Consumer Behavior– you are what you buy… • How do we make decisions about what we buy? • What are stages of the decision process? • What can reduce “buyers remorse”? • How would you prepare a “pitch” for different audiences? Song Airlines Commerci al Product Placement Political audience reaction rati ngs
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Consumer Behavior– you are what you buy… How do we make decisions about what we buy? What are stages of the decision process? What can reduce buyers remorse?
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Consumer Behavior– you are what you buy…
• How do we make decisions about what we buy?• What are stages of the decision process?• What can reduce “buyers remorse”? • How would you prepare a “pitch” for different
Market Research: People are more conscious of changes in pricing than changes in quantity
• Repackaging: Packaging “sleeves” to maintain freshness• Rephrasing: Old packaging was a “limited time offer”• Reframing: “Future Friendly Products…uses 15% less energy,
Influences• culture• social class• family• situation
Start
• How do you know when to shop? What are the triggers that initiate an awareness & search?
• What are the internal & external sources of these triggers?
Need Recognition (& reminding)
Preferred State
Marketing helps consumers recognize
(or create) an imbalance between present status
and preferred state
• When a current product isn’t
performing properly
• When the consumer is running out of an product
• When another product seems
superior to the one currently used
The information search stage
An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products.
An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low.
Personal sources (friends and family)
Public sources (rating services like Consumer
Reports)
Marketer-dominated sources (advertising
or sales people)
The evoked set: a group of brands from which the buyer can choose
Determinants of External Search
Buyer Behavior: The Decision Making Unit
• Initiator: the person who first suggests or thinks of the idea of buying a particular product or service.
• Influencer: a person whose views or advice carry weight in making the final buying decision
• Decider: the person who ultimately makes the final buying decision or any part of it
• Buyer: the person who makes the actual purchase
• User: the person who consumes the product or service
Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994).
Note: teens are increasingly assuming more of these roles
Think about your past purchase– who was in which role?
• Perceived risk of negative consequences: high involvement
• Situation: low to high due to risk
• Social visibility: involvement increases with product visibility
• Offer extensive information on high involvement products
• In-store promotion & placement is important for low involvement products
• Linking low-involvement product to high-involvement issue can increase sales
So…
• think of an important purchasing decision you have made
• what are some of the thoughts you have had following your purchase? Any regrets?
• what has influenced those thoughts?
• how have you dealt with the discomfort?
• how has the company anticipated or dealt with your discomfort?
Sour Grapes– a story of cognitive
dissonance
…after being unable to reach the grapes the fox said, “these grapes are probably sour, and if I had them I would not eat them.” --Aesop
Postpurchase Behavior
Can minimize through:Effective Communication
Follow-upGuaranteesWarranties
Underpromise & overdeliver
Cognitive Dissonance
??Did I make a good decision?
Did I buy the right product?
Did I get a good value?
Decision Processing
Elaboration Likelihood Model (ELM) was formulated in 1979 by R.E. Petty & J.T. Cacioppo, & describes how attitudes are formed and changed after a exposure to an important and meaningful message.
John Cacioppo & Richard Petty
ELM: Persuasion & Attitude Change
Persuasive Communication
Nature of Active Cognitive Processing: (initial attitude, argument quality, etc.)
FavorableThoughts
Predominate
UnfavorableThoughts
Predominate
Neither orNeutral
Predominate
Cognitive Structure Change: Are new cognitions adopted and stored in memory? Are different responses made salient than previously?
• personal relevance• personal importance• personal responsibility
Motivated to Process?
• dissonance arousal• need for cognition• repetition
_____1. I would prefer complex to simple problems.
_____2. I like to have the responsibility of handling a situation that requires a lot of thinking.
_____3. Thinking is not my idea of fun. *
_____4. I would rather do something that requires little thought than something that is sure to challenge my thinking abilities. *
_____5. I try to anticipate and avoid situations where there is likely chance I will have to think in depth about something. *
_____6. I find satisfaction in deliberating hard and for long hours.
_____7. I only think as hard as I have to. *
_____8. I prefer to think about small, daily projects to long-term ones. *
_____9. I like tasks that require little thought once I’ve learned them. *
_____10. The idea of relying on thought to make my way to the top appeals to me.
_____11. I really enjoy a task that involves coming up with new solutions to problems.
_____12. Learning new ways to think doesn’t excite me very much. *
_____13. I prefer my life to be filled with puzzles that I must solve.
_____14. The notion of thinking abstractly is appealing to me.
_____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat important but does not require much thought.
_____16. I feel relief rather than satisfaction after completing a task that required a lot of mental effort. *
_____17. It’s enough for me that something gets the job done; I don’t care how or why it works. *
_____18. I usually end up deliberating about issues even when they do not affect me personally.
Need for Cognition Scale
Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scored
Sleeper Effect:• when secondary source becomes more credible than primary source
over time• persuasion may increase over time with a weak source• forget the source but remember the message• not if source is learned prior to the message (will ignore or bias
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