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Consumer Behaviour : Implications for Marketing Strategy / Cathy Neal ... [et al.].

Sydney : McGraw-Hill Australia, 2007. 5th edition.

ISBN 9780074716922 Chapter 2 pages 36-62


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PART ONE : CONSUMERDECIS ION PROCESS

set of factors outside of,d removed from, the

orstimulus object (e.g .

product, 0 te levisionfisement} to which the

is reacting (e-9 .purchasing a product orwi ng a commercial)

inFluencesinF luences on purchaseions of the physical

, soc ial, temporald antecedent ~ e s

its way to the retail floor, helping marketers 10 assiconSLlmers as they go about their various buying tasks. In doing so, marketers are hop ing to pre-emthe multitude of situational factors that can often prevent a consumer trom undertaking a purchasbe it lack of information or their frustration at not finding the right siz,e, or at having to wait in a line pay for their purchase. New smart products now aiiow consumers' shopping trol 'eys to capture andisplay price and other information, including special offers and price discounts. Touch-screen shelveand the identification of loyal consumers allow customised messages to be targeted specificalInteractive mobile technology can also attract consumers to a store by sending SMS reminders them as they walk by the retail outlet.

By allowing different technolog ies, such as scanner data and wlreless communication,converge seamlessly, marketers can now also open stock and inventory information to consumerFor example, a Japanese deportment store used radio frequency identification (RFID) to enabconsumers in the changing rooms to swipe the tag of an item to find other sizes in stock or ask thassistant10 bring a different size or a match ing item. According to retail manager for Fujitsu Consultinand Application Services, Tony Katsikas, software suPportin9 clJs iomer relationship marketing ICRMhas become increasingly sophisticated and now involves much more than a simple loyalty card order to genuinely assist the consumer at the point of purchase. Some of the ex.omples he mentioninclude hand-held devices that can tell consumers the list of in9redients conta:ined in a product,detail the specj,fic features of a sound system, or provide the country of or igin of a piece of fruit.Recognising that time-poor consumers want to 'get in and out o f the store as quickly as possibledepartment store Harris Searle has recently revamped its internal systems so as to cut transactioprocessing time by 30 per cent in order to avoid the loss of business ariSing from frustrated shoppeleaving the store without their purchase.Of course, for these really time-poor consumers, the ultimatassistance may simply be to buy online. Deals Direct, with 120000 consumers on its databaseis Australia's biggest online deportment store. Like many other online shops, it knows where icustomers are and what products sell, and offers detailed information and the ability to comparprices before making a decision _I

Marketers need to understand which situations affect the purchase of their goods or services anhow they can best serve target-market buyers when these situations arise. They should view thconsumer-and the marketing activities designed to influence that consumer-in the light of thsituations the consumer faces. As shown in the opening story, technology can make consumeeasier to reach in a variety of situations. As a result, marketers have to contend with a wider sof parameters when considering situational influences.

Marketers want to be able to predict, as accurately as possible, ho w various situations anmarketing mix strategies will interact. In this chapter, we define the situation and then presea situation classification scheme that will be useful for judging both when the situation acts aan active influence on behaviour and how the situation affects the consumer. The final sectioof the chapter describes the managerial approach to situation analysis in the process of makinmarketing decisions.

@@ Types of situatio:nsThe consumption process occurs within four broad categories of situations: the communicatiosituation, the purchase situation, the usage situation and the disposal situation. Each is describebelow.

The communication situationThe situation in which consumers receive information affects their behaviour. We all know ththe degree to which we see and listen to marketing communications is determined by whether w


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CHAPTER TWO: SITUATIONAL INFLUENC

are alone or in a group, in a good mood or a bad one, in a hurry or not, and so on. Therefore, interms of the communication situation , marketing managers have to answer questions such as: Is itbetter to advertise on a happy or sad television program? A calm or exciting program?

I f consumers are interested in the product and are in a receptive communication situation,a marketer may be able to deliver an effective message to them. However, getting high-interestpotential buyers into a receptive communication situation is a difficult challenge. Many factorshave the potential to create difficulties for a marketer wanting to communicate-the prospectiveconsumer may have the flu, may be preoccupied with his or her final examinations, or his or herfavourite team may have just lost the most important game of the year.

The purchase situationThe purchase situation can also affect product selection. For example, mothers shopping withchildren are more ap t to be influenced by the product preferences of their children than they arewhen shopping on their own. Also, if a consumer has a shortage of time (for example, a studenttrying to make a purchase between classes), this can affect the store chosen, the number of brandsconsidered and the price the consumer is willing to pay.

Using a knowledge of observed relationships between the weather and product-category sales,for example, it may be possible to use weather forecasts to determine spot advertising buys,sales, point-of-purchase displays and related issues. There may be other, less obvious relationshipstoo. For example, hot cocoa sells better on a warm but dark winter day than on a freezingbut bright day. Likewise, research shows that the purchase situation influences consumers'choice of cosmetics. Hence, marketers of such products should develop their distribution andmarketing strategies accordingly.2 Figure 2.1 illustrates the relationship that operates in thesecircumstances.

Marketers must understand how purchase situations influence consumers in order to developmarketing strategies that will increase the purchase of their products. For example, it is likely thatyou may change your decision to purchase a beverage if a good friend says, 'That stuff is bad foryou', or if you have an upset stomach, or if there is a long line at the checkout as you enter thestore where you intend to buy it.

The usage situationA consumer may use a different wine for serving to dinner guests from that for personal usein a non-social situation. A family ma y choose a different holiday depending on which familymembers are going along.

FIGURE 2.1 Situation influences combine with individual characteristics to affectpreferences a d subsequent behaviour.

Weathersituation

Individualcharacteristics

'.

'"

"

"

. '

PREFERENCESAND DESIRES

- -

........ ............ Behaviour

commun ication situatthe situation in whichconsumers receiveinformation about gooan d services

purchase situationo slluahon that con affproduct selection-forexample, a mother showirh 0 child is like ly toinfluenced by the prodpreferences of thol chi


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PART ONE : CONSUMER DK ISION PROCESS

or can 5umptionsituation in wh ich thegood or service

ituation In which theand/or product

is discarded beforeafter use

l influencethose Factors particulor0 time and place of

ich do notpersonal and stimulus

nd which have asystematicon current behaviour

Marketers need to understand the usage or consumption situations. for which their products areor may become, appropriate. Based on this knowledge, marketers can communicate how theiproducts can create consumer satisfaction in each relevant consumption situat io . It is clear, foexample, that you would select a different type of beverage if you were relaxing with friends onFriday afternoon, sharing a meal with your parents or resting after an energetic workout.

The disposal situationConsumers must often dispose of products and product packages before or after the product iused. As wiJl be seen in Chapter 7, decisions made by consumers regarding the di sposal situationcan create significant social problems, as well as marketing opportunities.Some consumers consider ease of disposal an important product attribute. These consumermay only purchase items that can be recycled easily. Often, disposal of an existing product musoccur before, or simultaneously with, the new product acquisition. For example, consumerusually dispose of their old bed before they can use the new one. Marketers need to understandthe situational influences affecting disposal decisions in order to develop more effective and ethicaproduct and marketing programs. Government and environmental organisations need the samknowledge in order to encourage socially responsible disposal decisions.

O@ The n:ature of situational influence'Situational inHuence can be defined as all those factors particular to a time and place oobservation which do no t follow from a knowledge of personal (intra-individual) and stimulu(choice-alternative) attributes and which have a demonstrable and systematic effect on currenbehaviour.3

A situation is a set of factors outside of, and removed from, the individual consumer or thstimulus object (for example, a product or a television advertisement) to which the consumer ireacting (for example, by purchasing a product or viewing a commercial). Those situations thaactually affect consumer behaviour (such as crowded supermarket aisles or a lack of competensalespeople) are also of interest. Situations can be ignored when the characteristics of the buyer othe stimulus are so intense that they are influential across all relevant situations. An example othis is the circumstance where a consumer is so loyal to a particular brand that it is the only brandthe consumer will contemplate purchasing.Figure 2.2 illustrates the relationship the situation has with the consumer and the object of thconsumer's interest, and the consumer behaviour that results. As the figure shows, the object andthe situation (the stimuli) together influence the consumer (the organism), wh o in turn engagein some behaviour (the response). While marketers have traditionally studied the effect an objecsuch as a product or an advertisement has on the consumer's behaviour, they have often ignoredthe influence of the situation. Bur marketers stand to gain a lot by studying the roles their product

FIGURE 2.2 The rote of situation in consumer b e h a v ~ o u r

I SituationI

I Product

Stimuli

" .". ". . ....".... .. .. ... .. ... . ..

Organism

Behaviour

Response


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CHAPTER TWO: SITUAllONAllNF UENC

play in different situations. For example, a wine marketer could develop a better strategy if he orshe knew that wine is often given as a house gift but seldom as a birthday gift.4In order to utilise situational influence in marketing strategy, a marketer must understandthree important aspects of this influence:1 when a particular situation will affect consumer behaviour2 how strong the effect is likely to be3 the way in which the situation will influence behaviour.

To integrate the influence of situation into marketing strategy, careful attention must be givento the degree of interaction between the situation and a given product and/or a given set of targetconsumers. Therefore, using the list above, it is critical to evaluate the situation more systematicallyin terms of when it occurs, the strength of its influence and the nature of its influence on behaviour.For example, time spent doing leisure activities is influenced by physical surroundings (for example,temperature and weather), social influences and a person's mood.5 To be effective in marketing aparticular leisure activity (such as a sports event or movie), a marketer must understand how andwhen these situational influences will affect a consumer's decision to spend time on that activity.Likewise, research shows that the type of red wine people choose to buy will be influenced directlyby the type of situation they anticipate for its consumption.6

@ Situation,classificationA number of attempts have been made to classify the situations relevant to consumer behaviour.7A useful classification scheme has been developed by Russel Belk, based on five types of objectivelymeasured situations:81 physical surroundings include geographical and institutional location, decor, sounds,

aromas, lighting, weather and visible configurations of merchandise or other materialsurrounding the stimulus object.

2 social surroundin/


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FIGUIRE 2 .3 Typology of service environmentsTime spentin facility

Short(minutes)

Moderate(hours)

Extended(day(s) orweek(s))

Consumption purposeUtilitarian - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Note: The darker the shading, the more important the physical features of the servicescape.

Hedonic

Source: Adapted from K. L. Wakefield and J. G. Blodgett (1999), 'Customer Response to Intangible an dTangible Service Factors', Psychology & Marketing, January, p . 54. Copynght John Wiley & Sons.Reprinted by permission of John Wiley & Sons, Inc.

It is important to interpret Figure 2.3 correctly. While the physical environment at Starbucksis more important to the service experience than the physical features of a dry cleaner, this doesnot mean that drycleaners should neglect the physical environment altogether. Indeed, a wellorganised, professional-looking drycleaner will produce more satisfied customers than a competitorwithout those qualities. What the figure shows is that the emphasis and importance of the physicalelements vary according to the type of service considered.

Music influences consumers ' moods and these, in turn, influence a variety of consumptionbehaviours. 13 We could ask, for example, whether slow-tempo or fast-tempo background musicis better for a restaurant.Table 2.1 indicates that slow background music increased the gross margin for one restaurantby almost 15 per cent per customer group compared with the gross margin when fast backgroundmusic was played! However, before concluding that all restaurants should play slow music,examine the table carefully. Slow background music appears to have relaxed and slowed downthe customers, resulting in more time spent in the restaurant and substantially more purchasesfrom the bar. Restaurants without bars and relying on rapid customer turnover would be betteroff with fast-tempo background music.

Colour also influences the way the physical environment is perceived. For example, red iseffective at attracting attention and interest and would therefore be good for the outside of a store.However, because it is also perceived as tense and negative, it may not be suitable for the interiorof the store where calmer, cooler colours (such as blue or green) are best at retaining customers.TABLE 2.1 The effect of background music on restaurant patrons

Service timeCustomer time a1" tableCustomer groups leaving before seatedAmount of food purchasedAmount of bar purchasesEstimated gross margin

Slow music29 min56 min10.5%$55.81$30.47$55.82

Fast mus ic27 min45 min12.0%$55 .12$21.62$48.62

Source: R. E. Milliman (1986), 'The Influence of Background Music on the Behavior of RestaurantPatrons', Journal of Consumer Research, September, p. 289.


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could make a significant difference, with 42 per cent of all hrand purchases made when one ormore pieces of POP material were present.There are, of course, many possible behaviours that a marketer could be interested in:actual purchase, shopping (looking), receiving information (for example, watching televisionadvertisements), and so on. Tauber, in an analysis of non-purchase motivations for shopping,found physical activity and sensory stimulation to be two important motives. IS Enclosed shopping

centres offer clear advantages in providing a safe, comfortable area for leisurely strolls. The sightsand sounds produced by a variety of stores and individuals also provide a high degree of sensorystimulation. Both of these factors play an important role in the overall success of shopping centresand other shopping areas. Marketers should note that, if there are physical aspects of the situationthat can be influenced and/or controlled, this should be done in a manner that will make thephysical situation compatible with the lifestyle of the target market.The emergence of home shopping in Australasia poses a particular challenge for marketing, asthe communication and the purchase situation can become the same, and as such may be equallyremote from the marketer' s influence. In Australia, the Sydney-based Television Shopping Network(TVSN) has an inventory of more than 3000 products, such as toys, software, jewellery, and sportand leisure goods, as well as a range of household goods. Increasingly, according to TVSN's vicepresident of marketing, products will be displayed within a television show that provides contextand relevance in a manner similar to a specialised boutique within a larger shopping mall. 16A logical extension of this strategy involves the development of multimedia or Internet sites.Indeed, TVSN now also operates online (www.tvsn.com.au). In such virtual retail space, consumersreceive the added benefit of filters and hyperlinks, which transcend marketplace to 'marketspace'.To be ready for this new trend, marketers and designers must work together to optimise the effectof the site and add value from the consumer's perspective. 17It is often impossible to control or influence the physical situation the consumer will encounter,such as winter versus summer for beverage consumption. In these cases, it is appropriate to alterthe various elements of the marketing mix to match the needs and expectations of the targetmarket. Indeed, marketers are often able to capitalise on particular aspects of the product andposition it as more suitable for certain situations.The Cyber Consumer boxed example shows that even in the case of a purchase highlydependent on physical surroundings-the family home-the Internet has revolutionised theprocess by which consumers make decisions.

Social surroundingsThe concept of social surroundings relates to the presence of other people who could affect theindividual consumer's behaviour. Our actions are often influenced, if not altogether determined,by those around us. For example, Italians, Chinese and Anglo-Saxons prefer different types offood in situations where business associates are present, as opposed to those where parents arepresent. 18

Figure 2.5 illustrates the effect of the social situation on the attributes desired in a dessert.Notice that economy and taste are critical for personal and family consumption, whereas generalacceptance is the key for a party situation. In terms of advertising strategy, this understanding ofthe influence of the social surroundings can be used to create advertisements that emphasise thesuitability of particular products for specific social situations.Social influence is a very significant force acting on behaviour, since individuals tend to complywith group expectations, particularly when their behaviour is visible. Therefore, shopping, whichis a highly visible activity, and the act of consuming goods in public are both subject to socialinfluences. Shopping with others has been found to influence the purchase of such standardproducts as meat, chicken and cereal, and beer consumption has been found to change with thepresence of guests, at parties and during holidays.'9Shopping can provide a social experience outside the home as it allows for making newacquaintances, meeting existing friends or just being near other people. It allows people tocommunicate with others who have similar interests. For example, avid golfers migrate to sport inggoods stores. Sales personnel are often sought ou t in such stores because they may share with theshopper an interest in a product-related activity.

social surroundingsthe presence of other pwho could hove an inHon the individual comubehaviour


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PART ONE: CONSUMER DECISION PROCESS

CYBERCO SUM RSome of the most popular Australasianpastimes include the search for the nextdream home or investment property. As one

of the most significant purchases consumers make in theirlifetimes, real estate would not or should not, perhaps,be associated with the vagaries of situational factors .Or should they? Situation factors playa very importantpart in the purchase of a house; this is wh y real estateagents have long encouraged sellers to fix up any visibleproblems with the house, buy flowers before inspectionday, or even leave the coffee on during inspections. Thetheory seems to be that, after being exposed to suchmulti-sensorial stimulation, buyers will come in droves tothe auction day, only to be swept right out (and up) bythe excitement and competition on the day.

There is, however, a definite shift in ho w people arebuying real estate and the property boom of the last fewyears has given many real estate agents th e willingnessand the capital required to invest in new ways ofconducting their business. In particular, technology nowplays a vital part in facilitating the first point of contact,to the degree that over 60 per cent of tenants and 40 percent of buyers first found out about their property on theInternet in 2004-05, compared to less than 5 per centin 2000. Sites such as realestate.com .au or realestate.

cO .nz show just how easy and sophisticated access thundreds of properties can be .

Innovation has not been limited to establishing contacbetween parties, however. For example, a Sydney-basereal estate agency has replaced its 'for sale' sign witLCD screens that provide information about the auctiodate, floor plans and property tours. Interestinglythese compare very well in cost to the traditional signsAdelaide agency Toop & Toop has introduced a VirtuaAgent Selling System, linking an agent's PDA, mobile anthe Internet. The system matches buyers' needs to specifiproperties and sends them SMS and e-mails. If a houslooks like it might sell before auction, the agency is no wable to contact 100 or 150 people instantly by SMSOther innovators in the industry are looking at the use oblogging or podcasting as a means to communicate wittheir client base.1 Would you select a place to rent using the Internet

Why or why not?2 Visit www.realestate.com.au. How easy is it t

navigate through the site? Are all houses equally wepresented?

FIG U R E 2.5 The effect of social situa1ion on desired dessert attributes

0.60.5

0.4Attribute 0 3importance .

0.20.1

D Economical Taste0.42

0.30 0.32

~ - - ~ - - ~ ~ - - ~ - - - - - - - - - - ~ - - ~ -Everydaydessert While watchingevening TV

Liked by most0.62

Social gatheringwith coffee/tea

Source: J. B. Palmer and R. H . Cropnick (1 986), 'New Dimension Added to onjoint Analysis' , Ma rketm?,News, 3 January, p. 62.


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2 . 3 The temporal perspec1ve ofpurchase decisions can translateinto seasonal elements, whichmay suggest purchase anduse at specific times of theyear. For example, this productis positioned specifically forsummer use.

N ~ I L K Summer Care.UV protection for your hair.

1

sunsilk.com.au

Unilever Australia Limited

defin tionengaging in the consumptiontmk may ref lect different buyer and

by the individual ; general taskgift giving) and specihc tosk definition.g. the gift-gving occasion) influence purchase

ntecedent sta tesof the individl.ol that ore not losting

. Rother, they ore momentary moods ortions-for example, the experience, from time 10of stotes of depression or high excitement that

e not normally port of the individual's make-up

stOlte of mind that is genera lly not tied to aor ob ject

TABLE 2 .2

BirthdayBuying factors in gift-giving purchase situations

WeddingBuying factors 'sought' by purchaserEnjoyabilityUniquenessDurabilityHigh performanceUsefulnessIn novativenessImag nativenessReceiver's need for productNoveltyReceiver is allowed creativityBuying factors 'avoided' by purchaserLow qualityUnreliabilityLack of receiver desire for productLack of thoughtfulnessGaudinessNo reflection on receiver's personalityLack of tastefulnessDisliked by friends and familyLack of styleInconvenience

DurabilityUsefulnessReceiver's need for productHigh performanceEnjoyabilityUniquenessPresence of warrantyTangibilityInnovativenessPrettiness

Low qualityLack of receiver desire fo r prodLack of thoughtfulnessGaudinessLack of styleUnreliabilityLack of tastefulnessDisliked by friends and familyInconvenienceInappropriate for occasion

Source: S. DeVere, C. Scott and W. Shulby (1983), 'Consumer Perceptions ofGift-Giving Occasions: Attribute Sales and Structure', in eds R. P. Bagozzi anA. M. Tybout, Advances m Consumer Research X, Association for ConsumeResearch, Chicago, pp. 185-90.

gifts. However, closer examination reveals that wedding gifts tend to butilitarian (the top four attributes are durability, usefulness, receiverneed and high performance), whereas birthday gifts tend to be fun (thto p four attributes are enjoyability, uniqueness, durability and higperformance). Therefore, both the general task deFinition (gift giving) anthe specific task definition (the gift-giving occasion) influence purchasbeha viour. 24

Antecedent statesAntecedent states are features of the individual that are no t lastincharacteristics. Rather, they are momentary moods or conditions. Foexample, from time to time we all experience states of depression ohigh excitement that are no t normally part of ou r individual make-upMoods are transient feeling states that are generaJly no t tied tospecific event or object. 2s They tend to be less intense than emotionand may operate without the individual's awareness. Althougmoods may affect all aspects of a person's behaviour, they generaldo not completely interrupt ongoing behaviour as an emotion mighIndividuals use such terms as 'happy', 'cheerful', 'peaceful', 'sad', 'bluand 'depressed' to describe their moods.


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CHAPTER TWO; SITUATIONAL INFLUENCE

Moods both affect and are affected by the consumption proce Y' Fo r ex mple, tel.evisionprogram content can influence mood and arousal level, which, in turn, influen ce informationprocessing activities.2 Moods also influence decision processes and the pu rchase and consumptionof various products (see Exhibit 2.4). For example, one study found that positive mood s wereassociated with increased browsing and 'impulse' purchasing . Ne ga tive moo ds also increasedimpulse purcha sing in some consumers.1S

In addition to responding to consumer needs induced by moods , ma rk t rs try to in fl uencemoods and to time marketing activities so that they coincide with positive mood-inducing events.Restaurants, bars, shopping centres and many other retail outlets arc designed to indu posItIvemoods in customers. M usic is often played for this rea son. Many compani


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celebrate and reward yourself for all the hard work done in the last semester. Each situation mamotivate the choice of a restaurant for dinner but, depending on the time and money availablethe type of restaurant selected will probably be different.These momentary conditions can present an opportunity for marketers in that some productcan be presented as the perfect antidote to a less-than-ideal day (see Exhibit 2.5).The Ethical Edge boxed example shows that it may be possible to manipulate some momentar

conditions to influence consumer behaviour. Making gaming venues smoke-free zones, for examplewould encourage many compulsive gamblers to eliminate their nicotine addiction. In the samway, many critics question the wisdom of allowing the purchase of liquor at petrol stations.

Ritual situationsRituals are receiving increasing attention by marketing scholars and praCtltIOners. A rituasituation can be described as a set of interrelated behaviours that occur in a structured formathat have symbolic meaning and that occur in response to socialJy defined occasions. 29 Rituasituations can change from completely private to completely public. For example, an individuamay drink a private toast or visit a special place on the anniversary of a significant past evenA couple celebrating their first date by returning to the same restaurant engage in a more publiritual. Weddings tend to be even more public. Finally, national and global holidays present verpublic ritual situations.Ritual situations are of importance to marketers because they often involve prescribeconsumption behaviours. Each major holiday has consumption implications, involving speciameals, cards or gifts, and while there is significant variation between individuals and households

TAB L E 2.3 Ten examples of how situations could influence the decision to eat out and thechoice of restaurant

Situational influence Description of situa1ion Type of restaurant usedPhysical It is very hot and your airconditioning isn't working Full/limited service

2 Physical You're in the city for your Christmas shopping and Full servicethe stores and streets are very crowded

3 Social Your fiancee's parents are going to take you out for Full servicedinner, and ask you to pick the restaurant

4 Social Your neighbour comes over to visit, you are having Fast fooda pleasant chat, and you discover it is time for lunch

5 Temporal You plan to go to a show at 7:30 p.m. It is now Fast food6.30 p.m.

6 Temporal You want to have an evening meal with the family Limited servicewhen not rushed for time

7 Task It's your parents' 25th wedding anniversary and you Full servicewant to take them out to dinner

8 Task Your partner won't be home for dinner and you are Fast foodwondering what to feed the children

9 Antecedent You are too tired to cook dinner because you have Limited/full servicehad a very fatiguing da y at the office

I10 Antecedent You have just finished a tough semester and you're I Full servicein the mood to really reward yourself


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CA GIn line with what should now be fairlycommon wisdom, alcohol and drivingshould not be mixed. There are, however,

many who argue that, as a product legal when sold toconsumers aged 18 years and over, alcohol should beavailable where it is most convenient for consumers tobuy it. In many instances, this may well be at a petrolstation or convenience store nearby. Advocates of thisdistribution strategy argue that consumers are entitled toa choice, and that purchasing liquor does not necessarilymean consuming it on the spot. They describe the typicalconsumer as a person driving home and looking forwardto a sip on the couch or the back verandah, and askwhy it is that this person should be unable to simply andconveniently buy a can or bottle as they stop to fill uptheir car. This view is strenuously opposed by alcoholresearchers, who predict that selling liquor and fuel inthe same outlet will increase drink driving and accidentsand who also believe that selling alcohol in conveniencestores will inevitably lead to more widespread under-agedrinking, violence and other anti-social behaviour.

The Australian Association of Convenience Storesand the Service Station Association, on the other hand,believe industry experts who see current restrictions as


providing an unfair advantage to the big supermarketchains, as they enjoy ever-increasing shares of the liquormarket as well as more recent inroads in the petroldistribution sector.The Australian Liquor Stores Association has maderepresentation trying to curb the wider distribution ofliquor, arguing that 'i t is a drug . .. and should be soldby people who are highly trained and motivated to actresponsibly' . This view is endorsed by the AustralianHotels Association who claims that 'people should notbe able to fill up their cars, and then themselves'.

Are they all only trying to defend their own interest?Do they really care for consumers' wellbeing? What doyou think?

In the state where you live, find out how many servicestations and convenience stores there are. How doesthis compare to the number of liquor stores andhotels? What does this means in terms of distributionof alcohol?

2 Should alcohol be available from vending machines?Where could these be located?

there is enough shared behaviour to allow marketers to develop products and promotions aroundthe common ritual situations that arise each year. For example, roses, teddy bears and chocolatesrepresent the themes of many products available around Valentine's Day.Marketers also try to change or create consumption patterns associated with ritual situations. 31For example, while jewellery and make-up have always been associa ted with engagements and

wedding days, Halloween cards and pumpkin-coloured or -shaped products are now promotedin Australasia and elsewhere, where the tradition simply does no t exist, mainly because of therelative gap in the calendar between Father's Day and Christmas!

O@ Situatio,nal infl!u,ences and marketilngstrateg!yThe previous sections presented a basic classification system of situational characteristics and

provided a number of examples of how managers could respond to specific situations in order toincrease the probability of purchase. Here we seek to answer the questions 'Given that situationsdo have an effect, ho w do marketing managers respond to them?' and 'What actions do they taketo influence the situation?'.Unfortunately, there is no magic formula that allows marketers to recognise the potentialinfluence of a situation, but simply being aware of situational characteristics and their influenceswill certainly help. It is important to remember that individuals do no t encounter situationsrandomly. Instead, most people 'create' many of the situations they face. For example, individualswho choose to engage in physica lly demanding sports such as jogging, tennis or squash areindirectly choosing to expose themselves to the situation of 'being tired' or 'being thirsty'. This


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PART ONE : CONSUMER DECISION PROCESS

allows marketers to consider advertising and segmentation strategies based on the situations thindividuals are likely to encounter, given their lifestyles. Completion of a matrix similar tthat presented in Table 2.4 may assist in identifying where potential situational influences may bfelt and what would require further examination.

T A :6 L 'E 2.4 The situational influence matrix

CommunicationPurchaseUsageDisposal

Physicalsurroundings SocioJsurroundings Time Tas k Antecedentstates

-L _

After determining the influence of different situations on purchase behaviour for a producategory, a marketer must determine which products or brands are most likely to be purchasewhen a particular situation arises. One method of dealing with this question is to scale situationand products jointly. An example is shown in Figure 2.6. Here, usage situations ranging from'private consumption at home' to 'consumption away from home where there is a concern foother people's reaction to you' have been scaled in terms of their similarity to each otherrespondents' perception, and their relationship to products appropriate for that situation. Forusage situation described as 'to clean my mouth upon getting up in the morning', toothpaste anmouthwash are viewed as most appropriate. However, a usage situation described as 'before aimportant business meeting late in the afternoon' involves both consumption away from homand a concern for the response of others. As a result, mint-flavoured gums or lollies/sweets woulbest serve this usage situation.

FIGUR E 2 . 6

Concerned withpersonalresponse

Usage situations and product positioningUsed away from home

Fruit-flavouredgum/sweets

Soft drinks

Freshfruit Dentalaids

Mint-flavouredgum/sweets

Concerned withresponse fromothers

Mouthwashes

ToothpastesHome usage

I = Usage situation: To clean my mouthupon rising in the morning./I = Usage situation: 'Before animportant business meeting latein the afternoon.


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CHAPTER TWO : SITUATIONAL INFLUENC

As more marketers have come to recognise the importance of situational influences onpurchase and consumption, a greater effort has been made to incorporate usage situations inmarketing strategy. For example, recent research in the area of wine marketing confirms thatthe type of red wine a consumer purchases will be highly dependent on the type of occasion theconsumer anticipates for its consumptionY This suggests that different wines could be successfullypositioned as particularly suitable for certain occasions. However, some marketers may wanttheir products to be positioned as being appropriate for a variety of situations. For this reason,the flower industry has put considerable effort into increasing the range of situations for whichflowers are viewed as appropriate.Table 2.5 outlines the steps a firm can take while studying the usage situation in order tobe more successful with segmenting markets, positioning products and creating advertisementsdesigned to communicate this positioning.33 As demonstrated in Table 2.5, more effective marketsegmentation and product positioning can be accomplished when usage situations can be groupedtogether with needs (those created by the situation) and products perceived to be appropriate.

The complexity of a situation and the many interactions that exist between its diversecomponents make it a difficult element of the marketing mix. Oft en, marketers can understand theinfluence of a particular situation only with the benefit of hindsight. However, once a particularsituational change has been identified, it may become an opportunity. For instance, the trend thatsees an increase in the number of people eating out-the number of meals bought as takeaways oreaten outside of the home has increased dramatically over the last 15 years-is not a positive onefor manufacturers of branded products, as consumers eating in restaurants are not aware of thebrand of the product they consume. 34An example of global opportunity born ou t of the recognition of the importance of situationalinfluence in relation to communication is the exponential growth of in-game advertising, whereadvertisements are embedded in computer games as illustrated in the Global Gaze boxedexample.

TAB L E 2.5 I The person-situation segmentation procedure: illustrative example for suntan lotion

Suntan lotion usesituationsBeach/boatactivitiesHome/poolsunbathing

Sunlamp/sunbathingSnow skiing

Person benefits

Young childrenPrevent sunburn

Prevent sunburn

1rotection

POTENTIAL USERS OF SUNTAN LOTION

TeenagersPrevent sunburn

Tanning

IrTanningPrevent sunburn

h a n n i n g Tanning

Adult womenPrevent sunburn

Tanning withsummer perfumescentTanning withmoisturiser

Adult menPrevent sunburn

Tanning

Prevent sunburn with Prevent sunburnwinter perfume scentProtection andtanning withperfume scent

Protection andtanning

Source: P. Dickson (1982) 'Person Situation: Segmentation's Missing Link ' , Journal of Marketing, Fall, pp. 56-64.

Situation benefitContainer floats

Lotion won't sta

Designed forsunlampsContains anti-frformula


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PART ON E: CONSUMER DECISION PROCESS

GLOBAL GAZEComputer games have affected the livesof young consumers in a number ofdifferent ways. First, it has taken them

out of the television audience as they trade the traditionalset for their computer screen and the excitement of theparlicular game they favour. Second, it has immersedthem in a more artificial, although realistic, world whenthe opportunity for advertising may be less obvious.Until, that is, game producers realised they neededadvertising income to develop their game. Faced withincreasing costs (an average game is estimated to costapproximately US$5 million to develop), the gamesindustry has become interested in ways to improve theirprofitability and advertising can add US$2-3 of profit toeach US$49 game sold.

Although advertisers have been able to placeadvertisements in games for years, new opportunitiesare now emerging as technology develops. For example,a dynamic online technology platform and network canenable vendors to change in-game advertising in realtime. So sophisticated is the system that it can literallyserve specific ads to consumers based on their locationand the time of day. Commuting to the city and almostlunchtime? The posters on the background walls of askateboarding game can be made to reflect McDonald's

seORI G BONUS POINTSFO ADVER ISERS35

new menu. Later that night and closer to the shoppingcentre? Perhaps the posters can be changed to reflecthis week's cinema releases .

By adhering so tightly to consumers' situations, theadvertising message is more likely to trigger an impulsthat, coupled with the ability to call friends on the mobilecan result in a group purchase.

According to New York company MassivIncorporated Australian-born founder, Mitch Davisthe revenue from in-game advertising could exceedUS$2.5 billion by 2010 as advertisers chase theincreasingly elusive 18- to 34-year-old male target. Ithe US, 70 per cent of men in that group play computegames for an average of 20 hours a week. Becauseplayers are so engrossed in the games, they tend towatch everything on screen, whereas television audienccan be fickle and inattentive. Australia is lagging -a nestimated 30 per cent of the market play games, but theare the ones falling off the television audience statistics.

If you have played a game before, can you recabrands you saw advertised in the game? If not, assomeone you know who plays games.

2 Is advertising in games ethical? Discuss.


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CHAPTER TWO- SITUATIONAL INFLUENC


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REVIEW QUESTIONS1 What does the term 'situation' mean?2 Why is it important for a marketing manager to

understand situational influences on purchasingbehaviour?3 What are the four types of situations Ihol mattermost to marketers? Given on example ror each.

4 What are the five main categories of situationalinfluences? Give an example for each.

S How do moods influence behaviour?

DISCUSSION QU:ESTIONS1 Discuss the potential importance of eoch situotional

influence if you are developing a marketing strategy10 promote the purchase of:(oj a haircut(b) Hungry Jock's(c) an MP3 player(d) tofu.

2 What product categories seem most susceptible tosituational influences? Why?

3 In those instances where marketers have little controlover the consumption siluation, why is it importantthat they understand how the situation relates to theconsumption of their product?

4 Ho w would you change the situational classificationscheme presented in this chapter?

5 What markeHng strategies ore suggested byFigure 2.5 for a company monufacturing:(0) yoghurt?(b) ice-cream?Ic) gourmet cokes?(d) chocolates?

APPLICATION ACTIVITIES1 Interview five people who hoye recently purchased

one or several of the following products. DetermineIhe r o ~ e , if any, played by situational factors.(a) a movie licket(b) a haircut(e) flowers(d) a digitcd camero

2 Conduct a study using a small sample of your Friends(10 or so), in which you try to isolate the situationalfactors that illr1uence Ihe Iype, brand or amount ofthe following producfs purchased 01 used:(0) soh drink[b) moviestel novel(d) restaurant meal

6 Are individuals randomly exposed to situationainfluences? Explain your reasoning .

7 How con consumption situations be used in markesegmentation?B How d o ~ s crowding affect shopping behaviour?

9 How do the desired attributes in a wedding gifdiffer from Ihose in a birthday gift?

10 What are ritual situations? Provide an examp[e ofritual situafion.

6 Flowers are 'appropriate' gifts for women in mansituations but seem to be appropriate for men onlwhen they ore ill. Why is this so? Could this situat iochange?

7 Using Table 2.4 as a model, construct a matrix for[a) soft drinks[b) perfumestel hots(d) iPods(e) television programs(f) groceries.

B Could the findings in Tobie 2.1 be used by throl,lowing outlets? If so, how?(a) banks(b) supermarketsIe) fastfood restaurants{d} clothing stores

9 Recreate Figure 2.6 using beverages as thproduct category and Four usage situations of youchoosing.

(e) mobile phone(f) snacks

3 Create a list of 10 usage situations relevant tcampus-area restaurants. Interview 10 students anask them to indicate which of these situations Ihehave encountered, then ask them to rank


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CHAPTER TWO SITUATIONAL INFLUENC


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. PART ONE: CONSUMERDECISION PROCESS

REFERENCESBased on a story by Kath Walters (2006), 'Serviceis King Again', Business Review Weekly, 6-12April, p. 43.

2 J. M. Weber and J. Capitant de Villebonne (2002),'Differences in Purchase Behaviour betweenFrance and the USA: the Cosmetic Industry',Journal of Fashion Marketing and Management,Vol. 6, No.4, pp. 396-407; D. A. Michals (1985),'Pitching Products by the Barometer', BusinessWeek, 8 July, p. 45.

3 R. W. Belk (1975), 'S ituational Variables andConsumer Behavior', Journal of ConsumerResearch, December, p. 158; J. A. F Nicholls,S. Roslow, S. Dublish, L. B. Comer (1996),'Relationship between Situational Variables andPurchasing in India and the USA', InternationalMarketing Review, Vol. 13, No.6, pp. 6-21.

4 The Wine Marketing Handbook (1980), GavinJohnson Publications, p. 18.

5 J. Hornik (1982), 'Situational Effects on theConsumption of Time', Journal ofMarketing, Fall,pp.44-55.

6 P. Quester and J. Smart (1996), 'Effects ofSituation and Involvement on Consumers' Use ofProduct Attributes in the Choice of Red Wine',International Journal of Wine Marketing, Vol. 8,No. 3/4, pp. 35-56.

7 D. Stayman (1989), 'Situational Ethnicity andConsumer Behaviour', Journal of ConsumerResearch, Vol. 16, No.3, pp. 361-71; alsosee P. G. Bonner (1985), 'Considerations forSituational Research', in eds E. C. Hirschmanand M. B. Holbrook, Advances in ConsumerResearch XII, Association for Consumer Research,Provo, UT, pp. 368-73; and J. A. Cote (1986),'The Person by Situation Myth', in ed. R. J. Lutz,Advances in Consumer Research XIII, Associationfor Consumer Research, Provo, UT, pp. 37-41.

8 R. W. Belk (1975), op. cit., p. 161.9 P. Saunders (2000), 'Where Promise Meets

Delivery', AdNews, 5 May, p. 24; R. J. Donovanand j. R. Rossiter (1982), 'Store Atmosphere: anEnvironmental Psychology approach', Journal ofRetailing, Spring, pp. 34-57; and M. P. Gardnerand G. J. Siomkas (1986), 'Toward a Methodologyfor Assessing Effects of In-store Atmospherics', inR. j. Lutz (ed.), op. cit., pp. 27-31.

10 S. A. Eroglu, K. A. Machleit and L. M. Davis(2003), 'Empirical Testing of a Model of Online

Store Atmospherics and Shopper Responses',Psychology and Marketing, Vol. 20, No.2,pp. 139-50; K. Spies, F. Hesse and K. Loesch(1997), 'Store Atmosphere, Mood and PurchaseBehaviour', International Journal of Researchin Marketing, Vol. 14, No.1, pp. 1-17; seealso J. Baker, D. Grewal and A. Parasuraman(1994), 'The Influence of Store Environmenton Quality Inference and Store Image', Journalof the Academy ofMarketing Science, Fall,pp. 328-39; W. D. Darden and B. J. Badin (1994)'Exploring the Concept of Affective Quality',Journal of Business Research, Vol. 29, pp. 101-9;C. S. Areni, J. R. Sparks and P. Dunne (1996),'Assessing Consumer Affective Responses toRetail Environments', in eds K. P. Corfman andJ. G. Lynch, Advances in Consumer ResearchXXIII, Association for Consumer Research, ProvoUT, pp. 504-9; and B. Babin and W. R. Darden(1996), 'Good and Bad Shopping Vibes', JournalBusiness Research, March, pp. 210-60.

11 M. j. Bitner (1992), 'Servicescape', Journal ofMarketing, pp. 57-71. See also K. L. Wakefieldand J. G. Blodgett (1994), 'The Importance ofServicescape in Leisure Service Settings', Journalof Service Marketing, Vol. 8, No.3, pp. 60-6; anK. L. Wakefield and J. G. Blodgett (1996), 'TheEffects of Servicescape on Customers' BehaviouraIntentions in Leisure Service Settings', Journal ofService Marketing, No.6, pp. 45-61.

12 K. D. Hoffman, S. W. Kelley and B. C. Chung(2003), 'A CIT Investigation o f ServicescapeFailures and Associated Recovery Strategies',Journal of Services Marketing, Vol. 17, No.4,pp. 340; M. J. Bitner (1990), 'Evaluating ServiceEncounters', Journal of Marketing, April,pp.69-82.

13 A. S. Mattilaa and J. Wirtzb (2001), 'Congruencyof Scent and Music as a Driver of In-storeEvaluations and Behaviour', Journal of Retailing,Vol. 77, pp. 273-89; C. Areni and D. Kim (1993)'The Influence of Background Music on ShoppingBehaviour: Classical vs Top-forty in a WineStore', Advances in Consumer Research, Vol. 20,pp. 336-40; G. C. Bruner II (1990), 'Music,Mood, and Marketing', Journal ofMarketing,October, pp. 94-104.

14 D. Dion (2004), 'Personal Control and CopingWith Retail Crowding', International Journal ofService Industry Management, Vol. 15, No.4,pp. 250-63; M. K. M. Hui and J. E. G. Bateson(1990), 'Testing a Theory of Crowding in the


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Service Environment', in eds M. E. Goldberg,G. Gorn and R. W. Pollay, Advances in ConsumerResearch XVII, Association for ConsumerResearch, Provo, UT, pp. 866-73; and S. A. Erogluand K. A. Machleit (1990), 'An Empirical Study ofRetail Crowding', Journal of Retailing, Summer,pp.201-21.

15 E. M. Tauber (1972), 'Why do People Shop?',Journal of Marketing, October, p. 47. See alsoR. A. Westbrook and W. C. Black (1985), 'AMotivation-based Shopper Typology', Journal ofRetailing, Spring, pp. 78-103.

16 K. Winton (1997), 'Home Shopping comes toAustralia', Professional Marketing, April/May,pp.16-18.

17 S. L. Jarvenpaa, N. Tractinsky and M. Vitale(2000), 'Consumer Trust in an Internet Store',Information Technology and Management, Vol. 1,No. 1-2, pp. 45-71.

18 R. Deshpande and D. S. Stayman (1994), 'A Tale ofTwo Cities: Distinctiveness Theory and AdvertisingEffectiveness', Journal ofMarketing Research,Vol. 31, No.1, pp. 57-64; D. Burton (1996),'Ethnicity and Consumer Financial Behaviour:a Case Study of British Asians in the PensionsMarket', International Journal of Bank Marketing,Vol. 14,. No.7, pp. 21-31; see also D. M. Staymanand R. Deshpande (1989), 'Situational Ethnicityand Consumer Behavior', Journal of ConsumerResearch, December, pp. 361-71.

19 S. Shim and M. A. Eastlick (1998), 'TheHierarchical Influence of Personal Values on MallShopping Attitudes And Behaviour', Journal ofRetailing, Vol. 74, No.1, pp. 139-60; K. R Evans,T. Christiansen and J. D. Gill (1996), 'The ImpactOf Social Influence and Role Expectations onShopping Centre Patronage', Journal of theAcademy ofMarketing Science, Vol. 24, No.3,pp. 208-16. See also S. Chow, R. L. Celsi andR. Abel (1990), 'The Effects of Situational andIntrinsic Sources of Personal Relevance on BrandChoice Decisions', in eds M. E. Goldberg, G. Gornand R. W. Pollay, Advances in Consumer ResearchXVI, Association for Consumer Research, Provo,UT, pp. 755-60.

20 Jane Searle (2006), 'Real Change for Agents',Business Review Weekly, 23-29 March, pp. 42-3.

21 L. L. Sim and S. Y. Goh (1998), 'Singapore'sRevised Concept Plan and Retailing: Impac tof the Tampines Regional Centre on ShoppingPatterns', Journal of Retailing and ConsumerServices, Vol. 5, No.1, pp. 33-43; B. D. Kim andK. Park (1997), 'Studying Patterns of Consumers'


V 'VGrocery Shopping Trips', Journal of Retailing,Vol. 73, No.4, pp. 501-17; see also B. E. Mattsonand A. J. Dobinsky (1987), 'Shopping Patterns',Psychology & Marketing, Spring, pp. 42-62; andC. W. Park and E. S. Iyer (1989), 'The Effects ofSituational Factors on In-store Grocery ShoppingBehavior', Journal of Consumer Research, March,pp.422-33.

22 P. van Kenhove and K. de Wulf (2000), 'Incomeand Time Pressure: a Person-Situation GroceryRetail Typology', The International Review ofRetail, Distribution and Consumer Research,Vol. 10, No.2, pp. 149-66; See also B. E. Mattson(1982), 'Situational Influences on Store Choice',Journal of Retailing, Fall, pp. 46-58.

23 G. Erickson (1990), 'New Trends make Food aChallenging Game', Packaging, January, pp. 44-8.

24 J. Ruth, C. C. Omes and F. Brunel (1999), 'GiftReceipt and the Reformulation of InterpersonalRelationships', Journal of Consumer Research,Vol. 25, No.4, pp. 385-402; See also E. Fisherand S. J. Arnold (1990), 'More than a Labor ofLove', Journal of Consumer Research, December,pp. 322-8; and M. DeMoss and D. Mick (1990),'Self-gifts', Journal of Consumer Research,December, pp. 329-32.

25 M. P. Gardner (1985), 'Mood States andConsumer Behavior', Journal of ConsumerResearch, December, pp. 281-300.

26 R. Bagozzi, P. Gopinatch and M. P. U. Nyer (1999),'The Role of Emotion in Advertising', Journalof the Academy ofMarketing Science, Vol. 27,No.2, pp. 184-206; See also M. P. Gardner andR. P. Hill (1988), 'Consumers' Mood States',Psychology & Marketing, Summer, pp. 169-82;and D. Kuykendall (1990), 'Mood and Persuasion',Psychology &' Marketing, Spring, pp. 1-9.

27 J. P. Murry, J. L. Lastovicka and S. Singh (1992),'Feeling and Liking Responses to TelevisionPrograms: an Examination of Two Explanationsfor Media Context Effects', Journal of ConsumerResearch, Vol. 18, No.4, pp. 441-51; R. Batraand D. M. Stagman (1990), 'The Role of Mood inAdvertising Effectiveness', Journal of ConsumerResearch, September, pp. 203-14.

28 S. E. Beatty and M. E. Ferrell (1998), 'ImpulseBuying: Modeling its Precursors', Journal ofRetailing, Vol. 74, No.2, pp. 169-91; alsoJ. Jeon (1990), 'An Empirical Investigation of theRelationship between Affective States, In-storeBrowsing, and Impulse Buying', unpublisheddissertation, The University of Alabama,Tuscaloosa.


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r PART ONE: CONSUMER DECISION PROCESS

29 For discussions of rituals and consumer behaviour, 34 A. Dolahanty (1997), 'The Eat-out Boomsee D. W. Rook (1985), 'The Ritual Dimension Threatens Brands', B&T Weekly, 21 March, p. 1of Consumer Behaviour', Journal of Consumer 35 Brad Howarth (2006), 'Bonus Points for GamesResearch, December, pp. 251-64; and B. Gainer Gurus', Business Review Weekly, 1-7 June,(1995), 'Rituals and Relationships', Journal of pp.60-1.Business Research, March, pp. 253-60. 36 National Drug Strategy Household Survey (200130 G. Jacobsen (2004), 'Petrol Stations in Push Australia. www.aihw.gov.au/publications/phe/to Sell Liquor', Sydney Morning Herald, ndshs01df/ndshsOl df-c20.pdf, accessed 14 July5 February, available on www.smh.com.aul 2006.articles/2004/02/04/107583939014.html, last 37 Better Health Channel (2006). www.betterhealth.accessed 1516106. vic.gov.aulbhcv2/bhcArticles.nsf/pages/Smoking_31 See C. Otnes and L. M. Scott (1996), 'Something relapses_questions_and_answers?OpenDocumentOld, Something New', Journal of Advertising, accessed 14 July 2006.Spring, pp. 33-50. 38 Based on stories by Emily Ross (2006), 'The Brig32 P. G. Quester and J. Smart (1998), 'The Influence Stuff', Business Review Weekly, 8-14 November,of Situation on Wine Consumption', International pp. 54-57 and Andrew Cornell (2005), 'Boys'Journal of Wine Marketing, Spring, pp. 220-38. Own Barn', The Australian Financial Review

33 Adapted from P. Dickson (1982), 'Person- Magazine, November, pp. 24-8.situation: Segmentation's Missing Link', Journal of 39 P. Rose, Whitireia Community Polytechnic, NewMarketing, Fall, pp. 56-64. Zealand.

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