Cours 3 - Understanding Consumer Behavior

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    Copyright 2003 Prentice-Hall, Inc.

    The Marketing plan

    Segmentation

    Market survey

    Identifying needs and wants

    Choosing a target market(s)

    Developping a market offering

    Measuring

    outcomes

    Product PricePlace Promotion

    Targeting

    Positioning

    http://localhost/var/www/apps/conversion/tmp/scratch_6/#Page%2029http://localhost/var/www/apps/conversion/tmp/scratch_6/#Page%2029
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    In this chapter, we focus on twoIn this chapter, we focus on twoquestions:questions:

    How does the buyer make purchasingHow does the buyer make purchasingdecisions?decisions?

    How do the buyers characteristics cultural,How do the buyers characteristics cultural,

    social, personal, and psychological influencesocial, personal, and psychological influencebuying behavior?buying behavior?

    Understanding the consumer behaviour

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    The 5 dimensions of buyer behaviour

    How do they buy What are their choice criteria

    Consumers

    Who is important?

    Where do

    they buy?

    When do

    they buy?

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    Influences on consumer purchasing behaviour

    motivationmotivation

    beliefs and attitudesbeliefs and attitudes

    information processinginformation processing

    personalitypersonality

    lifestylelifestyle

    lifecyclelifecycle

    cultureculture

    social classsocial class

    geodemographicsgeodemographics

    reference groupsreference groups

    Personalinfluences Social influences

    onsumer

    The buying situation

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    Buying RolesBuying Roles

    InitiatorInitiator

    InfluencerInfluencer

    !ecider!ecider

    "uyer"uyer

    #ser#ser

    Who buys?

    $ho attempts to persuade others in the groupconcerning the outcome of the decision

    $ho begins the process of considering apurchase

    $ho conducts the transaction

    %he actual consumer&user of the product

    $ith the power and&or financial authority tomake the ultimate choice

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    CentreparcsCentreparcs target

    their aderts at

    !others "ho !ay

    act as #initiators$ in

    the decision to

    p%rchase a &a!ilyholiday.

    11

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    The onsumer !ecision"Making

    #rocess

    $ive"%tage

    Model of the

    onsumer

    &uying

    #rocess

    Internal search and e'ternal search in order to

    build up the awareness set

    (eed recognition is essentially functional,emotional or psychological)

    (eed inhibitors*

    +ognitive dissonance

    voked set)

    -evel of involvement*

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    %uccessive %ets Involved in ustomer !ecision

    Making

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    'valuation and purchase models

    (ormative

    beliefs

    #ersonal

    beliefs

    #urchase

    intentions#urchase

    )ttitudes

    %ub*ective

    norms

    High involvement+ the $ishbein and )*,en model of reasoned action

    Trial)wareness-epeat

    #urchase

    .ow involvement+ the 'hrenberg and /oodhart repeat purchase model

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    High" and low"involvement situations+

    marketing implications

    HighinvolvementHighinvolvement .essages with high information content about the.essages with high information content about the

    positive consequences of buying through print media)positive consequences of buying through print media)

    /ersuasive communications should also focus on how/ersuasive communications should also focus on how

    the consumer views the influence of important others)the consumer views the influence of important others) 0alespeople ensures the consumer is aware of product0alespeople ensures the consumer is aware of product

    attributes and benefits*attributes and benefits*

    -owinvolvement-owinvolvement

    0eek topofmind awareness through repetitive0eek topofmind awareness through repetitiveadvertising and providing positive reinforcement 1trialadvertising and providing positive reinforcement 1trial

    through sales promotion2)through sales promotion2)

    .essages should be short wih high repetition through %3*.essages should be short wih high repetition through %3*

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    !id I make the right decision?

    +ognitive dissonance is likely to increase:+ognitive dissonance is likely to increase:

    $ith the$ith the expenseexpenseof purchase)of purchase) $hen the decision is$hen the decision is difficultdifficult))

    $hen the decision is$hen the decision is irrevocableirrevocable))

    $hen the purchaser has a tendency to$hen the purchaser has a tendency to

    experience anxietyexperience anxiety**

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    hoice riteria Used When 'valuating

    )lternatives

    Technical-

    Reliability

    Durability

    Performance

    Style/looks

    Comfort

    Delivery

    Convenience

    Taste

    Economic-

    PriceValue for money

    Running costs

    Residual value

    Life-cycle costs

    Social-

    Status

    Social belonging

    Convention

    Fasion

    Personal-

    Self-imageRisk reduction

    !tics

    !motions

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    SEBO

    )he i!portance o&

    relia*ility is stressedin this adert &or the+ /eli ac%%!cleaner.

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    M rc d s recognises the importance of experientialconsumption in this advertisement for its cars.

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    What does highlight this ad for the 0W #olo?

    0W highlights the durability and toughness of its #olo model

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    1n which criteria does

    rely this Tango poster?

    This poster advertising

    tango relies on evoking

    emotions to sell a soft

    drink

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    'tended problem'tended problem

    solvingsolving

    -imited problem-imited problem

    solvingsolving

    Habitual problemHabitual problemsolvingsolving

    The buying situation influence

    %he consumer has some e'periencewith the product so that an informationsearch may be mainly internal

    High degree of information search andclose e'amination of alternativesolutions using many choice criteria

    4ccurs when a consumer repeatbuysthe same product with little or noevaluation of alternatives

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    !eterminants of the e2tent of problem"solving

    %elf"image

    #erceived risk

    %ocial factors

    Hedonism!ifferentiation

    and number

    of alternatives

    .evel of

    involvement

    Time

    pressure

    '2tent of

    problem"

    solving

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    The consumer decision"making process

    and level of purchase involvement

    'tensive evaluationincluding mediasearch

    -imited evaluation/ostpurchaseevaluation of thealternatives

    .any alternatives

    evaluated on manychoice criteria

    5ew alternatives

    evaluated on fewchoice criteria

    valuation of

    alternatives and thepurchase

    'tensive search-imited searchInformation search

    .a6or, personallyimportant.inor

    (eed recognition&

    /roblem awareness

    High Involvement-ow Involvement0tage

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    Influencing &uyer &ehavior+ Maslow3s

    theory

    Maslow3s

    Hierarchy of

    (eeds

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    Sp cial K

    ellogg$s +pecial &%l&ills the

    needs o& their c%sto!ers &or a

    tasty lo" &at diet.

    4

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    ) onsumer3s &rand &eliefs about omputers

    51086C

    3898B

    8734D

    46810A

    Price

    i!e an"

    #eight

    $ra%hics

    Ca%abi&ity

    'emory

    Ca%acity

    AttributeCom%uter

    7+ustomers are asked to weight each attribute

    7 +alculate the average perceived values

    7!ecide a strategy 1real repositionning, psychological repositionning,competitive depositionning2

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    What are the main marketing implications

    of beliefs and attitudes?

    Product designProduct design, matching product attributes), matching product attributes)

    Persuasive communicationsPersuasive communications, reinforcing e'isting, reinforcing e'istingpositive beliefs and attitudes, correctingpositive beliefs and attitudes, correcting

    misconceptions, and establishing new beliefs)misconceptions, and establishing new beliefs)

    PricingPricing, matching price with customers beliefs, matching price with customers beliefsabout what a 8good9 product would cost*about what a 8good9 product would cost*

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    Information processing influence

    PerceptionPerception Selective attentionSelective attention, which implies that advertisements,, which implies that advertisements,

    logos and packaging need to be attentiongetting)logos and packaging need to be attentiongetting)

    Selective distorsionSelective distorsion, which implies that messages should, which implies that messages shouldbe presented clearly)be presented clearly)

    Selective retentionSelective retention, which implies that messages that, which implies that messages thatare in line with e'isting beliefs and attitudes are moreare in line with e'isting beliefs and attitudes are morelikely to be remembered*likely to be remembered*

    LearningLearning

    Conditionning learningConditionning learning suggests that associating a brandsuggests that associating a brandwith humour or e'citement will carry over to the brand)with humour or e'citement will carry over to the brand)

    Cognitive learningCognitive learning suggests that statements in ansuggests that statements in an

    advertisement may be remembered*advertisement may be remembered*

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    The 0).% segmentation system+ )n 4"part typology

    roups with High ;esourcesroups with High ;esources

    ers

    ** 5ulfilleds5ulfilleds

    @*@* =chievers=chievers

    A*A* 'periencers'periencers

    roups with -ower ;esourcesroups with -ower ;esources

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    )dvertising the reference group allows to ?

    (re"uce the e)o*e" set +or a gi)en nee",(create an emotion so that the %urchase "ecision is &ess thought-

    &ess in+ormation.see*ing- &ess ana&ytica& reasoning an" %ays &ess

    attention to negati)e +actors,(re"uce cogniti)e "issonance through se&ecti)e retention/

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    13

    Lif cycl stag s

    At homesingle

    Youngcouple nochildren

    Youngparents

    Middle-aged

    parents

    Emptynester

    marriedworking

    Emptynester

    marriedretired

    Solitaryretired

    Youngdivorced no

    children

    On ownyoung

    Youngdivorced

    withchildren

    M-ageddivorcedno depntchildren

    M-ageddivorced

    withchildren

    Middle-agedmarried no

    children

    Middle-ageddivorced no

    children

    On own

    middle-aged

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    Social class cat goriation

    I+) )6 4.3.