Consumer Markets & Buyer Behavior

Consumer Markets & Buyer Behavior - Consumer Markets...

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Unformatted text preview: Consumer Markets & Buyer Behavior Consumer M k & C Markets Buyer Behavior Dr. Kenneth N. Thompson Marketing Foundations 1/28/2008 University of North Texas 1 Objectives & Overview Marketing Foundations Understand the general scope of Consumer Behavior & its importance to marketing management Explore some psycho-social influences on psychodecision making Explore the basic steps in consumer decision making 1/28/2008 University of North Texas 2 1/28/2008 University of North Texas 1 Consumer Markets & Buyer Behavior Individual Influences A Model of Consumer Behavior Marketing Foundations Environmental Influences Decision Making Behavior Marketing Activities 1/28/2008 University of North Texas 3 Individual Forces A Model of Consumer Behavior Individual F I di id l Forces Motives Marketing Foundations Environmental Decision Information Processing Forces Making Learning Attitudes Perception Behavior Marketing Mix 1/28/2008 Self Concept & Life Style University of North Texas 4 1/28/2008 University of North Texas 2 Consumer Markets & Buyer Behavior Individual Forces A Model of Consumer Behavior Environmental Forces E i t lF Culture Subculture Social class, Income, Education Decision Reference groups Family y Roles Marketing Foundations Environmental Forces Making Behavior Situational factors Marketing Mix 1/28/2008 University of North Texas 5 Individual Forces A Model of Consumer Consumer Behavior Decision Making Problem Recognition Marketing Foundations Environmental Forces Information Search Decision Making Behavior Evaluation of Alternatives Marketing Mix 1/28/2008 Choice University of North Texas 6 1/28/2008 University of North Texas 3 Consumer Markets & Buyer Behavior Individual Forces A Model of Consumer Behavior Behavior Purchase Marketing Foundations Environmental Forces Decision Making Post Purchase Behavior Evaluation Satisfaction Marketing Mix 1/28/2008 University of North Texas Cognitive Dissonance 7 Why people buy.... Marketing Foundations 1/28/2008 University of North Texas 8 1/28/2008 University of North Texas 4 Consumer Markets & Buyer Behavior Individual Forces Motives Perception Information Processing Learning Attitudes Self Concept & Life Style Marketing Foundations Consumers' Perceptions Affect Decision Making 1/28/2008 University of North Texas 9 Perceptual Receptors Marketing Foundations See Touch Smell Hear Taste Perception 1/28/2008 University of North Texas 10 1/28/2008 University of North Texas 5 Consumer Markets & Buyer Behavior Perception is Selective Discarded Information Marketing Foundations Information Retention of Information These items constitute `perception' 1/28/2008 University of North Texas 11 Selective Exposure Marketing Foundations Exposure occurs when stimuli come into close proximity to senses Conscious or subconscious exposure to stimuli Watch certain TV shows, read certain W V , magazines Marketers must determine appropriate media to reach target audience 1/28/2008 University of North Texas 12 1/28/2008 University of North Texas 6 Consumer Markets & Buyer Behavior Selective Attention Marketing Foundations Attention occurs w e se ses are activated and e o occu s when senses e c v ed d information is processed by the brain Will people pay attention to the stimulus? Marketers must get customers' attention Appeals Fear Humor S Sex Entertain Changes in physical stimulus Size Colors Sound levels 1/28/2008 University of North Texas 13 Fear appeals can attract & hold attention Marketing Foundations But can also be dramatically miscomprehended 1/28/2008 University of North Texas 14 1/28/2008 University of North Texas 7 Consumer Markets & Buyer Behavior Fear Appeal... Marketing Foundations 1/28/2008 University of North Texas 15 Fear Appeal... Marketing Foundations 1/28/2008 University of North Texas 16 1/28/2008 University of North Texas 8 Consumer Markets & Buyer Behavior Fear is least effective when... Fear appeal is too threatening Message is ignored or dismissed Perceptual defense is operative Marketing Foundations Little or no anxiety is associated with the message Insufficient evaluation of harmful effects ffi i i f f ff Little cognitive elaboration of effects on consumer Message nearly entirely screened out... 1/28/2008 University of North Texas 18 When Will Fear Appeals Work? Consumers recognize severity of threat Consumer recognize they can be affected by the threat Credibility of the source Believable, trustworthy, expert , y, p Marketing Foundations Ad shows how to deal with the problem Proposed course of action is easily implemented 1/28/2008 University of North Texas 19 1/28/2008 University of North Texas 9 Consumer Markets & Buyer Behavior Humor appeals can attract & hold attention, but may detract from brand name retention Marketing Foundations 1/28/2008 University of North Texas 20 The Frogs' `Swan Song' Marketing Foundations 1/28/2008 University of North Texas 21 1/28/2008 University of North Texas 10 Consumer Markets & Buyer Behavior The blind date... Marketing Foundations 1/28/2008 University of North Texas 23 Miller again... Marketing Foundations Does this ad solidify brand name in memory? Is the "link" a good one? 1/28/2008 University of North Texas 24 1/28/2008 University of North Texas 11 Consumer Markets & Buyer Behavior Novelty & Humor are a powerful combination! Marketing Foundations 1/28/2008 University of North Texas 26 John West Bear Fight... Marketing Foundations 1/28/2008 University of North Texas 31 1/28/2008 University of North Texas 12 Consumer Markets & Buyer Behavior Incongruous Humor... Marketing Foundations 1/28/2008 University of North Texas 32 Combining Fear & Humor? Marketing Foundations 1/28/2008 University of North Texas 33 1/28/2008 University of North Texas 13 Consumer Markets & Buyer Behavior How Humor Works.. Marketing Foundations Like the ad, like the product ad A `rub-off' from the ad to the brand.. `rub Affect referral Classical conditioning Diffuses viewers' tendency to `counter y argue' argue' May reduce number of required exposures linking brand name to benefits 1/28/2008 University of North Texas 34 Sex, Skin, Fireworks, Licked Fingers It's a Quarter Pounder Ad in China Marketing Foundations "Beef, grown domestically, costs more than ,g y, other meats in China, and consumers here consider it a luxury good. McDonald's is playing on its upscale image, as well as on traditional Chinese views that eating beef boosts energy and heightens sex appeal. The word "beef" in Chinese has connotations of manliness, strength and skill. " http://online.wsj.com/article/SB1158780775812 69173.html 1/28/2008 University of North Texas 35 1/28/2008 University of North Texas 14 Consumer Markets & Buyer Behavior Quarter Pounder Ad from China Marketing Foundations Beefad.ivr Beefad ivr 1/28/2008 University of North Texas 36 Sex Appeals have been with us for decades... Ultrabrite positioned on sex appeal... Note the jingle... Marketing Foundations 1/28/2008 University of North Texas 37 1/28/2008 University of North Texas 15 Consumer Markets & Buyer Behavior Dole gets into the act... Marketing Foundations Would this be acceptable today? 1/28/2008 University of North Texas 38 An Ineffective Appeal? Marketing Foundations 1/28/2008 University of North Texas 39 1/28/2008 University of North Texas 16 Consumer Markets & Buyer Behavior What do we know about sex appeals? Marketing Foundations Can attract & hold attention Responses to highly explicit ads can be negative i.e. selective distortion occurs Harm recall Harm brand, company image , p y g Use of sex appeals should be appropriate for the product, target market 1/28/2008 University of North Texas 40 Manipulating the consumer's need for closure can attract & hold attention Marketing Foundations 1/28/2008 University of North Texas 41 1/28/2008 University of North Texas 17 Consumer Markets & Buyer Behavior Things that contrast from what we usually experience can attract attention Marketing Foundations Also illustrates `isolation' separating the stimulus object from other objects... 1/28/2008 University of North Texas 42 Another good example of "contrast" to gain attention! tt ti ! Marketing Foundations 1/28/2008 University of North Texas 43 1/28/2008 University of North Texas 18 Consumer Markets & Buyer Behavior Contrast at work again in an ad produced by AAAA to defuse arguments by critics that advertising makes people buy things they don't need 1/28/2008 University of North Texas 44 Marketing Foundations "The Schick Shaving Woman" Marketing Foundations 1/28/2008 University of North Texas 45 1/28/2008 University of North Texas 19 Consumer Markets & Buyer Behavior Marketing Foundations 1/28/2008 University of North Texas 46 ContextContext-Linked Ads.... Marketing Foundations 1/28/2008 University of North Texas 47 1/28/2008 University of North Texas 20 Consumer Markets & Buyer Behavior Selective Interpretation Marketing Foundations 1/28/2008 University of North Texas 48 What do you see in this picture? Marketing Foundations 1/28/2008 University of North Texas 49 1/28/2008 University of North Texas 21 Consumer Markets & Buyer Behavior What do you see in this picture? Marketing Foundations 1/28/2008 University of North Texas 50 Cultural Differences Get Marketers Into Trouble... "Nova" means `no-go' in Spanish Nova `no-go nono Buick LaCrosse had to be renamed for the Canadian market. LaCrosse is slang for... Toyota's apology for Prado ads in China Show stone lions saluting the Prado Prado means `domineering.' `domineering ' Marketing Foundations Nike ad banned in China Lebaron James defeating animated Kung Fu fighter, two dragons, Chinese woman 1/28/2008 Viewed as `insensitive.' North Texas University of 51 1/28/2008 University of North Texas 22 Consumer Markets & Buyer Behavior Marketing Implications Marketing Foundations Research!!! Be very careful with all marketing communications Pretest ads Look for ways communications can be y misinterpreted 1/28/2008 University of North Texas 52 Selective Interpretation Marketing Foundations Comprehension or understanding of stimulus Based on past experience, attitudes, beliefs Culturally based differences Tendency is to distort information to fit y our own attitudes "Perceptual Defense" Defense" 1/28/2008 University of North Texas 53 1/28/2008 University of North Texas 23 Consumer Markets & Buyer Behavior The audience may "counter"counterargue argue" with the fear appeal -perceiving it much differently than intended this is perceptual defense. 1/28/2008 University of North Texas 54 Marketing Foundations Selective Retention Marketing Foundations How long do we remember? How much is retained? 1/28/2008 University of North Texas 56 1/28/2008 University of North Texas 24 Consumer Markets & Buyer Behavior Subliminal Perception Marketing Foundations Perception without realization p Subliminal Advertising Messages hidden in film or video tape Generally < 5ms exposure rate Subliminal Seduction Messages hidden in print media or physical items Not truly "subliminal" Subaudible Messages Messages embedded in music Message accelerated or low comparative volume 1/28/2008 University of North Texas 57 The `59 Chevy Marketing Foundations 1/28/2008 University of North Texas 58 1/28/2008 University of North Texas 25 Consumer Markets & Buyer Behavior Bush "Rats" Marketing Foundations 1/28/2008 University of North Texas 60 John Cleese & Schweppes Marketing Foundations 1/28/2008 University of North Texas 61 1/28/2008 University of North Texas 26 Consumer Markets & Buyer Behavior Subliminal Seduction S d ti Marketing Foundations 1/28/2008 University of North Texas 62 Ritz Crackers Marketing Foundations Key's Ritz Crackers 1/28/2008 University of North Texas Source: W.B. Key, Subliminal Seduction 63 1/28/2008 University of North Texas 27 Consumer Markets & Buyer Behavior Crest Baby Marketing Foundations 1/28/2008 University of North Texas 64 Marketing Foundations Key's Gilbey's Gin K ' Gilb ' Gi Example Note Letters in ice cubes Source: W.B. Key, Subliminal Seduction 1/28/2008 University of North Texas 65 1/28/2008 University of North Texas 28 Consumer Markets & Buyer Behavior Marketing Foundations 1/28/2008 University of North Texas 66 Marketing Foundations 1/28/2008 University of North Texas 67 1/28/2008 University of North Texas 29 Consumer Markets & Buyer Behavior Marketing Foundations 1/28/2008 University of North Texas 68 Marketing Foundations Wilson Bryan Key Source: Dallas Morning News 1/28/2008 University of North Texas 69 1/28/2008 University of North Texas 30 Consumer Markets & Buyer Behavior Marketing Foundations Note the Letters! 1/28/2008 University of North Texas 70 Marketing Foundations 1/28/2008 University of North Texas 71 1/28/2008 University of North Texas 31 Consumer Markets & Buyer Behavior Marketing Foundations 1/28/2008 University of North Texas 72 Marketing Foundations 1/28/2008 University of North Texas 73 1/28/2008 University of North Texas 32 Consumer Markets & Buyer Behavior Marketing Foundations 1/28/2008 University of North Texas 74 Individual Forces Motives Perception Information Processing Learning Attitudes Marketing Foundations Consumer Learning Affects Decision Making 1/28/2008 University of North Texas 75 Self Concept & Life Style 1/28/2008 University of North Texas 33 Consumer Markets & Buyer Behavior How Consumer Learning Affects Decision Making & Behavior Marketing Foundations 1/28/2008 University of North Texas 76 Classical Conditioning Unconditioned Stimulus Food Contiguity & Repetition Unconditioned Response Salivation Marketing Foundations Conditioned C di i d Stimulus Bell 1/28/2008 University of North Texas 78 1/28/2008 University of North Texas 34 Consumer Markets & Buyer Behavior Marketing Foundations The "classic" example of classic classical conditioning at work in advertising! 1/28/2008 University of North Texas 79 Marlboro -- the old and the new! Marketing Foundations 1/28/2008 University of North Texas 80 1/28/2008 University of North Texas 35 Consumer Markets & Buyer Behavior Marketing Foundations MARLBORO Rugged cowboys and theme music from the movie "Magnificent Seven" drove the Leo Burnett campaign that revived sagging Marlboro, previously a brand targeted to woman. This 1967 spot, "Lightning Storm," epitomized the campaign. Cigarette advertising has been off the air in the U.S. since 1971, and these spots are still recalled. http://adage.com/news_and_features/special_reports/commercials/years.1960.html 1/28/2008 University of North Texas 81 Classical Conditioning Unconditioned Stimulus Cowboy Image Contiguity & Repetition Unconditioned Response Positive Affect Marketing Foundations Conditioned C di i d Stimulus Marlboro Brand 1/28/2008 University of North Texas 82 1/28/2008 University of North Texas 36 Consumer Markets & Buyer Behavior Marlboro... Marketing Foundations 1/28/2008 University of North Texas 83 Philip Morris Marketing Foundations 1/28/2008 University of North Texas 84 1/28/2008 University of North Texas 37 Consumer Markets & Buyer Behavior Critics of beer ads... Marketing Foundations 1/28/2008 University of North Texas 85 Proponents of beer ads... Marketing Foundations 1/28/2008 University of North Texas 86 1/28/2008 University of North Texas 38 Consumer Markets & Buyer Behavior The Flintstones Marketing Foundations 1/28/2008 University of North Texas 87 Classical Conditioning Unconditioned Stimulus Happy Situation Contiguity & Repetition Unconditioned Response Positive Affect Marketing Foundations Conditioned C di i d Stimulus Brand Image 1/28/2008 University of North Texas 88 1/28/2008 University of North Texas 39 Consumer Markets & Buyer Behavior Linking the brand to a very appealing, romantic lifestyle theme Marketing Foundations 1/28/2008 University of North Texas 89 Marketing Foundations Linking the brand to sports themes, images is very effective 1/28/2008 University of North Texas 90 1/28/2008 University of North Texas 40 Consumer Markets & Buyer Behavior Again, the brand is linked to a life style situation to it ti t generate a direct positive affective response! Marketing Foundations 1/28/2008 University of North Texas 91 The power of classical conditioning may account for the failure of New Coke! New Coke... Marketing Foundations 1/28/2008 University of North Texas 93 1/28/2008 University of North Texas 41 Consumer Markets & Buyer Behavior Operant Conditioning Marketing Foundations 1/28/2008 University of North Texas 94 Marketing Foundations Point of Purchase Impulse Display Purchase Marketing Stimulus Behavioral Response Satisfaction Reinforcement Increased probability of same response 1/28/2008 University of North Texas 96 1/28/2008 University of North Texas 42 Consumer Markets & Buyer Behavior Iconic Rote Learning Marketing Foundations Low involvement learning Learn link between Brand name Key benefits Key is repetition Similar to classical conditioning but do not try to stimulate a direct affective response Most low involvement products 1/28/2008 University of North Texas 97 A Classic Bounty Ad... Marketing Foundations Note the `slogan' Key benefits linked to brand name Absorbency Strength 1/28/2008 University of North Texas 99 1/28/2008 University of North Texas 43 Consumer Markets & Buyer Behavior Luvs Diapers Marketing Foundations 1/28/2008 University of North Texas 100 Iconic Rote Learning..,. Marketing Foundations 1/28/2008 University of North Texas 101 1/28/2008 University of North Texas 44 Consumer Markets & Buyer Behavior Hefty Zip Bags... Marketing Foundations Use humor t U h to reduce number of exposures... 1/28/2008 University of North Texas 103 Individual Forces Motives Perception Information Processing Learning Attitudes Self Concept & Life Style Marketing Foundations Consumer Attitudes Affect Decision Making 1/28/2008 University of North Texas 107 1/28/2008 University of North Texas 45 Consumer Markets & Buyer Behavior Unidimensional Theory of Attitudes A Modern View: A Stress on Affect ATTITUDE Marketing Foundations Cognitions (beliefs) Affect (attitude) Behavioral intentions 1/28/2008 University of North Texas 111 Attitude change strategies Change beliefs first... Marketing Foundations 1/28/2008 University of North Texas 114 1/28/2008 University of North Texas 46 Consumer Markets & Buyer Behavior Can take a lot of work! Marketing Foundations 1/28/2008 University of North Texas 115 Create beliefs via iconic rote learning... learning Create attitudes for new products...? Marketing Foundations 1/28/2008 University of North Texas 116 1/28/2008 University of North Texas 47 Consumer Markets & Buyer Behavior Create attitudes for new products... Create positive affect directly with classical y conditioning... Marketing Foundations 1/28/2008 University of North Texas 117 Individual Forces Motives Perception Information Processing Learning Attitudes Self Concept & Life Style Marketing Foundations Consumer's Self Concept & Life Style Affects Decision Making 1/28/2008 University of North Texas 118 1/28/2008 University of North Texas 48 Consumer Markets & Buyer Behavior Marketing Foundations 1/28/2008 University of North Texas 119 The power of self concept... Marketing Foundations 1/28/2008 University of North Texas 120 1/28/2008 University of North Texas 49 Consumer Markets & Buyer Behavior Self Concept Marketing Foundations Actual Self Private Self Ideal Self How I actually see myself How others actually see me How I would like to see myself How I would like others to see me 121 Social Self 1/28/2008 University of North Texas Brand Image Marketing Foundations Self Concept Match is perceived between brand image & self concept Positive attitudes are formed, purchase results Perceived reflection of self concept leads to satisfaction 1/28/2008 University of North Texas 122 1/28/2008 University of North Texas 50 Consumer Markets & Buyer Behavior Life Style Measures Marketing Foundations Activities Work Sports Hobbies Community Shopping Social Events 1/28/2008 Interests Family Job Fashion Food Home Media Opinions Religion Politics Business Education Products Self 123 University of North Texas Life Style Measures Activities Measures: About how many times in the last 12 months have you: None 1 - 2 3 - 5 ____ ____ ____ Gone to church Traveled out of state____ ____ ____ Used a credit card ____ ____ ____ Attended a picnic ____ ____ ____ ____ ____ ____ Placed a bet Gone hunting ____ ____ ____ Dialed information ____ ____ ____ Marketing Foundations 6-18 ____ ____ ____ ____ ____ ____ ____ 19-35 Weekly ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ 1/28/2008 University of North Texas 124 1/28/2008 University of North Texas 51 Consumer Markets & Buyer Behavior Life Style Measures Marketing Foundations Interests & O i i I t t Opinions: Definitely -3 Disagree ____ ____ ____ ____ ____ -2 -1 0 1 2 3 Agree Definitely I live a well-planned life. My family is the most important thing in my life. I try to work out physically on a regular basis. t t k t h i ll l b i The government should be cut back. I like parties. 1/28/2008 University of North Texas 125 Consumer D i i C Decision Making Marketing Foundations 1/28/2008 University of North Texas 126 1/28/2008 University of North Texas 52 Consumer Markets & Buyer Behavior Continuum of Decision Making Extensive Consumer Decision Making Problem Recognition Extensive Information Search Evaluation of Alternatives Choice Post Purchase Evaluation 1/28/2008 University of North Texas Routine Consumer Decision Making Problem Recognition Minimal Information Search Choice Ch i Minimal Post Purchase Evaluation 127 Marketing Foundations Continuum of Decisions Routine Problem Solving Low cost products Frequent buying Low involvement Familiar product class & brands Little thought, search or time given to purchase Limited Problem Solving Extensive Problem Marketing Foundations Solving More expensive products Infrequent buying High involvement Unfamiliar product class & brands Extensive thought,search & time given to purchase 1/28/2008 University of North Texas 128 1/28/2008 University of North Texas 53 Consumer Markets & Buyer Behavior Extent of Problem Solving & Perceived Risk Type of Risk Performance Financial Physical Social Marketing Foundations Typical Concern The brand will not perform well; it will not work; it will break down. The buyer will lose money, pay too much or miss buying something else. The product will be harmful or unhealthy; it will cause i j injury. Friends, relatives, or significant others will not approve of the purchase. 1/28/2008 University of North Texas 129 Individual Forces A Model of Consumer Behavior Behavior Purchase Marketing Foundations Environmental Forces Decision Making Post Purchase Behavior Evaluation Satisfaction Marketing Mix 1/28/2008 University of North Texas Cognitive Dissonance 140 1/28/2008 University of North Texas 54 Consumer Markets & Buyer Behavior PostPost-Purchase Cognitive Dissonance PostPost-purchase doubt `buyer's remorse' buyer s remorse anxiety state Higher involvement, risk Close alternatives Alternative chosen has both attractive & unattractive features Degree of irrevocability of decision Marketing Foundations Feelings of anxiety intensified by Reduced by Avoid information about rejected products Seek information supporting decision 1/28/2008 University of North Texas 141 1/28/2008 University of North Texas 55 ...
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This note was uploaded on 03/27/2008 for the course MKTG 3650 taught by Professor Thompson during the Spring '08 term at North Texas.

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