Chapter 15 Consumer Behavior Belmont

PRIOR RESEARCH

Confidence has been studied from two dimensions: Degree of certainty perceived toward a brand Confidence in one's ability to judge or evaluatebrand or product attributes

external search

if a resolution is not reached through internal search, then the search pro- cess is focused on external information relevant to solving the problem // which can involve independent sources, personal sources, marketer-based infor- mation, and product experience.

complete

important outcome of information search is the development of a_______ evoked set.

external information that is actively acquired

independent groups, personal contacts, marketer information, experiential

Experiential sources

inspection or product trial

permission-based e-mail (PBE)

, in which the consumer "opts in" to receive e-mail, is the norm for most reputable marketers

A consumer decision requires information on the following

- The appropriate evaluative criteria for the solution of a problem. - The existence of various alternative solutions. - The performance level or characteristic of each alternative solution on each evaluative criterion.

Here is what a consumer generally needs to solve a perceived problem

1. Appropriate EVALUATIVE CRITERIA for the solution of the problem 2. Existence of various ALTERNATE SOLUTIONS 3. PERFORMANCE LEVEL or characteristic of each alternative solution on each pertinent evaluative criterion

PERFORMANCE LEVEL or characteristic of each alternative solution on each pertinent evaluative criterion

Actual price of each alternative - generally a specific $$$ amount Perceived quality - usually more subjective (not an actual quantitative #) Other features (e.g., Messaging) - may be 'binary'; either a brand has thefeature or it does not, i.e., Yes/No

90%

Almost up to ______ of the U.S. population who use the Internet

internal search.

An information search in which buyers search their memories for information about products that might solve their problem

Capture Strategy"capture as large a market share as possible; generally involves a few brands on only a few criteria; most decisions occur at POP or in readily available media prior to purchase"

Attention-attracting ads and strong benefit or other inducement to try the brand Information on price and availability (most common)  in as many places as feasible (including website) Premiums for shelf space placement/search  engine visibility, POP displays Also consistent product quality &  adequate distribution

Existence of various ALTERNATE SOLUTIONS

Awareness sets ALWAYS larger than Evoked sets Evoked sets CAN be a single brand (think nominal decision-making) Evoked sets CAN be somewhat large for someproduct categories (think extended decision-making but could also be based on "variety-seeking

lower sales personnel costs

Companies are depending on online information sources to _____

Maintenance Strategy"Maintain current behaviors"

Consistent attention to product quality Continuous product improvement to  counter competition Distribution...avoid stock-outs Reinforcement advertising strategy; Must also counter competitive short-term  promotional tactics (rebates, coupons, POPs)

EXPECT

Consumers now _____ online information to be available on a product/brand

write

For some extended decisions, a consumer may ______ all of this down due to the complexity and perceived risk of decision; most are more 'mental math' and thinking

Quantity and Quality of Existing Information

How much do you know about the product?; How much do you need to know? How reliable is the information you already have? (i.e., is it based on direct experience? Heresay vs. trusted friend of known expert? Questionable news sources? Marketer who stands to benefit from the purchase? The more times a product has been purchased, the less likely is search The more different brands that have been purchased, the less likely is search The more time that has lapsed since the last purchase, the more likely is search The greater the rate of change in available alternatives, the more likely is search The one exception? feelings of being overwhelmed

negative products

In contrast, shopping for ________ those whose primary benefit is negative reinforcement, or the removal of an unpleasant condition (e.g., grocery shopping, auto repairs)—is viewed as less pleasant.

information availability

In general, _________ , including format, is directly related to information use

Online information boosts offline sales!

It's not just about Online vs. Offline channels ...

limited

Marketing-originated messages are only one of five potential information sources, and they are frequently reported to be of _______ direct value in consumer decisions.

Preference Strategy"extended decision-making, with several brands, multiple criteria, andnumerous information sources"

Must 'win' on the attributes most important to the target market (see Ch. 16) Cast broad net across network of potential information sources Extensive advertising Build 'influencers' network (e.g., bloggers, street team, pharmacists, etc.) Salesperson incentives can be effective Attractive and 'deep' well-designed website

Acceptance Strategy"similar to Preference, yet consumers NOT seeking information on your brand; must motivate them to want to learn about you"

Must attract attention (extensiveadvertising; visible location) Generate product trial/experience (e.g., test drive?) Keyword searches tend to be generic andopen up opportunities Again, excellent website a must Overall goal: persuade consumer to addbrand to evoked set

greater the number of alternatives

Obviously, the _______ (products, stores, brands) available to resolve a particular problem, the more external search there is likely to be.

VALUED

Online sources are _______ by consumers (company and 3rd party websites now routinely outperform traditional Print/TV media as information sources)

Intercept Strategy"since not in the evoked set, will need to 'intercept' the customer whileengaged in search for related information on other brands

Second-worst situation to be in but at least limited-decision making Emphasis on local media with cooperative advertising POP displays, shelf space, package design, etc. Coupons and other sales promotion  inducements can be effective Search engine placement near evoked set brands

perceived range

The ______ of prices among equivalent brands in a product class is a major factor in stimulating external search.

gather information about each brand on each pertinent evaluative criterion

To choose among the brands in the evoked set, the consumer compares them on relevant evaluative criteria. This process requires the consumer to ____

negatively

Usage is ________ correlated with age

positively

Usage is ________ correlated with income and education

cost benefit analysis

What generally determines whether a consumer searches further?

Disrupt Strategy"Break current pattern of behavior"

Worst possible starting point! (no initial interest; no previous experience) Low involvement learning over time (some passive learning?) Attention-attracting advertising designed to  increase importance of decision/ comparative advertising Sales promotion activities (mobile coupons,  samples, rebates, tie-in sales, pop-up ads) Attention-attracting POP displays or  package designs Extensive web/omnichannel visibility

Driving a firm's information to consumers is important

_____ since consumers are not always actively searching. One way is through web advertising, including banner ads

Within information search

_____ we focus on (1) the amount and type of search, (2) categories of decision alternatives relating to the evoked set, (3) sources and channels of information including the Internet and mobile, (4) the cost-benefit factors driving external search, and (5) marketing strategies based on information search patterns.

Perceived product differentiation—

_______ feature and quality variation across brands—is associated with increased external search.

behavioral targeting

_______ involves tracking consumer click patterns on a website and using that information to decide on banner ad placement.4

bots

_______ or software "robots," that do the shopping/searching for users

Consumer Reports

_________ bases its evaluation on the functional characteristics of the product, as do personal sources such as friends.

preference strategy

brand is in the evoked set and is extended

capture strategy

brand is in the evoked set and is limited

maintenance strategy

brand is in the evoked set and is nominal

acceptance strategy

brand is not in the evoked set and is extended

intercept strategy

brand is not in the evoked set and is limited

Disrupt Strategy

brand is not in the evoked set and is nominal

memory, personal sources, independent sources, marketing sources, experiential sources

five primary sources of information available to consumers:

prior to purchase.

external information search is skewed toward limited search, with the greatest proportion of consumers per- forming little external search immediately______

Search engine optimization (SEO)

involves techniques designed to ensure that a com- pany's web pages "are accessible to search engines and focused in ways that help improve the chances they will be found."43

information overload

is a challenge on the Internet

awareness set

is composed of those brands consumers are aware of

inert set

is composed of those brands consumers are aware of and view in a neutral manner.

inept set

is composed of those brands consumers are aware of and view negatively.

evoked set (also called the consideration set)

is composed of those brands or products one will evaluate for the solution of a particular consumer problem.

Local mobile search

is defined as searches for information from a mobile device pertaining to the cur- rent (or future planned) geographic location of a consumer

Ongoing search

is done both to acquire information for possible later use and because the process itself is pleasurable.

internal information that is passively acquired

low involvement learning

independent sources

magazines, consumer groups, and government agencies

external

note that information in long-term memory was initially obtained from ________ sources.

market characteristics, product characteristics, consumer characteristics, and situation characteristics

our basic types of factors that influence the expected benefits and perceived costs of search both online and offline:

internal information that is actively acquired

past searches, personal experience

memory

past searches, personal experiences, and low-involvement learning.

marketing sources

sales personnel, websites, and advertising

Confidence in Decision-Making Ability

some people are prone to have more doubts about their abilities to make a correct decision, thus a greater propensity to search

Ability to Recall Information

some people have better memories than others; those who don't retain or can't recall may decide to search for it

personal sources

such as friends, family, and others.

Store distribution

the number, location, and distances between retail stores in the market—affects the number of store visits a consumer will make before purchase

Once a problem is recognized, relevant information from long-term memory is used

to determine such things as (1) if a satisfactory solution is known, (2) what the characteristics of potential solutions are, and (3) what appropriate ways exist to compare solutions.