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VS.

VS. Albany River Rats. This Weekend:. October 16th & 17th games start @ 7:30. Tickets $9, $12, $15. Consumer Behavior Issues on the Internet. Marketing Strategy.

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

  2. Consumer Behavior Issues on the Internet

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

  4. 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.

  5. The Wheel of Consumer Analysis Behavior Affect and Cognition Marketing Strategy Environment

  6. Affect and Cognition . . . two types of internal, psychological responses that consumers may have to environmental stimuli and events. Affect (feelings) and Cognition (thinking)

  7. Behavior . . . the overt acts or actions of consumers that can be directly observed. • behavior deals with what consumers actually do

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

  9. Aspects of the Environment The Social Environment The Physical Environment

  10. 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

  11. Flows of Influence in Social Environment Culture Subcuture Social Class Organizations Reference Groups Family Media Individual Consumer

  12. The Physical Environment • time • time of day • day of week • season of year • weather • winter products vs. summer products • lighting • What else???? • smells, sounds, ...

  13. 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

  14. 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.

  15. 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.

  16. 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.

  17. Affect and Cognition

  18. Affect Defined Affect = feeling responses • Related to affection • Includes: • Emotions • Moods • Feelings • Evaluations

  19. Type of Affective Response Level of Physiological Arousal Intensity or Strength of Feeling Examples of Positive and Negative Affect Higher arousal and activation • Joy, love • Fear, guilt, anger Emotions Stronger Specific Feelings • Appreciation, satisfaction • Disgust, sadness • Alert, relaxed, calm • Blue, listless, bored Moods Lower arousal and activation • Like, good, favorable • Dislike, bad, unfavorable Evaluations Weaker Types of Affective Responses

  20. Cognition Defined Cognition = thinking responses • Includes: • Knowledge • Meanings • Beliefs

  21. ENVIRONMENT AFFECT COGNITION • Affective • Responses • Emotions • Feelings • Moods • Evaluations • Cognitive • Responses • Knowledge • Meanings • Beliefs

  22. 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.

  23. Motivation

  24. Maslow’s Hierarchy of Needs • Self-Actualization • Esteem • Belongingness • Safety • Physiological

  25. Maslow’s Hierarchy of Needs Education, artistic endeavors Autos, Jewelry, Paintings Clubs, Cigarettes Tires, Smoke Alarms, Condoms Clothing, Shelter

  26. Operant Conditioning

  27. 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

  28. 1 2 3 4 5 6 7 Reward Reward Reward Reward Reward Reward Reward 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

  29. 1 2 3 4 5 6 7 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

  30. 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 Reward Reward

  31. Traditional Models of the Adoption Process Attention Interest View purchase or adoption process as a series or chain of cognitive events followed by a single behavior Desire Action

  32. A Behavior Sequence for a Retail Purchase Consumption Stage Type of Behavior Examples of Behaviors Read newspaper, magazine ads Listen to radio commercials Watch T.V. commercials Listen to friends, salesperson Prepurchase Information Contact Withdraw cash from bank or ATM Cash a check Obtain loan Funds Access Locate outlet Travel to outlet Enter outlet Purchase Store Contact Locate product in store Obtain product Take product to checkout Product Contact Exchange funds for product Arrange delivery Take product to use location Transaction Consume/use product Dispose of packaging/used product Repurchase Postpurchase Consumption Tell others of product experience Fill out warranty cards Provide other information to firl Communication

  33. Problem Recognition Information Search Evaluation of Alternatives Product Choice Outcomes Stages in Consumer Decision Making

  34. 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

  35. u Existing Knowledge u Ability to Retrieve Internal Search Successful? Information Search The Internal Search Process Need Recognition Determinants of Internal Search Internal Search Information YES NO Proceed with Undertake External Search Decision

  36. 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

  37. 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

  38. Alternative Evaluation Compensatory versus Noncompensatory Decision Rules

  39. 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.

  40. Elements in the Communication Process Source Message channel Receiver (Decodes message) Message (Encodes message) Noise Feedback

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