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 Starting with the consumer: developing consumer insights Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-1 Learning objectives 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 To recognise the various approaches to studying the consumer learning process and their implications for IMC To recognise 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-2 Attitudes Integration Perceptions Motivation Consumer decision-making models Culture Consumer decision-making processes Learning Influences on consumer decision processes Subculture Behavioural Reference groups Studying Consumer Behaviour Cognitive Interpretive/ postmodern Situational determinants Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-3 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-4 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 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-5 Consumer decision making Decision stage Psychological process Problem recognition Motivation Information search Perception Alternative evaluation Purchase decision Postpurchase evaluation Attitude formation Integration Learning Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-6 Honda CR-V Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-7 Problem recognition • Problem recognition represents the first stage in the consumer-decision process • Problem recognition motivates consumers to search for solutions Problem Problem recognition recognition = Ideal Ideal state state Less Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Actual Actual state state 5-8 Sources of problem recognition Out Out of of stock stock Dissatisfaction Dissatisfaction New New needs needs or or wants wants Related Related product product purchase purchase Marketer-induced Marketer-induced recognition recognition New New products products Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-9 Oxy Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-10 Extended problem-solving Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-43 Attitudes Integration Perceptions Motivation Consumer decision-making models Culture Consumer decision-making processes Learning Influences on consumer decision processes Subculture Behavioural Reference groups Studying Consumer Behaviour Cognitive Interpretive/ postmodern Situational determinants Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-44 Behavioural learning  Consumer learning refers to a process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour  Behavioural learning theories are based on the stimulus-response orientation S—R Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-45 Classical conditioning process Unconditioned Unconditioned stimulus stimulus (grapes) (grapes) Unconditioned Unconditioned response response (fresh (fresh and and moist) moist) Association develops through contiguity and repetition Conditioned Conditioned stimulus stimulus (Lancôme (Lancôme moisturiser) moisturiser) Conditioned Conditioned response response (fresh (freshand andmoist) moist) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-46 Classical conditioning Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-47 Operant conditioning process Behaviour Behaviour (consumer (consumer uses uses product product or or service) service) Behaviour that is reinforced strengthens the bond between a stimulus and a response Positive Positive or or negative negative consequences consequences occur occur (reward (reward or or punishment) punishment) Increase Increase or or decrease decrease in in probability probability of of repeat repeat behaviour behaviour (purchase) (purchase) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-48 Shaping procedures in marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-49 Cognitive learning process Goal Goal Purposive Purposive behaviour behaviour Insight Insight Goal Goal achievement achievement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-50 Attitudes Integration Perceptions Motivation Consumer Decision-Making Models Culture Consumer Decision-Making Processes Learning Influences on Consumer Decision Processes Sub-Culture Behavioural Reference Groups Studying CB Cognitive Interpretive/ Post Modern Situational Determinants Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-51 Environmental influences on consumer behaviour Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-52 Subcultures Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-53 Reference groups Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-54 Situational determinants Types Types of of structural structural determinants determinants Usage Usage situation situation Purchase Purchase situation situation Communications Communications situation situation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-55 New methodologies in consumer research Traditional Traditional approach approach New New approaches approaches Psychology Psychology Sociology, Sociology, anthropology, anthropology, history, history, semiotics, semiotics, linguistics linguistics Experimental Experimental design, design, surveys surveys Field Field work, work, ethnographic ethnographic studies studies Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-56 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 consumer decision making and purchasing activity Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 5-57 ... alternatives  After gathering and selecting information, the consumer moves to evaluation of alternatives  A set of brands with the potential to meet the consumer? ??s needs is identified  The various brands... psychological processes, their influence on consumer decision making, and implications for IMC To recognise the various approaches to studying the consumer learning process and their implications for... attributes  The model proposes that consumers attach different weights to specific attributes  Consumers weigh up their beliefs about attributes alongside their subjective estimation of the attribute’s