Perspectives on Consumer Behaviour Chapter 3 Advertising And Promotion, 6/E - Belch Group 8 Integrated Marketing CommunicationsAditya GSN Indrajit Bage N Krishna Chaitanya Neeraj Panghal Prateek Jaiswal Silpa Kamath
Chapter Objectives▪ To understand the role consumer behaviour plays in the development and implementation of advertising and promotional programs.▪ To understand the consumer decision-making process and how it varies for different types of purchases.▪ To understand various internal psychological processes, their inﬂuence on consumer decision making, and implications for advertising and promotion.▪ To recognize the various approaches to studying the consumer learning process and their implications for advertising and promotion.▪ To recognize external factors such as culture, social class, group inﬂuences, and situational determinants and how they affect consumer behaviour.▪ To understand alternative approaches to studying consumer behaviour.
An Overview of Consumer Behaviour▪ Consumer behaviour can be deﬁned as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.▪ 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 other activities. Other purchase decisions are more incidental and may result from little more than seeing a product prominently displayed at a discount price in a store. A basic model of consumer decision making
The Consumer Decision-Making ProcessSources of Problem Recognition▪ Problem recognition is caused by a difference between the consumer’s ideal state and actual state. A discrepancy exists between what the consumer wants the situation to be like and what the situation is really like.▪ The major reasons could be Out of Stock Dissatisfaction New Needs/Wants Related Products/Purchases Marketer-Induced Problem Recognition New Products
The Consumer Decision-Making ProcessExamining Consumer Motivations• Hierarchy of Needs• Psychoanalytic Theory• Motivation Research in Marketing Marketing research methods used to probe the mind of the consumer In-depth interviews Projective techniques Association tests Focus groups
The Consumer Decision-Making ProcessInformation Search• Internal search• External searchPerception▪ how consumers sense external information▪ how they select and attend to various sources of information, and▪ how this information is interpreted and given meaning Selective Perception Subliminal Perception Ability to perceive a stimulus that is below the level of conscious awareness.
The Consumer Decision-Making ProcessAlternative Evaluation▪ In this stage, the consumer compares the various brands or products and services he or she has identiﬁed as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer’s evoked set.▪ Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Evaluative criteria can be objective or subjective.▪ Many marketers view their products or services as bundles of attributes, but consumers tend to think about products or services in terms of their consequences instead. Functional consequences Psychosocial consequences▪ Two sub processes are very important during the alternative evaluation stage: • the process by which consumer attitudes are created, reinforced, and changed • the decision rules or integration strategies consumers use to compare brands and make purchase decisions.
The Consumer Decision-Making ProcessAttitudes▪ A multi attribute attitude model views an attitude object, such as a product or brand, as possessing a number of attributes that provide the basis on which consumers form their attitudes. Attitude Change Strategies • Identifying an attribute or consequence that is important and remind consumers how well the brand performs on this attribute • Getting consumers to attach more importance to the attribute in forming their attitude toward the brand • Emphasize a new attribute that consumers can use in evaluating a brand. • Change consumer beliefs about the attributes of competing brands or product categories.
The Consumer Decision-Making ProcessIntegration Processes and Decision Rules▪ Integration processes are the way product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives.▪ Sometimes consumers make their purchase decisions using more simplified decision rules known as heuristics.Purchase Decision Purchase intention Brand loyaltyPost purchase Evaluation▪ Possible outcome of purchase is cognitive dissonance, a feeling of psychological tension or post purchase doubt that a consumer experiences after making a difficult purchase choice.
The Consumer Learning Process▪ The process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour.”▪ Two basic approaches to learning are the behavioural approach and cognitive learning theory.Behavioral Learning Theory Classical Conditioning Operant Conditioning
The Consumer Learning Process▪ Cognitive Learning TheoryBehavioural learning theories have been criticized for assuming a mechanistic view ofthe consumer that puts too much emphasis on external stimulus factors. They ignoreinternal psychological processes such as motivation, thinking, and perception; theyassume that the external stimulus environment will elicit fairly predictable responses. The cognitive learning process
Environmental Influences on ConsumerBehaviour▪ External inﬂuences on consumer behaviour
Environmental Influences on ConsumerBehaviour▪ CultureCultural norms and values offer direction and guidance to members of a society in all aspects of theirlives, including their consumption behaviour.▪ SubculturesMarketers develop specific marketing programs for various products and services for these targetmarkets. Social ClassSocial class refers to relatively homogeneous divisions in a society into which people sharing similarlifestyles, values, norms, interests, and behaviours can be groupedSocial class is an important concept to marketers, since consumers within each social stratum oftenhave similar values, lifestyles, and buying behaviour. Thus, the various social class groups provide anatural basis for market segmentation.Consumers in the different social classes differ in the degree to which they use various products andservices and in their leisure activities, shopping patterns, and media habits. Marketers respond tothese differences through the positioning of their products and services, the media strategies theyuse to reach different social classes, and the types of advertising appeals they develop.
Environmental Influences on ConsumerBehaviour▪ Reference GroupsA reference group is “a group whose presumed perspectives or values are being usedby an individual as the basis for his or her judgments, opinions, and actions.”Consumers use reference groups as a guide to specific behaviours, even when thegroups are not present.Family Decision Making: An Example of Group InfluencesThe initiator The information provider The inﬂuencerThe decision maker The purchasing agent The consumer Situational DeterminantsSpecific usage situation Purchase situation Communications situation.