2.sit i nf. bb2


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Situational Influences and the effect of Individual Perception on Buyer Behaviour

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  • So to summarise, we will discuss:
    the 4 types of situation influence;
    how they are classified into categories;
    and importantly, how this is reflected in the marketing strategy.
  • Being located in the correct retail precinct is most important. A bank would never consider locating in a low-rental shopping precinct. In turn, other stores try to be located near reputable stores.
    Up-market clothing stores rely on extremely stylish interior fittings, appropriate background music and smartly dressed and well-trained shop assistants.
    Coffee stores and bakeries rely on aromas to create the right atmosphere for customers.
    Shopping centres use cool temperatures to entice customers to shop longer on hot summer days, while night clubs have been known to use warm temperatures to encourage clients to consume more drinks.
    Stores such as supermarkets influence consumers by providing an extended range of products and in turn, consumers then expect an exhaustive range of brands, sizes, flavour varieties, etc. (See page 40.)
  • Social surroundings deal primarily with other persons present who could have an impact on the individual consumer’s behaviour. This can be a positive or negative influence: for example, consumers shopping for golf equipment or motor bikes would feel more comfortable when shopping with like-minded people.
    Queues can be positive, e.g. night club, or negative e.g. grocery shopping.
    Shopping is now an alternative entertainment on weekends, for example young adolescents ‘go shopping’ to meet friends. Celebrities such as footballers are given encouragement to visit certain stores and bars.
    Some products need to be consumed privately, e.g. mouth wash. Hence a new product, mouth freshener gum, has provided an opportunity for public mouth freshener use.
  • Task definition reflects the purpose or reason for engaging in the consumption behaviour. The task may reflect the different user roles anticipated by the individual. For example, someone shopping for glassware for a wedding present is in different situation than if they were shopping for the same product for personal use.
    A family computer may need to be capable of several tasks by a range of users (See page 47.)
  • (See page 49.)
  • Many situational influences are known to marketers and they use this information as a basis of market segmentation and in the targeting of advertising.
    Positioning strategies can be used to associate certain products with certain situations: thus the situation can recall a given product—such as Coke when at the beach and having fun.
    (See page 50.)
  • (See page 51-52)
  • 2.sit i nf. bb2

    1. 1. Buyer Behaviour Situational Influences and Perception Dr Brian Monger Copyright February 2014. This Power Point program and the associated documents remain the intellectual property and the copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These notes may be used only for personal study associated with in the above referenced course and not in any education or training program. Persons and/or corporations wishing to use these notes for any other purpose should contact MAANZ for written permission.
    2. 2. MAANZ International • MAANZ International, is a Not for Profit, internet based professional and educational institute which has operated for over 25 years. • MAANZ International offers Professional Memberships; • Marketing Courses (Formal and Short) • And Marketing Publications • www.marketing.org.au Marketing In Black and White 2
    3. 3. Dr. Brian Monger • Brian Monger is the CEO of MAANZ International and a Professional marketer and consultant with over 40 years experience. • He is highly active on social media – including Linked In, where he owns, manages and moderates groups with about 1 million members Marketing In Black and White 3
    4. 4. Situational Influences in Buyer Choice • The purchase decision and the consumption process always occur in the context of a specific situation. • Therefore, before examining the decision making process in any depth it is important to develop an understanding of situations. 4
    5. 5. Situational Influences • Marketing managers should view marketing activities designed to affect and influence a buyer in light of the situations that buyer faces. • A buyer situation is a set of factors outside of, and removed from, the individual buyer, as well as being removed from the characteristics or attributes of the product. 5
    6. 6. Continuums of Influences 6
    7. 7. Situational Influences • Types of situational influence • Nature of situational influence • Dimensions of the situation • Physical • Social • Time (temporal) • Task definition • Antecedent • Ritual Situations 7
    8. 8. Physical Surroundings • For the purpose of helping to explain buyer behaviour, situations have been classified into a scheme of five objectively measured variables. • Physical surroundings include geographical and institutional location, decor, sound, aromas, lighting, weather and displays of merchandise or other material surrounding the product. 8
    9. 9. Examples of Physical Surrounds • Store location • Interior decor • Music • Smell/aromas • Temperature (air-conditioning or heating) • Choice provided (by product category or across the categories) 9
    10. 10. Examples of Physical Surrounds • Store location • Interior decor • Music • Smell/aromas • Temperature (air-conditioning or heating) • Choice provided (by product category or across the categories) 10
    11. 11. Social Surroundings • The concept of social surroundings relates to the presence of other people who could have an impact on the individual buyer's behaviour. • Our actions are frequently influenced, if not altogether determined, by those around us. 11
    12. 12. Examples of Social Surroundings • Types of customers in the store • Queues and crowding • Whether the consumer is likely to be known by others/recognised • Whether there are high-profile people/celebrities shopping at that store • Whether the product will be consumed privately or in the presence of others 12
    13. 13. Temporal perspectives • Temporal perspectives deal with the effect of time on buyer behaviour. This dimension of a situation may be specified in units ranging from time of day to seasons of the year. Time may also be measured relative to some past or future event. • This includes concepts such as time since last purchase, time since or until meals or payday, and time constraints imposed by commitments. 13
    14. 14. Examples of Temporal Influences • Whether the product is seasonal • Whether the product is urgently required (snack between lectures) • Time available for shopping limited/excess (the product may be an excuse for shopping) • How long the previous product lasted or was expected to last 14
    15. 15. Task Definition • Task definition reflects the purpose or reason for engaging in the consumption behaviour. The task may reflect different buyer and user roles anticipated by the individual. For example, a person shopping for glassware for a wedding present is in a different situation than he or she would be if the glassware were for personal use. 15
    16. 16. Examples of Task Definition • Is the product utilitarian or used as a status symbol? • Is it a gift or for oneself? • Must the product be long-lasting/tough? (e.g. an everyday watch) or decorative? (e.g. a dress watch) • Is the product intended for several uses? (e.g. a family computer for study and internet access) • Note: Many of these definitions exist on a continuum and/or they may not be exclusively one or the other 16
    17. 17. Antecedent states • Antecedent states are features of the individual that are not lasting or relatively enduring characteristics. They are momentary moods or conditions. Momentary moods are such things as temporary states of depression or high excitement, which all people experience. Momentary conditions are such things as being tired, ill, having a great deal of money (or none at all) and so forth. 17
    18. 18. Ritual Situations • A ritual situation can be described as a set of interrelated behaviours that occur in a structured format, which have symbolic meaning, and that occur in response to socially-defined occasions • Important to marketers as they define consumption, e.g. anniversaries, seasonal gifts 18
    19. 19. Direct Impact • Situational influences may have a very direct impact of their own, but they also interact with product and individual characteristics to influence behaviour. • In some cases, the situation will have no influence, because the individual’s characteristics or choices are so intense that they override everything else. • But the situation is always potentially important and therefore is of concern to marketing managers. 19
    20. 20. Situational Influences and Marketing Strategy • Developing a situational influence matrix • Positioning the product based on situation • Segmenting the market based on usage situation • alone • in combination with other segmentation variable • person/situation segmentation 20
    21. 21. Situational Influence Matrix 21
    22. 22. Usage Situations and Product Positioning 22
    23. 23. Other Situation Types • Communication situation • Purchase situation • Usage situation • Disposal situation 23
    24. 24. The Communication Situation • The situation in which buyers receive information has an impact on their behaviour. • We all know that the degree to which we see and listen to marketing communications is determined by whether we are alone or in a group, in a good mood or a bad one, in a hurry or not, and so on. 24
    25. 25. The Purchase Situation • As we have already seen, the purchase situation can also affect product selection. • A buyer-for example, a student trying to make a purchase between classes-has a shortage of time, this can affect the store chosen, the number of brands considered, and the price the buyer is willing to pay. 25
    26. 26. Usage Situation Examples • Is the product used in conjunction with other people? • Is the product used in conjunction with other products? • Is the product used only occasionally or a lot? • Are other similar (alternative) products also available to the user at the same time? • Does use require a high level of skills/learning? • Is the product used many times before disposal? • Has the product been used before. • Does the product require additional preparation? • Does the product require regular complex maintenance 26
    27. 27. Disposal Situation • How will the old product be disposed of? • Consider that it is not only the physical disposal of the old Product that needs to be considered. • The old product may be linked to other products or processes. • The old product may have significant learning and experience factors that will need to be changed. 27
    28. 28. Situation and Classification of Products • Situation and the type of product interact. • Situational influences will vary with different product types and vice versa 28
    29. 29. High Clarity Low Clarity Low Specific High Specific Self-Confidence Self-Confidence Mental effeort during Mental Effort prior Shopping via to Shopping via Brand Comparisons Information Seeking Low Magnitude Low Ego Involvement Low Physical Shopping Effort High Magnitude High Ego Involvement High Physical Shopping Effort Convenience Goods Preference Goods Shopping Goods Specialty Goods 29
    30. 30. Perception
    31. 31. What is Perception? Perception is “how we see the world around us.” “Perception is the process by which an individual selects, organises and interprets stimuli into a meaningful and coherent picture of the world.” Schiffman et al 2001, p. 148 “Perception is a process through which individuals are exposed to information, attend to the information, and comprehend the information” J. C. Mowen 1995, p. 73 31
    32. 32. The Customer as Perceiver • Perception – The process by which an individual selects, organises and interprets information received from the environment • Sensation – attending to an object/event with one of five senses • Organisation – categorising by matching sensed stimulus with similar object in memory, e.g. colour • Interpretation – attaching meaning to stimulus, making judgements as to value and liking, e.g. bitter taste 32
    33. 33. Individual Differences in Perception Two people may be exposed to the same stimuli under apparently the same conditions, but they may • Select • Organise and • Interpret these stimuli in quite different ways, depending on their own needs, values and expectations 33
    34. 34. We Perceive The Environment as Follows: Us The outside world: external stimuli 34
    35. 35. Perception SENSATION (EXPOSURE) - occurs when a stimulus comes within our reach. (sensory receptors). May be random or deliberate. – Sensory Receptors: eyes, ears, nose, mouth, skin etc. 35
    36. 36. Perception • Sensitivity to stimuli varies by: • the quality of the individual’s sensory receptors • the amount or the intensity of the stimuli • the interest in the stimuli • its ability to catch attention 36
    37. 37. The Way We Perceive Things Is Related To: • Personality • Culture • Upbringing (socialisation) • Economic factors • Needs and wants 37
    38. 38. Perception •Perception is not a function of sensory input alone, but is the result of 2 different kinds of input and conditions:- –Physical stimuli - e.g. sight, smell, sound etc. –Inherent predispositions - experience, expectations, motives & learning 38
    39. 39. Information Processing Stages • Exposure – Target customer is in proximity of message when delivered • Attention – Target customer allocates cognitive processing capacity • Comprehension – Target customer interprets the message 39
    40. 40. Information Processing Stages (cont.) • Acceptance – Does the target customer believe, agree with, or is s/he persuaded by message, or do they disagree and dismiss it? • Retention – Target customer stores the advertisement and message in memory so can be accessed when needed. 40
    41. 41. Factors That Shape Perception • Stimulus characteristics • Sensory characteristics: • Information content • Context • Customer characteristics 41
    42. 42. Perceptual Interpretation The assignment of meaning to sensations consists of: • both a cognitive and affective (emotional) component • is individual and personal • is based on what we expect to see • stimuli is often ambiguous, may be weak due to interference • the narrower our experience the more limited our interpretation 42
    43. 43. Perceptual Interpretation • Distorting Influences  Physical Appearances  Stereotypes  Irrelevant Cues  First Impression - Tend to be lasting.  Jumping to Conclusions –  Halo Effect (Stimulus Generalisation) - Brand name associations tend to link a number of different products. True of famous brands. 43
    44. 44. Perceptual Interpretation Cognitive interpretation • process whereby stimuli are placed in known categories of meaning – Lexical or semantic meaning – Semiotic meaning - symbols – Psychological meaning • Affective interpretation • the emotional or feeling response triggered by a stimulus 44
    45. 45. Biases in the Perceptual Process • Selective exposure – Customers only allow exposure to a small number of the 3000 daily marketing communications • Selective attention – Customers ignore ads that do not relate to their interests • Selective interpretation – Customers use perceptual distortion to make information more congruent with existing beliefs 45
    46. 46. Perceptual Selection We select what we perceive influenced by:  The nature of the stimulus factor such as size and intensity, colour and movement, contrast, position, format etc.  Individual factors such as interest, need, expectation, previous experience etc  Situational factors such as time pressure, contrast of the stimulus etc. We also block what we don’t want to see or to avoid overload. We have defences against what we don’t like or wish to know about.  Marketers need to be aware of this (i.e. in the road safety advertising campaigns).  46
    47. 47. Buyer Imagery • Buyers judge products related to their own personal self image • Self-Image  Actual self-image - how buyers actually see themselves    Ideal self-image - how buyers would like to see themselves Social self-image - how buyers feel others see them Ideal social self-image - how buyers would like others to see them 47
    48. 48. Buyer Imagery (cont’d) • Marketers deal with this issue by  Positioning product - to target buyer market niches.  Maintaining or enhancing brand image - to target consumer self image.  Using perceptual mapping to compare products to competitors.  And other aspects of marketing mix to satisfy buyer image related to product 48
    49. 49. Buyer Imagery Positioning • the image/perception of the Product in the mind of the buyer • marketers position goods/services/brands to fit a specific target market through differentiation • different positioning strategies can be used for the same product targeting different segments 49
    50. 50. • For more information about MAANZ International and articles about Marketing, visit: • www.marketing.org.au • http://smartamarketing.wordpress.com • http://smartamarketing2.wordpress.com • . http://www.linkedin.com/groups/MAANZ-SmartaMarketing-Group • Email: info@marketing.org.au • Link to this site - - http://www.slideshare.net/bmonger for further presentations Marketing In Black and White 50
    51. 51. END MAANZ MXPress Program 51