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Unformatted text preview: Chapter 14 n Product vs. purchase involvement Product Involvement Purchase Involvement as the level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase. It is influenced by the interaction of individual, product, and situational characteristics n Extended/limited/nominal decision making Nominal Decision Making (Habitual Decision Making) involves no decision per se. A completely nominal decision does not even include consideration of the "do not purchase" alternative. Problem recognized---internal search (long term memory)--single preferred solution(brand)---purchase--evaluation only occur when the brand fails to perform as expected Limited Decision Making Limited decision making involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little postpurchase evaluation. (low- involvement; similar to nominal Extended Decision Making Extended decision making involves an extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant postpurchase evaluation. (high involvement heavily emotional may involve substantial cognitive effort) n Problem recognition Problem Recognition is the first stage in the consumer decision process. It is the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process. n Actual vs. desired state Actual state is the way an individual perceives his or her feelings and situation to be at the present time; Desired State is the way an individual wants to feel or to be at the present time. n Active vs. inactive problem Active Problem is one of the consumer is aware of or will become aware of in the normal course of events. --------Only require marketer to convince consumers that its brand is the superior solution. Inactive Problem is one of which the consumer is not aware.------- Marketer must convince consumers that they have the problem AND that their brand is a superior solution. n Methods to discover consumer problems (e.g. activity analysis, human factors research, etc.) Activity Analysis--focus on a particular activity. Attempt to determine what problems consumer encounter during the activity. Product Anaysis--examine the purchase or use of a particular product or brand. Problem Analysis--starts with a problem and asks respondents to indicate which activities, products, or brands are associate with (or perhaps could eliminate) those problems. Human Factor Research--determine human capabilities in areas such as vision, strength, response time, flexibility, and fatigue and the effect on these capabilities of lightening, temperature, and sound. Emotion Research--examine the emotions associate with certain problems. n Generic vs. selective problem recognition Generic Problem Recognition involves a discrepancy that a variety of brands within a product category can reduce. 1. It is early in the product life cycle; 2. The firm has a high percentage of the market; 3. External search after problem recognition is apt to be limited; 4. It is an industry wide cooperative effort. Selective Problem Recognition involves a discrepancy that only one brand can solve. (Firms aimed at gaining or remaining market share) Chapter 15 n Internal vs. external search Internal Search--Search of long-term memory to determine if a satisfactory solution is known. External Search--If a resolution is not reached through internal search, then the search process is focused on relevant external information.(independent source, personal sources, market-based information and product experience)z Ongoing search Consumers continually recognize problems and opportunities, so internal and external searches for information to solve these problems are ongoing processes. Ongoing search is done both to acquire information for possible later use and because the process itself is pleasurable. Information search n n Consumer decisions require information about: 1. Appropriate evaluative criteria 2. The existence of various alternatives 3. Performance of each alternative on each evaluative criterion n Behavioral targeting Behavioral targeting involves tracking consumer click patterns on a website and using that information to decide on banner ad placement. (based on what people actually do online rather than what they say) n Perceived risk Perceived Risk associate with unsatisfactory product performance, either instrumental or symbolic, increase information search prior to purchase. (High perceived risk is associate with increased search and greater reliance on personal sources of information and personal experience. Marketing Strategies based on Information Search Patterns 1. Maintenance Strategy If the brand is purchased habitually by the target market, the marketer's strategy is to maintain the behavior. This requires consistent attention to product quality, distribution (avoid out-of-stock situation) and a reinforcement ad strategy. Also, marketer must defend against the disruptive tactics of competitors 2. Disrupt Strategy In long term, a major product improvement accompanied by attention-attracting ad could shift the target market into a more extensive form of decision making. In short run, attention-attracting ad aimed specifically at breaking habitual decision making can be successful. 3. Capture Strategy 4. Intercept Strategy The objective will be intercept the consumer during the searching for info on the brands in the evoked set or during general search for related info. 5. Preference Strategy 6. Acceptance Strategy Chapter 16 n Bounded Rationality A limited capacity for processing information Rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions. n Affective vs. attitude vs. attribute based choice Three types of consumer choice processes Affective Choice based on affect use the "How do I feel about it" heuristic or decision rules. Consumers imagine or picture using the product or service and evaluate the feeling that this use will produce. (Brand not decomposed into distinct components for separate evaluation.) Attitude-Based Choice requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands. Attribute-Based Choice involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice. Attitude-Based Choice ad give key features; Attribute- Based Choice focus on brand, overall performance, and image n Instrumental vs. Consummatory motives Underlying motives choice. Instrumental Motives active behaviors designed to achieve a second goal. Consummatory Motives underlie behaviors that are intrinsically rewarding to the individual involved n Evaluative criteria Evaluative criteria are the various dimensions, features, or benefits a consumer looks for in response to a specific problem. Evaluation criteria are typically product features or attributes associated with either benefits desired by customers or the costs they must incur. Evaluative criteria can differ in 1. Type--Tangible and Intangible(style, taste, brand image, feeling generated, prestige) 2. Number--Extremes (lower price is better); Limits (no more than $100); Ranges (price between $80-$100) 3. Importance 1. The Evaluative Criteria Used Direct 2) Indirect n Projective Technique allows the respondent to indicate the criteria someone else might use. Perceptual mapping researcher uses judgment to determine dimensions underlying consumer evaluations of brand similarity. 2. Judgments of Brand Performance on Specific Criteria 3. The Relative Importance of Evaluative Criteria n Surrogate Indicator An attributes used to stand for or indicate another attribute. n Types of Decision Rules for Attribute-Based Choice The former four points are non-compensatory, the last one is compensatory 1. ConjunctiveDecision Rules establish Establishes minimum required performance for each evaluative criterion. Selects the first (or all) brand(s) that meet or exceed these minimum standards. 2. DisjunctiveDecision Rules establishes a minimum required performance for each important attribute (often a high level). All brands that meet or exceed the performance level for any key attribute are acceptable. 3. Elimination-by-Aspects Decision Rules First, evaluative criteria ranked in terms of importance Second, cutoff point for each criterion is established. Finally (in order of attribute importance) brands are eliminated if they fail to meet or exceed the cutoff. 4. Lexicographic Decision Rules Consumer ranks the criteria in order of importance. Then selects brand that performs best on the most important attribute. If two or more brands tie, they are evaluated on the second most important attribute. This continues through the attributes until one brand outperforms the others. 5. Compensatory Decision Rules states that the brand that rates highest on the sum of the consumer's judgments of the relevant evaluative criteria will be chosen. ...
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- Fall '11