensory input so their messages get noticed. A common way to do this is with the use of scent strips. Immediate, direct response of the senses Taste Smell Sight Touch Hearing
  17. 17. 17 Promotional Strategy MKT4230 17 Appealing to the Senses Here are some of the tactics marketers use to grab the attention of consumers: • Bloomingdale’s New York store sprayed Donna Karan’s new perfume, DKNY, onto the sidewalks in front of the store. • Draft Foods promoted DiGiorno Garlic Bread Pizza with scent strip cards in stores. • Avon uses scent strips for perfumes and bubble bath products in their catalogs. Textbook Page 118 Perfume on Sidewalks Scented Cards Product Samples
  18. 18. 18 Promotional Strategy MKT4230 18 The Selective Perception Process The selective perception process occurs at the exposure, attention, comprehension, or retention state of perception. Textbook Page 118 Consumers do not remember all the information they see, hear, or read, even after paying attention to and comprehending it. Selective Exposure Selective Attention Selective Comprehension Selective Retention Consumers choose whether or not to make themselves available to information. For instance, when changing television channels. The consumer chooses to focus on certain stimuli while excluding others. Interpreting information on the basis of attitudes, beliefs, motives, and experiences.
  19. 19. 19 Promotional Strategy MKT4230 19 Selective Attention to Advertising This ad reminds consumers of how advertising responds to their needs. People focus attention on some things and ignore others. Textbook Pages 118 / Exhibit 4 - 8 How much more attentive are you to ads for personal computers, tires, or stereos when you are in the market for one?
  20. 20. 20 Promotional Strategy MKT4230 20 Subliminal Perception Advertisers know consumers use selective perception to filter out irrelevant or unwanted advertising messages, so they sometimes use hidden, subliminal audio messages or visual cues to influence consumers. Textbook Page 120 Perceiving Stimuli Below the Conscious Threshold of Perception
  21. 21. 21 Promotional Strategy MKT4230 21 Evaluation of Alternatives “Evoked set” is merely a subset of all the brands or products that the consumer thinks can solve a consumption problem or satisfy a need. The goal of most advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumer’s evoked set and considered during alternative evaluation. Advertisers use top of mind awareness and reminder advertising to help get their brands into the evoked set. Textbook Pages 120 - 122 All Available Brands Brand A Brand B Brand C Brand D Brand E Brand F Brand G Brand H Brand I Brand J Brand K Brand L Brand M Brand N Brand O Evoked Set of Brands Brand B Brand E Brand I Brand M Brand F
  22. 22. 22 Promotional Strategy MKT4230 22 Branding and Packaging Decisions The visual shows the type of criteria used by consumers to evaluate purchase alternatives. Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Textbook Page 123 Price Warranty Service Style Appearance Image Objective Subjective Evaluative Criteria Subjective Based on abstract attributes that are intangible and more subjective in nature, such as style, appearance, or product image. Subjective Based on abstract attributes that are intangible and more subjective in nature, such as style, appearance, or product image.
  23. 23. 23 Promotional Strategy MKT4230 23 Different Perspectives: Marketer’s View The visuals show how the manufacturer of a riding lawn mower might view the product in terms of functional attributes. Many marketers view their products or services as a bundle of attributes. They understand that consumers evaluate products differently, and often think terms of the consequences or outcomes associated with using the product or service. Textbook Page 123 Enough power? Traction okay? Too expensive?
  24. 24. 24 Promotional Strategy MKT4230 24 Pricing Decisions This visual shows how a consumer’s view of products and services differs from that of the marketer. The bubbles contain different thoughts consumers might have when evaluating a riding lawn mower. Consumer thought processes differ from those of marketers. Consumers tend to think of products or services in terms of consequences… specific events or outcomes that consumers experience when they purchase and/or consume a product or service. Textbook Page 123 Functional Will it cut the taller grass? How close can I get to shrubs? Will the neighbors be impressed? Will it be as fun to use later this summer? Will I have more time for golf? Will it pull that trailer I saw at the store? Psychological
  25. 25. 25 Promotional Strategy MKT4230 25 Relating Price to Ads and Promotions This visual shows how consumer attitudes can be directed toward a variety of objects and individuals. Textbook Page 123 Individuals Products Brands Companies OrganizationsRetailers Media Ads Attitudes Toward
  26. 26. 26 Promotional Strategy MKT4230 26 Multi-Attribute Attitude Model This is the analytical side of marketing research. According to the model on this slide, consumers have beliefs about specific brand attributes, and they attach different levels of importance to these attributes. To predict attitudes, one must know how much importance consumers attach to each of these attributes (Ei). However, not all of these beliefs are activated in forming an attitude. Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude are called salient beliefs. Saliency varies among different market segments, over time, and across different consumption situations. Textbook Page 124
  27. 27. 27 Promotional Strategy MKT4230 27 Measuring Components of Model How beliefs and the importance attached to a product attribute contribute to a consumer’s attitude toward the product; hence, the likelihood that they would purchase it. Textbook Page 124 • Beliefs – How likely is it that Nike running shoes provide good cushioning? Very likely _ _ _ _ _ _ _ _ _ _ Very unlikely • Importance – Good cushioning in a running shoe is: Very important _ _ _ _ _ _ _ _ _ _ Not at all important • Attitude Toward the Object – How do you feel about purchasing Nike running shoes? Very good _ _ _ _ _ _ _ _ _ _ Very bad
  28. 28. 28 Promotional Strategy MKT4230 28 Ways to Change Attitudes These are ways in which marketers can influence consumer attitudes. By understanding the beliefs that underlie consumers’ evaluations of a brand, and the importance of various attributes or consequences, a marketer is better able to develop communication strategies for creating, changing, or reinforcing brand attitudes. The multi-attribute attitude model shown on a previous slide provides insights into how marketers can influence consumer attitudes, including: • Increasing or changing the strength or belief rating of a brand on a particular attribute. For instance, AT&T has the fewest dropped calls. • Changing consumers’ perceptions of the importance or value of an attribute. For instance, demonstrating the safety of a Mercedes Benz. • Adding a new attribute to the attitude formation process. For instance, Ragu’s organically grown tomato sauce. • Changing perceptions of beliefs ratings for a competing brand. For instance, Hyundai’s ads show that their cars are reliable. Textbook Page 124
  29. 29. 29 Promotional Strategy MKT4230 29 Adding Attributes Changes Attitudes This is an example of how a company adds a new attribute to a product as a way of influencing consumer attitudes. Textbook Pages 124 - 125 In this ad, Michelin stresses higher gas mileage, as well as safety, in order to give consumers an additional attribute on which to evaluate the brand.
  30. 30. 30 Promotional Strategy MKT4230 30 The Decision Process These are the last three steps of the consumer decision-making process, which includes integration processes and decision rules, the actual purchase decision, and post-purchase evaluation. Textbook Pages 125 - 127 Pre-Evaluation Integration Processes Heuristics Affect Referral Decision Rule Decision Purchase Intention Brand Loyalty Post-Evaluation Satisfaction Dissatisfaction Cognitive Dissonance
  31. 31. 31 Promotional Strategy MKT4230 31 Consumer Learning Learning is the process by which consumers acquire consumption-related knowledge and experience that they apply to future behavior. The two basic approaches to learning are: • The behavioral approach… emphasizes the role of external, environmental stimuli in causing behavior, and minimizes the significance of internal psychological processes. • The cognitive learning theory… assumes that humans are logical beings who make the choices that make the most sense to them. Textbook Page 129
  32. 32. 32 Promotional Strategy MKT4230 32 How Consumers Learn Learning occurs in one of three ways: Textbook Pages 130 - 131 Thinking Based on intellectual evaluation and problem solving Conditioning Based on conditioning through association or reinforcement or punishment Modeling Based on emulating (copying) of behavior of others
  33. 33. 33 Promotional Strategy MKT4230 33 Classical Conditioning Process (Association) This diagram shows how the classical conditioning process might occur for Lollipop Bling. Textbook Pages 130 / Figure 4 - 7 Learning through classical conditioning plays an important role in marketing. Buyers can be conditioned to form favorable impressions and images of various brands through this associative learning process. Unconditioned Stimulus (Lollipop) Unconditioned Response (Sweetness) Conditioned Stimulus (Mariah’s Lollipop Bling) Conditioned Stimulus (Sweetness)
  34. 34. 34 Promotional Strategy MKT4230 34 Lollipop Bling Uses Classical Conditioning Mariah Carey’s new perfume ad associates the perfume with the look and sweetness of lollipops. Textbook Pages 130 / Exhibit 4 - 15 Identify the target market for this ad. Best guess is that the target market is pre-teen girls, or mothers and grandmothers of teens who would like them to be sweet and cute.
  35. 35. 35 Promotional Strategy MKT4230 35 Instrumental Conditioning Process Instrumental Conditioning process is when the consumer is an active participant. His or her response is instrumental in getting a positive reinforcement (reward) or avoiding negative reinforcement (punishment). Instrumental conditioning is dependent on reinforcement. Two concepts relevant to marketers are schedules of reinforcement and shaping. • Schedules of reinforcement can be continuous or intermittent. Learning occurs rapidly with continuous reinforcement, but the behavior is likely to cease when the reinforcement stops. Learning occurs more slowly with intermittent reinforcement, but the behavior lasts longer. • Shaping is the reinforcement of successive acts that lead to a desired behavior pattern. Textbook Pages 130 - 132 Behavior (Consumer uses product or service) Positive or negative consequences occur from use of product, leading to reward or punishment Increase or decrease in probability of repeat behavior (purchase)
  36. 36. 36 Promotional Strategy MKT4230 36 Kyocera Focuses on Negative Outcomes A negative consequence can influence consumer behavior. Textbook Pages 131 / Exhibit 4 - 16
  37. 37. 37 Promotional Strategy MKT4230 37 Shaping This is the definition of “shaping”: Textbook Page 132 Shaping is the reinforcement of successive acts that lead to a desired behavior pattern.
  38. 38. 38 Promotional Strategy MKT4230 38 The Shaping Process In a promotional context, shaping procedures are often used as part of the introductory program for new products. Textbook Page 132 / Figure 4 - 9
  39. 39. 39 Promotional Strategy MKT4230 39 Cognitive Learning Theory Cognitive learning theory focuses on the more complex mental processes that underlie consumer behavior, and it has dominated the field of consumer behavior in recent years. Because consumer behavior typically involves choices and decision making, the cognitive perspective has particular appeal to marketers. Textbook Pages 132 - 133 / Figure 4 - 10 Insight Goal Achievement Goal Purposive Behavior
  40. 40. 40 Promotional Strategy MKT4230 40 External Influences on Consumer Behavior Consumers do not make purchase decisions in isolation. Any number of external factors may influence consumer decision making, including: Textbook Pages 133 - 137 / Figure 4 - 11 • Culture: Learned meanings, values, norms, and customs shared by a society. It is the broadest and most abstract influence on buyer behavior. • Subcultures: Smaller groups within cultures whose beliefs, values, norms, and patterns of behavior set them apart from the larger cultural mainstream. Subcultures can be based on age, geography, religion, and ethnicity. • Social Class: Homogenous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviors can be grouped. • Reference Groups: A group whose presumed perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions. It is one of the primary factors influencing our purchase decisions. • Situational Determinants: Specific situation in which consumers make a purchase decision or plan to use a product or service. Situational determinates include the usage situation, the purchase situation, and the communications situation.
  41. 41. 41 Promotional Strategy MKT4230 41 Subculture Ads The three largest subcultures in the United States are African-Americans, Hispanics, and Asians. These subcultures are important to marketers because of their size, growth, purchasing power, and distinct purchasing patterns. There are also three broad levels of social classes in the U.S.: • Upper class (14%) • Middle class (70%) • Lower class (16 %) Textbook Pages 134 - 135 / Figure 4 - 17 Consumers within each social class often have similar values, lifestyles, and buying behavior.
  42. 42. 42 Promotional Strategy MKT4230 42 Reference Groups A group whose perspectives or values are being used as the basis for one’s… • Judgments • Opinions • Actions Types of reference groups: • Associative • Aspirational • Disassociative Textbook Pages 135 - 136
  43. 43. 43 Promotional Strategy MKT4230 43 Situational Determinants The specific situation in which consumers plan to use the product directly affects their perceptions, preferences, and purchasing behaviors. • Usage situation: The circumstance in which the product will be used (Private versus public use, for example). • Purchase situation: The environment at the time of purchase. Time constraints, store environment, and other factors may all have an impact. • Communications situation: The condition in which an advertising exposure occurs. For example, listening to the radio with friends. Textbook Pages 136 - 137
  44. 44. 44 Promotional Strategy MKT4230 44 Alternative Approaches Consumer researchers complement psychological approaches to understanding consumer behavior with perspectives driven from scientific disciplines. These disciplines include economics, sociology, anthropology, philosophy, semiotics, neuroscience, and history. Textbook Pages 137 - 138 Complimentary Approaches Participant observation Individual interviews Ethnographies New Methodologies Cultural influences Social influences Environmental influences New Insights