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Chapter Overview

• Consumer purchase process• Consumer buying environment• Traditional factors affecting

consumer buying• Recent trends in consumer

behavior

Discussion Slide

Consumer Buying Behavior

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Starbucks

• Why are consumers willing to pay $2.00 for a cup of coffee?

• Who are Starbucks’ target markets?• What is the marketing communication message Starbucks wants to convey?• Why has Starbucks been successful?

Discussion Slide

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Consumer Decision-Making Process

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Information Search

Internal search Evoked set External search

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External Search

Factors Affecting Search:

1. Ability to search

2. MotivationLevel of involvement

Need for cognition

Shopping enthusiasm

3. Perceived costs

4. Perceived benefits

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Attitudes and Values Affect Information

Processing

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Attitude

• An Attitude is a mental position taken toward a topic, person or event that influences the holder’s feelings, perceptions, learning processes and subsequent behaviors.

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Attitude – 3 components

Affective – feelings/emotions

Cognitive – thinking/interpretations

Conative – intentions/actions

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Attitude Sequence

Cognitive Affective Conative Affective Conative Cognitive Conative Cognitive Affective

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What emotion does this Pamper Wipes advertisement solicit?

Which attitude sequence would be the most likely for this product?

“Some things can be rough.” “Her wipe shouldn’t be one of them.”

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Personal Values Help Shape Attitudes

• Values are strongly held beliefs about various topics or concepts.

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Personal Values

• Comfortable life• Equality• Excitement• Freedom• Fun, exciting life• Happiness• Inner peace• Mature love• Personal accomplishment

• Pleasure• Salvation• Security• Self-fulfillment• Self-respect• Sense of belonging• Social acceptance• Wisdom

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Which personal values does this Aetna ad target?

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Information Processing

Elaboration Likelihood Model (ELM) Central route – cognitively process message Peripheral route – other cues (e.g., music,

background, colors, actors, etc.) influence

Hedonic, Experiential Model (HEM) Central route Peripheral route

Route depends on Motivation Ability

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Cognitive Map for Ruby Tuesday’s

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Processing of new information Cognitive map

Reinforce a current linkage. Modify a current linkage. Create a new linkage.

What linkage is Miracle Whip attempting to create or reinforce with this TV advertisement?

Click picture to play video.

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Principles concerning processing of information and cognitive mapping.

• Cognitive mapping enhances movement of messages from short-term memory to long-term memory.

• Most persuasive messages reinforce current linkages.

• Repetition is necessary to establish new linkages.

• Difficult to modify or create new linkages.

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Evaluation of Alternatives

Evoked set method Evoked set Inept set Inert set

Multiattribute approach Affect referral

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How important is it for each of the following brands to be a part of a consumer’s evoked set?

Advil (pain medicine) Head & Shoulders (shampoo) Black & Decker (power tools) C & H (sugar) Smith & Kline (attorneys) Hall’s (cough drops) Blockbuster (video rentals) Dr. Nelson (neurosurgeon) Andersen Consulting Services Pearle Vision (optical)

Discussion Slide

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Purchase Decisions

May cause shifts from alternative chosen: Temporary change in consumer’s situation. Desire for variety. Impulse purchase. Marketing communication material. Influence of friend or relative.

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How likely is each of the following marketing material to alter your purchase decision for food items?

An advertisement A coupon A sweepstake or contest offer A price-off offer An in-store display The food package A in-store sample A billboard

Discussion Slide

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Postpurchase Evaluation

Evaluation of product performance. Cognitive dissonance. Impacts future purchases. Impacts word-of-mouth communications.

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Traditional factors affecting consumer purchasing behaviors

• Demographics (age, gender, income, etc.)

• Heredity and home environment• Family life cycle• Life changing events• Cultural environment• Social environment• Situational environment

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What makes this advertisement appealing to teenagers?

Is it an effective ad design?

Discussion Slide

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Family Life Cycle

• Single• Newlyweds• First families

• Divorce and mixed families

• Full nest• Empty nest• Remaining partner

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An advertisement directed to first families and the arrival of a new baby.

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Who is the target of this State Farm advertisement?

Is it an effective advertisement?

Is there a difference between men and women in how this advertisement is viewed?

Discussion Slide

Click image to enlarge.

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Common Reasons Purchases Are Made

• Products/services provide utility• To satisfy physical needs• To satisfy psychological needs• To satisfy social needs• To satisfy emotional needs• To satisfy epistemic needs

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VALS Segments

Actualizers

Fulfilleds

Believers

Achievers

Strivers

Experiencers

Makers

Strugglers

High Resources

Low Resources

Action-orientedPrinciple-oriented Status-oriented

VALS Segment Profiles

http://www.sric-bi.com/VALS/

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Recent Trends AffectingConsumer Buying Behavior

• Changes in cultural values and attitudes• Time pressure and busy lifestyle• Cocooning• Indulgences and pleasure binges• Desire for excitement, fantasy• Emphasis on health• Clanning

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Seven Excuses for Not Eating Better

How do the following excuses for not eating better, more healthful meals relate to the consumer trends just presented?

• Eating right costs too much.• I can’t fit in the recommended 5 daily servings of fruits and

vegetables.• I don’t have time to eat right.• My sweet tooth rules, so I can’t eat well.• I enjoy (or depend on) fast food too much to eat right.• It doesn’t matter because I take a vitamin pill.• I eat too much to ever be able to eat right.

Source: “Seven Excuses for not Eating Better,” Tufts University Health & Nutrition Letter, Dec. 1998, Vol. 16, No. 10, p. 8.

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INTEGRATED LEARNING EXPERIENCESTOP

Marketing to specific demographic and international groups

• Asian Consumer Marketing• Http://www.apmforum.com/emerald/asian-consumer-marketing.htm

• Women• Http://www.women.com

• Senior citizens• Http://online96.com/seniors

• Lesbian and gay community• Http://www.planetout.com

• Hispanics• http://www.hispaniconline.com/

• African-Americans• Http://www.targetmarketnews.com

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• Describe the typical consumer decision process.

• Describe the typical attitude sequence.• Think about the cognitive map.• Investigate factors most likely to influence

purchase decisions.• How does the product fit into recent

consumer trends?

Building Your IMC Campaign