Consumer Behavior
3 Elements of Problem Solving:
1. Problem Representation 2. Integration Process 3. Decision Plans
Cognitive Response
Cognition: The THINKING or mental processes that go on as we process and store things that can become knowledge. 1. Understanding - interpret meaning 2. Evaluating - judging 3. Planning - how to solve or reach 4.. Deciding - comparing alternatives 5. Thinking - cognitive activity that occurs during these other processes ex. Reading the directions of an IKEA product. Comparing products on a website for purchase. beliefs about particular product stored in memory, -conscious or automatic thinking processes physical stimuli: sweater is made of lambs wool social stimuli: salesperson was helpful affective responses: I love Dove chocolate ice cream bars symbolic meanings: this car is sexy sensations: colors on a box of breakfast cereal behaviors: I drink a lot of Diet Coke
Wheel of Consumer Analysis
Consumer Affect and Cognition -> Consumer Behavior -> Consumer Environment ->
3. Decision Plans
INTENTIONS to perform PARTICULAR behaviors in highly defined situation increase likelihood that intended behaviors will be performed -vary in specificity and complexity blocked/modified intention- store sold out of product Low involvement, low knowledge= routinized or very limited problem solving HABITUAL LOW RISK buying a coke High involvement, low knowledge= extensive problem solving EXTENDED HIGH RISK buying a car HIGHER involvement = extensive problem solving. extensive, limited, and routinized or habitual
External Influences
Include the social and cultural aspects of life as a consumer Social environment: the people and groups who help shape a consumer's everyday experiences Situational influences: Unique to a time or place that can affect consumer decision making and the value received from consumption Important to marketing because it is the medium in which stimuli are placed to influence consumers.
How does consumer behavior involve interactions?
Interactions among people's thinking, feelings and actions, and the environment Marketers need to understand: -What products and brands mean to consumers? -What consumers must do to purchase and use them? -What influences shopping, purchase, and consumption?
Early marketing concept
The concept was not implemented in the entire organization and viewed more as a marketing task
Internal Influences
Things that go on inside of the consumer or that can be thought of as part of the consumer -The psychology of the consumer: Affect and Cognition -The personality of the consumer: individual differences
Value=
What you get (quality, convenience, emotions, prestige, experience, scarcity, nostalgia) - What you give (time, money, effort, opportunity, emotions, image) = Value It is a personal assessment of the net worth a consumer obtains from an activity Marketing perspective Relevant value - received from activities involving interactions between consumers and the firm or its products
Information-Processing Models
explain how the cognitive system processes information -identify a sequence of cognitive processes in which each process transforms or modifies info and passes it on to the next process, where additional operations take place
Product Involvement
involvement: consumers perceptions of importance or personal relevance for an object, event, activity. -not just high/low -energizes consumers cognitive and affective processes and behaviors as decisions are made felt involvement: involvement is a psychological state, consumers experience only at certain times/occasions --> when the means-end knowledge about personal relevance of product is activated. -activities or behaviors -people -physical objects -products and brands CONSUMERS FEELINGS OF INVOLVEMENT ARE DETERMINED BY INTRINSIC SELF-RELEVANCE INTRINSIC self-relevance: past experience w/ a product or vicariously through others and knowing the benefits it provides ~means-end knowledge stored in memory~ SITUATIONAL self-relevance: aspects of the immediate physical/social environment. 50% off sign, BOGO, "I can get a good deal!" activates important consequences and values, thus making products and brands seem self-relevant. MARKETERS: -Focus on consumer's involvement -sources that create it understanding consumer's product knowledge and involvement helps marketers: understand critical consumer-product relationship -develop more effective marketing strategies
Product
potentially valuable bundle of benefits (good/service)
What does a consumer give up when they buy something?
resources in the form of -time -money -energy in return for the product -Emphasis lies in the value the customer receives rather than the product itself
marketing strategy vs. marketing tactic
strategy is overarching goal to be achieved where tactics are day to day means to carry out strategy
Consumer Behavior
"the dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives" -aka involves thoughts and feelings people experience and the actions they perform in consumption processes.
Shopkick
-A highly accurate inaudible audio signal that is unique to each store that can be detected by smartphone users -The app delivers reward points called "kicks" to the user for walking into a retail store, trying on clothes, scanning a barcode and other actions. -Shopkick users can buy products with their points or donate them to causes.
Viewing consumer processes as a reciprocal system has five implications:
-All three elements (affect/cognition, environment, behavior) and their relationships must be considered in a comprehensive analysis. -Any of the three elements may be the starting point for consumer analysis. -This view is dynamic; recognizes that consumers can continuously change. -it can analyze groups, not just always one consumer -super important for developing marketing strategies
Attention and Comprehension
-Attention and comprehension are interrelated cognitive processes. -Attention and comprehension are strongly influenced by the knowledge structures activated in the exposure situation and the level of consumers' involvement. -In designing and implementing successful marketing strategies, marketers must 1. Maximize and/or maintain exposure. 2. Capture and maintain the attention. 3. Influence the target consumers to comprehend the marketing information at the appropriate level of depth and elaboration.
Consumer behavior includes all things in the environment that influence thoughts, feelings, and actions; such as:
-Comments from other consumers -Advertisements -Price information -Packaging -Product appearance
Marketing strategies are developed by manufacturers, retail stores, catalog retailers, e-tailers and other direct marketers to:
-Increase chances of favorable thoughts and feelings of particular products, services and brands among consumers. -Increase chances of trial and purchase.
Metaphors used to communicate meaning:
-Represent one thing in terms of something else: "X" (unknown) is like "Y" (known) -Can communicate both cognitive and affective meanings (thoughts and feelings) about a brand or a company. -Are critical components of effective marketing strategies. -pictorial, auditory, tactile, or verbal "Time is money" - Can you spend some time with me? - That will save time for us. - I felt like I was frozen in time. - He squandered his time on earth.
What do marketers get from the consumer decision making processes? What about Knowledge Structures?
-Understand how consumers interpret marketing strategies. -The integration processes are critical to understand consumer behavior. -Activation of product knowledge has many implications for marketing. -Attention to differences among consumers is important because the same stimulus may activate different knowledge in different consumers. -Shopper vs Consumer -Gender -Culture ******************************* Knowledge Structures: 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 -Shopping scripts. -Types of knowledge likely to be activated by particular marketing strategies.
Comprehension
-interpretation processes by which consumers understand or make sense of their own behavior -during comprehension, inferences are made by consumers INFERENCES during comprehension: -interpretations that product knowledge or beliefs that go beyond given info -play large role in construction of means-end chain -influenced by consumers' existing knowledge in memory -marketers stimulate consumers to form inferences during comprehension **price-quality inference Factors influencing comprehension: *KNOWLEDGE in memory -consumer's knowledge is expert or novice -marketers must understand existing knowledge to develop MS *INVOLVEMENT -major influence on consumers' motivation to comprehend marketing info at time of exposure *REMEMBERING -ability to recall is critical b/c consumers don't make purchases at time of exposure -growth of shopper marketing -that super bowl ad w/ the pony -marketers help motivate the rehearsal of info -chunk of info 867530niyeeeine *MISCOMPREHENSION -consumer gets it wrong -confusion over similar brand names -misinterpreting claim -inaccurate means-end chain *EXPOSURE ENVIRONMENT -can affect consumes' opportunity to comprehend marketing info -time pressure -consumers' affective states -distractions (times square ads) MARKETERS: -need to understand consumers comprehension processes to design effective marketing strategies -knowledge and involvement -ability to recall meanings -miscomprehension of info -exposure environment
why did they revise focus of the marketing concept?
-there was a dramatic increase in the quality of consumer and marketing research -Use of technology to identify and know customers personally. -Ability to track consumer reactions. -Japanese companies (toyota and sony) focus on providing customers w/ value-laden products -internet used as marketing tool (e-marketing, increased importance of consumer behavior research, marketing research studies)
Generic Model of Consumer Problem solving:
1. Problem Recognition 2. search for alternative solutions 3. evaluation of alternatives 4. purchase 5. post-purchase use and reevaluation of chosen alternative CONCERNS: actual consumer problem solving SELDOM proceeds in a linear sequence ACTUAL problem solving processes involve: -multiple,continuous interactions among consumers' cognitive processes -person's behaviors -aspects of the physical and social environment most problem-solving processes actually involve MULTIPLE PROBLEMS and MULTIPLE DECISIONS.
Why is consumer behavior Dynamic?
1. Thinking, feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing. 2. Requires ongoing consumer research and analysis of important trends. 3. Makes development of marketing strategies difficult and exciting. -Shorter product life-cycle increases importance of constant innovation.
What are the 3 approaches to the study of consumer behavior?
2. Interpretive: based on theories and methods from CULTURAL ANTHROPOLOGY. -understand consumption and its meanings -methods: long interview, focus groups ex. what products and services mean to consumers/ what consumers experience in purchasing/using them 2. Traditional: based on theories/methods from cognitive, social and behavioral PSYCHOLOGY and SOCIOLOGY -explain consumer decision making and behavior -methods: experiments, surveys ex. consumer info processing, decision processes, social influences on consumer behavior 3. Marketing science: based on theories/methods from ECONOMICS and STATISTICS -develop/test mathematical models to predict the impact of marketing strategies on consumer choice and behavior -used in consumer packaged goods industry = handle large scanner data sets -methods: math-modeling, simulation
Additional characteristics of the cognitive system:
ACTIVATION: Refers to how product knowledge is retrieved from memory for use in interpreting and integrating information. *spreading activation* -usually automatic and largely UNCONSCIOUS -Operates when consumers intentionally try to recall certain bits of knowledge. -Occurs most commonly by exposure to objects or events in the environment. -It has limited capacity: small knowledge at one time -*It becomes more automatic and unconscious with experience* -It spreads quickly, pulling in related knowledge. Jell-O ad -> activate Jell-O name -> think: "jiggly, tastes sweet, quick dessert" -> Bill Cosby used to advertise
3 Types of Cognitive Learning
Accretion: add NEW knowledge, meanings, and beliefs to their existing knowledge structures Tuning: knowledge structures COMBINED and given new meaning; consumers ADJUST their knowledge structures to make them more accurate and more generalizable. Restructuring: REVISION/ RETHINKING of associative network of knowledge; creation of entirely new meaning structures and/or reorganization of an old knowledge structure -extensive cognitive effort -substantial thinking/reasoning processes
PSYCHOLOGY of consumer: Two types of mental responses consumers exhibit toward stimuli and events in their environment:
Affect (feelings) and Cognition (thinking) CONSUMERS CAN HAVE BOTH researchers different views: -Affective and cognitive systems are independent. -Affect is largely influenced by the cognitive system. -Affect is the dominant system. -Affective and cognitive systems are highly interdependent. Marketers must understand affective and cognitive responses to strategies such as: -product design -advertisement -store layout *The affective system continuously reacts to cognitive knowledge, which in turn can influence decisions.*
Affective Response
Affect: The FEELINGS experienced during consumption activities or associated with specific objects (feeling about stimuli and events) ex. like or dislike product, intense EMOTIONS (joy, love), SPECIFIC FEELING states (satisfaction, frustration), MOODS (alert, bored), EVALUATIONS (like, good, bad) -LARGELY REACTIVE -little direct control of response -felt physically in body -respond to ANY stimulus -learned responses Affective responses are important for feeling products like: -food, -beverages -fragrances among others. The affective system continuously reacts to cognitive knowledge and those affective reactions can have powerful influences on decisions.
Cognitive systems create what kind of network that organizes and links many types of knowledge together?
Associative Networks
Attention
Attention implies selectivity. Suggests awareness and consciousness. -suggests some level of intensity and arousal *consumers need to be alert and aroused to consciously attend to something *What is attention to a consumer? A RESOURCE* book: The Attention Economy Herbert Simon (nobel prize winner) "What information consumes is rather obvious: it consumes attention of its recipients. Hence a wealth of information creates a poverty of attention." *What does attention create? AWARENESS* AFFECTIVE (feeling) STATES: -LOW affective arousal REDUCES the amount and intensity of attention -a state of HIGH affective arousal can NARROW consumers' focus of attention and make attention more SELECTIVE. ex. in a bad mood you see your environment different than when good mood Involvement -motivational state guiding stimuli selection for focal attention and comprehension. -you pay attention to what you are interested in Environmental prominence -still the most prominent marketing stimuli most likely to attract attention *Attention varies from preconscious (automatic levels) to focal level (controlled, conscious levels)*
Consumer Behavior = human behavior
Consumer Behavior: Set of value-seeking activities that take place as people go about addressing and attempting to address realized needs -A process kicks in as the consumer sets out to find ways to fill the need—thinking, feeling, behaving culminating in value (or should)
Cognitive Process
Consumer decision making involves interpretation, integration, retrieval of product knowledge from memory: 1. Interpretation of relevant information; create NEW *knowledge, meanings and beliefs* about environment and their places in it. INTERPRETATION PROCESSES involve 2 related cognitive processes: Attention: how you select info to interpret/ignore Comprehension: how you determine meaning of info 2. Integration of this knowledge: INTEGRATION PROCESSES. -how consumers combine different types of knowledge: 1. to form overall evaluations ATTITUDES of products, other objects, and behaviors 2. to choose among alternative behaviors, such as a purchase/don't purchase/rent/lease -The integration processes are critical to understand consumer behavior 3. Retrieval of product knowledge from memory -PRODUCT KNOWLEDGE: knowledge, meanings, beliefs about products STORED in memory -PRODUCT INVOLVEMENT: personal relevance of a product in consumer's lives Cognitive learning can occur during: -Direct personal use experience -Vicarious product experiences -Interpretation of product-related information
dan ariely
Countries with lower amounts of organ donors had forms that asked people to check a box if they wanted to be an organ donor. Higher donors = check box if you DONT WANT to be a organ donor. Demonstrates determinism. heuristics and bias, "predictably irrational"
Consumption Process
Deciding: -What is needed -What options for exchange are available -The inevitable reaction to consumption Factors influencing this process: -Internal influences -External influences
Marketing Strategy
Design, implementation, and control of a plan to influence exchanges to achieve organizational objectives. Marketing strategies involve developing and presenting marketing stimuli (i.e.???) directed at selected target markets to influence: -What they think? -How they feel? -What they do? another definition: a set of stimuli placed in consumers' environments designed to influence their affect, cognition, and behavior. Treated as the hub of the wheel of consumer analysis. -A central marketing activity. -Designed by marketing organizations to influence consumers. Marketing strategies should be designed not only to influence consumers but also to be influenced by them.
Environmental Effects
Environmental factors can disrupt the ongoing flow of the problem-solving process; the types of disruptive events, or interrupts being: 1. Unexpected information (store remodeled) 2. Prominent environmental stimuli (attention shoppers blahblah sale blah) 3. Affective states -Moods, or physiological events like being thirsty, hungry or confused. 4. Conflicts -Goal 1. approach-approach: 2 products w/ positive outcomes.. NEITHER will satisfy all goals for purchase 2. avoidance-avoidance: don't want to drive your old car, but too cheap to buy a new one 3. approach-avoidance: good price on a new computer, concerned the quality won't be up to standards
How does consumer behavior involve exchanges?
Exchange between people involves giving up of something of value and receiving something in return.
Two types of exposures to information
Exposure to info: critical for consumer's interpretation processes - no exposure, no interpretation. Intentional exposure: purposive -levels of intentional exposure to marketing info are rather low accidental exposure: random occur as consumers move through their environments and "accidentally" come into contact w/ marketing info Selective exposure: choose to let something in. adept at avoiding exposure (avoid talking to salespeople) and consumers do not maintain accidental exposure to marketing information (automatically throw away junk mail) MARKETERS: Strategies to enhance consumers exposure to information and products -Facilitate intentional exposure -Maximize accidental exposure -Is this a Catch 22? -Create appropriate level of exposure -Maintain exposure EXPOSURE LEADS TO ATTENTION AND COMPREHENSION PROCESSES
Intentions and Behaviors
Factors that reduce or weaken the relationship between measured behavioral intentions and observed behavior: -Intervening time -Unforeseen environmental event -Unforeseen situational context -Degree of voluntary control -New information measures of purchase intentions are often the best way to predict future purchase behaviors
Knowledge Stored in Memory; 2 types of knowledge:
GENERAL AND PROCEDURAL 1. General Knowledge: -people's interpretations of relevant info in environment -stored in memory as links or connections between 2 concepts ex. Nikon Cameras -> are expensive 2 types of general knowledge: episodic and semantic -EPISODIC: is a person's UNIQUE MEMORY of a specific event, so it will be different from someone else's recollection of the same experience. -SEMANTIC: refers to a portion of long-term memory that processes ideas and concepts that are NOT DRAWN FROM PERSONAL EXPERIENCE Knowledge Structure associated w/ General: SCHEMA: organized pattern of thought or behavior that organizes categories of information and the relationships among them *******************************-* 2. Procedural Knowledge: -how to do things -stored in memory as special type of "if....then..." links concept/event with appropriate behavior ex. If you are dissatisfied w/ service -> do not leave a tip. ordering at restaurant, gas in car, using public transportation Knowledge Structure associated w/ Procedural: SCRIPTS: organized network of linked meanings (IF - THEN) *-******************************** General and procedural knowledge is organized to form structures of knowledge in memory. Both Schemas and Scripts can be activated in decision-making situations, and they can influence cognitive processes.
What 3 groups use knowledge about consumer behavior and consumer behavior research?
Marketing organizations: (Marketing strategies) -businesses attempting to sell products -other orgs. seeking exchanges w/ consumers (hospitals, museums, law firms, universities) Government/Political Organizations: -monitoring/regulating exchanges between marketing organizations and consumers BY DEVELOPING PUBLIC POLICY -ex. Federal Trade Commission, Food+ Drug Admin. -elections? -behave in certain ways Consumers: (consumer activities) consumers and organizational buyers who exchange resources for various goods/services. -interest in making exchanges that help them achieve their goals and the UNDERSTAND OF THEIR OWN BEHAVIOR
Consumption
Process by which goods, services or ideas are used and transformed into value -Marketer and the consumer interact to produce value -Consumption outcomes affect consumer well-being by affecting quality of life Need -> Want -> exchange -> cost and benefits -> reaction -> value
Consumer analysis can be applied at several (4) levels:
Societies: Changes in what a society believes and how its members behave can be analyzed with the Wheel of Consumer Analysis. -Can also be applied to other societies to help explain their structures and practices. Industries: Analyze the relationships of a company and its competitors with consumers in specific industries. At the industry level, changes in consumer cognition, affect, and behavior can: -threaten existing products. -offer opportunities to develop products more consistent with new values and behaviors. Market Segments: Analyze groups of consumers who have some similarity in cognition, affect, behavior, and environment. Individual Consumers: Analyze the consumption history, a single purchase, or some aspect of a purchase for a specific consumer. -Rewards cards -Amazon's purchase history.
2 types of Value
Utilitarian Value: Derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer Hedonic Value:The immediate gratification that comes from experiencing some activity -end in and of itself, vs. means to an end -emotional and subjective in nature -actions done to obtain hedonic value are hard to explain objectively
3. VALUE(s) of a product
Values: peoples broad life goals; Satisfying a value usually elicits positive affect (noun), whereas failing to deliver a value produces negative affect (noun). Instrumental values: ways of behaving that have POSITIVE value (having a good time) Terminal values: PREFERRED state of being (happy, successful) Core values: for key elements on your SELF-CONCEPT, who you are as a person, CORE VALUES HAVE MAJOR INFLUENCE ON DECISION MAKING
Product Knowledge: How is it acquired?
acquired through cognitive learning (accretion, tuning, restructuring)
Attitude-Change Strategies
add new salient belief about the attitude object. -increase the strength of an existing positive belief -improve the evaluation of a strongly held belief -make an existing favorable belief more salient ex. sugar cane = corn sugar = same thing hehe
Although consumer behavior research is useful for all levels of strategic analysis, it is most commonly studied and applied at the _________ and ________ levels.
brand and store levels
Internal and external factors in action (reciprocal system):
change in affect and cognition: dissatisfied with laundry detergent brand leads to change in consumer's environment: inspecting other brands leads to change in behavior: purchase different brand
1. Knowledge about an ATTRIBUTE
consumers think of products and brands as "bundles of attributes" (features) -Marketers need to know Which product attributes are most important to consumers. What those attributes mean to consumers. How consumers use this knowledge in cognitive processes. Concrete: tangible, physical characteristics (type of fiber in blanket) Abstract: subjective, intangible (quality or warmth of blanket) *consumers don't buy products to get attributes*
2. BENEFITS of using products
consumers think of products as bundles of benefits; desirable consequences consumers seek when buying/using products Functional consequences: fairly TANGIBLE outcomes associated w/ product functioning (flashlight lights up, microwave heats food) Psychosocial and Social Consequences: INTANGIBLE outcomes associated w/ product use (I feel good when i wear Vans) and social consequences (people admire your home theatre system) Benefit Segmentation: some consumers of toothpaste seek appearance benefits (whiter teeth), whereas others are more interested in health benefits (preventing tooth decay) Perceived Risks: undesirable consequences (negative benefits) that consumers want to avoid when buying -physical (injury on bike) -financial (warranty problem) -functional (aspirin doesn't work) -psychosocial (friends might think sunglasses look weird on me) how bad is it? what are the odds? one-star consumers
Multiattribute Attitude Model
focus on consumers' beliefs about multiple product or brand attributes -Martin Fishbein's model is most influential in marketing: "evaluations of salient beliefs cause overall attitude" overall attitude = (strength of belief that object has attribute)(evaluation of attribute) 3 salient beliefs: (b)(e)+(b)(e)+(b)(e)=attitude (10)(3)+(5)(1)+(8)(-1)=27 overall attitude is a function of two factors: 1. strengths of the salient beliefs associated w/ object BELIEF STRENGTH: "How likely is it that 7UP has no caffeine?" = 1->10 -affected by PAST consumer experiences -unlikely to exceed 7 to 9 salient beliefs 2. evaluation of those beliefs BELIEF EVALUATION: "7UP has no caffeine." = -3 -> +3 -not necessarily fixed over time or constant across different situations MARKETERS: -understanding your customers -diagnosis of marketing strategies -understanding situational influences
Levels of knowledge:
formed when people acquire separate meaning concepts (accretion process) and combine them into larger, more abstract categories of knowledge (tuning). Important to marketers b/c consumers use different levels of product knowledge to: -interpret new info -make purchase choices 4 Levels of knowledge: MORE abstract -Product class: (coffee, automobiles, pens) -Product form: (ground/whole bean, sedan, sports car, ballpoint, roller ball) -Brands: (Folgers, Ford, Bic) -Model or features: (1-pound can, leather seats, CD player, $.99 model, red ink) LESS abstract 3 Types of Product Knowledge 1. Attributes 2. Benefits 3. Value
PERSONALITY of consumer:
individual differences: includes things like personality and lifestyles Shopping at stores or internet, buying products, using credit cards. (overt behavior) BEHAVIOR: refers to the physical actions of consumers that can be directly observed and measured by others. -Also called overt behavior. -Critical for marketing strategy because only through behavior can sales be made and profits earned.
Brand Equity
involves a STRONG positive brand attitude based on favorable meanings and beliefs that are accessible in memory -creates strong, consumer-brand relationship -can be built: positive equity built over time (campbells) -borrowed: coca-cola creating a line of Diet Coke, good rep follows -or bought: mergers (Philip Morris bought Kraft)
Knowledge Structure: Means-end Chain
links consumer's knowledge about product attributes w/ their knowledge about consequences and values. 4 levels: ex. Razor -Attributes (anti-friction blades) -Functional consequences (less resistance and close shave) -Psychosocial consequences (feel well groomed) -Values (be attractive) MEASURED BY: one-on-one personal interviews where researcher probes consumer for product attributes and consequences -identify attributes MOST important to each consumer Laddering Interview: reveals how a consumer links product attributes to more abstract consequences and values. -"Why is that important to you?" -Move them through the means-end chain. -Turning attributes into more abstract concepts Zaltman Metaphor Elicitation Technique (ZMET): elicits metaphors from consumers that reveal their deep meanings (both cognitive and affective) about a topic. consumers find pictures that express feelings/thoughts about topics. MARKETERS: provide a deeper understanding of consumer's product knowledge -identify key attributes and consequences underlying product purchase -identify basic ends(values) consumers seek -give insight to consumer's deeper purchase motivations HELP IDENTIFY CONSUMER-PRODUCT RELATIONSHIP (Level of involvement)
Theory of Reasoned Action
model that assumes that consumers CONSCIOUSLY CONSIDER the consequences of the ALTERNATIVE behaviors under consideration and choose the one that leads to the most desirable consequences. consumers attitude toward behavior(weights that reflect the relative influence, importance) + subjective norm regarding whether other people want the consumer to engage in behavior(weights that reflect the relative influence, importance) = specific behavior ~consumer's intention to engage in behavior CONSUMERS CONSIDER CONSEQUENCES OF ALTERNATIVE BEHAVIORS "muddy" social sciences The theory is not relevant for extremely simple or involuntary behaviors. MARKETERS: situational context has powerful influences on consumers' behavioral intentions. measures of intentions MAY NOT BE PERFECT indicators of the ACTUAL intentions that determine behavior
2. Integration Process
perform two essential tasks: 1. evaluate choice alternatives in terms of choice criteria 2. select ONE of the alternatives 1. FORMAL integration strategies -COMPENSATORY integration processes: a negative consequence can be compensated for/balanced by a positive consequence ex. Multiattribute Attitude Model -NON-COMPENSATORY integration processes: salient beliefs about the positive and negative consequences of the choice alternatives do not balance or compensate for each other. ex. ELIMINATION BY ASPECTS: consumer establishes minimum cutoffs for each choice criterion. eliminate until 1 remains 2. HEURISTICS strategies: if...then propositions that connect an event w/ appropriate action -SEARCH heuristics: store selection (always SAMS), sources of info (epinions.com), source credibility (magazine?) -EVALUATION heuristics: key criteria (sodium content in processed food), negative criteria(high sodium, extra weight in integration process), significant differences (all low sodium, ignore choice criterion) -CHOICE heuristics: works best, like most, used last, "important person" likes most, cheapest, coupons, wait and see, expert consultation
Marketing Concept
philosophy for conducting business: suggests and organization should satisfy consumer needs and wants in order to make a profit -understand customers -stay close to customers
Attitude
relatively enduring overall evaluations of objects, products, services, issues or people AFFECTIVE RESPONSES created by affective and cognitive systems -formed through the INTEGRATION PROCESS when consumers assimilate knowledge, meanings or beliefs about the product -consumers analyzes the personal relevance of the concept and determines whether it is favorable or unfavorable. "what does this thing have to do with me?" "is it good or bad for me?" "do i like or dislike it?" Attitudes DIRECTED TOWARDS: -various physical and social objects -intangible objects -behaviors or actions Positive and negative attitudes How attitudes INFLUENCE INTERPRETATION/INTEGRATION processes depends on its: -ACCESSIBILITY in memory (probability of activation) influenced by: -salience (or importance) the several activated beliefs that a consumer can access at one time -frequency of prior activation -strength of the association between a concept and its attitude (puppies = positive attitude, zebra = what?) -prime (partially activate) attitude. babies in tire commercial. MARKETERS: ATTITUDES CAN BE MEASURED -by asking consumers to evaluate the concept of interest we gain understanding -biggest challenge: ATTITUDES ARE FICKLE Marketers must measure attitude concept at the level of specificity most relevant to marketing problem -Product class -Product form -Brand -Model -Brand/model general situation -Brand/model specific situation Attitude Tracking Studies: large scale attitude surveys that marketers can use measures of consumers' attitudes to indicate the success of marketing strategies
Decisions
require a choice between different behaviors -KEY PROCESS in consumer decision making is the INTEGRATION PROCESS: knowledge is combined to evaluate two or more alternative behaviors and select one. Consumer decision making= goal-directed, problem solving process. problem solving: continuous stream of interactions among -Environmental factors -Cognitive and affective processes -Behavioral actions
Attitudes toward behavior
research has found rather weak relationships between attitudes toward an object and specific single behaviors -NOT POSSIBLE TO PREDICT w/ ACCURACY any SPECIFIC BEHAVIOR based on knowing a person's overall attitude toward the object of the behavior ex. positive attitude towards porche, rolex.... but behavior is NOT going to buy them.
1. Problem Representation
serves as a decision frame. -includes END GOALS: basic consequences, needs or values that consumers want to achieve/satisfy; reverse means-end chain -set of subgoals organized into a GOAL HIERARCHY ex. steps in buying a car **product knowledge important to problem solving** 1. CHOICE ALTERNATIVES: alternative behaviors in problem-solving process. EVOKED SET= brands activated directly from memory. CONSIDERATION SET=subset of all possible alternatives -brand must be included in the consideration sets activation potential of brand: -past experiences, -repetitive advertising campaigns, -distribution strategy, -package design. 2. CHOICE CRITERIA: specific consequences used to evaluate and choose among choice alternatives: value, features, benefits choice criteria depends on particular set of choice alternatives set of simple rules/heuristics
What is the role of marketing in society ?
to help create exchanges by formulating and implementing marketing strategies.
Essence of marketing strategy:
understanding markets and developing and implementing superior strategies to attract and hold them profitably
