Professional Documents
Culture Documents
Part 1 of 3
Consumer Environment
Objectives
To conceptualize basic models of consumer behavior To understand the consumer decision process for goods, services, and ideas
Simplified Model
Marketing Stimuli
Black Box
Multiple Stimuli
Marketing Mix Product Price Place Promotion
Black Box
Motives, perceptions,..
Multiple Responses
Black Box Potential Buyer Responses
Product choice
Brand choice
Retailer choice
Purchase timing
Need Satisfaction
To increase a managers confidence to predict consumer responses to their marketing strategy To avoid the Self-Reference Criterion
Low knowledge
MEAN
High knowledge
New Car
Pure Routine
Water Gas
Limited
Education New House
Extended Negotiation
Impulse Purchase
(no conscious pre planning)
Low Involvement
Weak attitude
High Involvement
Strong attitude
Users
Deciders
Influencers (Gatekeeper)
Information Search
Purchase Decision
Expectations
PSYCHOLOGICAL INFLUENCES
Perception
SOCIAL INFLUENCES
Roles Family Reference Groups Social Classes Culture
Buying Process
Problem or need recognition
Increase Gap Size
Existent State
Desired State
ICEBERG EFFECT
The act of buying is 10% visible effort
Applied Marketing
CONVENIENCE. . . CONVENIENCE. . . CONVENIENCE. . . The average consumer (a woman) takes just 21 minutes to do her supermarket shopping buys an avg. of 18 items out of 30 40,000 browse time decreased 25% over past 5yrs. & she doesnt bother to check prices
Proctor + Gamble (WSJ, 1998)
Psychology of Simplification/Complication
Consumers try to simplify decision making by reducing the amount of information processing
High Information Amount
Low
Simple Decision Complex
Psychology of Complication
Gum - colorcrme w/blue specs
sugarorsugar free? Flavor/taste (Cool Mint,?) Chewable ness bubble blowingor not? liquid centeror not ? Shape, chick let casing Family package or individual? Stick to your teeth or not? Length of chew time ?
Buying Process
Information Search
Information Is knowledge
Information Sources
1. Internal Sources (Psychological) experience memory storage/retrieval mental processing
2. External Sources (Social) 2. family 3. friends 4. professionals
Personal interaction
Information Sources
3. Public Sources
government studies product testing magazines media stories
4. Commercial Sources
advertising sales people product pamphlets
Low
Applied Marketing
Picking Physicians
Surveyed consumers said the most frequent sources for selecting a doctor are:
Referral from friend 24%
Referral from another doctor 14% Referral from family member 10% General word of mouth 9%
Applied Marketing
Researching Services
Stockbroker
21 hours Lawyer 19 hours Accountant 17 hours
Tactics: Identify the information sources & importance to assure processing of your brands information.
Applied Marketing
Information Gaps
Information search leads to a Consideration Set of Brand Alternatives All brands in a product class Unknown brands
Brands found accidentally
Brands found through search
Buying Process
Evaluation of Alternatives
Variety of colors
Evaluation Criteria
Principle: Evaluation criteria change over time and among market segments.
Promotions frame certain product attributes (evaluation criteria) to influence their perceived relative importance
1981
1985
Product Quality
Low prices
Low prices
Product variety Cleanliness attractive
Location
Product Variety Courteous employees
Economic Theory
Economic Rationality is price and quality = value.
Assumptions: Complete product knowledge, freedom of choice & ability to measure utilities (satisfaction)
24
Utility 20 Satisfaction 15 10
3
Beer
(Behavioral,Societal,Economic)
Toothpaste
Decay Prevention and Price
Taste and Flavor Packaging Economic Attributes Behavioral Attributes Societal Attributes
Product Attitude
Product Beliefs x Evaluations = Attitude An overall evaluation of a good, service or idea . . .with a predisposition to purchase the type of product or specific brand Generally, a weak predictor of product or brand choice due to mediators (time,situation,money)
Brand A
Unforeseen event
Instability of intentions
New information
Buying Process
Purchase Decision(s)
WHO BUYS? WHAT? WHEN? WHERE? AND WHY?
Purchase Decisions
Principle: Consumers dislike making decisions/choices Tactic: Show satisfied customers
ordinary people experts celebrities
Buying Process
Post-Purchase Behavior
Actual Expectations
Satisfied
Dissatisfied
Cognitive Dissonance
Causes: Perceived Risk
Performance risk Physical risk (wear-out) High financial commitment High involvement level High social visibility Information Overload
Cognitive Dissonance
Potential Reactions
Return product Seek confirming information
Marketing Tactic
Provide post decision positive information
Cognitive Dissonance
Questions?