Consumer Behavior
For Information Search, what questions can you ask?
1) Did your pharmacist check for interactions? 2) Not all medicines are alike. Have you considered Drug Y? 3) If you have never used Drug X, here is what you need to know 4) Are you completely happy with Drug X? If not, try Drug Y. 5) Do you ever worry that you're paying too much for Drug X?
Why is Understanding the behavior of consumers is a fundamental requirement for marking pharmacy products and pharmacy service?
1) In health care, the patient (consumer) frequently DOES NOT choose the treatment to be consumed (the drug). This decision is left to a healthcare professional 2) Most costs of drugs are paid by 3rd parties (i.e. insurance companies), which can influence consumer decisions
List the The customer journey consists of 4 stages.
1) Initial consideration 2) Active evaluation 3) Moment of purchase 4) Postpurchase
How can pharmacists minimize Cognitive dissonance?
1) Making phone calls to patients shortly after filling a prescription 2) Include a notice in the prescription package that encourages the pt to call the pharmacy w/ questions or visit a website for FAQs 3) Money-back guarantees
As pharmacists, we can address what problems is the customer journey?
1) Patient non-adherence 2) Medication reconciliation 3) inpatient/outpatient services 4) Interprofessional care
What are the assumption of economic man?
1) People are rational in their behavior 2) Attempt to maximize personal satisfaction through exchange 3) Possess complete information on available alternative 4) They use that information to make a choice
What variables affect consumer decision-making?
1) Perceived Risk 2) Involvement 3) Engagement 4) Control
Economic man is useful in identifying what?
1) Price 2) Consumer income 3) Quality 4) Consumer tastes
Information Search depends on what?
1) Whether the decision is a new or repeat one (new decision: perform an external search) 2) Whether products and services are perceived to be different (if the outcome is the same, consumer is less likely to perform an extensive search) 3) Individual situations and characteristics (if a consumer lacks time, patience, or ability to evaluate info, they're less likely to engage in a search)
For the Consumption Stage, making a choice depends on what?
1.) Choosing an OTC product involves choosing a vendor (i.e. grocery store), channel of distribution (i.e. mail order), and a brand (i.e. store brand) 2.) Encompasses purchase, use, and disposal of the drug
______________ and ____________ provide the FOUNDATION of most marketing theory and practices, which as a result, pharmaceutical marketing originates from other disciplines.
1.) Economics 2.) social sciences
How can you influence the information search?
1.) Establish your product or service firmly in the minds of consumers so it can be considered as their "internal search" 2.) Ask them questions
What are some examples of Non-cognitive processes impact the way patients choose drugs and health-care providers?
1.) If you have a headache, you're not choosing based on a cost-benefit analysis, you choose it because you want to stop the pain and continue daily activities 2.) You choose a health-care provider based on their level of empathy, not by her technical capability
The Pre-Purchase Stage consists of what?
1.) Need Recognition 2.) Information Search 3.) Alternative Evaluation
What are Behaviors inconsistent with economic principles?
1.) Pay-for-Performance programs 2.) Placebo Effect 3.) Framing the question
What are some examples where customer journey was used?
1.) PillPack 2.) Factors influencing influenza & tetanus vaccination decisions 3.) Smoking cessation 4.) MTM ("Design Thinking" was the name of the journey)
What are 3 major stages to the consumer decision process?
1.) Pre-Purchase Stage 2.) Consumption Stage 3.) Post-Purchase Evaluation Stage
What are 3 frameworks for understanding consumer behavior?
1.) economic man 2.) social influences 3.) personal influences
What is an Information Search?
A search about actions that might satisfy the perceived need or want
Describe Need Recognition.
A stimulus arouses a desire-- you have a headache so you want to get rid of the pain)
What is an example of Physical Risk?
AEs from medications
How do Pay-for-Performance programs backfire?
Backfire by undermining motivation & worsening performance
Social Influences can come from what?
Can come from social norms established by peer groups, reference groups, family, & social class
Describe Compensatory decision-making.
Can sum the value of the attributes into an overall value for each option
Why has Capturing consumers' attention has become harder?
Capturing consumers' attention has become harder because of smartphones (i.e. we stand in line checking our e-mail and texts instead of reading the magazines in the check-out line)
Describe Personal Influences.
Consumer behavior is influenced by our personality, values, beliefs, and attitudes (psychological processes)
What is the Pre-Purchase Stage?
Consumers recognize a need & identify choices to meet that need
For Repeated decisions, pts use what?
Consumers use experience gained from previous decisions to simplify the purchase process
What is an example of a Complex repeated decision?
Example is when pt is looking for a variety or dissatisfied with a current option
During Post-Purchase Evaluation Stage, pt may have what doubts about their choices?
Experience cognitive dissonance when a bad choice could have serious consequences (i.e. placing personal/financial health at significant risk such as buying an expensive car)
For the Pay-for-Performance programs, Extrinsic rewards often do what?
Extrinsic rewards often crowd out intrinsic desires to do the right thing & encourage cheating & gaming the rewards system
What is Financial Risk?
Financial losses that might occur as a result of a bad purchase
What is an example shows that Non-compensatory means that deficiencies in some attributes CANNOT be compensated for by strengths in others?
For example, a medication with an unacceptable price will not be considered no matter how favorable other attributes are
What is an example of Stimuli that arouse attention DO NOT always arouse sufficient desire to cause action?
For example, a smoker may be interested in a smoking cessation program, but doesn't have enough motive to register for the program
For Compensatory decision-making, you can sum the value of the attributes into an overall value for each option. Thus, the option with the __________________ overall value is chosen.
GREATEST
Describe the Placebo Effect.
Higher priced medications can have a greater placebo effect
Describe Social Influences.
Humans are influenced by subtle pressures that form our desires and actions
What is done during the Initial consideration?
Initial consideration of options after a need is triggered by a stimuli (i.e. physical, social, commercial, etc.)
What is Social Risk?
Loss of personal social status associated with a purchase
For the Consumption Stage, what are decision rules?
Make overall judgments based on criteria & compare them across alternatives
The customer journey consists of 4 stages. Marketers are starting to view it as what?
Marketers are starting to view it as a journey rather than a linear process as mentioned in the consumer decision-making process
Complex repeated decisions are more likely used by who?
More likely used by someone who is engaged in a 1st time search for a drug to treat a severe, multi-symptom cold than by someone in search of a frequently purchased headache medication
Complex repeated decisions are more likely to occur when?
More likely when the consumer has time and interest in the decision
For step 1 of alternative evaluation, how can you identify the important criteria or attributes?
Multi-attribute decision-making
The economic man, DOES NOT consider what?
NOT consider cultural, social, & psychological influences on demand
For Alternative Evaluation, non-cognitive processes impact what?
Non-cognitive processes impact the way patients choose drugs and health-care providers
Non-compensatory decision-making means what?
Non-compensatory means that deficiencies in some attributes CANNOT be compensated for by strengths in others
What are Pay-for-Performance programs?
Offer monetary rewards to motivate behaviors of healthcare providers to improve the quality of care
What is Performance Risk?
Possibility that a purchase will NOT achieve the intended outcome
What is Physical Risk?
Potential for injury resulting from consumption
What is an example of step 2 for alternative evaluation?
Reasons why a patient may choose a particular pharmacy over another include location, the pharmacist themselves, out-of-pocket cost, hours, friendliness, personalized attention, etc.
Repeated decisions require less what?
Require less contemplation & can be handled w/ limited problem solving
For Need Recognition, what are commercial stimuli?
TV ad, recommendation from a sales person
What is the Post-Purchase Evaluation Stage?
The evaluation phase of consumer decision-making
What is a Psychological Risk?
The impact of a purchase on a person's self-esteem
For Compensatory decision-making, what can overcome the strength of another?
The weaknesses of one attribute can be overcome by the strength of another
What is economic man?
This is an economic understanding of consumer behavior
For Need Recognition, We normally ignore stimuli because?
We normally ignore stimuli because we're constantly bombarded by commercial messages, social demands, etc.
Describe the effect of Framing the question.
When you're presented with 2 healthcare choices, Option A: 200/600 patients will be saved and Option B: 400/600 patients will die, you're likely to choose Option A because it's "framed" in such a way that it's deemed less risky (i.e. "saved")
What is an example of Performance Risk?
allergy medication doesn't relieve allergy symptoms
What is Non-compensatory decision-making?
application of cutoff rules to decisions
For the Consumption Stage, decision rules apply what?
apply cutoffs
Stimuli that arouse attention DO NOT always arouse what?
arouse sufficient desire to cause action
The customer journey views consumption as what?
as a NON-LINEAR experience where the CONSUMER is in CHARGE of decisions
Active evaluation is done how?
by adding/subtracting of options through information search or shopping (point-of-purchase displays)
For Alternative Evaluation, Alternatives can be what?
can be cognitive (contemplation & thought) or non-cognitive (emotional & intuition/gut)
For Alternative Evaluation, most consumer behavior models assume a ________________.
cognitive process
For Information Search, what is an external search?
consulting your environment (i.e. peer, internet, magazine, pharmacist)
In reality, consumers can make choices how?
consumers can make choices irrationally & they lack/ignore information that could be used in making choices
What are examples of complex new decisions?
decision to undergo surgery, first time choice of important purchase
What is Multi-attribute decision-making?
decisions between alternatives that are based on more than one attribute
How can pharmacists use social behavior in order to create interventions on improving patient adherence?
demographic variables-- age, sex, marital status, social class, attitudes of surrounding environment
Pharmacists can use what in order to create interventions on improving patient adherence?
economics, social, and psychological behavior
What is an example of Psychological Risk?
embarrassing SE of medications such as passing gas
What is an example of a simple repeated decision?
examples include habitual choices and brand loyalty
What is step 1 for alternative evaluation?
identify the important criteria or attributes (i.e. price & quality of services)
What are examples of simples new decisions?
impulse decision (these pts forgo the pre-purchase & post-purchase stages-- described soon)
What are complex new decisions?
involve extended problem solving & substantial consideration and effort by the consumer
What is the Moment of purchase?
is considered the selection & completion of the purchase
For the economic man, demand for a drug is positively associated with what?
is positively associated w/ low prices for the drug, high prices for drug substitutes, high consumer income, consumer tastes, and the quality of the drug and accompanying service
What is Postpurchase?
is when the patient evaluates the purchase experience & outcome which helps to develop expectations of future purchases
For Compensatory decision-making, Consumers may be willing to accept what?
may be willing to accept HIGH prices for pharmaceutical services if the quality of those services is perceived to result in significant value
What is an example of a Social Risk?
medications purchased for urinary incontinence
Consumer decisions fall into 2 categories, which are what?
new and repeated decisions
What are complex repeated decisions?
occurs more often w/ new, high-risk, and complex problems
What is an example of a Financial Risk?
overpaying for a non-prescription drug
For Need Recognition, what are physical stimuli?
pain, hunger, thirst, etc.
How can pharmacists use psychological behavior in order to create interventions on improving patient adherence?
patient's knowledge, beliefs about medicine, previous experiences
How can pharmacists use economics in order to create interventions on improving patient adherence?
payment for the medication
For Information Search, what is an internal search?
previous experiences or promotional messages are recalled
What are simple new decisions?
problems that can be handled w/o much mental effort
What is an example of a cutoff?
setting a defined price range of no more than $10
What are some examples of Social Influences?
smoking, obesity, and alcohol use
What are cutoffs?
strict limits for deciding which choices are acceptable & unacceptable
What is the Consumption Stage?
the actual selection & purchase of a product
For Need Recognition, what are servicescapes?
the role of facility design features such as lighting, temperature, sound, & signs in influencing consumer behavior
What is step 2 for alternative evaluation?
weigh relative importance of each attribute & examine how they differ among alternatives (i.e. price of drug, location of pharmacy, pharmacist relationship)
Cognitive dissonance can occur when?
when the pt is worried about AEs or the expense of a medication
For Need Recognition, what are social stimuli?
word-of-mouth recommendations, following a pee
What are some evaluations that take place for the Post-Purchase Evaluation Stage?
➔ Have their needs/wants been met? ➔ How's their satisfaction with the experience? ➔ Consumers compare what was received vs. what was expected of the product/service
