VS. Albany River Rats October 16th & 17th games start @ 7:30 This Weekend: Tickets $9, $12, $15.

VS.

Albany Albany River RatsRiver Rats

October 16th & 17thOctober 16th & 17th

games start @ 7:30games start @ 7:30

This Weekend:This Weekend:

Tickets $9, $12, $15Tickets $9, $12, $15

Consumer Behavior Consumer Behavior Issues on the InternetIssues on the Internet

Marketing Strategy

. . . a plan designed to influence exchanges to achieve organizational objectives. Accomplished by developing and presenting marketing mixes directed at selected target markets.

Marketing Strategy

• Marketing strategies create marketing stimuli (products, advertisements, distribution points, ...) in the consumer’s environments in order to influence their affect, cognition, and behavior.

• Marketing strategies influence and are influenced by affect and cognition, behavior, and the environment.

The Wheel of Consumer Analysis

Aff

ect a

nd C

ogni

tion B

ehavior

Environment

MarketingStrategy

Affect and Cognition

. . . two types of internal, psychological responses that consumers may have to environmental stimuli and events.

Affect (feelings) and Cognition (thinking)

Behavior

. . . the overt acts or actions of consumers that can be directly observed.

•behavior deals with what consumers actually do

Environment

• . . . the complex of physical and social stimuli in the external world of consumers.

Aspects of the Environment

The Social Environment

The Physical Environment

The Social Enviroment

• The Social Environment - includes all social interactions between and among people– Macro - the indirect and vicarious social interactions

among very large groups of people. • Culture

• Subculture

• Social Class

– Micro - face-to-face social interactions among smaller groups of people.

• Families

• Reference groups

Flows of Influence in Social Environment

OrganizationsReference

GroupsFamily Media

Individual Consumer

Culture

Subcuture

Social Class

The Physical Environment• time

– time of day

– day of week

– season of year

• weather– winter products vs. summer products

• lighting

• What else????– smells, sounds, ...

Generic Consumer Situations

Marketers study situations that are experienced by large numbers of consumers. These 5 are relevant for most products:

• Information Acquisition Situations

• Shopping Situations

• Purchasing Situations

• Consumption Situations

• Disposition Situations

Generic Consumer Situations• Information Acquisition Situations - Includes

physical and social aspects of environments where consumers acquire information relevant to a problem-solving goal, such as a store choice or a decision to buy a particular brand

• Shopping Situations - The physical and spatial characteristics of the environments where consumers shop for products and services.

• Purchasing Situations - Includes the physical and social stimuli that are present in the environment where the consumer actually makes the purchase.

Generic Consumer Situations

• Consumption Situations - The social and physical factors present in the environments where consumers actually use and consume the products and services they have obtained.

• Disposition Situations - The physical and social aspects of the environments in which consumers dispose of products, as well as consumers’ goals, values, beliefs, feelings, and behaviors while in those environments.

Content of Culture

• All the beliefs, attitudes, goals and values shared by most people in a society, as well as the typical behaviors, rules, customs and norms that most people follow, plus characteristic aspects of the physical and social environment.

• Look at the Lifestyles and Values of the society within which the person is immersed.

Affect and CognitionAffect and Cognition

Affect Defined

Affect = feeling responses

• Related to affection

• Includes:– Emotions– Moods– Feelings– Evaluations

Types of Affective Responses

Type of Affective Response

Level of Physiological Arousal

Intensity or Strength of Feeling

Examples of Positive and Negative Affect

Emotions

Specific Feelings

Moods

Evaluations

Higher arousal and activation

Lower arousal and activation

Stronger

Weaker

• Joy, love• Fear, guilt, anger

• Appreciation, satisfaction• Disgust, sadness

• Like, good, favorable• Dislike, bad, unfavorable

• Alert, relaxed, calm• Blue, listless, bored

Cognition Defined

Cognition = thinking responses• Includes:

– Knowledge– Meanings– Beliefs

ENVIRONMENT

AffectiveResponses

•Emotions•Feelings•Moods•Evaluations

COGNITIONAFFECT

CognitiveResponses

•Knowledge•Meanings•Beliefs

Aspects of Consumer Decision Making

• Activation - the process by which product knowledge is retrieved from memory and used in interpreting and integrating information

• Spreading Activation - Activation of one meaning spreads into other associated concepts.

• Capacity Limits - there is a limit on the amount of information that the human brain can process at once.

MotivationMotivation

Maslow’s Hierarchy of Needs

•Self-Actualization

•Esteem•Belongingness

•Safety•Physiological

Maslow’s Hierarchy of NeedsEducation, artistic

endeavors

Autos, Jewelry, Paintings

Clubs, Cigarettes

Tires, Smoke Alarms, Condoms

Clothing, Shelter

Operant ConditioningOperationPerformed afterbehavior

Name Effect

Presents positiveconsequences

Positivereinforcement

Increases theprobability ofbehavior

Removes aversiveconsequences

Negativereinforcement

Increases theprobability ofbehavior

Neutralconsequences occur

Extinction Decreases theprobability ofbehavior

Presents aversiveconsequences

Punishment Decreases theprobability ofbehavior

Reinforcement Schedules... the rate at which rewards are offered in attempts to

operantly condition behavior.

Three Major Schedules:• Continuous schedule

• Fixed ratio schedule

• Variable ratio schedule

Continuous Schedule• it is possible to arrange conditions so a positive

reinforcer is administered after every desired behavior.

• Services attempt to follow this schedule– Airlines (Bad Weather, Flight Delays, . . . )– Sporting Events (rowdy fans, spilled beer, team loses)

• Ex: Pop machine

1 2 3 4 5 6 7

Reward Reward Reward Reward Reward Reward Reward

Fixed-Ratio Schedule• a type of reinforcement schedule where every

second, third, tenth, and so on response is reinforced.

• Ex: Sub Club Card

• Ex2: Pay check

1 2 3 4 5 6 7

Reward Reward Reward

Variable Ratio Schedule• occurs when a reinforcer follows a desired

consequence on an average of one-half, one-third, or one-fourth (and so on) of the time the behavior occurs, but not necessarily every second, third, or fourth time.

• Ex: Slot Machine, Lottery

1 2 3 4 5 6 7

Reward RewardReward

Traditional Models of the Adoption Process

Attention

Interest

Desire

Action

View purchase or adoption process as a series or chain of cognitive events followed by a single behavior

A Behavior Sequence for a Retail Purchase

Consumption

Information Contact

Transaction

Funds Access

Store Contact

Product Contact

Communication

Type of BehaviorConsumption Stage

Prepurchase

Purchase

Postpurchase

Examples of BehaviorsRead newspaper, magazine adsListen to radio commercialsWatch T.V. commercialsListen to friends, salesperson

Withdraw cash from bank or ATMCash a checkObtain loan

Locate outletTravel to outletEnter outlet

Locate product in storeObtain productTake product to checkout

Exchange funds for productArrange deliveryTake product to use location

Consume/use productDispose of packaging/used productRepurchase

Tell others of product experienceFill out warranty cardsProvide other information to firl

Stages in Consumer Decision Making

Problem Recognition

Information Search

Evaluation of Alternatives

Product Choice

Outcomes

Information Search

• Internal - the acquisition of information that is available in memory

• External - the quest for information, relevant to the product, brand, or shopping behavior, not found in memory

–Prepurchase

–Ongoing

Information SearchThe Internal Search Process

NeedRecognition

InternalSearch

Determinants ofInternal Search

Existing Knowledge

Ability to RetrieveInformation

Internal SearchSuccessful?

Proceed with UndertakeDecision External Search

NOYES

Information Search

Two types of external search:

Prepurchase Search - Information seeking to make a better purchase decision

Ongoing Search - Information search activities that are independent of needs or a purchase decision

A Continuum of Buying Decision Behavior

ROUTINE RESPONSE BEHAVIOR LIMITED PROBLEM SOLVING EXTENSIVE PROBLEM SOLVING

(No problem solving)

Low-cost products More expensive products

Frequent purchasing Infrequent purchasing

Low consumer involvement High consumer involvement

Familiar product class and Unfamiliar product class and brands brands

Little thought, search, or Extensive thought, search, time given to purchase and time given to purchase

Alternative Evaluation

Compensatory versus Noncompensatory Decision Rules

–Lexicographic - the brand that is best on the most important attribute is selected. In the event of a tie, brands are evaluated on the next most important attribute.

–Elimination by Aspects - brands are compared for the presence of the attribute considered most important. If the feature is not present, that alternative is rejected.

–Conjunctive Rule - minimum cutoffs are established for each attribute the brands possess. The brand must meet all cutoffs to be considered.

Noncompensatory Decision Rules

Elements in the Communication Process

SourceSourceSourceSource(Encodes (Encodes message)message)(Encodes (Encodes message)message)

MessageMessageMessageMessage MessageMessagechannelchannel

ReceiverReceiver(Decodes(Decodesmessage)message)

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