consumer behavior lecture2
TRANSCRIPT
Consumer behaviorsecond session
Lecture notes are available at:http://Arash-management.blogspot.com
Reference book for this session:
Consumer behavior by:Roger D. Blackwell
Paul W. Miniard James F. Engel
Outline of the session
1. Review of the previous notes2. Pre-purchase behavior3. Purchase behavior4. Purchase decision making model and process5. Consumer resources involved in purchase6. IMC 7. consumption behavior8. Consumption experiences
Pre-purchase Evaluation
• Having prior knowledge facilitates decision making and accelerates formation of evoked set.
• Without prior knowledge consumer start asking from friends and going through external materials.
Constructing the Consideration Set Primarily from Memory
•Retrieval set: consideration set that depends on recall of alternatives from memory
•Not all alternatives retrieved from memory will be considered
•Consumers limit their consideration to those alternatives toward which they are favorably predisposed
Constructing the Consideration Set Without Prior Knowledge
•Consumers may talk to others or consider all brands in the store
•External factors have greater opportunity to affect consideration set with less knowledgeable consumers than when search is from memory
•Recognition of brands or products at point of sale is important to get into consumers’ consideration set
Deciding How to Evaluate Choice Alternatives
Rely on preexisting product evaluations stored in memory
Construct new evaluations based on information acquired through internal or external search
Direct Experience: prior purchase or consumption experiences with product
Indirect Experience: experiences or impressions gained second-hand-through word of mouth.
Constructing New Evaluations
The Categorization Process: the evaluation of a choice alternative based on the evaluation of the category to which it is assignedCategories may be general (drinks) orspecific (colas). Evaluation of a category can be transferred to a new product assigned to that category
Brand extensions allow firms to use categorization to their advantage
Constructing New Evaluations
The Piecemeal Process: constructing an evaluation of a choice alternative by considering its advantages and disadvantages along important product dimensions
Constructing New EvaluationsThe Piecemeal Process:
Determine the particular criteria or product dimensions to be used in evaluation
Evaluate each considered alternative based on the identified criteria
Cutoff: restriction or requirement for acceptable performance
Signals: product attributes used to infer other product attributes (e.g., using high price to infer higher quality)
How Good Are We at Evaluating Alternatives?
Consumers are often not very good at figuring out which alternative is best for them
•- Tend to rely on certain signals (e.g., price, brand name, warranty, package) to make inferences about a product quality; however, such signals may be inaccurate
•- Often possess limited abilities to accurately evaluate choice alternatives
The Purchase Process
Consumers decide:
•Whether to buy
•When to buy
•What to buy (product type/brand)
•Where to buy
•How to pay
•Many factors influence their shopping decisions, including in-store promotion, store ambience and cleanliness, level of service, price, value, logistics and retail experience.
•For some purchases consumer may never enter a store, but rather purchase from internet, a catalog or direct persons.
The Purchase Process
Fully Planned Purchase: both the product and brand are chosen in advance
Purchase planning is more likely to occur when product involvement is high with purchase affected by in-store factors and marketing efforts
It might be influenced by marketing tactics like product sample, price reductions, point of purchase or promotional activities.
The Purchase Process
Partially Planned Purchase: intent to buy the product exists, but brand choice is deferred until shopping.
When involvement is low, consumers resort to buying a brand they know and like but may also be influenced by price reductions or special displays
The Purchase ProcessUnplanned Purchase: both the product and brand are chosen at point of sale.
In-store influences can guide product and brand choices made by consumers reminding them of a need and triggering a purchase of something they have seen on TV or website.
The Purchase FactorWhen and if purchase occurs is affected by timing factors such as seasonality-Umbrella, A.C, Seasonal apparel.
Timing also affects the price and the likelihood of a purchase-Airlines ticket at peak season.
When making a purchase, consumer must also decide how to pay—cash, checks, or plastic (credit/debit card)
The Purchase Decision Process
Consumer Resources: What People Spend When They Purchase
Money
TimeAttention
Integrated Marketing Communications (IMC)
A systematic, cross-organizational marketing communication process that is customer-centric, data-driven, technically anchored, and branding effective
Integrated Marketing Communications (IMC)
1. IMC programs are comprehensive
2. IMC programs are unified
3. IMC programs are targeted
4. IMC programs have coordinated
execution of all the communications components of the organization
IMC programs emphasize productivity in reaching targets when selecting communication channels and allocating resourcesto media
Post purchase and consumption
• Consumption is :Consumers’ usage of the acquired product.
• In this phase we are trying to know how many and which consumers fall into the user and nonuser categories
• Size of user market is one indicator of market attractiveness
• Size of nonuser group speaks to future growth opportunities
• Characterized along many dimensions
Consumption Behavior
Consumption Behavior
When does Consumption Occur?•How much time passes between purchase and consumption?
•What time of day is product used?
•When in the year or during which season is product consumed?
The situation in which consumption occurs can affect product choice—e.g., beers sales for in-home versus on-premise consumption
Would Consumers Pour the SameAmount into Each Glass?
Consumption Behavior
The Influence of Package Size
Consumption Experiences
How Does It Feel?
Positive or negative things you feel when using a product
Firms can position products based on:
- Positive feelings resulting from consumption - Elimination of negative feelings resulting from consumption
Consumption Experiences
How Rewarding or Punishing Was the Experience?
Positive reinforcement: when consumer receives positive outcome from product usageNegative reinforcement: when consumption helps person avoid negative outcome
Punishment: when consumption leads to negative outcome
Purchase Purchase NeedNeed
Product Purchase
Product Consumption
Avoiding Negative
Outcomes
Negative Reinforcement
Purchase Purchase NeedNeed
Product Purchase
Product Consumption
Receiving Negative
Outcomes
Punishment
Purchase Need
Product Purchase
Product Consumption
Receiving Positive
Outcomes
Positive Reinforcement
Summary…
1. Pre-purchase behavior2. Purchase behavior3. Purchase decision making model and process4. Consumer resources involved in purchase5. IMC and its importance and roles6. consumption behavior7. Consumption experiences