Lecture Advertising and promotion (2/e) – Chapter 5: Starting with the consumer

Chapter 5 - Starting with the consumer: developing consumer insights. The goals of this chapter are: To understand the role consumer behaviour plays in the development and implementation of IMC 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 IMC;...

Chapter 5

Starting with the consumer:

developing consumer insights

1 To understand the role consumer behaviour plays in the development and implementation of IMC programs.

2 To understand the consumer decision-making process

and how it varies for different types of purchases.

3 To understand various internal psychological processes, their influence on consumer decision making, and

implications for IMC.

4 To recognise the various approaches to studying the

consumer learning process and their implications for IMC.

5 To recognise external factors such as culture, social

class, group influences and situational determinants and how they affect consumer behaviour.

6 To understand alternative approaches to studying

Learning objectives

Learning

Interpretive/ postmodern

Situational determinants

Studying Consumer Behaviour

Behavioural

Cognitive

Attitudes Perceptions

Consumer decision-making processes

Influences on consumer decision

Culture

Neuroscience: mapping the mind

In their never-ending quest

to learn more about

consumers, marketers have

turned to other disciplines,

including science,

psychology, anthropology

and medicine Techniques,

including PET scans and

MRI are shedding new light

on information processing

and product preferences.

Consumer behaviour: definition

Consumer behaviour refers to the processes

and activities people engage in when searching for, selecting, purchasing and using, evaluating and disposing of products and services so as to satisfy their needs and desires.

Consumer decision making

Decision stage Psychological process

Postpurchase evaluation Learning

Purchase decision Integration Alternative evaluation Attitude formation

Information search Perception Problem recognition Motivation

Honda CR-V

Problem recognition

• Problem recognition represents the first stage

in the consumer-decision process.

• Problem recognition motivates consumers to

search for solutions.

Actual state

Less

Sources of problem recognition

Out of stock Dissatisfaction New needs New needs or wants or wants

Related product

Related product Marketer-induced Marketer-induced New New

Oxy

Problem-solution with Rexona

Sheridan’s new towel

Maslow’s hierarchy of needs

Quorn

Guardian Insurance

Psychoanalytic approach

Strong inhibitions

Strong

Symbolic meanings

Surrogate behaviours

Surrogate behaviours

mind

Focus groups

Projective

techniques

Projective

techniques

Problems and contributions

Shifts attention from

‘what’ to ‘how’ and

Shifts attention from

‘what’ to ‘how’ and

‘why’

Varying, subjective interpretations

Varying, subjective interpretations

Qualitative results from very small samples

Qualitative results from very small samples

Motivation research

Contributions Problems

Consumer information search

Market sources

Personal sources

Public sources Person al experie nce

Marketers are interested in:

information

diverse range of information sources

given meaning.

Perception involves three

processes

Sensation: direct response of the senses

Selection of information: determines

which inputs will receive attention

Selection of information: determines

which inputs will receive attention

Interpretation: organising, categorising

and interpreting the information inputs

Interpretation: organising, categorising

and interpreting the information inputs

Perception

The selective perception process

Selective retention Selective comprehension

Selective attention Selective exposure

Evaluation of alternatives

consumer moves to evaluation of alternatives.

consumer’s needs is identified.

options to be considered are known as the

evoked set.

before proceeding to a purchase decision.

Evaluation: the evoked set

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 I Brand F

Evaluation

Evaluative criteria

dimensions or attributes of a product or service used to make comparisons.

services as bundles of benefits.

and services as consequences

Two types of consequence

Evaluation and consequences

Different perspectives: marketer’s view

Traction okay? Too

pricy?

Product is seen

as a bundle of attributes or characteristics.

Enough

power?

Different perspectives: consumer’s view

summer?

Will I enjoy having more time for golf?

Will it pull that

little trailer I saw

at the store?

toward:

Attitudes toward:

evaluation of an object (or brand or company).

consumer’s behavioural intentions.

create favourable attitudes, reinforce current positive attitudes and/or change negative attitudes.

Attitudes: multiattribute models

towards a brand as a composite of attitudes towards a number of brand attributes.

different weights to specific attributes

attributes alongside their subjective estimation of the attribute’s importance.

how much importance is attached to given attributes.

Attitudes: multiattribute models

(cont.)

A b = ∑B i  X E i Where

attribute i

n

i=1

 A multiattribute model views an attitude

towards a brand as a composite of attitudes towards a number of brand attributes

attach different weights to specific attributes

attributes alongside their subjective estimation of its importance.

Attitudes: multiattribute models

(cont.)

Attitude change strategies

Change perceptions or belief ratings about a competing brand

Add a new attribute to the attitude formation mix

Change perceptions of the value of an attribute Change beliefs about an important attribute

Adding attributes changes

attitudes

Changing perceptions of belief ratings for a competing brand

Purchase decision and evaluation

Purchase intention Brand loyalty

Post- evaluation

Post- evaluation

Satisfaction

Cognitive Cognitive Dissatisfaction

Brand loyalty: faithful or fickle?

Post purchase

Variations in consumer

decision making

framework for understanding consumers.

the steps in the purchase decision cycle.

or energy expended on information search and evaluation of alternatives.

evoked set.

involving information search, learning and

Extended problem-solving

Learning

Interpretive/ postmodern

Situational determinants

Studying Consumer Behaviour

Behavioural

Cognitive

Attitudes Perceptions

Consumer decision-making processes

Influences on consumer decision

Culture

Behavioural learning

which individuals acquire the purchase and consumption knowledge and

experience they apply to future related behaviour

on the stimulus-response orientation.

S—R

Classical conditioning process

(fresh and moist)

Unconditioned response

(fresh and moist)

Association develops through contiguity and repetition

Conditioned response

(fresh and moist)

Conditioned response

(fresh and moist)

Classical conditioning

Operant conditioning process

Increase or decrease

in probability of repeat

Increase or decrease

in probability of repeat behaviour (purchase)

Positive or negative consequences occur

(reward or punishment)

Positive or negative consequences occur

(reward or punishment)

Behaviour that is reinforced

strengthens the bond between

a stimulus and a response

Shaping procedures in marketing

Cognitive learning process

Purposive behaviour

Insight Goal

Attitudes Perceptions

Interpretive/ Post Modern

Situational Determinants

Studying CB

Influences on Consumer Decision

Processes

Reference Groups Sub-Culture

Culture

Environmental influences on

consumer behaviour

Subcultures

Reference groups

Situational determinants

Purchase situation Usage situation

situation

design, surveys Field work, ethnographic studies

Field work, ethnographic

studies

Summary and conclusions

 This presentation provides an overview of consumer behaviour and some of the methods used to conduct consumer research.

 A five-stage model of consumer decision making

consists of problem recognition, information search, alternative evaluation, purchase and post-purchase evaluation.

 The consumer decision process model views

consumer behaviour primarily as a cognitive

orientation.

 Behavioural learning can also shed light on