Consumer Behavior - Chapter 13 - Situational Influences

What are the components of physical surroundings?

1. Colors 2. Aromas 3. Music 4. Crowding 5. Decor 6. sounds 7. Lighting 8. Weather 9. Configuration of merchandise or other materials surrounding the stimulus object

Two Types of Crowding:

1. Crowding of goods in the store 2. Crowding of actual people within the space (employees, customers etc.)

Types of Antecedent States?

1. Moods 2. Momentary Conditions

Five Steps for Developing Situation-Based Marketing Strategies:

1. Study - Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage satiations that influence the consumption 2. Survey - a larger sample of consumers to better understand and quantify how the product is used and the benefits sought in the usage situation by the market segment 3. Construct a person-situation segmentation matrix 4. Evaluate - each cell in terms of potential 5. Develop and implement a marketing strategy - for those cells that offer sufficient profit potential given your capabilities

What are the four types of situations?

1. The Communications Situation 2. The Purchase Situation 3. The Usage Situation 4. The Disposition Situation

Example of the Communication Situation

An advertiser places an ad for golf clubs on a golf channel --> communication

Example of Usage Situation

Andi buys more chicken soup when she is feeling ill then when she is not ill --> usage

Colors

Certain colors create feelings of excitement and arousal that are related to attention Bright colors are more amusing than dull colors; warm colors are more arousing than cool colors Different colors elicit different feelings (i.e. red/yellow = hunger)

Disposition Situation

How we dispose of products can effect consumers decisions How would your disposition decision differ in these situations? 1. You have finished a soft drink in a can at the mall. There is a trashcan nearby, but there is not sign of a recycling container 2. You have finished reading the newspaper after class, and you note that you are running late for a basketball game 3. You and two friends have finished soft drinks. Both your friends toss the recyclable cans in a nearby garbage container 4. A local charity will accept old refrigerators if they are delivered to the charity. Your garbage service will haul one to the dump for $15. You just bought a new refrigerator. You don't know anyone with a pickup or a van that can help move the refrigerator.

[Color Example] What color would be best for store interiors?

It depends For the dominant interior color, cool colors should be used because they increase sales and customer satisfaction Warm-colors are attention getting and can be used effectively as accent colors in areas where the retailer wants to attract attention; drive impulse sales Cool Colors induce feelings of relaxation and reduce wait time perceptions

The Purchase Situation

Marketers must understand how purchase situations influence consumers in order to develop marketing strategies that enhance the purchase of their products How would you alter your decisions to purchase a beverage in the following situations 1. A good friend says, "That stuff is bad for you." 2. The store you visit does not carry your favorite brand. 3. You are with someone you want to impress 4. You are in a bad mood.

The Usage Situation

Marketers need to understand the usage situations for which their products are, or may become, appropriate What beverage would you prefer to consume in each of the following usage situations? 1. Friday afternoon after you last final exam 2. With your parents for lunch 3. After dinner on a cold evening 4. At a dinner with a friend you have not seen in years 5. When you are feeling sad or homesick Expanding the usage situation can produce major sales for your company

The Communication Situation

Marketers often attempt to place ads in the appropriate media contexts to enhance effectiveness Finding high interest buyers in receptive communication situations is difficult Would you be receptive to an offering if... 1. Your favorite team just lost the most important game of the year 2. You have the flu 3. You are trying to study

Example of Disposition Situation

Natalia bought the all-in-one tuna packet with crackers because it included a spoon and could easily dispose of it --> disposition

Store Atmosphere

Physical surrounding The sum of all the physical features of a retail environment Include: -Atmospherics -Atmosphere

Consumer Behavior in the News: Can you guess what percent of revenues and profits McDonald's gets from breakfast? Revenues: Profits:

Revenues: 25% Profits: 50% Opportunity relates to usage situation and is driven by time pressure and other factors Portability is key as many eat in their cars or at their desk

Aromas

Scented environment produced a greater intent to revisit the store. Hollister sprays their perfume in the store, has loud music, dark lighting, and chair outside the store. That's Hollister's aroma, used to attract the crowd they want. For example, chairs outside for parents who don't want to go in

What are the five key dimensions or characteristics of situations?

Situations can be described on a number of dimensions which determine their influence on consumer behavior The 5 key dimensions or characteristics are: 1. Physical Surroundings 2. Social Surroundings 3. Temporal Perspectives 4. Task Definition 5. Antecedent States

Music Example (Chart)

Slow music is better in numbers, but MUST ASK YOURSELF "When is it appropriate to play slow verses fast music?" Five Guys plays fast music because they rely on fast turnaround due to it being cheaper food. Fancy restaurant plays slow music, no need to fast turnaround Some restaurant has experimented with this and play certain music on certain days Fast music can cause intimidation, so customers are least likely to approach management to ask for help

Music

Tempo is important. Also, important to match music style to the target market. Music can influence consumption behavior in both traditional retailer settings and in online settings

Momentary Conditions

Temporary states of being (tired, ill, having extra money, being broke, etc.)

Task Definiton

The reason the consumption activity is occurring (i.e. why are you shopping?) Major distinction between purchases for self versus gifts Consumers give gifts for many reasons: 1. Social Expectations 2. Ritualized Situations 3. To Elicit Return Favors

Example of Purchase Situation

Wendall decided not to get a coffee because the line was too long --> missed purchase opportunity

Embarrassment

a negative emotion influenced by both the product and the situation EX: Tampons, Playboy Mag, Condoms --> solution buy online or self-checkout counters

Ritual Situations

a socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning critical to marketers because they often involve prescribed consumption behaviors however, ritual behavior can involve injurious consumption, such as binge drinking range from public to private EX: Private ritual would be to drink a private toast or say a private prayer on the anniversary of an event. Public ritual is to visit the same restaurant every year on your anniversary.

Temporal Perspective

deal with the effect of time on consumer behavior limited purchase time often limits search internet shopping is growing rapidly as a result of the time pressures felt by consumers

Crowding

generally produces negative outcomes for both the retail outlet and consumer As more people enter a store or more space is filled with merchandise, shoppers begin to feel crowded, confined, or claustrophobic Marketers' should design their outlets in a way that reduces feelings of crowding few things on the floor and racks in stores comes across as higher-end products. Crowded shelves of products look like low-end products. Customers will spend less time in the store because of this and buy less.

Situational Influences and Marketing strategy

identify the different situations that might involve the consumption of a product determine which products or brands are most likely to be purchased or consumed across those situations one method of dealing with this question is to jointly scale situations and products

Physical Surroundings

include decor, sounds, aromas, lighting, weather, and configurations of merchandise or other materials surrounding the stimulus object

Situational Influence

includes all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior Consumers often behave very differently differently depending on the situation EX: consumer may generally be upbeat (stable trait), but prior to viewing a firm, they sees a disturbing news flash that puts them in a bad mood. This bad mood is temporary factor.

Atmosphere

referred to a servicescape when describing a service business such as hospital, bank, or restaurant

Social Surroundings

the other individuals present in the particular situation What would you wear in each of the following situations? 1. Studying alone for a final 2. Meeting at the library with a date to study for a final 3. Going to a nice restaurant with a date 4. Meeting a perspective employer for lunch One new area of study on social surroundings is embarrassment

Atmospherics

the process managers use to manipulate the physical retail environment to create specific mood responses in shoppers. also, important online and is receiving increasing attention from marketers influence consumer judgements of the quality of the store and the store's image

Consumer Decision Process (Chart)

the series of steps a consumer goes through in deciding to make a purchase 1. external + internal influences 2. self-concept + lifestyle creates needs & desires 3. decision process (5 steps) -problem recognition -information search -alternative evaluation and selection -outlet selection and purchase -postpurchase processes (leads to more experiences and acquisitions, so the cycle starts over again with more internal/external influences)

Moods

transient feeling states that are generally not tied to a specific event or object