Consumer Behaviour

Introduction to Consumer Behavior

Learning Objectives What is CB? Why is it necessary to study CB? Who needs to study CB? The Dark side of CB

We Are Consumers 24-7!Why? Because: We are always consuming something

(like the clothes we are wearing or the bed we are sleeping on) We are sometimes planning future consumption We are sometimes enjoying the memory of past consumption

Q. Can you think of any moments when you are NOT being a Consumer?

WHAT IS CONSUMER BEHAVIOR?Consumer Behavior is the Mental and Physical Activitiesundertaken to Acquire, Consume and Dispose the Products and Services so as to fulfill Needs and Wants.

Physical Activity: Buying a product; preparing a product for consumption, etc. Mental Activity: Evaluating a product in your mind

NEED and WANTSNEED: A Discomforting Human Condition WANT: A Desire for a Specific Product so as to Alleviate That Condition

Q. Discussion: Which of these is a Need: Food, Clothing, Nike shoes, Nano, Orkut etc. Why? Why Not?

3 ESSENTIALS of CONSUMER BEHAVIOR

1. ExchangeAn interchangebetween two parties where each receives valueFive Resources:

2. ResourcesSomething thatothers value

3. ValueSum total of all benefitswe receive from a product

Money Time Physical energy Knowledge & Skills Social capital USER U Utilitarian S Social E Ego-Identity R Recreation/Hedonic

Discussion: Examples of Products that consumers use to receive each Value

DOES MARKETING CREATE A NEED?Would Marketing Create a Need for these products?

Discussion: Consumers who Might Buy These Products-From Where Do They Learn/Acquire These Needs?

SOURCE DISCIPLINES for CONSUMER BEHAVIOR

1. 2. 3. 4.

Anthropology Sociology Economics Psychology

WHO SHOULD STUDY CONSUMER BEHAVIOR1. 2. 3. 4. Marketers Social Organizations Public Policy Makers Consumers

Discussion:

Why?

WHAT IS the PURPOSE OF Marketing?

To Make Money OR To Create a Satisfied CustomerFocus on Consumers Needs Rather Than Products Identify Consumers Latent Needs Understand Consumer Behavior

The Tattoo is Already Inside the Consumer

The Desire to Wear a Shoe like this is Already Inside the ConsumerTattoo : Desire

To satisfy the consumer, you have to bring that tattoo out

(Tattoo as a metaphor)

The PURPOSE OF MARKETING is to Help the Consumer Experience the Proverbial Tattoo that is already Within Him/Her

The Consumer Dark Side

Consumer Motivation

Learning Objectives Why is it necessary to understand Consumer Motivation? What are the different consumer needs? How do we understand consumer needs? Emotion and its impact on motivation Introduction to Involvement

C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N. MOTIVATION Human Drive to Attain a Goal Object DRIVE Energy That Impels Us to Act Goal Object Something We Seek,That Which We Judge Will Bring Us Comfort/Value Purposive Behavior Expenditure of Energy toward a Goal Object

C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.

C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N. ORIGINS of NeedsInnate Learned ------------------------------Biogenic Psychogenic -------------------------------

DISCUSS : Where Do Learned and Psychogenic Needs Come From?

C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N. Approach Motivation Avoid Motivation-----------------------------------------Approach-Avoid Conflict Approach-Approach Conflict Avoid-Avoid Conflict

Doesnt Every Product Present an ApproachAvoid Conflict? A Compromise? Product Improvement Opportunity ..

Frustration

Failure to achieve a goal may result in frustration. Some adapt; others adopt defense mechanisms to protect their ego

Defense Mechanism

Methods by which people mentally redefine frustrating situations to protect their self-images and their self-esteem.

DEFENSE MECHANISMS

1. 2. 3. 4. 5. 6.

Rationalization Projection Aggression Repression Withdrawal Regression

Needs Unveiled Maslows need hierarchy Murrays list of needs Dichters consumption needs Trio of needs



Murrays List of NEEDS1. 2. 3. 4. 5. 6. AUTONOMY DOMINANCE NURTURANCE EXHIBITION COGNIZANCE EXPOSITION

C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N. Dichters List of Subconscious Motives1. 2. 3. 4. 5. Mastery over Environment Masculinity Individuality Status Love and Affection

C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N. Trio of NeedsPOWER

AFFILIATION

ACHIEVEMENT

C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.RESEARCHING CONSUMER MOTIVES Conscious Unconscious

Public Private1. Undisguised Questioning 2. Disguised Questioning (Conscious Projection) Third Person Mason Haire Technique

1 2

X 33. Disguised, Unguarded (Natural) response (Unconscious Projection) Word Association Sentence Completion Story Completion Mason Haire Technique


The MAO Model

C.O.N.S.U.M.E.R. E.M.O.TI.O.N.S.EMOTIONS : Sudden Surge of Feelings

This Sudden Surge produces Strong Drive to Approach the Source of that Feeling Thus, Emotions serve as Motivation

HEDONIC MOTIVESeeking Recreation Seeking Pleasure

INTRINSIC Enjoyment Sensory Pleasure Aesthetic pleasure Emotional Experience Fun and Play

CONSUMER INVOLVEMENT

The Degree of Interest a Consumer Finds in a Product or object

CBExercise

LearningObjectives Toempathizeandappreciatethelived experienceofthecustomer TogetavocabularyfordiscussingCBissues ToappreciatethecomplexityofCB phenomena TodebunkbiastowardsrationalCBmodel Tounderstandissuesandproblemsinthe conductandanalysisofqualitative interviewingforunderstandingtheconsumer

TheoryofChoiceVariation in Choice Utilitariandecision stage? triggers? problem solving? search?

Low Involvement

Hedonic

TheoryofChoiceChoiceBrand/ Product New Old Influence Factors DecisionMaking Roles/Unit Decision Sequence___________ Evaluation Decision ChoiceRole of Price

Trigger

SearchConsid Sets

Candy bar Pad of paper Perfume Car

Process

Rules

TheoryofChoiceDifferenceinExtensive,Limited,andRoutinizedProblemSolvingModelsDECISIONSTAGEWHEN WHEN PRODUCT BRANDIS: CLASSIS: EXTENSIVE PROBLEM SOLVING LIMITED PROBLEM SOLVING ROUTINIZED RESPONSE NEED AROUSAL INFORMATION SEARCHEVALUATION

BEHAVIOR

PURCHASE DECISION

POST PURCHASE EVALUATION

NEW

NEW

NEW NEED

EXTENSIVE

CAREFUL

FAMILIAR

NEW

NEW BRAND

LIMITED

CASUAL

FAMILIAR

FAMILIAR

PRODUCT DEPLETED

NONE

BY EXCEPTION

AWARENESSINTERESTDESIREACTION KNOWFEELDO

VariationsinConsumerChoicePhenomenaUtilitarian/ InstrumentalKnow Feel Do Trigger = gap (actual desired) Active Search Rational Use of Information; Rational Evaluation of Alternatives Process: Extensive Problem Solving routine response Choice heuristic: Buy the Best Ultimate Choice: Trade off among competing alternatives Price as trade-off variable

Low Involvementknow Do (Feel) Trigger = Stock depletion Passive Search Limited/no evaluation of alternatives Rational Use of Information Expectancy confirming

Hedonic/Ego-Expressive

Feel Do (Know) Trigger = Impulse, need Confirmatory Search Rationalizing evaluation of alternatives Process: Choice heuristic: Buy What I like Ultimate Choice: Satisfying model Process: Choice heuristics: Buy the Familiar; Buy the Cheapest Price as secondary concern Ultimate Choice: Satisficing model Price as deciding factor

TheoryofUsageVariation in Usage UtilitarianSatisfaction? Loyalty? Relationship? Effects?

Low Involvement

Hedonic

TheoryofUsageUsageNature Length Category/ of of Brand Relationship Loyalty Satisfaction Relationship Meaning Stressors Vulnerabilities Consequence

Jeans Computers Ketchup

VariationsinUsagePhenomenaUtilitarian/ InstrumentalLoyalty = reward for performance Satisfaction = (Performance minus Expectations) compared to alternatives Relationship = Brand Partner Quality Relationship => repeat, word-of-mouth, price premium

Low InvolvementLoyalty = Inertia, Habit Satisfaction = Absence of Negatives Relationship = Behavioral Interdependence Relationship => Predisposition to Rebuy

Hedonic/Ego-ExpressiveLoyalty = Affective Commitment Satisfaction = Brand-Self Image Congruency Relationship = Love, Commitment, Self-Concept Connection Relationship => Trial Extensions; Word-of-Mouth Missionary, Forgiveness, Tolerance, Price Premium

MarketingConsiderationsAcrossCore MotivationalConditionsUtilitarian/ InstrumentalKeys to Continuity: Product Performance Provision of Information Central Threat to Continuity: Better Performing Alternative

Low InvolvementKeys to Continuity: Saliency of brand Insured Product Availability Central threat to continuity: interrupts in purchase cycle

Hedonic/Ego-ExpressiveKey to Continuity: Clear, Relevant Articulation of Brand Image Central threat to continuity: change in self or brand image

Issues regarding the research process

TakeAway Manyusefulconceptsandframeworksto understandconsumer Rationalmodelofteninappropriate Atbasiclevel,therearethreemotivational conditions:Lowinvolvement,hedonic, utilitarian WhatislowinvolvementforAmaybehedonic forB Understandingthecustomerisanart

Personality

Learning Objectives

Personality theories and its marketing applications Self-concept and its applications

P. E. R. S. O. N. A. L. I. T. Y.A Persons Psychological Makeup that Determines his/her Responses to Environment/Stimuli Behavior is NOT Personality Even Consistent Behavior is NOT Personality Personality is PSYCHOLOGICAL Makeup UNDERLYING That Behavior Psychological Makeup: Values, Motives, and Learned and StoredBehavior/Response Patterns. These Produce Automatic Responses (i.e., Consistent Behaviors). In Practice, from Consistent Behaviors, We Infer Personality.

P.

E.

R.

S.

O.

N. A.

L.

I. T. Y.

Freudian theory Neo-Freudian personality theory Trait theory

P.

E.

R.

S.

O.

N. A.

L.

I. T. Y.

Freudian Theory

Gratification

ID

EGO

SUPEREGO

P. E. R. S. O. N. A. L. I. T. Y. FREUDIAN THEORY of Personality1. Id Pleasure seeking. Selfish 2. Superego Impose Morality. Conformity 3. Ego Compromise between Id and Superego. Reality Personality Develops by How a Person Navigates Between His/Her Id and the forces of Superego (i.e., Societys Desires) That is How a Person Develops His/Her Ego/His Identity

Ad Portraying the Forces of the IdAxe Ad: http://www.youtube.com/watch?v= 6v_eorFolHQ

P. E. R. S. O. N. A. L. I. T. Y.

Neo-Freudian TheoriesKaren Horney: Described people as moving toward others (compliant), away from others (detached), or against others (aggressive). Carl Jung: Collective unconscious: A storehouse of memories inherited from our ancestral past Believed people are shaped by cumulative experiences of past generations Archetypes: Universally shared ideas and behavior patterns created by shared memories

Ad Applying Horneys Detached Personality

P. E. R. S. O. N. A. L. I. T. Y.

TRAIT THEORYA Personality TRAIT is a Characteristic Behavior. How Many Traits? Actually Thousands Marketers link traits to how consumers make their choices about consumption of a broad product category - not a specific brand

P. E. R. S. O. N. A. L. I. T. Y.TRAIT THEORY Marketers Eight (An Arbitrary List) 1. INNOVATIVENESSBeing Predisposed to embrace new ideas. 2. VARIETY/NOVELTY SEEKERDesiring New and Diverse experiences 3. HEDONISMSeeking maximal pleasure from life 4. VANITYExcessive pride in ones appearance and accomplishment 5. UNIQUENESS SEEKERWanting to Differentiate Oneself 6. ETHNOCENTRISMBelieving that it is wrong to purchase foreign-made products 7. NEED FOR COGNITIONCraving for enjoyment of thinking 8. MATERIALISMAcquiring and showing-off possessions

Ad Targeting Visualizers

Ad Targeting Verbalizers

P. E. R. S. O. N. A. L. I. T. Y.

Discussion QuestionThis classic ad starts off with the line: The Datsun 240-Z is not exactly what you would call a common site. What consumer personality trait is this ad appealing to?

P. E. R. S. O. N. A. L. I. T. Y. S.E.L.F. C.O.N.C.E.P.T.A Persons Conception of Him/Herself The Sum Total of All the Ideas a Person has about Him/Herself. 1. Actual 2. Ideal 3. Social-Actual 4. Social-IdealMeasuring Self-Concept Image Congruity: Self-Concept Brand-image Congruency Theory

S.E.L.F. C.O.N.C.E.P.T. COMPONENTS OF SELF 1. Body 2. Values and Character 3. Competence and Success 4. Social Roles 5. Personality Traits

P. E. R. S. O. N. A. L. I. T. Y.

Extended Self Ethnic/Cultural identity Family Identity Work Organization Social Networks + POSSESSIONS

P. E. R. S. O. N. A. L. I. T. Y.S.E.L.F. C.O.N.C.E.P.T. Read Self-Concept Descriptions in your Study Material 1. Any Comments? 2. Write Your Own Then write: Your Self-concept as a Consumer (What Kind of a Consumer do you think You Are?) (e.g., spendthrift, impulsive, consummate, hedonic, experimental,guarded, trend-seeker, Etc..)

Perception

Learning ObjectivesConsumer Perception Process and its marketing applications Positioning and its methods

P.E.R.C.E.P.T.I.O.NPerception. The process by which Humans become aware of and interpret a stimulus.

P.E.R.C.E.P.T.I.O.NP.e.r.c.e.p.t.i.o.n. P.r.o.c.e.s.s. Exposure ATTENTION INTERPRETATIONEXPOSURE How To Get it By WISE MEDIA Selection By Product Placement Voluntary ATTENTION Involuntary STIMULUS FACTOR: vividness/contrast Topic Interest/Involvement INTERPRETATION Depends on Prior Stock of Knowledge Prior ExpectationsO O

P.E.R.C.E.P.T.I.O.NFactors Influencing PerceptionSTIMULUS Characteristics: Sensory (size, color, movement) Information Content CONTEXT Store, brand name, isolation, contrast CONSUMER Involvement, Interest Sensory and Cognitive Skills Prior Knowledge (Prior Expectations)

P.E.R.C.E.P.T.I.O.NABSOLUTE AND PERCEPTUAL THRESHHOLDAbsolute Threshold: An Example Perceptual Threshold Webers Law J.n.d. When You Want to Lie BELOW Perceptual Threshold And When You Want to Rise ABOVE the Threshold(Examples)

1. Make Explicit (Products sensory features) 2. CHANGE

P.E.R.C.E.P.T.I.O.NBetty Crocker Changes Fall Below the J.N.D.

P.E.R.C.E.P.T.I.O.N

Gradual Changes in Brand Name Fall Below the J.N.D.

P.E.R.C.E.P.T.I.O.NPERCEPTUAL ORGANIZATION GESTALT FIGURE AND GROUND GROUPING CLOSURETry to remember a 13/14 digit no. Try to remember a 5/7 digit no.

P.E.R.C.E.P.T.I.O.NSUBLIMINAL PERCEPTIONSubliminal Perception. Perception of a stimulus without being aware of it. Mere Exposure effect: Liking due to even brief, unrecalled, exposure. Prior exposure creates warmth (even without memory) Therefore, we like things we have seen before even though we may not remember seeing them! Automated Response Lesson: Just Make All Stimuli elements P L E A S A N T. .

P.E.R.C.E.P.T.I.O.NPERCEPTION: MARKETING APPLICATIONSPsychology of Price Perceptions Reference Price. Assimilation vs. Contrast Price as Quality Cue Country of Origin Brand Image Perceptual Maps Sensory Marketing

P.E.R.C.E.P.T.I.O.NHow Consumers Perceive Marketing StimuliBRAND IMAGE Q. How do you change brand image? A. By Changing Consumer Perceptions. Based, of course, on the Brands Reality. Brand Image is 100% Consumer Perception.

P.E.R.C.E.P.T.I.O.NPERCEPTUAL MAPS

Discuss: Why the two maps are different?

P.E.R.C.E.P.T.I.O.NPositioning + REPOSITIONINGPOSITIONING. Consumer perception of a brand relative to competing brands and relative to ones goals REPOSITIONING. The practice of changing consumer perceptions about a brand.

POSITIONING METHODS: By Functional Benefits By Symbolic Image By User Image By Usage Situation By Competition

P.E.R.C.E.P.T.I.O.NPositioning + REPOSITIONINGSecondary Demand Creation Primary Demand Creation BREAKING Free from Category Restriction

P.E.R.C.E.P.T.I.O.NSENSORY MarketingCreating Favorable Brand Impressions in the consumer mind by appealing to senses Sound Taste Sense of Smell Sense of Touch Sight Two Approaches: 1. Varied Stimuli/Product Design 2. Unique sensory feature

P.E.R.C.E.P.T.I.O.NPerception Meets Marketing SENSORY MarketingSound Taste Sense of Smell Sense of Touch Sight New trend in Sensory Communication: Cross-modality (Example: communicating sensory pleasure of taste or smell on printed page)

P.E.R.C.E.P.T.I.O.NPerceptions: bits of WisdomThere Are No FACTS in Life, only Statements of FACTS. There is no Objective Reality, Only Perceptions. Sometimes Perceptions come close to reality, sometimes they are far off. All OUR Perceptions are TRUE. Perceptions, NOT Reality, form the basis of our Actions. Consumer Perceptions, Not Reality, determine the fates of brands and of Businesses.

Molding Consumer Attitude through Communication

Learning ObjectivesHow to change attitude How to design persuasive communication

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.Theories of Attitude Molding High-Low Involvement Theories Heiders Balance Theory Theories of Attribution Theory Self Perception Theory ACTIVE vs. Passive Audience Theory

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.Four Modes High Involvement-THINK High Involvement-FEEL Low Involvement-THINK Low Involvement-FEEL

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.HIGH-LOW INVOLVEMENT THEORIES Attitude Change Process is FUNDAMENTALLY DIFFERENT under Low versus High Involvement Conditions. Low Involvement: Peripheral Route: Low Attention, Low Defense, Repetition is key High Involvement: Central Route: High Attention, High Defense, Message Content is key Elaboration Likelihood Model

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.Heiders Balance Theory and Attitude Change Scenario:On March 25, 2007, Columbian singer Shakira gave a concert in Bombay. Among many costume changes during the show, she also wore a saree. (Google Shakira in Bombay for story and images) Assume, hitherto you did not like a saree. Now after seeing your favorite singer star Shakira donning it, how will your attitude toward the saree change? Let Heiders Balance Theory help us predict.

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.



M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.Molding Attitude Through the Multi-Attribute Model 1. Change Perception of Attribute Level 2. Change Evaluation of an Attributes Desirability 3. Introduce a New Attribute

DISCUSSIONApply this model to changing your attitude (in either direction) toward: (a) Starbucks (b) The idea of wearing Bohemian clothing (c) The idea of vegetarianism (d) Your least favorite music band.

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.HOW LOW INVOLVEMENT ADVERTISING WORKS

Defenses are Down Repeated Exposure Passive processing

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.Attitude toward the Ad Nota BeneIt is NOT that the ad, and attitude toward the ad is not that important for a high involvement product. Rather that in high-involvement situations, the ads role is to create strong brand beliefs. In contrast, in low involvement situation, the ad attitude directly impacts brand attitude even when it creates no brand beliefs.


APPEAL TYPES: Emotional vs. Rational, Humor, Fear, Sexual, Two-sided vs. One-sided, Comparative You Should Know: a. What These types are b. When They Work c. When they are ineffective d. When they can backfire e. Any precautions (You should fill this for each appeal type in next few slides)

M.o.l.d.I.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E. THE ROLE OF SOURCE IN PERSUASIONSOURCE CREDIBILITY Source expertise Source independence SOURCE ATTRACTIVENESS SOURCE SIMILARITY Match-up Hypothesis The Chosen Celebrity should have an image similar to the Brands Desired Image


Sleeper Effect

The idea that both positive and negative credibility effects tend to disappear after a period of time

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E. Designing Persuasive CommunicationsMessage Structure and Presentation Resonance Order effects Wordplay Used to create a double meaning when used with a relevant picture

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E. Designing Persuasive CommunicationsMessage Structure and Presentation Resonance Order effects Primacy Recency Brand name

M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.FUNDAMENTAL WISDOM ON ATTITUDE MOLDING Other peoples attitudes are important to us. If they are negative, we will gain nothing from those consumers. We want them to be positive, so we may benefit from them. That is why we are always trying to mold those attitudes. (And others are trying to mold ours.) But no one can mold anothers attitude. People persuade themselves. Attitude Molding boils down, then, to helping consumers in their own endeavor to self-mold their attitudes.

Consumer Attitude

Learning ObjectivesHow does a consumer develop an attitude? What does attitude do? How can marketers influence attitude?

C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E. Attitude. A learned predisposition to respond to an object in aconsistently favorable/unfavorable way.

Predisposition. Pregnant with meaning

My Attitude toward: Drinking snake blood Body piercing

C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.S.

Also called Tricomponent Attitude Model

C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.






C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.FOUR FUNCTIONS of Attitudes 1. Utilitarian 2. Value-expressive 3. Ego-defense 4. Knowledge


Also called Attitude towards Object

The Fishbein Model: An ExampleAttribute Evaluation (ei) +2 -1 +3 +3 +1 +2 Beliefs (bi) Brand Brand Brand A B C +2 -3 +3 +2 +1 +3 +29 +1 -1 +1 +3 +3 +1 +20 -1 +3 -1 +1 +3 -2 -6

Shock absorbent Price less than 500 Durability Comfort Desired color Arch support Total bi ei score


Incorporates Attitude towards Behavior



Change the Cognitive ComponentChange Beliefs Shift Importance Add Beliefs Change Ideal


Change the Affective ComponentClassical Conditioning Affect toward the ad or website Mere exposure


Change the Behavioral ComponentReciprocity Door-in-the-face technique (big request first - target refuses, then the communicator concedes by asking for a small favor -target agrees) Scarcity - one-day offer, two-days sale, must suggest better value Authority - expert endorsers Commitment - make the target commit to some small thing Foot-in-the-door technique (small request first) Low-balling - to commit to an attractive option first (car deals) Even-a-penny-will-help technique Liking/compliments - persuasion by favorite or/and similar endorsers Social validation -statistical advertisements(85 % of the population)

C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.Attitudes. How is the concept useful to a marketing manager? Prediction Diagnosis Getting Consumer to BUY: The Only way to get someone to buy your product is by first creating a favorable attitude in the consumer mind toward your product or brand.

C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.Attitudes. Every marketing manager must understand theconcept of attitude and know how to measure it. As a marketer, there is no task of greater importance than to build and sustain a positive consumer attitude. To build and sustain positive consumer attitudes, you will need every bit of knowledge about how attitudes are formed and sustained.

Innovation Diffusion and Adoption Process

Learning ObjectivesInnovation: Meaning, What influences adoption Adopter types and characteristics How to communicate to ensure adoption of innovation

Defining InnovationsFirm-oriented definitions Product-oriented definitions Market-oriented definitions Consumer-oriented definitions

Product-Oriented DefinitionsContinuous Innovation Dynamically Continuous Innovation Discontinuous Innovation

Telephone InnovationsDiscontinuous Innovations Dynamically Continuous InnovationsTelephone answering machines Call forwarding Call waiting Caller ID Banking by telephone Call-prompting systems Ability to send/receive email Incorporate PDA functions Calendar/Phonebook Voice-activated dialing Fax modem Mobile fax machines Home office systems (combined fax, copier, computer printer)

Continuous InnovationsHold button Line-in-use indicator Redial button Auto dialing feature Touch-tone service 800 Numbers 900 Numbers Switch from analog to digital Include camera Ringer styles Play games Plain paper fax Speed dial buttons Delayed send Copy function Paper cutter

Telephone

Cell Phone

Fax Machine

Product Characteristics That Influence DiffusionCHARACTERISTICS EXAMPLES

Air travel over train travel, cordless Relative Advantage phones over corded telephones Gillette MACH3 over disposable razors, digital telephone answering machines over machines using tape Electric shavers, instant puddings Trial size jars and bottles of new products, free trials of software, free samples, cents-off coupons Clothing, such as a new Tommy Hilfiger jacket, a car, wristwatches, eyeglasses

Compatibility

Complexity Trialability Observability

I.N.N.O.V.A.T.I.O.N.S.Diffusion of Innovations

I.N.N.O.V.A.T.I.O.N.S.Innovation ADOPTER CATEGORIES

I.N.N.O.V.A.T.I.O.N.S.INNOVATORS Risk takers Variety Seekers High product Interest Less Well Integrated More Individualistic

Measure of Consumer Innovativeness

I.N.N.O.V.A.T.I.O.N.S.

CHARACTERISTICS of OTHER ADOPTER GROUPS Early AdoptersThey Deliberate, Independent and Quick to Assess Early MajorityVery Deliberative, Adopt if see no risk Late MajorityVery skeptical, extremely risk averse. Laggardsresist/postpone adopting innovations

I.N.N.O.V.A.T.I.O.N.S.Adoption Process The AIDA Model

An Enhanced Adoption Process Model

Rejection

Discontinuation or Rejection Evaluation

Preexisting problem or Need

Awareness

Interest

Evaluation

Trial

Adoption or Rejection

Adoption or Rejection

Postadoption or Postpurchase Evaluation

Discontinuation

The Relative Importance of Different Types of Information Sources in the Adoption ProcessHigh Personal and interpersonal sources Importance Impersonal mass-media sources Low Evaluation Awareness Interest Adoption Trial

A Theory of Communication Flow

I.N.N.O.V.A.T.I.O.N.S./NewsWORD OF MOUSE Emails Chat Rooms Weblogs Public Blog Sites RECIPE FOR SUCCESSFUL BUZZ BUZZ MARKETING Rapid Spreading of Product News thru Word-of-Mouth Peer-to-peer marketing Viral marketing: Spreading product acceptance through consumers in an exponential fashion Cyber buzz (buzz thru Internet)

Consumer Learning

Learning ObjectivesHow human beings learn How human memory works How marketers help consumers learn

Consumer As A Learner

Consumer As A Learner Pavlovian Model of Classical ConditioningUnconditioned Stimulus Meat paste Unconditioned Response Salivation Conditioned Stimulus BellAFTER REPEATED PAIRINGS

Conditioned Stimulus Bell

Conditioned Response Salivation


Example of Classical Conditioning

Consumer As A LearnerExample of Instrumental ConditioningOther examples: coupons, sweepstakes, thank you calls

Consumer As A LearnerAn Application of Instrumental Conditioning: Shaping

(Source: Hawkins et al, 2004)

Consumer As A LearnerModeling

The shot of a home buzzing with excitement. The housewarming ceremony is in progress.

Seeing her grand father break a coconut, a little girl scampers to her mother and asks...

..."Mummy, naariyal kyon toda?" Her mother explains, "Kyonki, yeh shudh...

...hai Aur shudhta se shakti badhti hai aur ghar mein khushiyaan aati hain."

Consumer As A LearnerContd:

The girl is now seen playing outside in the garden, building her own mud castle.

She takes out a bottle of Parachute, and imitating her grandfather, hits it on the ground.

And repeats her mother's words to her perplexed friend, "Yeh shudh hai. Ghar mein...

...khushiyaan aati hain." Product Window: Parachute. MVO: "Shudhta ki shakti."

Marketing Example?

Consumer As A LearnerCognitive LearningLow Involvement Learning. High Involvement Learning Brand name, jingles, slogans, package recognition; Product benefits; Long message content;


Consumer As A LearnerMemoryShort Term How Short is STM Duration Capacity Long Term How Long is LTM Duration Capacity




Consumer As A LearnerStimulus GeneralizationA process wherein a consumer extends a learned response for one stimulus to another stimulus

Stimulus DiscriminationA process wherein a consumer perceives two stimuli to be different and consequently does not apply the same response to both.Example: Shalimar and

Example: Store brands use a

look-alike package , product line and form extension, family branding, licensing

Parachute coconut oil packages are designed to look different

Consumer As A LearnerProduct Line and Form Extension

Consumer As A LearnerRepetition: Three-Hit Theory3 exposures to an ad are necessary for the ad to be effective The number of actual repetitions to equal three exposures is more than 3

Consumer As A LearnerFlip Side of Ad Repetition: Two-Factor Theory

Consumer As A LearnerEffect of Ad RepetitionCosmetic Variations in Ads

Advertising wearout

Substantive Variations in Ads

Consumer As A Learner Measures of Consumer Learning Recognition and Recall Measures-Aided and Unaided Recall

Cognitive Responses to Advertising-Copytesting Measure

Attitudinal and Behavioral Measures of Brand Loyalty

Culture, Sub-Culture, Cross-Culture

Learning ObjectivesCulture: Meaning, Elements, Characteristics How to understand culture Subculture Cross-culture and marketing blunders

C.U.L.T.U.R.E.CULTUREEverything Humans Learn and Share as Members of a Society Two Essentials of Culture LEARNING SHARING Culture vs. Nature Both within Ourselves And in the Physical world Outside us

C.U.L.T.U.R.E.

Elements of Culture Values Norms Rituals Symbols Customs Myths Knowledge, Science, and Technology Laws Arts Material Culture Discuss Are the following examples of culture or not? A Caf Coffee Day cup of latte A bar of Dove soap A TV commercial for Nike featuring a celebrity A print ad for a medicine focusing entirely on medical benefits

C.U.L.T.U.R.E.

C.U.L.T.U.R.E. Universal Cultural Value Dimensions (Hofstedes FIVE)Individualism vs. Collectivism Power Distance Uncertainty Avoidance Masculinity vs. Femininity High Context vs. Low Context And one more from Trompenaars Universalism vs. Particularism

C.U.L.T.U.R.E. Some Differences in Cultural NormsOffering and Sharing Chivalry Candid talk Informality in Social Relations Discussion: Compare these for any two cultures you are familiar with

C.U.L.T.U.R.E.CULTURAL PRACTICES RITUALS Myths Customs Some Ancient Customs: Dowry Price Bride Price Some Modern day Customs: Bridal Shower Wedding Rituals

C.U.L.T.U.R.E.Discussion: How do these apply to: a. Olympic torch b. College commencement ceremony c. Engagement ring ceremony

C.U.L.T.U.R.E. Grooming Ritual

Exchange Ritual

C.U.L.T.U.R.E. The Measurement of Culture Content Analysis Consumer Fieldwork Value Measurement Instruments

S.U.B.-C.U.L.T.U.R.E.

Subculture

A distinct cultural group that exists as an identifiable segment within a larger, more complex society.

S.U.B.-C.U.L.T.U.R.E. Sub-CultureSocial Class ( Upper, Middle) Religion (Hindus, Muslims) Geographic Region (North India, South India) Age (Children, Adults) Gender (Male, Female) Language ( Hindi, Bengali) Occupation ( Doctor, Engineer)

C.R.O.S.S.-C.U.L.T.U.R.E.

Cross-Cultural Consumer Analysis

The effort to determine to what extent the consumers of two or more nations are similar or different

C.R.O.S.S.-C.U.L.T.U.R.E. Globalization of Local Culturesa. Global Culture: A Myth or Reality? b. Global Culture does not mean death of Local Culture c. Local Culture thrives side by side Global Culture (Earlier, Local Culture existed Exclusively) Many Customs, Behaviors are now Everywhere d. Some consumers have embraced Global Culture.

C.R.O.S.S.-C.U.L.T.U.R.E. Global Versus LocalMcDonalds customized its products to be a part of Indian culture Since Indias majority Hindus (80% of Indias population) revere cows as sacred and 150 million of Indian Muslims do not eat pork and beef, McD introduced a mutton-based Maharaja Mac in India, as opposed to its flagship beef-based Big Mac elsewhere

C.U.L.T.U.R.E. Enculturation

Learning from ones own culture has a bearing on ones behaviour as a consumerThe goodness of neem leaves gave the oppurtunity to the marketers to introduce it in the form of a bath soap

C.U.L.T.U.R.E. Acculturation

C.U.L.T.U.R.E. Measuring Consumer Ethnocentrism

C.U.L.T.U.R.E. Marketing Blunders (Crossing Cultures):

Lost in Translation Written Scripts Colors Numbers and Other symbols Standards of Nudity and Taboo Topics Product Consumption Differences

C.U.L.T.U.R.E. Marketing Mistakes in India

C.U.L.T.U.R.E. International MistakesFord Fierra (ugly old woman in Spanish)

Parker Pen [It wont embarazar you (in Mexican..It wont leak in your pocket and make you pregnant)]

Let it loose (In SpanishSuffer from diarrhea)

Source: http://www.cxo.eu.com/currentissue/article.asp?art=269413&issue=190

Reference Groups and Family Influence

Learning ObjectivesReference groups: Types, strong vs. weak influence, types of influence, types of appeal Opinion leadership: qualities, how to identify them Family vs. household, family decision making, consumer socialization of children

R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.Persons, groups, and Institutions one uses as Points of Reference. (Uses as a Guide for ones own values and behavior) Referent: A person one uses as a point of reference. Everyone has at least one Referent, or Reference Group. No one lives by him/herself, for him/herself, of him/herself.

R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.Groups.Two or more persons sharing a common purpose.. GROUP Members: Share Some Values Recognize Interdependency Assume Specific Roles Communicate Mutual Expectations and Evaluations Provide some rewards/punishments (tangible or intangible)

R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.Types of Groups Primary vs. Secondary Formal vs. Informal Ascribed Vs. Choice Associative Vs. Dissociative Membership Vs Symbolic

R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.




R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.Measurement of SIPI (Rate Yourself)

Reference Group AppealsCelebrity Appeal: Dhoni for pen

Celebrities The expert The common man The executive and employee spokesperson Trade or spokescharacters Other reference group appeals

Types of Celebrity AppealsTYPE Testimonial DEFINITION Based on personal usage, a celebrity attests to the quality of the product or service EXAMPLE Amitabh Bachchan for Navratna(so many years in the industry)

Endorsement

Celebrity lends his name and Shah Rukh for Santro appears on behalf of a product or service with which he/she may not be an expert Celebrity presents a product or service as part of a character endorsement Celebrity represents the brand or company over an extended period of time Amitabh Bachchan as Father Principal(priest) Aishwaraiya Rai for Loreal

Actor

Spokesperson

O.P.I.N.I.O.N. L.E.A.D.E.R.S.People Who Hold and Give an Opinion, Which is ACCEPTED by Opinion Recipient

Two Essential Qualities: Expertise Trustworthiness

Other Characteristics of OLs: High Product Involvement Recognized as Leaders Socially WellIntegrated More exposed to Media Hold leadership positions in organizations

O.P.I.N.I.O.N. L.E.A.D.E.R.S.IDENTIFYING OPINION LEADERS 1. Observation 2. Self-Designation 3. Sociometry 4. Key-Informants Trustworthiness Discussion Apply these methods to identify O.L.s for (a) For a rally on campus (b) For an environmental awareness campaign

O.P.I.N.I.O.N. L.E.A.D.E.R.S.Measuring Opinion Leadership

F.A.M.I.L.Y.Define Family Define Household Q. What is the Difference between a Family and Household Q. Is every household a family? Q. Is every family equal to one household?

F.A.M.I.L.Y.FAMILY LIFE CYCLE

Discuss: How can Marketer use the FLC?

F.A.M.I.L.Y.FAMILY DECISION MAKING PROCESSDiscuss: 1. Can family members make individual decisions? 2. Do all these steps inevitably occur in joint family decisions?

Eight Roles in the Family Decision-Making ProcessROLE Influencers Gatekeepers Deciders DESCRIPTION Family member(s) who provide information to other members about a product or service Family member(s) who control the flow of information about a product or service into the family Family member(s) with the power to determine unilaterally or jointly whether to shop for, purchase, use, consume, or dispose of a specific product or service Family member(s) who make the actual purchase of a particular product or service Family member(s) who transform the product into a form suitable for consumption by other family members Family member(s) who use or consume a particular product or service Family member(s) who service or repair the product so that it will provide continued satisfaction. Family member(s) who initiate or carry out the disposal or discontinuation of a particular product or service

Buyers Preparers Users Maintainers Disposers

F.A.M.I.L.Y.Husband-Wife DECISION Roles

Discuss: Which products decisions are likely to be of each type?

F.A.M.I.L.Y.FACTORS Influencing Spousal Roles

Discuss: Which factors will favor a greater role by the husband? Which by the wife?

F.A.M.I.L.Y.Family Types 1. 2. 3. 4. Authoritarian Neglectful Democratic Permissive

Discussion: How would you classify your family? How has that affected your development as a consumer? Would you have been a different type of consumer if your family were of another type?

F.A.M.I.L.Y.Conflicts and Resolution StrategiesDiscuss: Can you give an example of each quadrant from your own experience?

F.A.M.I.L.Y.Consumer Socialization of Children What do children learn about the marketplace? Where do they learn these fromi.e., who are the socializing agents?

Decision-making

Learning Objectives

D.E.C.I.S.I.O.N. M.A.K.I.N.G.

Consumer Decisions

Whether to Buy a Product at all? What Feature (versus price) trade-offs to Accept? Which Brand to Buy? Where to Buy it from? .. And in Deciding on all this, How Much Effort to Put In?

D.E.C.I.S.I.O.N. M.A.K.I.N.G. Consumer Decision Process

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 1: What is PROBLEM RECOGNITION? Gap Concept of Needs

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 1: What is PROBLEM RECOGNITION?

D.E.C.I.S.I.O.N. M.A.K.I.N.G. How PROBLEM RECOGNITION Occurs? Types of Stimuli A Problem Stimulus A Solution Stimulus Sources of Stimuli Opportunity Recognition Internal Stimuli External Stimuli Problem Recognition Situations Stock Depletion Life-stage Changes Developing New Tastes Discuss: Student Examples

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 2: INFORMATION SEARCH BRANDS WE KNOW

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 2: INFORMATION SEARCH (Contd.) Sources of InformationMarketer Sources Non-Marketer Sources

Personal Independent

Q. Which Source is Called Advocate Source?

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 2: INFORMATION SEARCH (Contd.) Sources of InformationQ. Do Knowledgeable Consumers Depend More on Some Sources than Others (Compared to Not-soknowledgeable sources)?

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 2: INFORMATION SEARCH (contd.) SEARCH STRATEGIES Rules of Thumb Quick Inference Brand Name Past Experience Recommendation

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 2: INFORMATION SEARCH (contd.) Simplifiers Vs. Extenders (Depends on) Cognitive Style Problem Complexity Routine, Limited, and Extended Are You A Simplifier or Extenders? Q.Have You Ever Wished You Were (For a Specific Decision) an Extender (Or Even more of an Extender)? Explain?

D.E.C.I.S.I.O.N. M.A.K.I.N.G.STEP 2: INFORMATION SEARCH (contd.) Discuss: Place a + or sign to indicate each factors increase/decrease direction of influence? Name various shopping styles Familiarity & Expertise: Same thing, similar effect?

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 2: INFORMATION SEARCH (contd.) Some Key Concepts in Determinants of Search Perceived Risk and Types Difference between Familiarity and Expertise Are Effects of Familiarity and Expertise Different? Deficit Hypothesis Shopping Style Ignorance Paradox

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 3: ALTERNATIVE EVALUATION

How Do You Know What Features You Want? Or Should want?

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 3: ALTERNATIVE EVALUATION (contd.) Judgment Models (Decision Rules or Models) Compensatory Model Non-Compensatory Models Conjunctive Disjunctive Lexicographic Elimination by Aspect (EBA)

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 3: STEP 3: ALTERNATIVE EVALUATION (contd.) Imperfections in Consumer Judgment FRAMING EFFECTS

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 3: ALTERNATIVE EVALUATION (contd.) Imperfections in Consumer Judgment (Contd.) TOP DOWN vs. BOTTOM UP Customization (Which one makes you spend more?) WHY IT HAPPENS: Cognitive Effort Anchoring Effect

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 3: ALTERNATIVE EVALUATION (contd.) Imperfections in Consumer Judgment (Contd.) Inference Making: 1. Intra-attribute inferenceEvaluative Consistency Negative Cue Alternative Evaluation Phase Concluded by SATISFICING The Chosen Alternative is NOT OPTIMUM Yet We Are Satisfied, even Relieved 2. 3.

Describe Your Own Moments of Satisficing

D.E.C.I.S.I.O.N. M.A.K.I.N.G. How We Choose Expressive Products?

D.E.C.I.S.I.O.N. M.A.K.I.N.G. STEP 4: PURCHASE

D.E.C.I.S.I.O.N. M.A.K.I.N.G. Decision Process by Involvement

D.E.C.I.S.I.O.N. M.A.K.I.N.G. OVERVIEW Problem recognition opens new markets for innovative and insightful marketers. All consumers are satisfiers, not optimizers? Are you an extender or a simplifier? Discuss. Is it better to be an extender than a simplifier? We use judgment models/decision rules all the time. There is nothing theoretical about them Heuristics are very handy; they serve us by allocating our effort judiciously. Involvement is the big arbiter of all decision processes.

Learning Objectives

Discussion: Have you experienced similar moments? When? What kinds of consumer decisions produce second thoughts?

Postpurchase DissonancePostpurchase Dissonance: a consumer reaction after making a difficult decision that involves doubt and anxiety Probability of experiencing dissonance increases based on: Degree of commitment or irrevocability Importance of the decision Difficulty in choosing Individuals tendency to experience anxiety

Postpurchase DissonanceApproaches to reduce dissonance: Increase the desirability of the brand purchased Decrease the desirability of rejected brand Decrease the importance of the purchase Reverse the purchase decision (return before use)

Decision Confirmation Cognitive Dissonance Consuming in Evaluative Mode (vs. Mindlessly) Discuss 1. Describe when you may have felt the need to confirm your decision. 2. Describe when you consumed something in an evaluative mode.

Future Response Exit Voice Loyalty

Psychology of Satisfaction

Customer Satisfaction Outcomes

Dissatisfaction Response

Future ResponseWhy Do Dissatisfied Customers NOT Leave?

SWITCHING COSTS contract investment lost New search/shopping costs New Set up costs Learning costs Performance risk No known better alternatives Some current feature lure

Consumer Complaining

Related Concepts: Perceived Justice Recovery Make-Goods

Disposition Alternatives

Recycling Which item can you yourself Reduce Reuse Recycle Will You?

Product Disposal Two-Factor Model of Recycling

Post-Choice Experience by Involvement

DISCUSSION:How Would You Motivate Consumer Complaining? (Should You? Why?)

How Would You Encourage Consumer Recycling?

How Would You Enhance Consumers Product Use Experience?

Enhancing Post-Choice Experience 1. 2. Free sampling helps mostly when product is significantly different; Draw attention to hidden attributes (e.g., made from recycled

paper) made from wholesome ingredients); usage instructions for full benefits; Offer convenient product use support;Usage Guide Interaction quality Authenticity certificate Post purchase communication (To validate) Aesthetic package design (if in view during Any Other?

3. 4. 5. 6. 7. 8.

Use)

Consumer as a Shopper

Learning Objectives

C.O.N. S.U.M.E.R. A.S. A.

S.H.O.P.P.E.R.

Outlet Selection and PurchaseDecision Sequence Outlet First, Brand Second Brand First, Outlet Second Simultaneous Influences on store evaluative criteria List and rank evaluative criteria (characteristics) when shopping for:major grocery shopping trip buying a quart of milk in a hurry buying a suit buying a watch buying a newspaper


S.H.O.P.P.E.R.

Marketing Strategy Based on Decision Sequence

C.O.N. S.U.M.E.R. A.S. A.Shopping Motives Browsing Bargain Hunting Socialization Seeking Status Self-gratification Market Learning Recreation Acquisition

S.H.O.P.P.E.R.

Discussion Q. What % of time that you spend in the mall do you spend on each?

C.O.N. S.U.M.E.R. A.S. A.SHOPPING ORIENTATIONS Task Vs. Leisure Orientation Task Oriented Leisure oriented Four Sub-orientations of Task Oriented Shoppers: Product Quality Shopper Economic Shopper Convenience Shopper Experience Shopper Discussion Q. Which Type Are You?(Get Class Distribution--By M vs. F)

S.H.O.P.P.E.R.


S.H.O.P.P.E.R.

Planned or Unplanned BuyingQ. Are All Unplanned Purchases Impulse Purchases? Types of Unplanned Purchases: 1. Unplanned Restocking 2. Unplanned Evaluated, New Purchases 3. Impulse purchases Discussion. Describe Your own recent purchase of the second type. And then the third type. Notice any difference?


S.H.O.P.P.E.R.

Discussion: Recall and describe your most recent instance of extended browsing. Then check off which factors aided it.

C.O.N. S.U.M.E.R. A.S. A. In-Store Purchase Behavior

S.H.O.P.P.E.R.

C.O.N. S.U.M.E.R. A.S. A.STORE ENVIRONMENT PHYSICAL SOCIAL Four Elements of Physical Environment

S.H.O.P.P.E.R.

Design Factorsarchitecture, dcor, furnishings Layout Merchandise variety and visual display

Store by Chase Design Group

Ambient factorssights, sounds, smells, light, music, temp, etc.

Now Can You Build a List of Elements of Social Environment? .....

Store Atmosphere


S.H.O.P.P.E.R.


S.H.O.P.P.E.R.


S.H.O.P.P.E.R.

Discussion: Name YOUR Stores for each of the orange circles in the diagram.


S.H.O.P.P.E.R.

Discussion: Name YOUR stores at each stage


S.H.O.P.P.E.R.

Discussion: Does This Model Work For You?


S.H.O.P.P.E.R.

DISCUSSION: Name two stores, one you are more loyal to (or at least prefer more) and one less; then rate each on the What and How factors.


S.H.O.P.P.E.R.

DISCUSSION:

Do Store Brands Make Stores More Attractive? For Whom?


S.H.O.P.P.E.R.

Discussion: Rate these stores: (a) Pantaloons, (b) Caf Coffee Day; (c) Westside; (d) Spencers (e) McDonalds; (f) Pizza Hut


S.H.O.P.P.E.R.

Discussion: Rate Yourself. Do you believe you are an impulse buyer? Do your ratings confirm that? For what kinds of products? When Can Impulse buying become an addiction?


S.H.O.P.P.E.R.


S.H.O.P.P.E.R.

Impact of a Stockout Situation


S.H.O.P.P.E.R.

LAST WORD Shopping It is Necessary And, for many, it is Fun. Becoming the Favorite Store:Recognize Consumer Diversity (in terms of shopping orientations and shopping motives). Create Atmospherics Provide positive shopping experience.

Store by Chase Design Group

Discussion: Write an essay on what your life will be like if there wereno modern-day indoor or outdoor malls and shopping plazas.

Saxonville Case

Learning ObjectivesHow to determine optimal positioning for a brand based on consumers motivations, influences and values Understand how a 4-step process utilizing research results can be used to determine viable positioning alternatives How to recommend tactics accompanying a positioning strategy including brand name, product varieties, advertising and sales promotion

IntroductionSegmentation is the identification and profiling of distinct groups of buyers who might require varying product and service mixes by examining demographic, psychographic and behavioral differences among buyers Positioning is the designing of the companys offering and image to occupy a distinctive place in the mind of the target market

Current SituationMarket/Industry (Since 2004, 0% vol. increase in bratwurst & breakfast, Italian sausage 9% and 15% growth in 04 & 05, Saxonville has flat growth in brats, double digit decline in breakfast sausage and matched Italian usage industry growth) Competition (Mama Mia with authentic Italian heritage, Hertfordshire freshly and locally made, Pagalia Brothers with both) Customer (FFH, 20-50 years old) Company Status/Issues/4Ps SWOT

Research MethodologyUse of Previous Research Identification of Segments (w.r.t demographic and behavioral characteristics) Four-Step Process1. Mini pilot groups to understand what current Italian sausage users say about use of the product, AND Focus group to understand current behaviors, triggers to purchase, unmet demands, product benefits, attributes, ideals, core value of products 2. 3. 4. Develop positioning ideas Consumers prioritize and improve positioning concepts Monadic testing with purchase intent scores

Considerations to assure surveying the right consumersAge (20-30 years, 30-40 years, 40-50 years) Lifestyle (Working fill-time/part-time, Stay-at-home-mom) Geography (Saxonville bratwurst territory for Saxonville brand,Vivio Italian territory for Vivio brand, Territories with both brands in market for perceptions of the other brand, Italian sausage territories for competitive brands)

Research ResultsFocus Group-Heavy users purchased once a week in winter and once every two weeksin summer, light users purchased at least once every six weeks -Husband and children enjoyed -Females cooked -Italian sausage is ingredient for other meals -Vivio is of exceptionally good quality, color, taste, texture -Vivio not a suitable name -Women did not feel good about pre-packaged food -Women wanted to make wholesome and appealing meals for family but did not have time or skills for it -Desired to be nurturing mothers and homemakers -Believed a meal could be a magnet to bring everyone to the table

Six concepts Two top alternatives

Alternatives and RecommendationsFamily Concept (Pros Cons) Clever Cooking (Pros Cons)

Brand ladderingValue Emotional benefit Functional benefit Attributes

Brand ladderingFamily ConnectionValue- Job well done Emotional benefit- Togetherness/Connectivity Functional benefit- Everybody loves it Attributes- Perfect blend of seasoning and spices

Clever CookingValue-Job well done Emotional benefit- Creativity Functional benefit- Product versatility Attributes- Unique flavor combinations and forms

Family ConceptName Positioning Statement Tagline Communication Strategy -Key functional benefit -Key emotional benefit Product Variations -Flavors -Forms Packaging In-store tactics

Clever CookingName Positioning Statement Tagline Communication Strategy -Key functional benefit -Key emotional benefit Product Variations -Flavors -Forms Packaging In-store tactics

Tactics and RecommendationsProduct Varieties Packaging Advertising and Sales Promotions

What happened?Saxonville adopted Clever positioning and supported it with the following tactics:The brand name selected was an Italianate equivalent to Primo; some time after the first year of introduction (depending on performance and other activity in the entire sausage category), the Saxonville Company name would be introduced in some form (for example, From Saxonville or Saxonvilles Primo Brand of Italian Sausage). Oval-shaped label to resemble a finished meal on a serving or dinner plate. In-pack recipes (inserted under the label on top of the plastic wrapi.e., not touching the sausage) in a 3x5 recipe card size with new recipes rotated in every four weeks. The label was tagged to indicate that the package included a recipe and required ingredients were listed. Line items were rationalized, and pre-sliced and pre-formed disk and patty line items were introduced in mild and sweet varieties. Different flavors were developed as in and out line items to add news to the brand without incurring increased permanent slotting fees.

What happened?A print ad campaign was launched geographically in concert with product launch. The initial depiction of happy family members realizing whats for dinner and running to the table included a different recipe from the series used in product packages. The brand was introduced in geographies where Vivio had distribution, with a plan to leave the two brands in the market initially and determine how to fade Vivio out (depending on performance) in the future. Primo gained distribution in successive geographic introductions and continued to gain as the brand caught on. Primo sales volume growth matched and then slightly exceeded overall category growth in some areas; sales volume growth continues today and cannot be attributed only to distribution gains. Competitive response included deeper discounting with several regional players and increased advertising spending with others. Primo continues to be expanded throughout the country and at this point maintains its status as the only Italian sausage close to being a national player. Competitive activities did not appear to deter the brands performance: in some geographies, Primo is the premium-priced brand.

Consumer Behaviour

Documents

consumer dark

consumer experience

consumer behavior1

different consumer needs

consumers latent needs

psychogenic needs

motivation introduction

approach motivation