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Transcript of Consumer Behavior
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MAR 4333-521
Promotion Management Fall 2003—SarasotaSeptember 20, 2003
Perspectives of Consumer Behavior
Rich Gonzalez University of South Florida
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URLs (used today)
www.smirnoff.com
www.diageo.com
www.pny.com
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September 20, 2003--Agenda Quiz # 2 Consumer Behavior For September 27
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For Today: September 20 Chapter 4- Perspectives on
Consumer Behavior
“Diageo Effort to Revamp SmirnoffReflects 'Superpremium' Successes,”Deborah Ball, WSJ, September 5, 2003
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For September 27 Chapter 5- The Communications
Process
“RIAA Takes Off Gloves In Mounting Its Fight Against Music Thieves ,”Lee Gomes, WSJ, September 15, 2003
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Last Time National Assoc. Realtors—Benefits,
Consistency Gateway--Inconsistency Examples of IMC In Ads—New
Balance—”Fit” Example of Broad Objective—Ford Advertising & Media Biz Structure
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Marketing Communication Requirements 1. Clearly Positioned 2. Directed to a Target Market 3. Created to Achieve Objective 4. Accomplishes Objective Within
Budget Constraint
Shimp 2003
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Ford Brands Jaguar Ford Lincoln Mercury Mazda Volvo Aston-Martin
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Gateway 9/09/03--Gateway Inc. …eliminating
about 850 jobs … at the Sioux Falls, S.D., plant and an additional 100 workers will be laid off from North Sioux City, S.D. …in Kansas City, Kan.
In addition to those 850 … will close its Hampton, Va., plant and lay off 450 … …save the company as much as $130 million a year…
…cumulative losses of $1.73 billion since the fourth quarter of 2000.
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Diageo Biggest Vodka Brand? What Does James Bond Drink?
32% Market Share6.8 Million Cases (2002)Up 8% in Volume#2 Competitor Behind By 2 Million Cases
Worldwide Market Leader Since 1970s
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Diageo Assignment Why is Smirnoff in trouble?
What is Diageo doing about it?List some promotional activities
Your opinion on efficacy We’ll open the class on 9/20
discussing this.
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Diageo--Smirnoff Smirnoff is in trouble because: Share is down to 32% (-36%) Superpremiums: BIG Success Marketing Wasn’t Effective Enough James Bond Dropped Them Relied On “Older” Customers
Didn’t Get Younger Ones
Class Discussion
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Competitors?
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Diageo--Smirnoff Diageo is doing: Parties with bartenders, salespeople,
waitstaff Teaching specialty drinks Pitching “Neat” Changing Packaging New Commercials (J.Walter Thompson) Sponsoring Music Events Contest Forcing
Participation/ConsumptionClass Discussion
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Diageo--Smirnoff Diageo will (will not) be effective: Courting bartenders is a smart move Changing Package Is Risky Diageo Knows They Need to Change
Marketing If commercials use “real people,” will be
effective Must innovate to offset the long term
trend toward less per capita consump.Class Discussion
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Quiz 2 Q1
1. The consumer decision process, consisting of several stages, begins with the problem recognition stage, then:
A) terminates if the interpersonal determinants do not last.
B) continues on to search and evaluation of alternatives stages.
C) frequently gets cut short due to consumer attitudes.
D) the next stage is purchase. E) proceeds to the search stage, then immediately
to purchase.
B: Chap 4 105
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Quiz 2 Q2 2. Attitudes are learned predispositions to
respond to an object. Consumer attitudes are important to marketers because they represent positive or negative feelings ________
A) and desires. B) and discretionary income. C) and neutrality. D) which cannot be changed. E) and behavioral tendencies. E: Chap 4 p 117
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Quiz 2 Q3
3. When consumers engage in information search, they often start with
A) external search. B) sensation search. C) TV commercials. D) internal search. E) cognitive dissonance.
D: Chap 4 p 112
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Quiz 2 Q4
4. A(n) _____________ is a group whose perspectives or values are being used by an individual as the basis for his or her judgments, opinions, and actions.
A) decision team B) reference group C) purchasing agent D) lead example E) income group
B: Ch 4 p 129
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Quiz 2 Q5
5. The various brands identified as purchase options to be considered
during the alternative evaluation process is the consumer’s __________ Evoked Set
Ch. 4, P116
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Brand Equity Awareness Loyalty Quality Associations
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Promotional Mix Advertising Direct Marketing Interactive/Internet Marketing Sales Promotion Public Relations Personal Selling
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Consumer Behavior
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 wants.
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It Would Be Logical Are consumers and buyers like Mr.
Spock?
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The Consumer Decision Process
Problem RecognitionProblem Recognition
Information SearchInformation Search
Alternative EvaluationAlternative Evaluation
Purchase DecisionPurchase Decision
Postpurchase EvaluationPostpurchase Evaluation
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An Integrated Model of the Consumer Decision Process
Problem Recognition
Search
Alternative Evaluation
PurchasePurchase
EvaluationPurchase Act
Interpersonal Determinants
•Cultural Influences•Social Influences•Family Influences
Personal Determinants•Needs and Motives•Perception•Attitudes•Learning•Self-Concept
Fee
dbac
k
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Consumer Decision Process and Relevant Internal Psychological Processes
Problem RecognitionProblem Recognition
Information SearchInformation Search
Alternative EvaluationAlternative Evaluation
Purchase DecisionPurchase Decision
Postpurchase EvaluationPostpurchase Evaluation
MotivationMotivation
PerceptionPerception
Attitude FormationAttitude Formation
IntegrationIntegration
LearningLearning
Decision Process Stages Psychological Processes
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Sources of Problem Recognition
Out of stock
Dissatisfaction
New needs or wants
Related product purchase
Market-induced recognition
New products
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Floppy Disk Benefits Costs Deficiencies
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New Product Flash Drive (Thumb Drive)
www.pny.com
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Maslow’s Hierarchy of Needs
Physiological needs(hunger, thirst)
Safety needs(security, protection)
Social needs(sense of belonging, love)
Esteem needs(self-esteem, recognition, status)
Self-actualization needs(self-development, realization)
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Pampers appeals to needs for love and belonging in this ad
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Las Vegas Convention & Visitor’s Bureau View 4 Commercials
What is the Objective?
Good Taste or Bad Taste?
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Las Vegas Convention & Visitor’s Bureau Objective(s) Go to Vegas Go to Vegas and be BAD Lose your inhibitions Message: You won’t pay for your
actions
Class Discussion
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Las Vegas Convention & Visitor’s Bureau Comments
Might offend some people A little risque Inconsistent with family positioning No mention of gambling YOUR mental image of what it is that
“stays here”Class Discussion
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Probing the Minds of ConsumersPsychoanalytic Theory & Motivation Research
In-Depth Interviews The consumer talks freely in an unstructured interview to
obtain insights into his or her motives, ideas or opinions.Projective Techniques
Methods allowing consumers to project values, motives, attitudes or needs on some external object.
Association Tests Consumers respond with the first thing that comes to mind
when presented with some verbal or pictorial stimulus.Focus Groups
A group of consumers with similar backgrounds or interests discuss a product, idea or issue.
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Information SearchInternal Search– information stored in memory
External Search – actively seeking information from various sources
Personal sources Friends, relatives, co-workers
Market-controlled sources Ads, salespeople, in-store displays
Public sources Print articles, news reports
Personal experience Handling, examining, testing, using
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Perception
Stages in the perception process:
Sensation Attending to information Interpreting information Responding to information
The process by which an individual receives, selects, organizes and interprets information
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Selective Retention
The Selective Perception Process
Selective Comprehension
Selective Attention
Selective Exposure
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Evaluation of AlternativesAll 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 B Brand E
Brand I
Brand M
Brand F
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Toothpaste Crest Colgate
Aim Pepsodent Mentadent Close-Up Aquafresh Rembrandt Sensodyne Arm & Hammer UltraBrite
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Evaluative Criteria
Criteria - Dimensions or attributes of a product or service used to compare various alternatives Objective criteria - price, warranty, color, size Subjective criteria - style, appearance, image
Consequences – outcomes that result from using a product or service
Functional consequences – concrete and tangible
Pyschosocial consequences – abstract, intangible
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This ad focuses on the favorable consequences of using Top Flite golf balls
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Consumer Attitudes
Learned predispositions to respond toward an object—an individual’s overall feelings toward or evaluation of an object.
Consumers may hold attitudes toward: Individuals Brands Companies Organizations Product categories Retailers Advertisements Media
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Multiattribute Attitude Model
Attitudes are a function of:A = Σ Bi X Ei
A = AttitudeBi = Beliefs about brands performance on
attribute iEi = Importance attached to attribute iN = Number of salient attributes
considered by consumer
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Ways to Influence or Change Attitudes
Increase or change the strength or belief rating of a brand on an important attribute
Change consumers’ perceptions of the importance or value of an attribute
Add a new attribute to the attitude formation process
Change perceptions of belief ratings for a competing brand
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Integration Processes and Decision Rules
Types of decision rules: Heuristics – simple rule of thumb rules that are
easy to use and apply Buy least expensive brand Buy brand on sale or for which I have a coupon
Affect referral rule – make decision on basis of overall affective impression or feelings about the brand
Compensatory rules – evaluate the strengths and weaknesses of each brand
Integration processes are the way product knowledge, meaning, and beliefs are combined to evaluate alternatives
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Market leaders such as Budweiser appeal to consumer affect in their advertising
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St. Elizabeth Health Center Objective:
Increase PreferenceReach Consumer On Emotional Level
View 2 Commercials 1. Heart Surgery--Rational 2. Traumatic Potential—Emotional
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St. Elizabeth Health Center Consistent?
Contrast?
Effective?
Class Discussion
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Consumer Learning Processes
Cognitive Learning Consumers learn through information processing
and problem solving
Behavioral Learning Learning via association (classical conditioning) Learning via reinforcement (instrumental cond.)
Modeling Processes Based on observation of outcomes and
consequences experienced by others
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Goalachievement
Goalachievement
InsightInsight
Purposivebehavior
Purposivebehavior
Cognitive Learning Process
GoalGoal
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Classical Conditioning Process
Conditionedstimulus
(Brita waterfiltration pitcher)
Conditionedstimulus
(Brita waterfiltration pitcher)
Association develops throughcontiguity and repetition
Unconditionedstimulus(waterfall)
Unconditionedstimulus(waterfall)
Unconditionedresponse
(freshness, purity)
Unconditionedresponse
(freshness, purity)
Conditionedresponse
(freshness, purity)
Conditionedresponse
(freshness, purity)
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This Brita ad uses classical conditioning
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Increase or decrease inprobability of repeatbehavior (purchase)
Increase or decrease inprobability of repeatbehavior (purchase)
Instrumental Conditioning Process
Positive or negativeconsequences occur(reward or punishment)
Positive or negativeconsequences occur(reward or punishment)
Behavior(consumer uses
product or service)
Behavior(consumer uses
product or service)
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External Influences
Culture
Subculture
Social class
Referencegroups
Situations
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The Hispanic subculture is a very important market in many parts of the U.S.
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Variations in ConsumerDecision Making
Types of Decision Processes:
Extended Problem Solving
Limited Problem Solving
Routine Response Behavior
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Cholesterol-Free Half & Half Objective:
Introduce New Product
View 2 Commercials 1. Rational Appeal 2. Emotional Appeal
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Cholesterol-Free Half & Half Do customers consider cholesterol
content in food product purchase decisions?
Effective?
Class Discussion
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End