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Buyer Behaviour & Market Research Portfolio

Name: Charlotte Louise Smith

Code: MKT2013M

Tutor: Alison Cheeseman

Unit Coordinator: Renate Smith

Hand in Date: 14/05/2010

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Contents Page

Preface…………………………………………………………………………………………………….4

Consumers Choice Cognition & Affection;

Introduction (wheel of consumer analysis)……………………………………………...5-7

Marketing Strategy and Consumer Research……………………………………….....8-14

–personal introspection

Consumer Analysis ………………………………………………………………………………....15-20

-Market Research Process

Influences on Behaviour………………………………………………………………………....21-24

-Schemas and Scripts

Product Knowledge & Involvement………………………………………………………....25-33

-Means End Chain theory, MECCA

Product Knowledge & Involvement continued……………………………………......34-42

-Laddering interviews

Consumer Cognition Processes in Decision making……………………………...…43-46

-exposure to information

Attitudes & Intentions………………………………………………………………………….....47-57

-Multi Attribute Model

Overt Behaviour………………………………………………………………………………........58-63

-Conditioning

Vicarious Learning………………………………………………………………………………....64-68

Consumers & Motivation, Categorising People

Motivation…………………………………………………………………………………………......69-75

-VALS

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Market Research processes…………………………………………………………………....76-85

-Surveys

Consumers and their contexts

In store Behaviour……………………………………………………………………………….....86-92

-Observation techniques

In-store stimuli

Customer Satisfaction & loyalty……………………………………………………………...93-99

-Critical Incident Technique

Critical evaluation of research methods……………………………………………….…100-103

Conclusion……………………………………………………………………………………………...104

Bibliography…………………………………………………………………………………………...105-106

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Preface “Consumers' decision-making is a hideously complex and difficult subject. The range of influences that may lead to almost any individual purchase is wide, and the ways in which they interact can be literally unpredictable: the same consumer, faced on two separate days with exactly the same choice, may well make a different decision.” (Roderick White 2007)1

Consumer behaviour involves the thoughts, feelings and environmental influences that people experience during the consumption process.

Many different factors are involved when making even the simplest of purchase decisions. The mental processes that are involved are just as much emotional and rational (including influences from family and friends etc) meaning consumers are very vulnerable to being influenced, including by advertising.

This portfolio will cover what consumer behaviour is, why it is important for marketers and examine a variety of market research activities which explore the complexity of consumer buying behaviour. These marketing research techniques, which will be critically analysed and applied, will uncover how an understanding of buyer behaviour can be utilised by marketers to develop competitiveness.

1 Roderick White, Admap issue 489 (December 2007) ‘decisions decisions…’ (library and learning resources, e-

library, Warc.com) http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=INDEXSEARCH87580&Tab=A [Accessed on 27 April 2010]

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Introduction

The following collection of work is a reflection of various research methods and techniques

used to understand buyer behaviour and use this understanding to develop marketing

strategies.

Topics include:

The market research process and its importance in developing strategies

An understanding and appreciation of some of the various research instruments

and various qualitative and quantitative techniques that are used to investigate

buyer behaviour, including Personal Introspection, Measuring Means-End Chains,

Laddering Interviews, Attitude measurement – Multi Attribute Model, VALS type

Survey, Questionnaires, Critical Incident Technique and Observation.

The structure for this portfolio will follow the wheel of consumer analysis as the underlying

framework for this study.

The Wheel of Consumer Analysis

Throughout this portfolio, the wheel of consumer analysis will act as a framework for researching,

analysing and understanding consumers to help marketers develop more effective strategies.

Therefore it is important to introduce the three elements of the wheel that should be researched

and developed into effective marketing strategies.

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Consumer Affect and Cognition

Affect and cognition refer to two types of mental responses consumers show towards

stimuli and events in their environment. Affect relates to their feelings towards something,

whether they like or dislike a product. Whereas cognitive refers to what the consumer

thinks about something, their beliefs about a particular product.

Affective responses include emotions such as love or anger, satisfaction or frustration. Affect

includes moods such as boredom or relaxation, and also overall attitudes such as liking McDonald’s

French fries or disliking Diet Coke. Marketers will try to develop strategies to create positive affects

for their products or brands to Increase the chances that consumers will buy them.

Cognition relates to the mental structures ad processes involved when a consumer thinks and tries

to understand then interpret stimuli and events. Cognition includes knowledge, meaning and beliefs

that consumers have developed from experiences that are stored in their memories. Cognition

includes the processes associated with attention, decisions and choices. Some thought processes are

conscious and some are automatic. Marketers must tune into consumers attention to increase their

product knowledge about their brands.

Consumer Behaviour

Also called overt behaviour to distinguish it from mental activities that cannot be observed directly.

For instance deciding to go to Marks and Spencer in town involves overt behaviour because it cannot

be observed by others. Although many marketing strategies are designed to influence affect and

cognition, these responses must ultimately result in overt consumer behaviour. Therefore it is

critical for marketers to understand overt behaviour; this can be done by offering the consumer low

prices, (money supermarket.com) superior quality (Toyota), greater convenience (moonpig.com) and

easier availability. (Coke is sold internationally in every store and vending machine.)

Consumer Environment

The consumer environment refers to everything externally that influences what they think, feel and

do. Including social stimuli such as the actions of others in cultures, subcultures, social classes,

reference groups, families. The external environment includes physical stimuli such as products,

adverts, billboards and stores that can influence consumer’s thoughts, feelings and actions. The

environment is the medium in which marketers use to place stimuli to influence the consumer. For

example marketers can send free samples, catalogue s and adverts by direct mail to get their

products or brands into the consumer's environment. Adverts such as Galaxy, fabric softener, anti

wrinkle cream are targeted at woman during popular TV shows such as soaps like Coronation Street,

to inform persuade and remind them to buy certain products ad brands.

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All three elements in the wheel are connected by a two-headed arrow because any element can be

either a cause or an effect of a change in one or more of the other elements. For example a

consumer receives a sample of a new shower gel in a magazine, (the consumers environment) they

use the shower gel, the consumer likes the smell and the feel of the product,(affect and cognition)

they feel it makes their skin softer, this led to a change in behaviour (the consumer bought the new

brand) This can occur in reverse, where the consumer is dissatisfied with the sample of shower gel

which creates a disliking of the brand and stored knowledge of this negative feeling therefore the

consumer will not be buying that particular product or brand in the future.

The Wheel of Consumer Analysis will be applied throughout each topic of this portfolio.

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Market Strategy & Consumer Research

So, Buyer Behaviour, what’s it all about?

Marketers want to know what goes on in the consumers mind before, during and after

purchasing. It is essential they have some understanding of what influences their decision,

What gets into their minds (perception)What stays in their minds (Learning & Memory) How

consumers use this information (thinking, reasoning, communicating) and essentially why consumers

do what they do (Motivation and Emotion)

Can we categorize people through individual differences and tastes-yes!

So what creates consumer behaviour?

Thoughts, feelings people experience in the actions they perform in the consumption

process

All things in the environment that influence these thoughts, feelings and actions

Consumer Behaviour is dynamic, interactive, involves exchanges

For example sally wants to buy some shampoo, the primary function is to keep her hair clean, but

what else is she looking for? Sally is a carefree student living in shared accommodation, she buys her

own shampoo for only herself to use. Sally wants a shampoo that will smell nice, make hair appear

shiny and smooth, and protect her hair from all the styling it goes through.

What do marketers need to know? The internal characteristics of the consumer-affect and cognition-(feelings and thinking)

wheel of consumer analysis

Overt Behaviour-behaviour that is easily observed by others

Environmental factors-physical and social

Marketing Strategies (physical and social aspects of environment under the control of

marketing managers)

THE MARKETING STRATEGY (The design, implementation and control of a plan to influence exchanges to achieve organisation

objectives)

Understanding consumers is a critical element in developing successful marketing strategies

‘The purpose of a business is to create and keep a customer’ T.Levitt

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(However this does not necessarily mean that marketers create the fundamental needs, which their

products can then satisfy. Creating a customer means to consummate the market exchange. This

occurs when marketers meet a variety of consumer needs (for the right product, at the right time, in

the right place, at the right price). Creating a customer means transforming an ordinary person into

a customer of your company’s products or services. This transformation occurs when the person

makes a purchase)

THE MARKETING CONCEPT Satisfy consumer needs and wants, using research for designing entire marketing and organisation

strategy

Need for sophisticated approaches and detailed data

So, first research technique; Personal Introspection

Personal Introspection A customer experience research method

Asking people independently their own individual feelings (gives you the reality) it is open

ended –no influences on the experiment by friends family etc no ‘varnishing’ texture of

‘experimental behaviour’

As many companies struggle to compete in the ever increasing ‘experience economy’ (Pine &

Gilmore 1999) One of Liverpool’s oldest and most famous department stores faced the harsh reality

of ‘subjective and personal customer experience’. Lewis’s Department store , which first

opened in 1856, was introduced to subjective personal introspection by several marketers in order

for them to use as an example for the basis of the research technique; personal introspection.

Personal introspection has become an accepted marketing research technique within

consumer research . The technique aims to discover “personal experience unknowable to

anyone else” (Stern 2000:72) 2and is not only becoming popular with academics but brands

such as Sainsbury’s.

In this case study, Patterson, Hodgson & Shi, recruited 232 (marketing students) research introspectees. The group consisted of an equal gender split with a mixture of all age groups and ethic varieties. No specific instructions were given as introspection is entirely open-ended. However they were asked to visit Lewis’s store alone (no peer influences) the idea was to gain the plain and simple truth, and hopefully find recurring themes and patterns of customers experience of Lewis’s department store. Unfortunately for Lewis’s, “in almost

2 Patterson, A, Hodgson, J, Shi, J, (2008) Chronicles of 'Customer Experience' : The Downfall of

Lewis’s Foretold, Journal of Marketing

Management, Vol. 24, No. 1-2, pp. 29-45

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every respect they thought it to be plain awful, woefully inadequate, and irredeemably flawed.” Hodgson et al (Vol 24, 5:2008) 3

After the researchers visited the store, the difference between their experience expectation and its reality was recorded; “the dilapidated store environment; its disorganised, random haphazardness; the pile-it high, jam-it-in-anywhere merchandising policy; the impression that the place was an unmapped muddle; poor product range; and the unengaged, unmotivated and plain lazy staff; and finally, the abject lack of any discernible customer experience.” Customers had expected the store to be similar to that of high street department stores they have previously visited such as Selfridges, John Lewis’s department and Debenhams.

“I had to take a step back to really take in its grandeur and to get a better look at Dickie Lewis, the naked statue that stands above the main entrance welcoming shoppers! I’m Not quite sure what its purpose or origin is, but he sure as hell makes an impression on Passers by. I was expecting great things on the inside but was decidedly disappointed. The moment I walked through the entrance and into the store I was baffled by what I saw Because there was a huge contrast between the exterior and interior.” (Male, 18)

“I walked around admiring the non-trendy woollen jumpers and flat caps, that even my granddad wouldn’t wear! Surprisingly these are situated directly next to a stand covered in animated so-called humorous socks saying ‘Sexy Devil’! The socks and flat caps, obviously being matching Christmas presents for granddads, weird! Even more disturbing, not far from the stands were mannequins modelling man thongs! Were these advertised for presents for granddads?! I seriously hope not! Again, it doesn’t take a rocket scientist to understand that the layout just isn’t right!” (Male, 24)

The purpose of the article, from the author’s perspective, was to provide a chronicle of how

multiple subjective personal introspections can illustrate ‘the unvarnished reality’ of

consumers experiences. Something the marketing authors of this article believe should be

pursued by researchers further. Introspection, they believe, ‘is a much more refreshing and

honest technique than traditional customer satisfaction surveys, that currently dominate

services marketing literature.’

3 Patterson, A, Hodgson, J, Shi, J, (2008) Chronicles of 'Customer Experience' : The Downfall of

Lewis’s Foretold, Journal of Marketing

Management, Vol. 24, No. 1-2, pp. 29-45

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Personal Introspection; is it appropriate?

As this method was used to determine personal experiences of customer service within

Lewis’s department store, it was possibly a much more insightful research technique

compared to that of questionnaires and surveys. Whereas with surveys and questionnaires,

the questions are already determined, the researcher may not include questions on

particular subjects they may not have originally thought about, therefore missing out on

major findings.

Introspection has the major advantage of detailing the ‘unvarnished reality’ of customer’s thoughts, feelings and opinions on a particular subject/brand or product. Introspection technique is a great tool for researching consumers affect and cognitive responses and the affect this has on buying behaviour. “I have to say that as I progressed towards the rear of the ground floor, my enthusiasm Rapidly declined. All of a sudden colours didn’t match and there were all sorts of random products stacked and shelved in the same area. I honestly felt like I was standing in the middle of a really bad charity shop (apart from the prices). There were Christmas decorations dangling next to ladies tights and birthday cards, and adjacent there were some scarily fluffy children’s slippers in all sorts of colours and designs… a little further on, an entire trolley of strange goblin looking ornaments!! ... utter chaos!”

(20yr old females personal introspective of her experience), The example above shows that

this particular customer noticed the colour scheme of the store, particularly on the ground

floor, this seemed to have a negative effect on her mood, she did not appreciate the un-

matching colour scheme, This should be considered by marketers and included in strategies,

as colour is often an important attribute within consumers attitudes.

The appearance in the environment of the department store seemed to have a depressing

affect on this customer’s feelings and thoughts about the store. “my enthusiasm rapidly

declined” The random assortment of products within the store, re-instated her negative

thoughts of Lewis’s as she works her way through the departments, her bad experience of

this store will probably mean she never enters Lewis’s again, affecting her buyer behaviour.

Marketing implications

Underlying motives, beliefs, attitudes and preferences can be uncovered and evaluated

though personal introspection. There is no bias or potential bias caused by the researcher.

This technique clearly describes customers’ cognition and affection and how they determine

their behaviour. Like the example above, the customer has pointed several marketing

stimuli, which although wasn’t done well by lewis’s, the technique itself prompted affective

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responses from the consumer. This technique allowed researchers to almost look through

the eyes of the consumer and understand the buying behaviour process in much more

depth.

However, is it because of this case study that personal introspection seems so successful?

Lewis’s was one really obviously bad example of customer experience. It is often the case

that it is much easier for customers to talk about their bad experiences than there good

ones. People often know what they dislike and why much more than the underlying reasons

why they like something.

Personal introspection continued…my shopping trip

I recently visited Tesco’s express in Lincoln not long after it opened last month, it is only

round the corner from where I live and therefore very convenient for food shopping. I have

been to larger Tesco stores previously so I have some idea of what to expect.

As I walk through the store my first thoughts are that the store colour scheme and

atmosphere is like most other Tesco stores, it is fairly warmer than outside and I recognise

the smell, I can’t pin point exactly what the smell is, it is not like fresh bread or something

you might expect in that respect but simply the ‘Tesco’s smell’ As well as the general

environment of the store, the layout springs to my attention. The first couple of aisles

presented to me where full of magazines and sweets, I could appreciate that this was a

convenience store and therefore Tesco must expect that many people simply come for small

amenities such as bread, milk, magazine, sweets or cigarettes, similar to a small newsagents

(the one directly opposite, Tesco’s will probably be put out of business now) however the

purpose of my trip was that I wanted something relatively quick to cook for tea, but that

was particularly healthy. I walked past the first two aisles to find the next one was

completely covered in crisps, which I didn’t want either, but I noted that there were a large

variety and on my way past noticed that they sold microwavable popcorn, which me and my

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flatmates had wanted from Somerfield a couple of months ago and couldn’t find any. We

were too lazy to walk to Morrisons which would probably have sold the popcorn too.

I reach the vegetables aisle which is directly opposite the spices and pasta foods, I pick up

some asparagus because I remembered am article I had read in a health magazine my friend

had left that had said they had been titled as another ‘super food’ a cancer fighting vitamin

filled vegetable, plus they were reduced to 90p. At the same time I recalled an image of a

prawn noodle dish with asparagus, probably from one of the various Jamie Olivers we have

lying around the kitchen. I go in search of a noodles, I wanted rice noodles but I knew Tesco

express probably wouldn’t sell them so I just went straight for a packet of microwavable

ones that were low in fat, they were Tesco’s own, I didn’t want any added flavours that you

get with Pot noodle and plain noodles are all the same aren’t they?

I can see a couple of frozen refrigerators and decide to look for a bag of frozen prawns, so

that I have more on another occasion, whilst walking past some other fridges I noticed a

small fresh pot of prawns were £2.99, forget that! I had to pass the biscuits and cereals on

my way to the frozen bit, if I had more will power I would have probably walked straight

passed, but I spent 5minutes looking for biscuits, which in the end I didn’t get because id

scared myself with calorie content, stupid Laura and her weight watchers talk. 1 digestive

was 100 calories, not worth it.

I eventually found my way to the freezer part and found a reasonably sized bag of frozen

prawns for £1.99 probably stretch 4 prawn meals out of that, I noticed some frozen peas but

them remembered I had some already in the freezer at home. On my way to the till I walked

past concentrated juices and alcohol, I was going out to engine shed tomorrow night and

fancied a bottle of wine before I went out, I briefly looked over the shelves filled with

various reds and whites but most drinks were over £5 and I didn’t want to spend more than

that on something which I was only drinking to temporarily comatose myself.

I got to the checkout point and my stomach sank when I realised it was self service with 2 of

those self scanning machines (there were also 2 human cash points available but no one

was serving) even though there was only 3 people in front of me also waiting, the two

people both using the self scanners were at least over 50 and were taking a ridiculous

amount of time to scan some chicken legs and various other products. Another customer

who looked like a fellow student in the que tutted at the slow progress. Although I was

annoyed, I was slightly anxious as I knew I was equally as slow. I hated those machines and

always tried to avoid them.

When it was my turn to use the machine, it started having a heart attack because the

asparagus was reduced and it kept shouting for an assistant. There were now several

impatient people behind me, I waited about 2minutes for an assistant to show up (a bit too

long when all eyes are on you) the person beside me using her self-scanner was happily

humming along scanning her items easily. The assistant who appeared didn’t seem to have

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had much experience with these machines and had to call over another woman, I wasn’t

angry at him because I figured as the store hadn’t been open long he had probably only had

a few hours training and there were numerous things that could set these machines off.

Eventually the problem was solved and I quickly scanned my other items and left, on my out

I walked past several stands selling packs of Twix’s for half the original price, although I

could really do with chocolate right now, or that wine, I wasn’t going back to that stupid

machine, next time I’m going to Somerfield.

Reference list

1 Patterson, A, Hodgson, J, Shi, J, (2008) Chronicles of 'Customer Experience' : The Downfall of

Lewis’s Foretold, Journal of Marketin Management, Vol. 24, No. 1-2, pp. 29-452 Patterson, A,

Hodgson, J, Shi, J, (2008) Chronicles of 'Customer Experience' : The Downfall of Lewis’s Foretold, Journal of Marketing Management, Vol. 24, No. 1-2, pp. 29-45

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Consumer Analysis

Peter and Olson’s wheel of consumer analysis

Affect & Cognition- emotion and thinking

Consumer Behaviour- Physical actions of the consumer

Buyer behaviour and market research framework, consumer’s research and marketing strategy

Market Research

Problem definition and design-Consumers choice, cognition and affection

-decision making, product knowledge and involvement-consumer innovators, perception,

learning and memory, attitudes and behaviour

Sampling Frameworks

-Consumers and motivation categorizing people –personality, Lifestyle and motivation

theory

Quantitative/Qualitative research techniques, statistical tools and techniques

-consumers and their contexts-retail buying, atmosphere in store behaviour-crowding,

consumer participation and productivity, consumer satisfaction and loyalty, long term

relationships and networks

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Evaluation and analysis

-Consumers and society environmental context-impact of class, culture, peers, family,

technology

Top 10 cool brands

1. Iphone

2. Aston Martin

3. Apple

4. Ipod

5. Nintendo

6. YouTube

7. Blackberry

8. Google

9. BANG & OLUFSEN

10. Playstation

Research helps us understand consumers, find the reasons why they buy, what goes on in the

consumers mind before, during and after purchase, what influences their decision?

Research helps us identify criteria they use to make decisions and identify situations in which

consumers are more likely to purchase and use products/brands

What can we do to satisfy and even delight consumers with our brand so that they become loyal

customers?

Problem Identification Research

Going below the surface to identify the true underlying problem as often the problem is not readily

apparent or may arise in the future, for example

May be designed to: estimate market potential, market share of the brand or company image,

market characteristics, sales analysis short range forecasting, long range forecasting, uncovering

business trends

Used to access environment and diagnose problems

So once the problem or opportunity has been identified, the segmentation, product, pricing,

promotion and distribution can be addressed

For example Crunchy Nut Red

The challenge was to revive low cereal sales

Problem identification research included:

-interviews with decision makers within the company

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-interviews with industry experts

-analysis of secondary data

-Qualitative research and surveys with customers about their perceptions and preferences for

cereals

Problems identified:

-Current products were targeted at children

-Bagels and muffins were becoming more favoured breakfasts

- High prices were turning people to generic brands

-quick breakfast foods that required little or no preparation were becoming more popular

Defining the problem

Kellogg’s were not creative enough in introducing new products to meet the needs of adult

customers

Through product research Kellogg’s developed new flavours and through promotions research

Kellogg’s needed to implement optimal promo mix and creative advertising testing

The Outcome

- Increase in sales

- Increase in consumption of cereal at times other than breakfast

Purchase Decision in relation to the wheel of consumer analysis

My purchase decision was a still water with added fruit *Drink this water

(Owned by innocent-franchise partners with *this water)

Major drivers of Behaviour

- Thirst-wanted something refreshing, fairly healthy and not fizzy,

cold but didn’t just want water (decisions made before even reaching drinks refrigerator)

- When reaching the drinks available, looked for something which fitted my criteria and

wasn’t prepared to pay over £1 as I would have had to break into a £10 note which I would

of rather spent of clothes, make-up

- The cabinet displayed many drinks that were fizzy, few that were still, and that were in a

bottle, i did not want a can as I was shopping and didn’t want to have to finish drink quickly,

also wanted a fairly large drink but not too big, wanted to put it into shopping bag and carry

it

- *this water was on offer for 99p and fitted my description perfectly

- Contributing factors were that I recognised the brand, have previously bought this drink for

a higher price of something like £1.50 at train station services, wasn’t happy about it at the

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time, but still didn’t want to buy a fizzy drink however was not going to pay more than £1

this time.

- The packaging was very attractive, came across healthy-even if it wasn’t but it was as I had

checked nutritional information for percentage of water and fruit juice Vs sugar content

(another contributing factor) ingredients were in-fact water, lime juice and sweeteners.

Environmental factors

-Within Superdrug, very relaxed calm atmosphere, fait sound of music playing in the background,

Drinks display quite colourful, surrounded by pink coloured Superdrug promotions, not too ‘in your

face’ not a rushed decision, had plenty of time to browse at the different drinks on offer

Consumer affect and cognition

Thought process=thirsty, want a cold drink, in a bottle with unscrew-able lid, under the cost of £1,

healthy but with flavour, wanted a still drink not fizzy

The marketing strategy involved from *this water

(4ps) Price-99p Promotion- on offer normal RRP £1.20-£1.50

Place-drinks refrigerator, within Superdrug

Packaging-simple colours and pictures of rainclouds and sun, gives the idea of innocence, healthy,

the product was in a bottle, I didn’t want a can, although their wasn’t the choice of a can for this

particular product, other products such as Coca Cola offer their products in cans, screw tops in

small, medium and large bottles and multipacks. Marketers must take into account the type of

container the product comes in.

Product features are a massive part of the product strategy, for example, the new Ipod nano,

promotes the new applications to the nano which is video and large colour choice, apple would have

carried out a huge amount of research in order to find out that its customers wanted Ipods in a wide

range of colours and the advert depicts this. Therefore Colour is an important attribute of the

product. In order to measure the effectiveness of this, apple will be looking into which colours sell

and which don’t.

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Marketing Implications of the wheel of consumer analysis

The consumer process represents a reciprocal system. This means that affect & cognition,

environment or behaviour can be either a cause or change on each other. Viewing the consumer

process in this way creates 5 implications. First of all, any comprehensive analysis of consumers must

consider all three elements and the relationships between them. Only considering 2 of these

elements would be incomplete, underestimating the dynamic nature of the consumer buyer

behaviour process. Secondly, marketers simply don’t know which one of the elements consumers

think about first. Some people purchase products from overt behaviours, others because of pressure

from environmental factors, but the consumption process can occur because of feeling and emotion.

Regardless of the starting point, all three elements need to be considered.

Thirdly, the wheel of consumer analysis recognises that consumers can continuously change and

therefore marketers need to keep up to date with consumers, which requires costly and time

consuming, continuous research.

Because the wheel of consumer analysis takes into account more than just the single consumer, it

can be applied to target markets which make up an industry or entire society. The approach is useful

for all these types of marketing strategies.

Finally, analysing consumer research is essential in order to develop marketing strategies, consumer

research includes a variety of studies including such as test marketing, advertising pre-tests, sales

promo effects, analysis of sales and market share data, traffic and shopping patterns and surveys.

For instance Peter and Olson establish a logical sequence to create the marketing strategy.

4Firstly research and analyse what consumers think, feel and do relative to a brand compared to the

competitions offerings. In addition analyse the environment to understand what factors are

influencing consumers and what changes are occurring. Finally based on this research, a marketing

strategy can be developed, objectives can be set; specifying an appropriate target market and

marketing mix to influence it. Stimuli should be placed within the consumers environment which will

hopefully become part of the targets markets environment and ultimately influence their behaviour.

(P&O 26:2008)

4 Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (26:2008)

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Marketing implications for *this water

However consumer research and analysis should not end there, in the case of innocents *this water, they could try to increase their market share by placing their products In chilled vending machines, in cans, they could differentiate their product by selling it in a different kind of packaging to its competitors. Packaging designers Pearlfisher have been helping Innocent manage its phenomenal impact on the smoothie sector over the past few years.

Recent work has involved rebranding Innocent’s Juicy Water range. The relatively new brand – This Water, “focuses on the ubiquity and versatility of water, and features a hand-scribbled observation and image on each pack.” Its fresh and charming personality clearly references Innocent but also has the potential to become its own brand. 5

For example, several years ago, Nescafe looked into selling their coffee in vending machines in cans,

when a ‘reactor button’ was pushed and the can was opened it would cause a chemical reaction to

occur within the can and the can would heat up, however after consumer analysis showed that the

market was simply not ready for this product at the time, and

consumers weren’t prepared to pay the suggested price, the

product idea was dropped.

Marketing strategy should be a continuous process of

researching, analysing, developing and implanting as well as

continuously improving strategies.

Reference list

1 Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (26:2008) 2 Research on packaging;

Introduction on packaging design http://gdpackaging.wordpress.com/2010/03/01/introduction-to-

packaging-design-article/

5 Research on packaging; Introduction on packaging design

http://gdpackaging.wordpress.com/2010/03/01/introduction-to-packaging-design-article/

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Influences on Behaviour

Schemas & scripts

Schema- episodic and semantic

(Episodic- memory of events)

Semantic-understandings in the memory along with general knowledge make up a memory of facts

Scripts-networks of procedural knowledge

Semantic memory-theoretical knowledge independent of time and place e.g. an apple is a fruit

Episodic memory- factual knowledge of personal experience in a specific time and place e.g.

yesterday I bought a snickers bar from the spar

So types of knowledge and associations- Nikon cameras are expensive, a clothing store is up for sale,

the clothing store is having a sale

Procedural knowledge-‘I am not happy with the service-I will not leave a tip’

General and procedural knowledge is organized to form structures of knowledge in memory - when

combined, can affect overt behavior

• Cognitive systems create associative networks that organize and link many types of

knowledge together.

• Part of the knowledge structure may be activated on certain occasions

An associative network of knowledge or schema of Nike running shoes6

6 Consumer Behaviour and marketing strategy, P.J Peter and C.J Olson pg 56 (2008)

22

Graphic representation of eating in a fast food restaurant7

Types of Knowledge Structures-

Marketing Implications

• To understand consumers’ behavior, marketers need to know the product knowledge

consumers have acquired and stored in memory

• Marketers may need information on:

– Contents of consumers’ product schemas or shopping scripts

– Types of knowledge likely to be activated by particular marketing strategies

• Cognitive learning occurs when people interpret information in the environment and create

new knowledge or meaning

• This can occur in three ways:

– Direct personal use experience

– Vicarious product experiences

7 Consumer Behaviour and marketing strategy, P.J Peter and C.J Olson pg 57 (2008)

23

– Interpret product-related information

Three types of cognitive learning…

Accretion, tuning and restructuring

Marketers often:

a. Present simple informational claims about their products

b. Hope that consumers will accurately interpret the information and add this

knowledge to their knowledge structures

Marketers may:

c. Sometimes try to stimulate consumers to tune their knowledge structures

d. Rarely encourage consumers to restructure their knowledge

Recently purchased product-an associative network

Batiste (logo) Dry Shampoo

Cost

£1.99-£2.99-Superdrug/Boots

Or smaller size £1.49

Place

Superdrug-cheaper, closer

Boots-boots advantage card-

can earn points on card

Packaging

Smaller size-convienent

for Gym, handbag,

larger size lasts loner

Clourful-colours

represent smell-pink-

pineapple, yellow-

tropical, Blue-original-

no smell

New Product-

Brown packaging-

for darker

coloured hair

Pineapple works

best in my blonde

hair-smells nicest-

my preferred

product

Other products-

Boots own-cheaper by 30p not very

effective, makes hair powdery, not

aware of any other products

Use-

Refreshes hair in-between

washes , makes hair

voluminous-does not

promise this but works

well on my fine, thin hair,

can see it working

Makes me feel refreshed,

good about myself-

confident

24

Product use situation

Purchasing Batiste

Enter Superdrug Search shampoo isle look for Batiste (usually at bottom of the

shelf) choose from batiste product range (small or large can, choice of 5 scents) usually

buy pink, one small can for the gym and one large can for home may smell others if I

want a change, usually go for pink works the best go to counter to pay for product

look at display at front of counter, usually don’t buy anything just like to look pay for

product

Emotional marketing as new persuasion in global marketing;

emotional appeals in adverts

The Jaguar tried to reposition the brand launching its XF model with the advertising campaign using

semiotics. The advert which shows a young couple driving the car, whilst scenes of the couple

dancing flash on the screen, the song the advert plays to is ‘hush’ as the advert tries to make you

quiet and listen to the advert. It is a very seductive and sexual advert with an exciting fast pace. The

marketing strategy for this advert is affective, but what comes first? Emotion or thinking?

Reference list

1 Consumer Behaviour and marketing strategy, P.J Peter and C.J Olson pg 56 (2008)

2 Consumer Behaviour and

marketing strategy, P.J Peter and C.J Olson pg 57 (2008)

25

Product Knowledge and Involvement

Consumers have three types of product knowledge;

1. knowledge about attributes (a factor of an object) so characteristics of products

2. The positive consequences of using the products

3. The values the product helps satisfy or achieve

Bundle of Attributes

Consumers think about products and brands as bundles of attributes, they have different knowledge

of different attributes.

Concrete attributes-tangible physical characteristics of a product. E.g. the front seat leg room in a car

Abstract attributes-Intangible characteristics E.g. the stylishness or comfort of a car

Bundles of Benefits

Consequences-the outcomes that occur when the product is purchased, can be positive or negative

E.g. a facial cream might cause an allergic reaction or cost too much-perceived risks but it might also

illuminate skin

Amount of perceived risk can be influenced by; degree of unpleasantness of the negative

consequences or the likelihood that these negative consequences will occur .Consumers can be

divided through a process called benefit segmentation

Value Satisfaction

Peoples broad life goals (I want to be successful; I need security) values often involve the emotional

affect associated with such goals and needs.

Classifying values:

Instrumental values are preferred modes of conduct, ways of behaving that have positive value for a

person (having a fun time, acting independent, showing self-reliance)

Terminal values are preferred states of being or psychological states (happy, successful)

Means end Chains (MEC) Means End Chain theory describes the individual consumers associations between product

attributes, their consequences and the consumer’s personal values.

26

(P&O 2008:79)8 Exhibit 4.5 Examples of means end chains

Means End Chains are measured through one-on- one personal interview, involving 2 steps:

1. Researcher must identify product attributes most important to each consumer

2. A laddering interview designed to reveal how the consumer links product attributes to more

abstract consequences and values.

Marketing Implications

Provide a deeper understanding of consumers product knowledge

Gives insights into consumers purchase motivations

Identifies consumers product relationship

Means End Chain Twin 1, aged 18

Brand Attributes Functional Consequences

Psychosocial Consequences

Values

Xbox 360 Game range Better gaming experience

Feel satisfied in completing something challenging

Relaxed not stressed Respected

High Price Excellent performance

Feel respected by friends

Self-esteem

8 Consumer Behaviour and Marketing Strategy, 8

th edition, P.J Peter and C.J Olson (79:2008)

27

Means End Chain Twin 2, aged 18

Brand Attributes Functional Consequences

Psychosocial Consequences

Values

PS3 Game Range Limited edition games, better quality experience

Respected by other with expensive console

Self-esteem

Durability Excellent Performance for long time

Feel like good value for money

Satisfied

Interviewer: Why do you buy this particular type of games console?

Consumer: (Xbox 360) Much better game variety for the Xbox 360, especially Dead Rising (a game he

wanted which can only be played on the Xbox 360)

Interviewer: Why is it important to you to have this game and a wide variety to choose from?

Consumer: Dead Rising is the sequel to the first game, which came with the earlier Xbox console

(Xbox) I really enjoy the game and similar games (first person shooter games) which Xbox 360 has a

wide variety of

Interviewer: why do you play these particular types of games?

Consumer: The games are challenging and I can play against my mates online or at home

Interviewer: Why is it important that the games are challenging?

Consumer: Otherwise I’ll get bored and look for another console, plus I’m better than my friends and

brother at those games

Interviewer: Is it important to you that you are better than your friends and family?

Consumer: Yeah, it’s my thing, I’m really good at gaming, and they respect me

Interviewer: You said price was important, why is this?

Consumer: If the console was less than £150 I would think it was cheap and tacky, probably

something wrong with it

Interviewer: Cheap and tacky? So you’re bothered about the appearance of the console?

Consumer: erm yeah, more bothered about the quality of the console, because I’m paying a lot of

money for it, but with the Xbox 360, you can buy the console and choose from 3 upgrades, I chose

the middle one, I couldn’t afford the most expensive and the cheapest one doesn’t look as nice, the

middle option came in silver, it was a limited edition

28

Interviewer: So how important is appearance of the console?

Consumer: Yeah quite important, my friends all have the first edition; they were impressed with the

limited edition. Also I don’t want it to look cheap.

Interviewer: so your friends’ opinions are quite important to you

Consumer: Yeah

Consumer analysis Both consumers (who were twin brothers) are very big gamers, spent a lot of time and money on

games consoles. One brother much preferred the Xbox 360 and the other the PS3.

Both are major competitors in the gaming market.

Twin 1 said who prefers the Xbox 360 said he owned the older model previous to its upgrade and the

games he played on that console, were offering sequels on the newer models and therefore this was

a major factor for him to buy the game. The games also came with points and extras and other

rewards which appealed to him.

The other twin who favours the PS3 said although there were much more games for the Xbox 360,

the games that were released for the PS3 were more exclusive, the games took longer to create and

therefore were better quality than Xbox 360 games. The PS3 he said started off with a bad

reputation because of these lack of products but this twin researched about the products, Sony (who

owns PS3) have a ten year plan of upgrades for the PS3 so he wouldn’t have to buy another console

for almost a decade, and there will be plenty of upgrades.

He also said that he prefers Sony to Microsoft products, likes Sony’s previous products such as the

PS1 & PS2 and PSP. He would always buy a Sony product over a Microsoft product if he had the

choice, when asked why he had to think for a while and simply said he preferred the brand and has

always had good quality products from Sony.

MECCAS Model (Means-End Conceptualization of the Components of Advertising Strategy Model)

Components of one or more of the identified means-end chains derived from a laddering interview

are utilized in the development of an ad

1. The product feature identified by the consumer becomes part of the ‘message elements’ of the ad or brand attributes that are depicted in the ad.

2. The benefit associated with that feature by the consumer becomes the ‘consumer benefit’ or the major positive consequence of using the brand, as depicted in the ad.

3. The valued end state identified by the consumer becomes the ‘driving force’ of the ad or the end goal that serves as a motivation for purchase.

4. The way in which the valued end state is associated with. Or linked to, the identified brand attributes is called the ‘leverage point’.

5. The type of advertisement employed to communicate all of these points is called the ‘executional framework’.

29

Xbox 360 example

Part of the MECCAS model would be:

Message element: join the games experience previous xbox message ‘jump in’

Consumer Benefit: enjoyment, relaxation, challenge, socialising, new

Driving force: social approval, enjoyment, game with friends

Leverage point: In one particular Xbox advert (2006) there are a group of young people (all mixed

ethical backgrounds and sex) playing with a large skipping rope, people circle around the skipping

rope while different people jump in, some two at a time, one person with a bike, one person back

flips in others simply jump, a fairly hip hop tune is being played in the background and everyone is

having fun and enjoying themselves. The advert is quite enjoyable to watch and at the end of the

advert the line ‘jump in’ appears then disappears to show the words ‘Xbox 360’

Executional framework: comparative advertisement, the advert, clearly aimed at young people,

including that of our interviewee, shows different people with different abilities jumping into the

skipping rope, much like gaming which can be played online with anyone in the world. Everyone is

different, some are better than others; some seek more of a challenge than others. In the advert

when someone does something really impressive in the skipping rope the audience clap and cheer,

recognising when someone is good, hopefully appealing to gamers.

Model-based development and testing of advertising messages: A

comparative study of two campaign proposals; The MECCAS model

and the conventional approach 9

Aim of both approaches is to increase people consumption among young Danes aged 18-35

One of the proposals is the result of an inductive creative approach and the other through MECCA.

Through a means End Chain and laddering interviews.

Advertising practitioners often discard theoretical models they believe message development is a

much more ‘magical process’ beyond analysis and academic interference. Therefore theory-based

data is often neglected by advertising agencies.

9 BechLarsen, T., (2001) ‘Model Based Development and Testing of Advertising Messages: A

Comparative Study of Two Campaign Proposals Based on the Meccas Model and a Conventional

Approach’, International Journal of Advertising Vol 20 No 4 accessed through business source

permier, e-library accessed on 20/10/09

30

Other models such as (Fishbine & Ajzen 1975)- Multi-Attribute Model and Affective Reaction models

(Holbrook & Baltra 1987) are affective and cognitive aspects of information processing as well as the

ELM (Elaboration Likelihood Model (Petty & Cacioppo 1986)

Petty & Cacioppo 1986 and their ELM explains 2 routes to persuasion

1. Central Route (focused on brand/product information)

2. Peripheral route (message form, tone, style)

P&C propose that the central route leads to stronger and more persistent attitudes than the

peripheral route.

These models tend to neglect the fact that advertising can create affective and cognitive responses

simultaneously.

MECCA is based on Means End Chain theory, which describes the individual consumers associations

between product attributes, there consequences and the consumer’s personal values.

Attributes and consequences are primarily cognitive where as affective processes are involved when

the associations between consequences and personal values are created.

MECCAS model recommends that an advertising message must:

Be based on message-relevant knowledge (cognitive)

Enforce a full MEC that contains product attributes and consequences and personal values.

Relate the MEC to the object/product/brand/person

Laddering Interviews are where respondents are probed for more abstract meanings and

implications (consequences & values) of attributes by a sequence of ‘why’ questions.

Presented by hierarchical value maps which have represented the most typical MEC structures of the

target group with regard to the object/product/brand.

Using MEC data together with the MECCA guidelines can overcome the dilemma between creative’s

and planners who often ‘need to keep the creative’s on track’ (Burnett & Moriarty 1997)

Due to recent focus and attention of advertising effectiveness multiple measures and model based

testing, which have been introduced as standard services by some of the larger research agencies.

Elam model enables assign the degree to which an advertising message is centrally or peripherally

processed.

Group 1 the MECCAS group

Introduced to MEC & MECCA principles

The group was given hierarchical value map constructed from 50 laddering interview results about

the consumption of apples. Groups where then asked to create a message strategy based on the

results using MECCAS guidelines.

31

The group came up with a play on words between 2sources of energy-apples and nuclear power

Kerne is the homogenous meaning; nuclear and seed pit

32

Group 2 The conventional Group

To create a message that could sell more apples to young people using an inductive approach.

Consisted of 2 focus groups of the target segment, following the focus groups was a brief discussion

of the results.

The young people regarded apples as a tasty snack which was wholesome, easy to bring along but

rather old fashioned, the phrase ‘an apple a day keeps the doctor away’ came up amounts the

group.

The second group established the idea that having an apple could cure hangovers, the story bored

they came up with displayed a humours ad of a man falling from a tree, with various information on

apples nutritional benefit.

Interviews of each group leader took place after the focus groups and MEC

Conclusion

The leader of the MECCAs group was very positive about the experience with the MECCAs

guidelines. He stressed that the method kept the team focused on the importance of linking the

message to the product in the targets minds.

Although the leader of this group appreciated the relevant strategy alternatives he felt the laddering

interviews and the hierarchical value map was insufficient. He suggested the laddering interviews be

supplemented with other kinds of consumer studies and contextual information. E.g. focus group

interviews.

The conventional approach leader, although the group did contain a good description of the target

group, there was little strategic content which caused confusion and ‘lack of precision’

33

Comments were made as t whether teenagers would really believe that apples could cure

hangovers.

Summary of the MECCAs guidelines

Could the MECCAs procedure for advertising improve advertising efficiency and effectiveness?

From the interviews, client and agency confirmed that the MECCAs model did improve goal

persistency in the creative process

Common ground for communication between Client and Agent

Led to stronger product-value associations and a higher level of central processing.

The results of the study generally supports the notion that a model based approach to message

development such as MECCAs can enhance agency-client communication as well as target group

effectiveness.

Limitations

The pre-test situation is very different from an authentic message reception and study needs to be

replicated on a broader scale.

Reference list

1 Consumer Behaviour and Marketing Strategy, 8th edition, P.J Peter and C.J Olson (79:2008) 2

BechLarsen, T., (2001) ‘Model Based Development and Testing of Advertising Messages: A

Comparative Study of Two Campaign Proposals Based on the Meccas Model and a Conventional

Approach’, International Journal of Advertising Vol 20 No 4 accessed through business source

permier, e-library accessed on 20/10/09

34

Product Knowledge and Involvement Continued

Involvement with products, brands, and activities/behaviours Intrinsic and situational (sources of) self-relevance

Involvement and brand loyalty

Digging for deeper consumer understanding

The means-end or laddering approach allows marketers to ‘dig’ below consumers’ surface

knowledge about product attributes and consequences to understand their psychosocial

consequences and value satisfactions; however for many marketing problems this is not deep

enough.

10ZMET (the Zaltman Metaphor Elicitation Technique) an innovative qualitative interview method

was developed by professor Gerald Zaltman to obtain deep consumer understanding.

ZMET elicits metaphors from consumers that reveal their deep meanings (both cognitive & affective)

Consumers basically find pictures that express their thoughts and feeling about a topic, such as ‘your

experience of heartburn and indigestion’ or ‘the role of peanut butter in your life’

During the interview, the trained interviewer spends about 2 hours with each consumer exploring

the meaning of his/hers pictures. These are several of the steps followed In ZMET:

The pre-interview instruction-several days previous to the interview, consumers are asked to

select 6-8 pictures from any source, e.g. magazines that express how they feel about a topic

or issue. For example consumers might be asked to express their thoughts about a brand

such as Pepsi-cola, or the idea such as ‘the meaning of Donald duck’

Storytelling-Consumers ‘tell stories’ about each picture they have chosen, explaining the

cognitive and affective meanings of that visual metaphor.

Expand the frame-the interviewer then asks the consumer to imagine a frame around their

picture that expands to reveal a larger picture, the interviewer then asks what kinds of

people or things that might come into view that would help me understand your thoughts

and feelings about Donald duck.

Sensory Images-Consumers are asked to describe a scent, sound, taste and touch that would

express their thoughts and feelings about the topic

Consumers are asked to create a short movie creating a product or brand as a character in

the story and treat it as though it were alive (metaphorically)

10 Consumer Behaviour and Marketing Strategy, 8th edition, P.J Peter and C.J Olson (83:2008)

35

Digital Image-The final step involves consumers creating a collage of the most meaningful

pictures (metaphors) they brought to the interview (this can be done on a computer by

scanning the images) when done the consumer narrates a detailed description of the image

and its meaning.

Often ZMET is able to uncover knowledge that consumers do not know they know.

Marketing Implications

Can stimulate managers imaginations and guide their strategic thinking, for example using the

‘dentist journey’ as one of the issues which revealed that for some consumers the waiting room

revealed feelings of anxiety and fear therefore one implication of this study was to redesign waiting

rooms. Playing soft music in the waiting room, which could be painted in soothing colours, may

reduce anxiety.

Involvement Involvement refers to consumers perceptions of importance for an object, event or activity.

Involvement is a motivational state that energises and directs consumers’ cognitive and affective

processes and behaviours as they make decisions.

Consumers do not continually experience feelings of involvement; people feel involved with

products on certain occasions when the means end knowledge about the importance/personal

relevance of these products is activated.

Factors influencing involvement

Intrinsic self-relevance is based on consumers’ means-end knowledge stored in memory. Consumers

acquire this knowledge through their past experiences with a product. When observing others using

the product, consumers learn about certain product attributes.

Researchers have identified four market segments with different levels of intrinsic self-relevance for

a product category.

Brand loyalists, Routine brand buyers, information seekers and brand switchers.

Linking involvement with product knowledge and decision making process…

• Limited decision making

– Amount of effort ranges from low to moderate

– Involves less search for information than extensive decision making

– Choices typically carried out fairly quickly

• Routinized choice behavior

36

– Requires very little cognitive capacity or conscious control

High and Low product Involvement

• Low involvement, low knowledge

• Low involvement, high knowledge

• High involvement, high knowledge

• High involvement, low knowledge

37

Laddering Interviews

Laddering; consumers associations between specific attributes and general consequences are

uncovered. Consumers are helped to climb up a ‘ladder’ of abstraction that connects functional

product attributes with desired end-states. (204:2010) 11

Laddering interviews

Product Involvement (high involvement product)

Imagine you were going to buy a camera. What characteristics would you consider in selecting a

brand of camera to buy for yourself?

Quality, trust, price, warranty, durability, features

What are the two (or three) most important characteristics you would consider?

Quality and price

Why is quality important to you?

Because I want to know the camera is going to be good, give me decent pictures without any hassle

of blurriness or red eye or any flash problems, im handing my camera around for others to take

pictures a lot, like friends and stuff on nights out and I want people to just take the photo and then

hand me back the camera without having to stand there for half an hour until we get a good picture.

Especially with family. I would defietly buy a Nikon camera if I had the money

So you would say you want the camera to be easy to use and convienient?

Yeah but still with good quality pictures

Why is quality so important?

Because I will be sing the camera lot for my course at uni, and I want the best I can get out of the

pictures, especially if its going to improve my mark!

You said you would definitely buy a Nikon, What does Nikon offer you?

Trust, my dad has a Nikon camera and it’s excellent, he’s had it more than three years and has never

had a problem with it, I also think Nikon is more of a professional brand.

Why do think Nikon is a more professional brand?

Erm… I guess because of my course and I know a lot of professional photographers use Nikon, and

Nikon always seems to get recommended to me.

You said the other most important characteristic was price, why?

11

(204:2010) Consumer Behaviour, A European Perspective, 4th

edition Solomon et al

38

Because I don’t have a lot of money to play with, not enough to chuck around on an expensive

camera that turns out to be rubbish, but I wouldn’t mind paying a lot for a quality and trustworthy

camera like Nikon.

Why?

Because, even though they are expensive cameras I know I would get a really camera and plus they

would probably offer me a deal or at least throw in a camera bag or a lens or something

How do you know that?

Because people I know, including my dad who have bought Nikons have been offered free gear and

cheaper stuff when they have spent a lot of money on a camera.

Would this be a big incentive for you, free stuff?

Yea definitely, more for your money

It seems like you know a lot of people with Nikon cameras, do you think that this has influenced you

to buy a Nikon rather than any other brand?

Umm, well I know your getting at the fact that I’m probably influenced by my peers and that but I

know friends with Cannons and other brands, it’s just that I’ve messed around with both and Nikon

seems the best. Plus I just like the way it looks better than a cannon.

Is the cameras appearance important to you?

I guess it is if that’s the only difference between the two cameras but its certainly not a massive

factor I consider when buying a camera.

Thank-you for your answers

low involvement product.

Imagine you were going to buy some chocolate. What characteristics would you consider in selecting

a brand of chocolate to buy for yourself?

Taste, price, but mostly price

Ok so these are the two most important factors to you, so why is price so important, chocolates not

that expensive?

Well I like Somerfield’s own brand of chocolate, it’s cheap and it tastes nice

But a bar of let’s say dairy milk, doesn’t cost that much more, so why don’t you spend that little bit

more when you suspect it might taste better?

Because I’m a tight b****d and I think dairy milks to milky

Ok so there must be another brand of chocolate out there, that you’ve tried and wouldn’t mind

paying that bit extra for?

39

Well I do like white chocolate but you just can’t get in big enough bars, not for good value for money

anyway.

Ok so you also think taste is important, why?

Well no one wants to put something that tastes bad in their mouth, never mind pay money for it.

Ok well you said you prefer white chocolate, why?

Because it’s really sweet and full of sugar and reminds me of my childhood

Really? That’s not something I expected you to say, you know what I’m going to ask next don’t you?

Yeah, why? Well I guess it’s nice having those home comforts and especially when I’m at uni, you

know? if I’m having a crap day it reminds me of home I guess

You say it reminds you o fhome, is this because your parents used to buy you white chocolate or

something?

I don’t really remember, I guess it makes me feel youthful

Youthful? But your only 20?

Aww I dunno I just like white chocolate

Ok I’ll stop there, thank-you for your time, it was quite fun!

Limitations The laddering technique may generate invalid answers. Not only can consumers end up being too

pushed by too strong an emphasis on the sequence in the means-end chain. Consumers may find it

difficult to really get to terms with ‘why?’ and may often find questions frustrating. Consumers

should be allowed to jump back and forth, which requires more skill on the interviewer but

represents a much more accurate thought process. It has been argued that in researching the

demand for status goods using laddering techniques can be seen as problematic since motivations

for prominent consumption are difficult for consumers to express. 12

Environmental effects

Environmental effects can disrupt the problem-solving process and therefore affect he consumer

decision making process.

There are 4 types of disruptive events or interrupts:

– Unexpected information-that is inconsistent with already established knowledge

– Prominent environmental stimuli-in store advertisements of shelf tags may disrupt

an ongoing problem solving situation

12

(206:2010) Consumer Behaviour, A European Perspective, 4th

edition Solomon et al

40

– Affective states-such as moods and physiological states-hungry, sleepy, thirsty

– Conflicts-approach-approach conflict e.g. Susan can’t decide between buying either

a digital camera or a new stereo because each product can satisfy a desirable goal.

Avoidance-avoidance conflict where consumers must choose between two

alternatives with different negative consequences, for instance Sam is trying to

decide whether to buy a new bike, he is embarrassed by his old one but doesn’t

want to spend the money on a new one. Finally approach-avoidance conflicts where

consumers consider both positive and negative consequences, for instance, Paul is

trying to decide about a new PM3 player that is on sale for a low price but he is

worried the quality may be low.

Implications for marketing strategy

Routinised choice behaviour-consumer choice that is routinised; where the consumer does not

search for any new information because they think they know all they need to know about a product

category. Marketers of established brands must maintain their brands in the evoked sets of a

significant segment of consumers. However marketers of new brands or brands with little market

share must somehow interrupt consumers automatic problem-solving process, they may develop

strategies involving prominent environmental stimuli such as large visual displays within

supermarkets or bogoff promotions, the goal for marketers is to get consumers to consciously

consider new brands when making the decision making process.

Limited Decision making- Most consumers already have a lot of information about products from

previous experiences. The marketing strategy here is to increase TOMA topic mind awareness

through advertising to help get a brand into the evoked set of choice alternatives. Marketers may

try to design a store layout that stimulates impulsive purchases.

Extensive Decision making-Where consumers knowledge is low consumers need information about

everything. Motivated consumers may seek information from many sources. Interrupting problem-

solving decisions with promotions is easier when consumers are searching for information,

marketers my take advantage of consumers receptivity by offering free samples or coupons.

The means-end basis for involvement

• A consumers’ level of involvement or self-relevance depends on two aspects of the means-

end chains that are activated

– Importance of self-relevance of the ends

– Strength of connections between the product knowledge level and the self-

knowledge level

Graphic representation of means-end chain for involvement

41

Factors influencing involvement:

• Person’s level of involvement influenced by two sources of self-relevance

– Intrinsic

– Situational

• What marketers need to understand

– Focus of consumers’ involvement

– Sources that create it

SO…

Campaign ads intended to increase consumers’ involvement with the brand…

Simple says… ‘kind to skin’ there most recent ad campaign promises no colours or perfumes only

ingredients ‘skin wants’ appealing in particular to people with sensitive skin. Whilst the woman in

42

the advert wearing just a shirt and belt, with naturally clear looking skin and bright blue eyes and

blonde hair walks through a very green grassy field, the sun is brightly shining, there are several

close ups of her skin, she uses the product on her face in a very gentle way. All the details of the

advert were planned to come across gentle, delicate, healthy and natural, matching with the product

they are trying to sell. Simple is trying to involve consumers with its ‘natural, healthy’ moisturiser.

‘we believe in goodness’ the marketing strategy was aimed to make consumers aware that simple

moisturiser is good for your skin.

GHD….

GHD understand the importance of hair to woman, by placing themselves in most professional hair

salons, spotting itself as a specialised styling tool used by professional stylists. The brand fits in with

the fashion orientated industry that is hairdressing. GHD have also set up a special GHD connoisseur

in the U.K. where creative ideas, product knowledge and GHD styling techniques of the country’s

best hair dressers can be shared with GHD salon hair dressers. This helps the hair dresser

understand the needs of their clients better.

Reference list

1 Consumer Behaviour and Marketing Strategy, 8th edition, P.J Peter and C.J Olson (83:2008) 2

(204:2010) Consumer Behaviour, A European Perspective, 4th edition Solomon et al 3 (206:2010)

Consumer Behaviour, A European Perspective, 4th edition Solomon et al

43

Consumers Cognitive processes in decision making

Important aspects of the cognitive system that influence how consumers interpret information

Interpretation=Knowledge information from the environment = schema/ script

knowledge structures

The activated knowledge influences which information consumers tune into to and how they

comprehend its meaning

Cognitive systems have limited capacity- consumers can only consciously tune into small

amounts of information at a time

Much attention and comprehension processing occurs quickly and automatically with little

or no conscious awareness.

44

Exposure to information

2 types of exposure; purpose/Intentional exposure and random/accidental exposure

Consumers are exposed to some marketing information because they are searching for marketing

information (goal-directed search behaviour)

Research shows that consumer search behaviour and levels of intentional exposure are relatively

low; most exposures are random or occur through ‘accidental’ contact with marketing information.

For in instance when ‘browsing’ either in-store or online consumers will come across promotions,

new products or new retail outlets.

Some retailers design their store environments to encourage browsing and maximise the amount of

time consumers spend in the store. Rodney Fitch (research design consultant)

Fitch describes supermarkets as often places of confusion ‘a promotional fog which creates a mist of

miss-information’ (super markets super profits, ITV, viewed 30/03/10 7.30pm) 13

The recession, which officially began in April 2008, has claimed thousands of businesses including many high street names. However the supermarkets sector is excelling. According to Rodney Fitch this is because supermarkets have always focused completely on the customer, they are quicker to react to changes than almost any other sector because they monitor the customer spending so closely,’ on a week to week basis they can detect what the British public is thinking’

“In the last two years, the supermarkets have been working extremely hard to make sure consumers, worried about money, turn to them.”

Consumers eating habits have changed in the last year, eating more at home and a little less in pubs and restaurants. This coincided with the highest period of food inflation at almost 10% so people didn’t spend too much more on food in 2008 however in 2009 consumers people who were still working realised they were actually better off because of very low interest rates and petrol prices. Spending in supermarkets increased as a result however Joanna Blythman, journalist and supermarket critic believes “believes that the recession has presented supermarkets with an opportunity they have grabbed with both hands. When we were searching for ways to save money, the supermarkets were among the first to present them as the place we could save money.”

Selective Exposure to information

Consumers do not intentionally seek out exposure, for instance many people often throw away junk mail opened. People go to the toilet or make a cup of tea when adverts come on, with advancing technology, people with sky plus who have recorded TV programmes can fast-forward adverts, people streaming or downloading material from the internet miss these adverts, many consumers delete emails without reading them but from reading the subject title. People are also becoming much more advertising savvy they are aware of the influence advertisers and marketers are trying to create, therefore marketers must develop new, interactive and appealing ways of attracting their customers attention, as well as building the relationship with their customers.

13 http://www.itv.com/news/tonight/episodes/supermarketssuperprofits/)

45

Marketing Implications

• Strategies to enhance consumers exposure to information and products: – Facilitate intentional exposure – Maximize accidental exposure – Create appropriate level of exposure – Maintain exposure

• Marketers should place their information in environmental settings to maximize accidental exposure. A long-standing strategy to increase accidental exposure to a brand is placing adverts within popular TV shows and in films

Recently some of the UKs biggest advertisers have been demanding clear guidelines on product

placement within TV shows, with the possible introduction of paid-for product placement. Carl Pring,

Sonys head of brand advertising is sceptical about the benefits of product placements in third-party

programming, although Sony products are already highly visible in many Sony picture film. Pring

states “With general entertainment such as Coronation Street and The X Factor, it is much harder to

gauge the return on investment, because we just don't know what visibility the products will

receive”

While some brands, including Asda, Coca-Cola, have welcomed the development

“We welcome innovation in the industry and await to hear any news from government in this area.

Product placement certainly presents marketers with opportunities to reach audiences in different

ways, as we've seen in other countries. We would need to ensure that what we do is relevant and

responsible, that we're adding value and upholding the quality of programming. Ultimately we would

consider it, as we do with all our marketing activity, if it works for our brands and our consumers.”

Cathryn Sleight, marketing director, Coca-Cola Great Britain and Ireland 14

14 Consumer choice 9- http://www.marketingmagazine.co.uk/news/938268/Brands-seek-clarity-TV-product-

placement-U-turn product placement (near corrie pic) By Fiona Ramsay, marketingmagazine.co.uk, 15 September 2009, 08:35am accessed [7/10/2009]

46

Attention Processes-cognitive processes

Once consumers have been exposed to marketing information the interpretation and

comprehension process begins. Attending to certain information involves selection. Selective

attention is highly influence by the consumers’ goals that are activated I the situation. (P&O,

109:200?) To attend to stimuli the consumer must be consciously aware of it. Consumers must be

fairly alert and aroused to consciously attend to something. Their level of alertness affects how

much of the information they process. For example if the consumer is in a noisy crowded store, the

consumer is tired and frustrated, their arousal levels are low and therefore attention and

comprehension suffer.

Consumers’ attention may vary from a highly automatic, unconscious level (preconscious attention)

where the consumer uses little or no cognitive capacity to a controlled more focused attention (focal

attention) where the consumer uses activated knowledge from their long term memory.

Involvement

Involvement is a motivational state that guides the selection of stimuli for focal attention and

comprehension. The level of involvement a consumer feels is determined by the means-end chains

activated from memory.

Comprehension

The interpretation processes where consumers make sense of their own behaviours and relevant

parts of their environment. When consumers focus their attention on specific stimuli in the

environment salient knowledge structures (schemas & scripts) are activated from long term

memory. So new information in the consumers environment is interpreted through their previous

‘old’ knowledge activated from memory, the newly formed meanings are incorporated into existing

knowledge structures in memory. If these knowledge structures are activated in the future they will

influence the interpretation of the new information and the comprehension process continues.

Marketers need to understand consumer comprehension processes so they can design effective

marketing strategies that the consumer will interpret appropriately. This means marketers need to

consider their target consumers and their environment in which they are exposed to the

information.

Reference list

1 http://www.itv.com/news/tonight/episodes/supermarketssuperprofits/) 2 Consumer choice

9- http://www.marketingmagazine.co.uk/news/938268/Brands-seek-clarity-TV-product-placement-U-turn product placement (near corrie pic) By Fiona Ramsay, marketingmagazine.co.uk, 15 September 2009, 08:35am accessed [7/10/2009]

47

Attitudes & Intentions

What is an attitude? Olson…

“A person’s overall evaluation of a concept” 15

Evaluations are affective responses –usually relatively low levels of intensity and arousal, created by

both affective and cognitive systems.

An overall evaluation is made when a consumer combines knowledge, meanings or beliefs about a

concept and determines whether it is favourable or unfavourable.

Whether the attitude will affect the interpretation process will depend on its accessibility in the

memory or probability of activation. There are many factors which can influence the accessibility of

attitudes. Influences: salience or importance, frequency of previous activation, strength of

association between a concept and its attitude.

We know it’s about feeling but how do we activate this? Attitudes can be measured by asking consumers to evaluate the concept of interest.

Feeling the bond between mother and child

15

Consumer Behaviour and Marketing Strategy, 8th

edition, P.J Peter and C.J Olson (2008:130)

48

Marketers can use measures of consumers attitudes to indicate the success of marketing strategies

by attitude tracking studies.

So for the relationship between salient beliefs of Johnson’s baby lotion and attitude toward the

object. Beliefs might be that Johnsons is good for my babies skin, undergoes rigorous clinical testing,

locks in 10 times more moisture, therefore mine and my babies skin will be more healthier and

healthy looking. Salient beliefs create a person’s attitude toward that object and will be activated in

a situation and become salient determents of Ao

Attitudes towards what?

-Various physical and social objects

-Intangible objects

-Behaviours or actions

BMV realised a long time ago that it’s about what makes people feel.

The brand must identify what is important to the customer and incorporate this into the advertising

campaign and the make-up of the product.

Brand equity

Involves a strong, positive brand attitude

Based on favourable meanings and beliefs

Accessible in memory

Creates a strong, favourable consumer brand relationship

Can be built or borrowed.

Salient beliefs-the important ones! The closes to the reflection of the brand.

Activated beliefs which create a personal attitude toward that object.

Many factors influence which beliefs about an object will be activated in a situation and thus

become salient determinants of Ao

Salient beliefs vary over time or situations for some products

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Fishbines multi attribute model, the most influential model in marketing

• Focus on consumers’ beliefs about multiple product or brand attributes

The key proposition is Fishbines theory is that the evaluations of salient beliefs cause overall

attitude. – People tend to like objects that are associated with ‘good’ characteristics and dislike

objects they believe to have ‘bad’ attributes. In the model, Overall attitude toward an object is a

function of two factors: the strengths of the salient beliefs and the evaluations of those beliefs. The

model does not claim that customers add up products belief strength and evaluation when forming

attitudes but he model is simply used to predict the attitude produced by the integration process,

the multi attribute model is a useful tool in marketing for investigating attitude formation and

predicting attitudes.

Marketing implications

Understanding customers, Diagnosis of marketing strategy, understanding situational influences

(situations in which the product is used)

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Research revealed boots came out on top when consumers were asked about the most trusting

brand. Researchers also revealed that colour is very important, adding a new salient belief about

the attitude toward the object.

Attitude change strategies

A marketer has 4 possible attitude-change strategies:

• Adding a new salient belief about the attitude object

• Changing the strength of already salient beliefs

• Changing the evaluative aspect of an existing, strongly held belief

• Making an existing favorable belief more salient

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Adding a new salient belief…Cheryl Cole, L’Oreal Elvive full restore

Cheryl: “My hair feels stronger, full of life, replenished with a healthy shine. It's got its mojo back.”

‘Marketers have been using celebrities in commercials, print campaigns and promotions for years, because, done properly, it works.’16

The general belief is that advertising messages delivered by celebrities provide a higher degree of appeal, attention and, possibly, message recall than those delivered by non-celebrities.

Marketers also claim celebrities affect the credibility of claims made, increase the memorability of the message and create a positive halo effect that can be generalised to the brand.

Crunchy Nut17

A physical change in the product, the word crunchy is now an attribute added to many foods,

e.g. crunchy nut Kellogg‟s, crunchy cookie crisps and nestle white crunch.

People in general have positive feelings towards the words „crunchy and crispy‟ which

seemed to be linked to feelings of freshness, fun and stress relief.

“I don‟t know if it is the word or what but crunchy foods are satisfying”

In crunchy nut advert man make crunching noises whilst eating cereal, which are made a lot

louder in the advert.

16

Brandrepublic) http://www.brandrepublic.com/News/950142/LOrEal-cashes-Cole-factor/ 17

Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (143:2008)

52

Theory of reasoned action

Fishbine realised that peoples attitude toward an object may not be strongly related to their specific

behaviours but rather whether the consumer will engage in a particular behaviour is their intention

to engage in that behaviour. Fishbine extended his multi attribute model to relate consumers’

beliefs and attitudes to their behavioural intentions. This model, theory of reasoned action, assumes

that consumers consciously consider the consequences of alternative behaviors and choose the one

that leads to the most desirable consequence.

So does the consumer think ‘if I buy this product, then A or B will happen to me.

For example

53

Semiotics-a form of communication through signs and symbols and often produces underlying

meaning.

Semiotics is used the CoCo Channel campaign. The advert and billboard picture above shows Keria

Knightly, a young popular actress amongst older but more specifically a younger generation late

teens to late twenties. Joss Stone’s track ‘love’ played throughout the advert, particular points of the

advert have matched particular lines in the track. ‘L...is for the way you look at me’ as she looks into

the eye of the man later in the advert and teases him. Keria knightly first enters building coming

down the stairs, through the window, half dressed in a man’s shirt and bowler hat which she throws

off as she put on a very vibrant red dress, Red signifies love, passion danger and confidence. She

puts on a anklet, associated with gypsy, often a lady who ‘gets about town’ later she holds the

perfume in her hand behind her back teasing the good looking man, throughout the advert keria is

laughing, free and mischievous.

Marketers aim to achieve these almost subconscious messages in order to unlock attitudes and

beliefs about the CoCo Channel brand.

• Factors that can weaken the relationship between measured behavioral intentions and the

observed behaviors of interest

– Intervening time

– Different levels of specificity

– Unforeseen environmental event

– Unforeseen situational context

• Despite less-than-perfect accuracy, measures of purchase intentions are often the best way

to predict future purchase behaviors

• Certain behaviors just cannot be accurately predicted from beliefs, attitudes, and intentions

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Problems in measuring behavioural intentions

For example, buying a car

So a new car will:

Will give me a mode of transportation

Will put me in financial difficulty

Will lead to high upkeep costs

Will cost more now than later

Will lead to high insurance rates

Other people will respect me if I buy this particular brand of car.

Certain factors can weaken the relationship between measured behavioural intentions and the

actual behaviour because of intervening time.

The consumer may intend to buy the car but for some reason, don’t get round to it. This may be

because of:

Unforeseen environment event

Unforeseen situational context

Degree of voluntary control

Stability of intentions

New information

Generally time is the major factor which reduces consumers intentions. Like other cognitive factors

intentions change over time, the longer the intervening period the more potential exposure of

competitor marketing strategies which can change or alter the consumers original purchase

intentions.

Multi-attribute model of attitude measurement

The types of information we collect when assessing consumer attitudes through the use of the multi-

attribute model are fairly standard. There are many different ways, however, in which to gather the

information. The following is an example of how researchers might use specific question s to collect

information regarding attitudes toward three brands of pizzas.

We are interested in understanding the importance and desirability of different features of home

delivered pizzas. Please divide 10 points among the following features to reflect their relative

importance to you in making a purchase decision:

Price ____5_______

Quality of Ingredients ____4_______

Promptness of delivery ____1_______

10 Points

55

Please place an X on each of the following scales to reflect your beliefs regarding how three brands

of pizza delivery’s rate on these features:

1. I believe Dominos pizzas are priced reasonably.

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

2. I believe pizza huts pizzas are priced reasonably.

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

3. I believe Pizza Express pizzas are priced reasonably.

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

4. I believe Dominos pizza uses quality ingredients in their pizzas

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

5. I believe the Pizza Huts uses quality ingredients in their pizzas

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

6. I believe the Pizza Express uses quality ingredients in their pizzas

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

7. I believe Dominos Pizza delivery service is very reliable

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

8. I believe Pizza Huts delivery service is very reliable

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

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9. I believe Pizza Express delivery service is very reliable

Strongly Disagree X Strongly Agree

1 2 3 4 5 6 7

Thank-you

Evaluation

Domino’s

Reasonably priced?

Our participant scored domino’s 3, which suggests they do not think

Dominos is reasonably price.

Quality ingredients?

The participant scored 4, in the middle of the scale, this could suggest they haven’t had much

experience with Domino’s or they may fairly agree neither fairly disagree

Reliable?

The participant scored a 6 for this question; they clearly agree that domino’s

are a reliable delivery service.

Pizza Hut

Reasonably price?

The participant scored a 2; lower than Domino’s suggesting that this person

believes pizza hut is fairly expensive

Quality Ingredients?

4, again the same as dominos, does this person consider dominos and pizza hut to have similar

attributes?

Reliable?

The participant scored a 3, either they have had a bad experience at delivery r they are not very

aware of pizza hut’s delivery service, this could be the case as Pizza Hut are more popular as

restaurants, where as Domino’s specialise at their delivery experience.

Pizza Express

Reasonably Priced?

Pizza Express was scored a 3 for this question, suggesting they do not believe

pizza express is reasonably priced.

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Quality Ingredients?

The participant scored this question a 6, the highest of all three brands, this suggests this person has

strong cognitive processes when it comes to pizza express’s food ingredients.

Reliable?

Again this score was relatively low and only scored a 3, suggesting poor service or lack of awareness.

Marketing Implications

Although this technique does indicate the consumers attitudes towards the brands, this person

doesn’t seem to think much of Pizza Hut overall, they believe Pizza Express uses quality ingredients

but not a reliable delivery service, only slightly better than Pizza Hut, however Dominos was given

the highest score, this person thought although they were not reasonably priced, Dominos delivered

a reliable service and they used quality ingredients in their pizzas. However if we look at where the

participant allocated scores, he used half his points on price, this is the most important attribute

when considering pizza, quality of ingredients was also important to this consumer and they only

allocated 1 point to delivery promptness.

This research technique has its limitations as it does not explain why the participant has given these

scores. The researcher could mistake a low score to mean a bad experience with service; however it

could be that the consumer has not had any experience ordering pizza from this particular brand.

Reference List 1 Consumer Behaviour and Marketing Strategy, 8

th edition, P.J Peter and C.J Olson (2008:130)

2 Brandrepublic)

http://www.brandrepublic.com/News/950142/LOrEal-cashes-Cole-factor/ 3Consumer Behaviour and Marketing strategy P.J Peter, C.J Olson (143:2008)

58

Overt Behaviour-Conditioning

Overt Behaviour

Observable and measurable responses or actions of consumers. They are external and are not

affective and cognitive processes because behaviour can be observed directly instead of through an

internal psychological process.

However overt behaviour can often cause implications for marketers; consumers often gave

favourable attitudes about products and stores but that doesn’t mean they buy them or shop in

them. Behaviour often proceeds and causes affective and cognitive responses, for example a person

may try out their friends new mobile phone, they think it’s so great that they go out and buy

themselves one the next day, however when it comes to low involvement products consumers are

more likely to try them first, decide whether they like them and then buy (or not) buy them again.

Market strategies don’t work if they cannot influence overt behaviour. Many market research

techniques are designed to asses overt behaviour in stores and product purchase, many strategies

are designed to increase these behaviours.

Traditional models of purchase process usually treat the buying process as a chain of cognitive

processes. AIDA; Attention, Interest, Desire and Action

Although these traditional models are valuable, the purchasing process can be analysed through a

sequence of behaviours.

For example Peter & Olson’s Behaviour model

Information contact Funds access Store Contact product contact

Transaction

From newspapers,

magazines, billboards,

radio, & TV adverts,

salesperson, friends

Withdrawn from cash

point, write cheque,

credit or debit card

Locate, travel,

enter store

Locate product

in store, take

to checkout

Exchange funds

for product, take

product home

Consumption & Disposition

Consume/use

product, dispose of

packaging/used

product repurchase

Communication

Tell others of product

experience, fill out

warranty cards, and

provide other

information to the firm

Prepurchase

Post purchase

59

18Adapted from Peter & Olson (196:2008)

Not every purchase follows this process and the model above only illustrates one type of behaviour

for retail purchases. The time it takes for a consumer to perform the steps above depends on the

situation. A consumer purchasing a high involvement product such as a car will spend more time per

stage and more time will elapse between each stage than a consumer purchasing a watch.

The model of overt consumer behaviour, as shown above, has several implications for marketers.

Each type of behaviour listed above needs to be broken down further for more detailed analysis.

Marketing strategies are designed to alter aspects in the environment to increase cognitive and

affective activity and therefore influence overt behaviour.

Classic conditioning

The process where a neutral stimulus becomes capable of reaching a response because it was

repeatedly paired with a stimulus that naturally causes the response. Natural stimulus responses

are called unconditional stimuli, for example when someone rings the doorbell most people will look

up automatically on hearing it. When the repeated neutral stimuli cause similar responses then it is

known as a conditioned response.

The process of classical conditioning

Unconditioned stimulus Unconditioned response

Unconditioned stimuli + neutral stimuli Unconditioned response

Conditioned Stimuli Conditioned Response

Conditioned behaviours are controlled by stimuli that occur before the behaviour and these

behaviours are assumed to be under control of the automatic nervous system, thus these

behaviours are not under the control of the individual.

Marketing implications

Classical conditioning isn’t effective for every type of response; marketers need to recognise

automatic responses to environment stimuli. Only fairly simple responses can be classically

conditioned.

Operant conditioning

The process of altering probability of behaviour being emitted by changing the consequences of the

behaviour.

Behaviour Consequence increased/decreased probability of behaviour

18

Exhibit 8.2 adapted from Consumer Behaviour and Marketing Strategy, 8th

edition, P.J Peter and C.J Olson (196:2008)

60

Different from classical conditioning because it deals with behaviours assumed to be under

conscious control of the individual. Behaviours are emitted because of consequences that occur

after the behaviour.

Some consequences such as rewarded behaviour will increase the frequency that a given behaviour

will be repeated, for example if a customer received store money off vouchers they are more likely

to re-visit that store. In this case, because the reward increases the probability of the behaviour

being repeated, it is called positive reinforcement.

For example Boots not only offer a loyalty card point’s scheme but offer customers (including both

non advantage card holders) Boots vouchers for money off selected brands within the store.

The frequency of consumer behaviour can also be increased by removing aversive stimuli. Known as

Negative reinforcement. For example if a sales person is particularly pushy and the individual feels

forced to buy the product the consumer will be negatively reinforced.

If the environment is arranged so that a particular response results in neutral consequences then,

over time, response will diminish in frequency. This is referred to as extinction. For example, A&P

grocery chain was the largest retailer in the world until it overstocked its own brands (which had

higher profit margins) and customers who were loyal to nationally branded products stopped

shopping at A&P because they could not obtain their favourite brands. A&P inadvertently used

extinction on its own customers.

If a response is followed by an aversive event such as rude sales staff this would probably decrease

the chances of the individual re-visiting the store.

Conditions can be arranged so that a positive reminder is administrated after every desired

behaviour, known as Reinforcement schedules. There are three types of reinforcement schedule;

continuous, fixed ratio and variable ratio. Continuous reinforcement is where marketers try to

maintain a constant high quality of their products and services so they can constantly reinforce after

every service. This is difficult to do particularly within the services sector.

Fixed or ratio schedule is where conditions are arranged so many times the behaviour is reinforced.

61

Variable ratio schedules where desired behaviours occur but not necessarily every second or third

time, for example gambling slot machines. Slot machines generate high rates of response even

under conditions that offer financial loss. It is important to keep this in mind as the example suggests

a lot of desired behaviour can be developed and held with small infrequent

rewards.

Coca Cola are currently offering customers rewards and prizes from collecting

points on coke zone on their website. The points can be found on various coke

products (diet coke, coke zero and coca cola bottles) After registering and

entering promotional codes the customer can gain more points are swap them

for prizes such as gig tickets, money off vouchers, games, Sony televisions or

even Wayne Rooney’s boots. Customers can also enter competitions where they

will receive more points for entering and are entered into a prize draw to win

various prizes such as holidays or World Cup tickets.

Shaping

Shaping involves a process of arranging conditions that change the probabilities

of certain behaviours. Not an end in themselves, but to increase probabilities of other behaviours.

For example free trial periods may be attempts to shape behaviour, as the user will come into

contact with the product and therefore reinforce properties. For example Lovefilm.com offers

customers a two month free trial of their DVD postal service.

Descriptive stimuli

The mere presence of absence of stimuli can serve to change the probabilities of behaviour, Stimuli

can be presented before behaviour and can influence whether behaviour occurs. For example, if

domino’s pizza offers a free bottle of coke with orders over £10, the offer may increase the

62

probability of purchasing an order over the cost of ten pounds but the offer itself is not a reinforce

since its offered before the behaviour.

Marketing implications

If carefully designed, marketing strategies and tactics consistent with operant conditioning tactics

can be very effective in influencing behaviour. Many marketing strategies offer rewards after

purchases to increase probability or behaviour in the future. Many marketing strategies offer

continuous reinforcement schedule others offer partial reinforcement. Finally shaping is used to

develop earlier behaviours in order to increase the chances of future behaviours.

Scenarios

1. Bob has three children and he likes to rent movies for the whole family to watch. When he sees

the sign for the Video Department while shopping at the grocery store, he wanders in to see what

new videos they have and ends up renting one. He has a store customer card, so every tenth video

rental is free. He is much too busy to keep track of how many rentals he has to date, but he is

pleasantly surprised when he is told that he video he is renting will be free of charge. In the future,

he will rent more videos there at the grocery store, rather that at the chain video rental place they

sometimes use.

Reasoning

The consumer behaviour of seeing the environment stimuli of the video department sign led Bob to

the rental department where he bought a film, his customer store card allows his to get his tenth

video rental for free and so led to the positive reinforcement consequence of savings. This positive

consequence has influenced Bob to change his behaviour and order his rentals from the grocery

store instead of the video rental, where he usually goes.

Operant Conditioning Classical Conditioning

Behaviour Video department sign,

store card for video rentals

Uncond. Stimulus

Consequence Free video rental Neutral/Cond. Stimulus

Expected Change Will rent more at grocery

store than at video rental

place

Uncond./Cond. Response

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2. Whenever Richard hears the nostalgic music that plays in the background of the Charge Cola ad, it

makes him remember his buddies from high school and some of the good times he had with them.

When he goes to the grocery store to do the shopping for his family, he scans the soda isle and then

chooses Charge Cola rather than all the other similar sodas; he just feels best about the Charge Cola

brand.

Reference List

1 Exhibit 8.2 adapted from Consumer Behaviour and Marketing Strategy, 8

th edition, P.J Peter and C.J Olson

(196:2008)

Operant Conditioning Classical Conditioning

Behaviour Uncond. Stimulus Happy memories

Consequence Neutral/Cond. Stimulus Charge Cola

Expected Change Uncond./Cond. Response Good feelings

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Vicarious Learning

Vicarious learning is about people changing their behaviours because they observed the

actions of other people and the consequences that occurred. Vicarious learning, also known

as modelling, is caused by perceptual and cognitive experiences and social and cultural

interactions. The three major approaches to vicarious learning involve classic conditioning;

When applying a stimuli and associating it to something else several times, operant

conditioning; A certain consequent is learnt from a certain behaviour and the cognitive

process; thinking, feeling and remembering.

For example, Bonjela

Spike, (see picture) is the characterisation of a mouth

ulcer; annoying, sore and slightly painful. Until the man

in the advert puts a dab of Bonjela onto the ulcer

which immediately soothes the mouth ulcer. With the

tag line, ‘don’t put up with it, Bonjela it!’

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Marketing strategy

There are three major uses if vicarious learning in marketing strategy;

Developing new responses- developing new responses that were previously

not in the consumers behavioural repertoire

Inhibiting undesired responses-modelling can decrease the probability of

undesired behaviours

Response facilitation-can facilitate desires already in consumers repertoire

Affective---Affective responses---consumers emotions, feelings, moods and evaluations----classically

conditioning emotions to products

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Cognitive---cognitive responses----consumers knowledge, meanings and beliefs----providing

information highlighting competitive advantages

Behavioural---behavioural responses---consumers overt behaviour---positive reinforcement,

modelling desired behaviours

Influencing consumers behaviours…

After consumer research establishes information on consumers affect, cognition and behaviour

relative to the product or brand of concern, various promotional marketing stimuli are

designed/changed and placed in the consumers environment. This marketing mix stimuli can include

such things as packaging, advertisements, price tags, vouchers, store signs/boards. They are

designed to influence behaviour without directly affective affect and cognitive responses.

Sales Promotion

Trade promotions & Consumers promotions

Advertising vouchers, free samples

or

In store displays

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Most consumer promotions are designed to influence the probability of purchase without

necessarily altering prepurhase attitudes about a brand.

For a new brand, promotion may lead to future postpurchase attitudes and purchases. If the

promotion is for an already well established brand, consumers with neutral or slightly positive

attitudes may use the promotion to reduce purchase risk and try the brand, for loyal consumers, a

promotion may be an added incentive to remain loyal.

Types of consumer promotions

Sampling; trial sizes of the product

Price deals; discounted products

Bonus packs; additional amounts of the product

Rebates and refunds; consumers are given cash reimbursements for purchasing products

Sweepstakes and contests; competitions where consumers are offered chances to win cash or

prizes.

Premiums; A reward of gift that comes free with the product

Vouchers: usually money off incentives

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Marketing Strategies Marketing managers will develop strategies with objectives such as increase market share by 10% by

the end of 2010, or increase year on year sales by 20% over the next 5 years. To accomplish these

objectives marketers focus on influencing consumers affect, cognitive and behavioural responses.

Influencing these factors can either be through short-term or long-term objectives in order to gain

objectives.

Regardless whether the objectives are short term or long term, marketers need to understand

consumers affect, cognitions and behaviours to develop strategies to influence them.

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Motivation-Market Research

Personality-lifestyle-motivation

Motivation

“Motivation occurs when a need is aroused that the consumer wishes to satisfy” (177:2010) 19

Once this need has been activated, the consumer experiences a state of tension, the driving force

that will either reduce or eliminate that need. The need can be either utilitarian (a desire that

satisfies a functional or practical benefit) or the need may be hedonic (involving emotions or

fantasies)

The desired end state is the consumers end goal. Marketers try to create products and services in

order to satisfy the consumers’ desired benefits.

Whether utilitarian or hedonic, the tension the consumer experience determines the urgency to

satisfy that need. This degree of arousal is called a drive. A consumers need can be satisfied in a

various number of ways, what influences the path they choose to satisfy this need can rely on their

previous experiences and values formed from their cultural, religious, ethnic or national background.

These personal and cultural factors combine to create a want. For example, hunger is a need; the

lack of food creates a tension state that can be reduced by eating. The specific route to drive

reduction is culturally and individually determined. Once the goal has been achieved, the tension

temporarily subsides and motivation recedes.

A goal can be positive or negative. Consumers will direct their behaviour to seek out products that

will help them reach the positively outcome. Consumers may be motivated to avoid negative

outcomes and will guide their purchase behaviours to reduce the chance of attaining this result.

Products such as mouthwash, spot creams and deodorants frequently rely on consumers’ negative

motivation by creating adverts that depict the social consequences or underarm odour, spots/acne

or bad breath.

19

Consumer Behaviour, A European perspective, Solomon et, 4th

edition pg 177 (2010)

70

Because marketers are attempting to satisfy consumers’ needs, they can provide possible

solutions to these dilemmas. Three types of motivational conflicts can occur; approach-approach,

approach-avoidance and avoidance-avoidance.

There has been much research on classifying human needs; some psychologists have tried to define

a list of all needs that can virtually explain all human behaviour. Henry Murray defines 20

psychogenic needs that result in specific behaviours. These needs include dimensions such as

(When a consumer must choose

between two desirable alternatives)

(When a consumer desires something which

has negative consequences attached to them

as well.)

(When a consumer faces a choice between

two undesirable alternatives)

71

autonomy (being independent) defendance (defending self against criticism) even play (engaging in

pleasurable activities) (2010:184)20 An influential approach to motivation was introduced by

Abraham Maslow. Maslow proposed a hierarchy of needs. The order of needs suggests the

development of each is fixed. Marketers have embraced Maslow’s theory because it specifies certain

types of potential product benefits people might be looking for, depending on the different stages in

development and environmental conditions.

The implication of this theory is that the individual must satisfy basic needs before progressing up

the stages. I.e. a starving man is not going to be interested in status symbols. This suggests that

consumers value different product attributes depending on what is currently available to them.

The hierarchy has been criticised for being somewhat simplistic. Solomon et al argues that one

product or service can satisfy a number of different needs. I.e. eating is necessary for survival but it

can also be a social act (belongingness) The same goes for safety needs, a house acts as security but

it can also be seen as a space for ‘actualising our personal aspirations’ (2010:187) 21

Solomon also argues that Maslow’s hierarchy is too culture-bound. Restricted to the materialistic

western culture.

Ernest Dichter identified 12 major motives for consumption. Power (masculinity virility) security,

eroticism, moral purity (cleanliness) social acceptance, individuality, status, femininity, reward,

2 ,

3Consumer Behaviour, A European perspective, Solomon et al 4

th edition pg 184,187 (2010)

72

mastery over environment, desalination (a desire to feel connectedness to things) and magic

(mystery)

Sigmund Freud’s interpretation of motivation theory; Freudian theory. The idea that much human

behaviour stems from a fundamental conflict between a person’s desire to satisfy their personal

needs and the necessity to function as a responsible member of society. The conscious and

unconscious dimensions of the mind. The struggle between these two conflicts is carried out among

three systems; the id, the ego and the superego.

The id, the ‘party animal’ of the mind; operates according to the pleasure principle-the primary

desire to maximise pleasure and avoid pain, the id is selfish and illogical.

The superego is the counterweight to the id, working to prevent the id from the selfish gratification.

Essentially the individual’s conscience.

The ego is the in-between, Soloman refers to the ego as the referee in the fight between temptation

and virtue. Balancing the two forces and finds ways of satisfying the id wants that will be acceptable

to the outside world.

Marketing Implications

The battle between these conflicts occur unconsciously to the consumer and therefore the

consumer is not necessarily aware of the underlying reasons for their behaviour. Therefore if

consumers cannot identify their true motivations for choosing products then marketers need to find

ways, of acquiring consumers underlying desires.

Motivational research

Freudian theories were first applied to understand deeper meanings behind buying behaviour in the

1950s. The basic assumption was that socially unacceptable needs were channelled into acceptable

outlets. “Product use or avoidance is motivated by unconscious forces which are often determined

in childhood.” (2010:188)22

The research took the form of in-depth interviews probing deep into the individuals purchase

motivations in an attempt to uncover consumers suppressed and repressed motives. Other

techniques included word association tests, projective techniques; Rorschach ink-blot tests,

imaginary buying situations, picture story test, cartoon tests, and ascribing personality to brands.

22

Consumer Behaviour, A European perspective, Solomon et, 4th

edition pg 188 (2010)

73

(Example of Rorschach ink-block test)

Motivational research-does it work?

Motivational research has been criticised for working too well, whilst others feel it doesn’t work at

all. Critics argued that the method gave advertisers too much manipulating power, consumer

research felt the methods lacked in validity as many of the interpretations were subjective and

indirect. The technique is very difficult and time consuming and because of the small number of

people who are subjected to these methods, researchers are doubtful whether this technique can be

applied to a large market.

However motivational research tends to be less expensive than large-scale quantitative survey data

as interviewing and data processing costs are relatively small. The techniques are useful for

uncovering information that is normally suppressed by consumers in normal everyday life.

The use of both direct observation and oblique methods of data gathering continues and has

resulted in classification of consumer segments based on consumers’ overall lifestyle patterns.

Lifestyle

“Patterns in which people live and spend time and money” (448:1995)23 Lifestyles reflect a person’s

activities, interests and opinions (AIOs)

Lifestyles are changing more rapidly, marketers need to track trends in lifestyles of key target

markets and reflect these lifestyles in their adverts.

Psychographics

An operation technique used to measure lifestyles. The technique provides quantitative measures

and can be used with the large samples needed for definition of market segments.

Using consumer interviews, verbatim statements recorded in focus groups; researchers write large

number of statements to reflect AIOs of consumers

Large, representative examples of consumers are asked via questionnaires to indicate the extent to

which they agree or disagree with each statement using 5 - 7 point Likert type scales.

Psychographic analysis allows marketers to understand consumer lifestyles of core customers,

allowing them to communicate more effectively with people in that segment. The objective is to

develop a marketing strategy that is consistent with the AIOs of the target market.

VALS (Values and Lifestyles) and the Nine American Lifestyles 24

“VALS uses proprietary psychometric technology to measure concepts that—researchers have proved empirically—correlate with consumer behaviour.”

VALS segments U.S. adults into eight distinct types, or mindsets, using a specific set of psychological

traits and key demographics that drive consumer behaviour.

23

Consumer behaviour, international edition, 8th

edition, Engel et al (488:1995) 24

http://www.sric-bi.com/VALS/types.shtml

74

The purpose of VALS is to find identify the VALS type of person taking the study. That is to find out

about a person's product ownership, media preferences, hobbies, additional demographics, or

attitudes (for example, about global warming)

Originally VALS combined two perspectives to create lifestyle clusters, one was based on Maslow’s

hierarch of needs and the second was based on the distinction made by David Riesman between

inner-directed people and out-directed people.

In response to criticism as well as changing social values, researchers updated the system. The

current VALS system divides US adults into 8 groups (used to be 9) determined by both psychological

characteristics and ‘resources’ including factors such as income, education, energy levels and

eagerness to buy. The framework which can be seen below shows that innovators, positioned at the

top because they have the highest level of resources, innovators are described as ‘taking charge’

attitude to life, open to new ideas and technology, being active consumers with varying tastes for

niche products and services.

The nest three groups have sufficient resources but differ in motivation and the three groups below

that; believers, strivers, and makers, have few resources and again differ in primary motivation.

Survivors at the bottom of the structure, they have very little resources and their main concern is

safety and security. Looking for needs rather than desires.

25

25

Strategicbusiness.com (http://www.strategicbusinessinsights.com/vals/ustypes.shtml) [accessed 10/11/09]

75

Marketing implications

A number of companies who track changes in values through large-scale surveys sell VALS results to

marketers who often pay a fee to receive regular updates on changes and trends.

The latest extension of lifestyle marketing is behavioral targeting. This involves presenting people

with adverts based on their internet use. With recent technology it has become relatively easy for

marketers to tailor adverts you see to websites you have visited. Although this raises issues of

privacy, a survey from 2006 issued on this problem revealed that 57% of consumers said they were

willing to provide demographic information in exchange for personalized online experience. 26

Microsoft combines data from 263 million users of its free hotmail e-mail service. (The biggest in the

world) It monitors information from searches and when you sign up your required to fill out your

age, occupation and address. (Although you are not required to answer) Microsoft’s behavioral

targeting system allows its advertising clients to send different adverts to each person surfing the

web.

MySpace uses personal details of its users to sell highly targeted advertising in ten broad categories;

finance, autos, fashion and music. Facebook is at work doing the same thing although they are

looking at a more sophisticated software used to decide how effective advertising will actually be

amongst individuals and their groups of friends.

Reference List

1 Consumer Behaviour, A European perspective, Solomon et, 4

th edition pg 177 (2010)

2 ,

3Consumer

Behaviour, A European perspective, Solomon et al 4th

edition pg 184,187 (2010) 4 Consumer Behaviour, A

European perspective, Solomon et, 4th

edition pg 188 (2010) 5 Consumer behaviour, international edition, 8

th

edition, Engel et al (488:1995) 6 http://www.sric-bi.com/VALS/types.shtml

7 Strategicbusiness.com

(http://www.strategicbusinessinsights.com/vals/ustypes.shtml) [accessed 10/11/09] 8 Solomon, M.R.,

Bamossy, G., Askegaard, S., Hogg, M.K. (587:2010) Consumer Behaviour – A European Perspective, 4th

Ed, FT

Prentice Hall

26 Solomon, M.R., Bamossy, G., Askegaard, S., Hogg, M.K. (587:2010) Consumer Behaviour – A European

Perspective, 4th

Ed, FT Prentice Hall

76

Market Research Process

So far we have discussed how marketers have designed strategies focused on elements of the wheel

of consumer analysis, to influence consumer buying behaviour. We have focused on market research

techniques which have tried to analyse and influence consumers affective responses; emotions,

moods feelings and evaluations, Consumers cognitive processes; their knowledge meanings and

belief and finally behavioural responses; influencing consumers over behaviours. Of course more

than one of these elements can be activated at the same time and marketers can try to influence

these multiple consumer responses.

The steps in creating marketing strategies, in order to influence these elements are shown below:

Measure current levels of consumer affect, cognition, behaviour

Analyse consumers and markets

Select and implement influence strategy

Measure strategic effects

Desired influence effects

Evaluate for performance improvement

77

Methods of measuring consumers affect and cognition

• Means-End Chains - Laddering Interviews

• Understanding product knowledge and involvement (consequences and values)

• Identification of attributes most important to

consumers

• Understanding situational influences

Market Research

Review of the marketing research

process27

Market Research and Papa Johns

Management Decision problem:

Should Papa John’s use text messaging and other mobile applications?

Research Problem

What are attitudes of consumers towards receiving marketing communications via mobile phone?

Specific components:

27

Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, Renate Smith (Blackboard, Semester A)

78

What are attitudes towards using mobile phones?

What are attitudes towards Papa John’s?

What are attitudes towards receiving text messages from Papa John’s?

Approach

Objective evidence and theory

Theory guides collection of data

Attitude theory

Analytical model

Research question

Refined statements of specific components of problem

Research Design A research design is a framework for conducting a market research project. The design approaches

the necessary procedures to obtain market information that will solve the market research

problem/s. The design basically sets out a framework for conducting the project. According to

Malhotra & Birks a research design involves the following tasks: (58:2003)28

Define the information needed

Decide whether the overall design is to be exploratory, descriptive or casual.

Design the sequence of techniques of understanding/measurement

Construct and pre-test an appropriate form for data collection or questionnaire

Specify quantitative and/or qualitative sampling process and sampling size

Develop a plan of quantitative and/or qualitative data analysis.

Research Designs may be broadly classified as either exploratory or conclusive

The differences are summarised below:

Exploratory Conclusive

Objectives To provide insights and understanding of the nature of marketing phenomena. To understand

To test specific hypotheses and examine relationships. To measure

Characteristics Information needed may be loosely defined.

Research process is flexible, unstructured and may evolve

Samples are small

Data analysis can be qualitative or quantitative

Information needed is clearly defined

Research processes is formal and structured

Sample is large and aims to be representative

Data analysis is quantitative

Findings/results -Can be used in their own right -can be used in their own right

28

Marketing Research, an applied approach, 2nd

European edition, K. N Malhotra & F.David Birks (2003) pg 58

79

-may feed into conclusive research -may illuminate specific conclusive findings

May feed into exploratory research -may set a context to exploratory findings

Methods Expert surveys/pilot surveys/ secondary data/qualitative interviews/ unstructured observations/ quantitative exploratory multivariate methods

Surveys/ secondary data/ databases/ panels/structured observations/experiments

29

(63:2003) Marketing Research, an applied approach Naresh K. Malhotra & David F. Birks

30

Descriptive Research

Type of conclusion research where the major objective is the description of something,

usually market characteristics or functions. A descriptive research design specifies the

methods for selecting the sources of information and for the collecting data from those

sources. In Papa John’s case, the descriptive studies involve media consumption attitudes

towards mobile phone advertising.

Cross-Sectional Design

A type of research design involving the collection of information from any given sample of

population can be either single cross-sectional designs or multiple cross-sectional designs.

In single, only one sample of respondents are drawn from target population. (Sample survey

research designs) In multiple, two or more samples of respondents are used; often

information from different samples is obtained at different times.

29

Marketing Research, an applied approach, 2nd

European edition, K. N Malhotra & F.David Birks (2003) pg 63 30

Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, Renate Smith (Blackboard, Semester A)

80

Longitudinal Designs

A type of research design involving a fixed sample of population elements measured

repeatedly. The same sample is used within the research, so providing a series of pictures

that, when viewed together, show an illustration of the situation ad changes that are taking

place.

Conclusive-descriptive-cross-sectional

The descriptive research design for Papa John’s, methods of research-quantitative surveys

Classification of Surveys

Research Methods; Surveys

31

31

Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, Renate Smith (Blackboard, Semester A)

INTERNET

81

32

32

Table 7.1 (185:2006) Basic Marketing Research, a decision making approach,2nd

edition, N.K Malhotra, M.Peterson

Method Advantages Disadvantages

Telephone Fast, good sample control, good response rate, moderate cost

No use of physical stimuli, limited to simple questions, low quantity of data

In-home Complex questions can be asked, good for physical stimuli, good sample control, high quantity of data, very good response rate, longer interviews can be done

Low control of field force, high social desirability, potential for interviewer bias, most expensive, some samples difficult to access, long time to collect data

Mall intercept (shopping) Complex questions can be asked, good physical stimuli, good control of environment, good response rate

High social desirability, potential for interviewer bias, moderate quantity of data, high cost

CAPI (Computer assisted personal interviewing)

Complex questions can be asked, good for physical stimuli, control of environment, good response rate, low potential for interviewer bias

High social desirability, moderate quantity of data, high cost

Mail No field force problems, no interviewer bias, moderate-high quality of data, low social desirability, low cost

Limited/simple control, low sample control for cold mail, no control of environment, low response rate for cold mail, low speed.

Mail panel (nationally representative samples)

No field-force problems, no interviewer bias, high quality of data, low social desirability, low/moderate cost, good sample control

Limited/simple questions, not suitable for household surveys, no control of environment, low/moderate speed

Electronic-E-mail No interviewer bias, low cost, low social desirability, high speed, contact hard-to-reach respondents, large sample available

Low sample control, no control of environment, low response rate, moderate quantity of data, security concerns

Electronic -internet No interview bias, low cost, low social desirability, high speed, visual appeal and interactivity, personalised, flexible questioning, can contact hard-to-reach respondents

Low sample control, no control of environment, low response rate, moderate quantity of data.

82

Quantitative Surveys

Interviews with a large number of respondents using a predesigned questionnaire.

Advantages of using questionnaires:

• Interviewer bias

• Social Desirability

• Speed/length of interview

• Sample Control

• Control of Field Force

• Control of environment

• Response rate

• Cost

• Quantity of data

• Use of physical stimuli

• Visual appeal and interactivity

• Contact hard to reach respondents

Disadvantages of using questionnaires

Respondents don’t write desired answers or simply don’t answer

Respondents may not be consciously aware of the underlying reasons of their buyer

behaviour

Unwilling to expose personal information ; religious beliefs

Structured data collection databases may mean loss in validity such as responses about

beliefs and feelings

Questionnaire design

Needs to address research objectives - collect valid and reliable data to address research problem

clearly

Factors that need to be considered when forming the questionnaire

• Determine content of individual questions

• Design questions to overcome respondent’s inability to answer

• Design questions to overcome respondent’s unwillingness to answer

• Decide on question structure

• Determine question wording

• Arrange questions in proper order

• Choose Form and Layout

83

Despite disadvantages, the survey is still the most common primary data collection method in

marketing research.

When choosing quantitative techniques, the salient factors, advantages and disadvantages will be

considered and certain factors may mean a survey is the natural choice.

33Researching attitudes using quantitative techniques

Studies implementing quantitative research are often concerned with distinguishing ‘typical’ and

‘atypical’ behaviours and attitudes amongst the population using attitude statements.

There are several different scaling techniques available to researchers; scaling techniques are

classified as either comparative or noncompartive.

Comparative scaling; the direct comparison of two or more objects, for example respondents may

be asked if they prefer Coke or Pepsi.

In comparative scaling small differences between objects can be detected as it forces respondents to

choose between two products. Comparative scales include paired comparisons, rank or constant

sum scales.

Comparative scaling is easy to understand and apply. They also reduce any carryover effects that

early judgements influence over later judgements.

However comparative scaling has its limitations when it comes to analysing ordinal data. This

technique does not allow for generalisation, using the coke and Pepsi example, if these brands were

later being compared to RC cola a new study would have to be undertaken.

However these disadvantages are overcome by the noncomparative scaling techniques.

Noncomparaitve scaling; one of two types of scaling, where each stimulus object is scaled

independently of the others.

For example respondents may be asked to evaluate coke on a scale of 1-7)1 not at all preferred and

7 greatly preferred) this would be carried out for both Pepsi and RC cola. Non comparative scaling

can be either continuous rating or itemised rating scales. The itemised rating scales can be further

classified as Likert, Semantic Differential or staple scales.

Noncomparatie scaling is the most widely-used scaling technique in market research.

Non comparative techniques:

Continuous rating scale-where the respondent marks a point along a line running between

two extreme points. An itemised scale is set out similar however the respondent is asked to

circle a number between these two points. The points may also be brief descriptions rather

than numbers for example.

How would you rate Head & Shoulders shampoo? Place a cross at any point along the line.

33

(181:2006) Basic Marketing Research, a decision making approach,2nd

edition, N.K Malhotra, M.Peterson

84

Poor- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Excellent

Or

Poor- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Excellent 1 10 20 30 40 50 60 70 80 90 100 Or Poor- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -Excellent 1 10 20 30 40 50 60 70 80 90 100

Easy to construct, scoring can be difficult and unreliable, unless constructed using computerised

equipment. Can be easily filled out on the internet. The computer can automatically score the scale

values increasing speed and accuracy of processing the data. Continuous scales are becoming

increasing popular and are useful for evaluating things such as TV adverts, continuously over time.

Itemised Rating Scales: Semantic Differential, Stapel or Likert

Semantic Differential

Usually a 7-point scale with bipolar labels. Often used to research brands, products and company

images. Although they are versatile they are difficult to construct.

Staple scales, unipolar 10 point scale (-5 to +5) without a zero point. Used for measuring attitudes

and images, easy to construct and administered via telephone, however they are often confusing

and difficult to apply.

Likert scales, usually presented on a degree of agreement scale, 1 (strongly disagree-5 strongly

agree) useful for measuring attitudes, easy to administer, construct and understand, however they

are often time consuming.

The researcher should consider reliability, validity and practical factors when selecting scaling

techniques. Practical problems should also be considered such as the level of measurement desired;

nominal, ordinal, interval or ratio as well as the level of experience the respondents have with the

research technique, the difficulty involved in administering the scaling techniques and the context.

Researchers need to appoint a sampling procedure

“A good sampling design, carefully executed is a key to obtaining high quality data. Too often this

is taken for granted, and the results can be profound.”

(David Fruend, Director and manager, Market Research, Progress Energy, Inc) (320:2006)

Very Bad Neither good

nor bad

Very

Good

85

The sampling design process:

Define population

Determine sampling frame

Select sampling technique/s

Determine sample size

Execute sampling process

Selecting a sampling technique.

NonProbability or probability

Nonprobability-sampling that relies on the personal judgement of the researcher. Examples include

interviewing people on the high street, retail stores or shopping centres. This technique produces

good estimates of population characteristics, the techniques are limited. NonProbability sampling

techniques consist of convenience sampling, judgement sampling, quota sampling and snowball

sampling.

In probability sampling samples are selected by chance-randomly. Probability sampling techniques

consist of simple random sampling, systematic, stratified and cluster sampling.

Choosing between probability sampling and nonprobability sampling is based on the nature of the

research, the error contributed by the sampling process relative to the non sampling error and

statistical considerations.

Reference list

1 Lecture notes, Strategic model for influencing consumer behaviour, appropriate research methods, Renate

Smith (Blackboard, Semester A) 2

Marketing Research, an applied approach, 2nd

European edition, K. N Malhotra & F.David Birks (2003) pg 58

3 Marketing Research, an applied approach, 2

nd European edition, K. N

Malhotra & F.David Birks (2003) pg 63 4 Lecture notes, Strategic model for influencing consumer behaviour,

appropriate research methods, Renate Smith (Blackboard, Semester A) 5 Lecture notes, Strategic model for

influencing consumer behaviour, appropriate research methods, Renate Smith (Blackboard, Semester A) 6

Table 7.1 (185:2006) Basic Marketing Research, a decision making approach,2nd

edition, N.K Malhotra, M.Peterson

7(181:2006) Basic Marketing Research, a decision making approach,2

nd edition, N.K Malhotra,

M.Peterson

86

Consumer Context- In store Behaviour

Consumer Behaviour Influence strategies

The model below shows how marketers can influence overt behaviours

34

Based on the information that marketers have obtained about consumers affect, cognition and

behaviour relative to the product, service store or brand, various marketing mix stimuli are designed

or changed and placed in the consumers environment. This stimuli includes things such as products,

brands marking, packaging, advertisements, price tags, in store signs and sales vouchers. These

stimuli are designed to influences consumers affect and cognition in positive ways to increase overt

behaviour. Measuring this change results in feedback in the form of consumer research data as well

as market share information. The process continues and marketing mix stimuli are redesigned to

influence further consumers.

Shopping with consumers, usage of past, present and future research techniques (Otnes, McGrath,

Lowery) Observation techniques

(Methods of finding shoppers behaviours; autodriving, ethnography, introspective phenomenology,

phenonomenoloigical interviewing & projective techniques.)

Research methods: Experiment (includes labs and field experiments) survey, interviews personal-at

home or in-store panel, diaries, observation, focus groups.

Research methods put into practice

Pennigton (1968) Used salesmen wearing wireless microphones while completing transactions in the

store. Whilst Hill (1973) transported shoppers to grocery stores, waited for them to finish shopping

and then immediately interviewed them about their shopping trip.

34

Approaches to influencing overt consumer behaviour, Exhibit 10.1 Consumer behaviour and marketing strategy (2008:234)

Information about

consumers affects

cognitions and behaviours

Marketing mix stimuli

placed in the

environment

Influence consumers

affect and cognitions

Influence consumers

overt behaviours

Consumer research data

sales, market share data

87

Olshavsky (1973) Recorded complete verbal transactions that involved actual purchases of

refrigerators and colour televisions.

Grffen & Sturdivant (1973) employed consumers as ‘test’ couples who pretended to shop for mobile

homes and collected information from dealers for researchers. Houston & Stanton (1984) had two

researchers record the travel times from neighbourhoods to different locations of a convenience

store to develop a retail site model of a convenience store. Frenzen & Davis (1990) and Gainer &

Fischer (1991) designed home shopping parties to explore buyer behaviour.

The research techniques above seem rather bizarre and they don’t actual accompany consumers in

the retail settings or examine shopping behaviour from consumers perspective

In comparison there has been a fair amount of work conducted by anthropologists and sociologists

that has explored aspects of market place activities.

‘The vulnerable consumer’

Caplovitz (1963, 73,74,79) examined how consumers coped with economic downturns and those

that live in low-income areas who are discriminated against through unfair pricing or credit

practices.

Caplovitz used a single research technique-interviewing. He interviewed in alternative market places

such as flea markets, second hand shops and shopping parties.

Prus & Frisby (1990) carried out interviews and observation techniques. They worked at craft shows

in order to gain an understanding of how vendors interact and influence each other at these events.

Milher (1993,4) conducted an in-depth ethnographic project, immersing himself in the lives of his

informants. Milher doesn’t claim to have shopped with customers although he did act as a

participant observer in the buying and selling area. His study was too broad ad limited to a small part

of his analysis.

Alexis et al (1968) Accompanies accompanied two subjects into stores, observing them as they made

clothing purchases. Both were given specific amounts of money to spend. Told they could shop for

items in 5 product categories. (A few logistical problems arose) people were happy to have the

researchers accompany them around the store. The research revealed that price did not predict the

choice of woman’s clothing.

The observers noted that price was often the last attribute considered. Issues such as fit, colour and

style emerged as more salient in terms of determining purchasing.

Researchers said that giving the participants money did not make them behave in their usual

decision process.

King (1969) examined information retrieved while shopping using tapped protocols from 4

consumers who were asked to explain their choices while they shopped. The researchers wanted all

their thoughts whilst they were shopping. Which they then created a flow diagram of choice

behaviour. King didn’t impose external constraints upon shoppers unlike Alexis et al in 1968.

88

Brettman (1970) wished to model shoppers decision making strategies by examining three types of ?

E.g. product vs. environmental from memory whilst shopping.

He conducted a study with 5 grocery shoppers accompanying them into stores over a 6-8 week

period, taping protocols on these trips and modelled two shoppers behaviour.

Brettmens research revealed factors influencing decisions for low risk products were different from

high risk products and that shopping with consumers proved an excellent way of examining

customer shopping styles.

Brettmen & Zins (1977) focused on consumer heuristics method to overcome a solution in particular

whether consumer’s heuristics stored in memory or they construct the rules they use on the spot.

The researchers noted that on-store protocols appear to feature more constructive methods if

protocols were taken when the shoppers list was being prepared outside the store.

Sherry (1990) Understanding sociocultural significance of the flea market as an alternative marketing

system. Sherry engaged in participant observation and in-directive interviewing.

‘ I shopped with consumers, sold with dealers and made rounds with managers and retailers’ Sherrys

‘passive-observer stance’ gave him access to aspects of the flea market that might otherwise have

remained hidden. He observed that consumers engage in three main patterns of behaviour;

Searching, dickering and socialising. He noted how young mothers in their early thirties enjoyed

‘catching up on gossip’ whilst finding bargains.

So shopping with consumers as a means of collecting market research. There didn’t seem to be

much difficulty recruiting consumers to be accompanied whilst shopping. Consumers were amenable

to being ‘rigged’ with equipment such as microphones, tape recorders in-store and participating in

longitudinal studies.

However some researchers suspected protocols generated in the store may not be truly

representative of the consumer decision making process and may have shopped differently.

Therefore all data collected natural-istic retail contexts are not necessarily ‘natural’ thus shopping

with consumers is not best for studying ‘real-world’ consumer behaviour.

Advantages of shopping with consumers

Great for the interpretative researcher to record accurately and thoroughly informant driven

experiences in the retail setting.

Another advantage is the benefit of proximity. Gives the researcher the ability to question

informants about shopping behaviour that they have witnessed. As consumers may simply forget

details about a shopping trip that they may deem unimportant.

Passive observation cannot obtain the customer itinerary with any validity therefore for researchers

interested in capturing detailed accounts of consumers shopping strategies should prove to be more

thorough and credible than other secured methods.

Lowery et al (1995) the role of values in consumers shopping tasks

89

The informants establish agendas for all shopping trips as it enables the researcher to record

information driven experiences, future interaction specifically when couples with in-depth

interviews.

It was noted that shopper who agreed to these studies tended to be interested in both shopping and

human behaviour. As it helped them define their own activities and rationales and motives. In

contrast researchers who employ only passive observation in stores probably will have no further

interactions with focal shoppers.

Therefore the stationary method cannot explore longitudinal changes. Likewise the researchers

employing a series of interviews will not witness real-world shopping experiences that can provide

them with relevant and current topics for future discussions.

Building trusting relationships with informants

Laura doesn’t like dad’s new girlfriend, bought her a sweater then poured out purchase information.

Consumers often invited researchers into their homes and asked them to watch their children whilst

running errands.

In conclusion there is a great deal of potential when shopping with consumer s

-can record accurately driven experiences with consumers

-close proximity

Yields a detailed understanding of informant-driven agendas

Potential for future interactions.

Disadvantages

Effectiveness as a stand-alone method-best elicited in a structured phenomenological interview

rather than the retail environment itself.

Costs-need financial incentives

The shopper may find the shopping styles of some consumers exhausting

Need a large amount of patience and time

Do researchers have the time, money and temperament to employ this research method. 35

35 Otnes C, McGrath, M A, Lowrey, T M 1995 Shopping with Consumers

Usage as Past, Present and Future Research Technique, Journal of Retailing and Consumer Services

Vol 2, No 2. pp. 97 110, 1995

90

Store related affect and cognition Store Image

What consumers think about a particular store. Including perceptions and attitudes based on

sensations of store related stimuli received through the 5 senses. Previous store image studies have

focused on merchandise, service, clientele, physical facilities, promotion and convenience.

Store image research involves consumers explaining their perceptions and attitudes about particular

store dimensions. These dimensions are typically broken down into a number of store attributes. For

example merchandise might be studied in terms of quality, assortment, fashion, guarantees and

pricing.

Developing store image is an important and common goal for retailers. Store images are regularly

changed to adapt to changes in consumers shopping habits in competitive position. It is important

the general store image remains fairly consistent despite small store changes. This involves

coordinating the various aspects of store image to appeal to specific market segments.

Store Atmosphere

There is much debate as to whether store atmosphere involves primarily affect in the form of in-

store emotional states that consumers may not be fully conscious when shopping. The model below

(Peter & Olson) illustrates that environmental stimuli does affect consumers’ emotional states which

in turn affect approach or avoidance behaviours. (Approach behaviour-moving toward environments

and stimuli) (Avoidance behaviours-moving away from various environments and stimuli)

36

Four types of approach avoidance behaviours related to retail stores:

Physical approach (store patronage intentions) exploratory (in-store search, and exposure to a broad

or narrow range of offerings) communication (interactions with sales personnel and floor staff)

Performance and satisfaction (frequency of repeat shopping and reinforcement of time and money

expenditures in the store)

36

Exhibit 19.2 A model of store atmosphere effects, Consumer behaviour and marketing strategies, pg (472:2008)

Environmental Stimuli

Emotional

states

Pleasure Arousal

Dominance

Approach or avoidance

responses

91

In-Store Stimuli Within most environments an n endless number of stimuli can influence affect, cognition and

behaviour. Retail environments are no exception. Store has various stimuli influencing the

consumer: Other shoppers, salespeople, lighting, noises, smalls, temperature, shelf-space and

displays, signs, colours and products.

“Retailers have absolute control over the response of their customers” Joseph Weishar (author of

Design for effective selling space.

Weishar believes shoppers move in predictable patterns, responding predictably to light and colour

stimuli. “The right store can turn a browser into a customer… if you can get the customers to see

what you want them to see, they will probably buy what you want them to sell them”

Signs and price information

McKinnon et al conducted an experiment investigating the use of signs within sore environments.

Studying consumer behaviour and price information displayed on signs. The study revealed that

price influences sales more than sign type does

At regular prices, the sign did not increase sales, but when an item is on sale a price sign will increase

sales

A benefit sign (displaying product benefits only)increased sales at both regular and sale prices, but at

a greater rate when the item is on sale.

Benefit signs were more effective than a price-only sign at both regular and sale price.

The research suggests that signs affect consumers’ cognition (they processed different sign

information) which increased behaviour (sales increased with the use of certain types of signs)

Colour -look at colour article (library)

Joseph Bellizzi et al studied the effects of colour on consumer perceptions. An interesting finding

was that consumers were drawn to warm colours (red & yellow) but felt that warm colour

environments were generally unpleasant. Cool colours (blue & green) did not draw consumers but

were rated as pleasant.

Shelf Space & Displays

Research generally supports the view that the more shelf space and in-store displays increase sales.

Comparisons made between a regular shelf space and an expanded display (regular shelf space plus

special end of aisle product arrangement) although the increases varied between products, the

expanded shelf’s consistently increased sales and outperformed the regular shelved products.

Music

Considerable research supports the view that background music played in retail environments

influences attitudes and behaviour. Ronald Milliman examined the effects of music tempo on

supermarket shopping behaviour. Three variations were tested; no music, slow music and fast

music. The pace of in-store behaviour was slowest under the slow tempo treatment and fastest

92

under the faster tempo. The slow music lead to higher sales as consumers spent more time within

the store and therefore more money. On average sales were 38.2% greater under the slow tempo

condition than under the faster tempo condition. However when consumers were questioned about

the music, they seemed to have little awareness of the music that had been playing in the store.

Scent

The smell of particular products such as leather goods, flowers, fresh bread, chocolate and coffee

can attract consumers to come into contact and purchase these products. Ambient scent can

influence shopper behaviour.

A study by Eric Spangenberg found that lavender, ginger, spearmint and orange scents had a greater

influence on shopping behaviour than no scent at all. Using distinctive smells within stores could

differentiate them from their competitors and increase shopping time and therefore sales.

Marketing Implications

As research has shown, marketing stimuli can have a great impact on consumer affect, cognitive and

behaviour. Although these almost subconscious influences seem to increase market sales it does

seem unethical playing slower music and dispersing nice smells into store in order to keep customers

shopping for longer. Although much more research needs to be conducted in this area to really

support these findings, if research indicates a direct relation between, for instance, slow music pace

resulting in higher pace, marketers need to implement this within their marketing strategies and in-

store designs.

Reference List

1 Approaches to influencing overt consumer behaviour, Exhibit 10.1 Consumer behaviour and marketing

strategy (2008:234) 2 Otnes C, McGrath, M A, Lowrey, T M 1995 Shopping with Consumers Usage as Past,

Present and Future Research Technique, Journal of Retailing and Consumer Services Vol 2, No 2. pp. 97 110,

1995

93

Customer Satisfaction and Loyalty

What makes customers loyal?

Why does it matter?

More complex than you might assume and difficult to measure

• People are very different

• What we say is not what we mean

• Lack of depth of understanding

• Need to link overt behavior to affect and cognitive components

Has led to a new ‘branch’ of marketing: ‘relationship marketing’

• The cost of acquiring a new customer is 5-7 times greater than retaining a current one

(better to keep them)

• Satisfied (loyal) customers tell 5 other people about their good treatment (positive W.O.M)

• Dissatisfied customers tell 9 other people (negative W.O.M)

94

The recovery Paradox

The initially disappointed customer who has experienced good service recovery might be even more

loyal than they were before the initial failure

Marketing Strategies to keep customers loyal As previously said, it is generally less expensive to keep hold of present customers than to attract

new ones. Therefore it is important that marketers include customer loyalty strategies within their

businesses.

A loyalty card appears in the consumers’ environment to aid positive affect and understanding

which is said to lead to increased behaviour. Ultimately, a loyalty card is a way of rewarding a

satisfied consumer- the more you shop, the more you get back. According to (Consumer loyalty to

retailers, 2002) “The UK has 35 million loyalty cards in use on a regular basis. Most consumers have

more than one loyalty card making for multiple usage.” 37

Many supermarket chains have adopted the idea of loyalty cards. The most famous example is

Tesco’s Clubcard.

37 Consumer loyalty to retailers (2002) does consumer Loyalty to Retailers have a Future? [online] Available

from: http://www.cm4p.com/art004.html [Accessed Tuesday 9th February 2010]

95

Introduced 14 years ago, now “has an estimated 16 million members, equating the three-quarters of all Tesco shoppers in the UK each week.” (Tesco uses loyalty scheme to drive growth: Warc, 2009) 38

Tesco’s have successfully exploited this information gathered by the loyalty clubcards and have carefully used it to customise different types of personalised mailings to their customers. The company has over 4million variations for each mailing.

Research suggests that loyalty programmes properly designed and targeted can serve 5 goals. ‘Keep customers from defecting; win greater share of wallet; prompt customers to make additional purchases; yield insights into customer behaviour; and help turn a profit’ (2010:73) 39

Other Brands which have jumped on the loyalty card bandwagon are Boots.

“The biggest pharmacy in the county wanted to build a bridge between their brand attribute

trust and understanding. They felt that their store environment needed to deliver the same trust

that consumers get from the brand and to do this required the development of more active

customer loyalty” (Shopping, the purest pleasure of all with a Boots Advantage card: 1998) 40

. The Advantage Card was consequently launched after a successful pre-test in Norwich and

Plymouth. Boots wanted to;

1. Increase profitability per customer by increasing basket size/frequency of visit. 2. Provide an overt manifestation of the ‘look good, feel good’ strategy – an inspirational,

female focus. 3. Afford more informed decision making. 4. Enable BTC to leverage incremental revenue on database exploitation via:

analysis; promotions; Mailings. Grow shareholder value in the long term

38 Tesco uses Loyalty Scheme to drive growth (2009) [online] Available from:

http://www.warc.com/ArticleCenter/Default.asp?CType=N&NID=WORDSEARCH25779&Tab=A [Accessed

Tuesday 9th

February 2010] 39

Consumer behaviour, a European perspective (2010:73) M.R Solomon, G. Bamossy, S. Askegaard, M.K Hogg 40

Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’s the pioneers that get scalped

[online] Available from:

http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A

[Accessed Wednesday 10th

February 2010]

96

“Ownership of an Advantage Card meant that store visits had increased, as well as the tendency to

purchase from Boots.” “Consumer research was conducted which showed that consumers would stop

to think whether they could purchase the same product from Boots to get their points in return” 41

However researchers have warned of the potential dangers of designing schemes which reward loyalty; ‘reward volume over profit; give too much away in terms of profit margin; and promise more than can be delivered’ (2010:74)

Databases and customer profiling is a good idea in terms of keeping customers loyal although brands and businesses need to be careful not to annoy their customers and send them too much marketing promotion via email or post. This annoyance will cease loyalty and loose customers.

Relationship Marketing

“To establish maintain and enhance relationships with customers and other partners at a profit so that the objectives of the parties involved are met. This is achieved by mutual exchange and fulfilment of promises.” (Gronroos (1997:327) 42

The relationship ladder

43

41 Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’s the pioneers that get scalped

[online] Available from:

http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A [Accessed

Wednesday 10th

February 2010]

42

Grönroos, C. (1997), "Value-driven relational marketing: from products to resources and competencies", Journal of Marketing Management, No.13, pp.407-19 43

Relationship Marketing, Malcolm Taft, lecture notes, 12/04/2010 (blackboard, university of Lincoln)

97

The relationship ladder illustrates stages of the relationship between customers and

businesses/brands/products. As customers use a particular business, they form a relationship with it,

after the ‘meeting’ stage; hopefully customers will repeat business and move up stages in the ladder.

At ‘engagement’ and ‘marriage’ stage the relationship is at its peak. If brands/businesses/products

fail to keep the relationship going or have or customers have gone elsewhere, leading to the

‘divorce’ stage of the ladder.

Critical Incident Technique

There has been a substantial growth in services in the last two decades; healthcare, legal,

amusement & recreation, accounting, engineering, business, automotive and hospitality services

have all grown in double the rate compared to other industries. The service economy will continue to

grow in western society as more of our income is spent on services rather than manufactured goods.

Critical incident Technique (CIT) allows marketers to investigate and gain a greater understanding of

situations where quality fails within services. I.e. where a critical incident occurs. Among the data

collection techniques which can be used are personal interviews, focus group interviews and direct

or participatory observation.

The main advantages of CIT are that it generates detailed descriptions of critical incidents of those

interviewed. The customer has the opportunity to describe the situation in their own words. The

accounts given describe the micro processes in the relationship between the consumer and the

producer.

Although the method has its limitations, the interviewer can misrepresent, filter or simply miss-

understand the respondent. To ensure this does not happen it is essential the interviewer remains

fully aware with the service being studied. There is also the danger of the interviewers pre-

understanding opinions which may steer the collection of data to become bias.

In order to gain as much validity as possible the interviewer must describe the accounts as

unambiguous as possible. It is important that the researcher asks specific questions about incidents

that the interviewee remembers well and that the questions are followed up further to ensure the

interviewee has given a comprehensive and detailed account of the incident in question. The

account should be written down directly and read back to the interviewee to check that it is correct

and complete.

The interviewer may use a simple model of CIT to use as a sort of guide for the interview.

Data collection and Analytical model example (case study) 44

In 1989 four students made a survey of Critical incidents in an airline. Only negative critical incidents

were studied. The sample consisted of 320 business passengers and 80 employees. The respondents

44Edvardsson, B., (1992) Service Breakdowns: A study of Critical Incidents in an Airline, Journal of

Service Industry Management, Vol 3 No 4

98

were selected at random at 4 different airports. The data was collected over several different times

over the course of a month. The respondents were asked to give information on two critical

incidents. Cause-course-result. The advantage of interviewing both employees and customers gave

researchers in depth insights into the differences in their attitudes to ordinary problems in the

service. The respondents were interviewed in detail about their critical incidents they had

experienced. The critical incidents were broken down into main categories, for example air

transport, and also sub-categories occurring at the airport or on board the aircraft. The sub

categories were; delayed flight, cancelation, delayed luggage, over booking and lack of information.

Cause

The results showed that the most common critical incidents occurred within air transport. The

conditions causing the CI were delays (114) cancellation (112) delayed or damaged luggage (26)

overbooking (14) and other sources (8)

Course

In most cases the business passengers said they were passive, and did not try to do anything to try to

resolve the problem which arose from the critical incident. They appeared to have confidence in the

employees.

Results

The results showed that in 80% of cases the customers did not change their attitudes and the

relationship with the air company. In 16% of cases relationships were weakened. In 4% of cases it

actually strengthened the relationship.

After interviewing both customers and airline staff the results showed a considerable difference in

the ways business passengers viewed the service and how staff perceived the service. The study

revealed that staff was not aware of the importance of clear and correct information when critical

incidents occur. The customer needs to know why there is a problem and what the likely outcome is.

It would allow the customer with the opportunity to influence their own situation. The results

revealed that the airline should train its own staff especially with communication techniques.

Evaluation

The study shows that Critical Incident Technique is a useful research tool providing interesting and

meaningful information about customers, as well as useful in trying to involve employees with the

quality of their work. The difficulty with CIT is that it involves a lot of classifying and interpretation

of the incidents which as previously mentioned can affect validity. In this case CIT has proved a

useful method of identifying and analysing defects in quality.

However according to the article, most companies marketing strategies are primarily concerned with

attracting new customers. And only recently ahs the attention been directed at looking after existing

customers.

99

Reference List

1 Consumer loyalty to retailers (2002) does consumer Loyalty to Retailers have a Future? [online] Available

from: http://www.cm4p.com/art004.html [Accessed Tuesday 9th February 2010] 2 Tesco uses Loyalty Scheme

to drive growth (2009) [online] Available from: http://www.warc.com/ArticleCenter/Default.asp?CType=N&NID=WORDSEARCH25779&Tab=A [Accessed Tuesday 9

th February 2010]

3 Consumer behaviour, a European perspective (2010:73) M.R Solomon, G.

Bamossy, S. Askegaard, M.K Hogg 4 Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’s

the pioneers that get scalped [online] Available from: http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A [Accessed Wednesday 10

th February 2010]

5 Shopping, the purest pleasure of all with a Boots Advantage card (1998) It’s

the pioneers that get scalped [online] Available from: http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=WORDSEARCH6014&Tab=A [Accessed Wednesday 10

th February 2010]

6 Grönroos, C. (1997), "Value-driven relational marketing: from products to

resources and competencies", Journal of Marketing Management, No.13, pp.407-19 7 Relationship Marketing, Malcolm Taft, lecture notes, 12/04/2010 (blackboard, university of Lincoln)

8Edvardsson, B., (1992) Service Breakdowns: A study of Critical Incidents in an Airline, Journal of Service

Industry Management, Vol 3 No 4

100

Critical Evaluation of Research Methods

What we have done, Research Techniques: Personal Introspection

Measuring Means-End Chains

Laddering Interviews

Attitude measurement – Multi Attribute Model

VALS type Survey

Questionnaires

Critical Incident Technique

Observation

When are the techniques appropriate? This will depend on the nature of research problem. However in this case we are looking at

consumers affect, cognition, environment and behaviour. The researcher is interested in various

factors related to these elements such as attitudes and intentions. For this type of research

qualitative techniques are most useful.

Qualitative techniques allow researchers to study the behaviour of individuals in all the complexity

of their real-life situations. Popular Qualitative research techniques include focus groups, interviews

and observation techniques. In this portfolio I have evaluated several methods of research in order

to gain in-depth information about consumers buying behaviour.

For instance, personal introspection; where researchers shop with consumers with as little

interference as possible and then will often interview them straight after their shopping experience.

This technique is great because it gives the researcher a real proximity to the consumer who will

notice purchase behaviour more typically than the consumer, which the researcher can then ask

questions about later. In a lot of the previous cases where introspection has been used, consumers

have often felt open and chatted away to researchers which gave them an insightful view of the

influences on the consumer. Similar observation techniques are useful to marketers although they

do not allow any interference from the researcher in any way, they simply record what they observe.

This highly flexible method allows researchers to record a wide variety of consumer phenomena.

Other techniques analysed were the use of laddering interviews and means end chains. Means end

chains illustrate the consumers’ individual associations between product attributes, their

consequences and their personal values. Means –end chain results can become the basis of MECCA’s

model which can lead to the advertisement or the focus of the campaign.

One of the most influential models within marketing; Fishbines Multi Attribute model, which focuses

on consumers beliefs about multiple product or brand attributes. The Multi Attribute model is a

useful tool in marketing for investigating attitude formation and predicting attitudes.

101

Critical Incident technique is primarily used for understanding where quality fails within services. The

technique involves interviewing respondents in order to reveal any critical incidents they have

experienced, and what affect this has had on their attitudes and beliefs towards the company/brand

in question. This technique is useful because consumers give detailed accounts of their experiences.

CIT can reveal issues companies may not have known about previously.

VALS identifies the psychological motivations that can predict consumer differences. Dividing US

adults into 8 different kinds of mindsets. Psychographics analysis allows marketers to understand

consumer lifestyles of core customers, allowing them to communicate more effectively with people

in that particular segment.

Many large companies such as Microsoft and Facebook sell consumer information to marketers so

that advertisers can personailse adverts to particular types of people.

Traditional quantitative research such as questionnaires are popular a marketing research method.

Most consumers are familiar with questionnaires, the researcher has control in the specific

questions they want to ask, it is a relatively low cost technique and technology has certainly made it

easier to reach larger samples and ensure high quantities of data.

In general these techniques encourage participants to expand on their responses, unlike surveys;

their responses can open up new topic areas which marketers may initially not have thought of.

Participants can give researchers a detailed picture about particular behaviours and feelings about

these actions.

What are the limitations? Personal Introspection

Although consumers give detailed information about their shopping experiences, the reasons for the

particular behaviours and attitudes and values cannot be obtained without further probing. It can be

a particular lengthy written process.

Means End Chains & Laddering

When constructing laddering interviews, the consumer may struggle to understand why they behave

in particular ways, the process can often become frustrating. Consumers minds don’t work one way,

there are hundreds of conscious and unconscious factors affecting attitudes and beliefs, the fact is

that the consumer is simply not aware of many of these. The researcher has to be especially skilled

in order to carry out these interviews otherwise the process can be simply a waste of time and

resources.

Multi-attribute model

Consumers’ evaluations of salient beliefs are not necessarily fixed over time and vary across

different situations. In order to keep up to date with consumers attitudes and beliefs research must

be regular. The Multi-attribute model is simply a guide for devising strategies.

102

Critical incident technique

CIT involves a lot of classifying and interpretation of the incidents and the interviewer may miss-

interpret the respondent. To ensure this does not happen it is essential the interviewer remains fully

aware with the service being studied. There is also the danger of the interviewers pre-understanding

opinions, which may steer the collection of data to become bias.

Observation

This method is unstructured and generally not used for recording behaviour as it occurs, the

unstructured format can lead to observation bias, Also the data and the researchers interpretation

are highly subjective therefore limiting validity.

Questionnaires

Respondents often don’t write down desired answers or sometimes no answers at all. Respondents

may be unaware of underlying reasons for their buyer behaviour, often, if a question is too difficult

the respondent will simply ignore the question. People are often unwilling to provide personal

information such as religious beliefs. Because of the way structured data bases are set out, certain

phrases or words may be lost during the data collection, and therefore limit validity about beliefs

and feelings.

Usually these types of studies are very time consuming and therefore unless time, staff and budget is

endless, it means that only small samples are studied. Because so few people are studied it is not

possible to generalise results to that of the population, numbers are reported instead of percentages

in these cases. It is difficult to make systematic comparisons if people give widely differing

responses. The success of these techniques are dependent on the skills of the researcher,

particularly in means end chains, laddering interviews and focus groups.

How do the techniques fit into framework for research?

The above techniques, particularly qualitative

methods such as means-end chain and laddering

focus on the strengths and evaluation of salient

beliefs. The multi attribute model that follows on

from these techniques is very useful for marketers to

explore consumer behaviour and develop marketing

strategies.

Observation techniques are good for studying

shopper’s behaviour and through the use of both

quantitative and qualitative research can discover

various patterns to behaviour. Means end chains and

laddering interviews can support the cognitive

103

affects that affect the behaviour, these techniques can also help understand environmental

influences from subjective norms and various marketing stimuli which again affect overt behaviour.

How do I choose a research method? In order to gain a deep understanding of consumer behaviour, researchers need to choose a variety

of both quantitative and qualitative techniques. If possible, a mixture of the above techniques will

provide the marketer with an understanding of consumers affect, cognition and behaviour and the

influences the environment has on these elements. Resources need to be considered and a budget

has to be set. Time limits will also depend on which research methods are selected. After weighing

up the advantages and disadvantages for both, management should allocate an experienced

research team to carry out the research methods effectively.

104

Conclusion

This portfolio has examined various aspects of consumer behaviour in relation to the wheel of

consumer analysis. Covering elements of consumers’ choice cognition and affection; looking at

consumers decision making product knowledge, involvement and attitudes and intentions. I have

studied consumers motivations and personality and considered behaviour within the retail space,

and the various marketing stimuli within that environment. The portfolio applies theory and

techniques to real life marketing strategies and there implications. Throughout this collection of

work there has been a significant emphasis on consumer research methods, involving the different

types of qualitative and quantitative techniques and the variety of methods available to the

researcher. This study has only just scratched the surface of the complexity of the consumer buyer

behaviour process and the influences on it. The wheel of consumer research is a very useful

framework when investigating consumer behaviour and developing marketing strategies.

105

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