Test 4

Describe the nature of situational influence on consumer behavior

The situation stands apart from the consumer and the stimulus. The exception is in the case of temporary characteristics of the consumer or stimulus that are specific to the situation and sometimes even caused by it (ex: a bad mood caused by the surrounding media context).

Explain the two factors that affect one's desire to resolve a particular problem

1. The magnitude of the discrepancy between the desired and actual states 2. The relative importance of the problem. Joan has a car that works just fine, so the magnitude of the discrepancy is not large enough to spur her to action. However, if her car was damaged in an accident, then the magnitude of the discrepancy would become much larger. To Joan, she has other, more important financial commitments that preclude her from solving this problem. Compared to her other more important problems, this one is perceived as relatively important.

List the four concerns that marketing managers have related to problem recognition

1. The problems consumers are facing. 2. How to develop the marketing mix to solve consumer problems. 3. Managers occasionally want to cause consumers to recognize problems. 4. Suppress problem recognition among consumers.

Another approach for developing situation-based marketing strategies

1. Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage situations that influence the consumption of the product. 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. The rows are the major usage situations and the columns are groups of users with unique needs or desires. Each cell contains the key benefits sought. 4. Evaluate each cell in terms of potential (sales volume, price level, cost to serve, competitor strength, etc). 5. Develop and implement a marketing strategy for those cells that offer sufficient profit potential given your capabilities.

How would you develop a situation-based marketing strategy?

A marketer needs to identify the different situations that might involve the consumption of a product and determine which products or brands are most likely to be purchased or consumed across those situations. One method of approaching this is to jointly scale situations and products. Determining how products are currently used across situations can help the marketer develop appropriate advertising and positioning strategies. Or a marketer may try to change the situation for which a product is used.

Ritual situations

A socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning

Situational Influence

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 that have an effect on current behavior.

Colors

Certain colors and color characteristics create feelings of excitement and arousal which are related to attention. Bright colors are more arousing than dull colors, and warm colors such as reds and yellows are more arousing than cool colors such as blues and treys. Cool colors tend to increase sales and customer satisfaction, and they appear to reduce wait time perceptions by inducing feelings of relaxation. Warm colors grab attention and can drive impulse purchases (ex: ordering dessert in a restaurant).

What are the four components of the physical surroundings?

Colors, aromas, music, and crowding.

Briefly discuss the four broad categories or types of situations

Communications (consumers receive information), Purchase (a purchase is made), Usage (a product is or may become be appropriate), and Disposition (consumers dispose of products or product packages after or before product use).

What are antecedent states?

Features of the individual person that are not lasting characteristics, such as momentary moods or conditions

Crowing

Generally produces negative outcomes for both the retail outlet and the consumer.

Extended decision making

Involves and extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant post-purchase evaluation. It is the response to a high level of purchase involvement. After the purchase, doubt about its correctness is likely and a thorough evaluation of the purchase takes place.

Limited decision making

Involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little post-purchase evaluation. It covers the middle ground between nominal decision making and extended decision making.

What are two types of antecedent states?

Moods and momentary conditions

Music

Music influences consumers' moods, which in turn influences their consumption behaviors. Slow tempo music results in an increased gross margin because a greater amount of bar purchases. Faster tempo music creates a quicker customer turnover.

Name and describe the three types of consumer decision-making, and discuss the factor that influences the type consumer will use

Nominal, limited, and extended. As the consumer moves from a very low level of involvement with the purchase to a high level of involvement, decision making becomes increasingly complex.

Aromas

Odors can affect consumer shopping and consumption behavior in a service environment, such as a restaurant.

Nominal decision making

Or habitual decision making, involves no decision. A problem is recognized, internal search provides a single preferred solution, that brand is purchased, and an evaluation occurs only if the brand fails to perform as expected. Nominal decisions occur when there is a very low involvement with the purchase, and there are two distinct categories: brand loyal decisions and repeat purchase decisions.

What are the five key dimensions or characteristics?

Physical surroundings, social surroundings, temporal perspectives, task definition, and antecedent states.

Problem recognition

The first stage in the consumer decision process and is the result of a discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process.

Explain the types of symbolic meaning gifts might hold

The gift item itself generally has a known price that can be interpreted as a measure of the esteem the giver has for the receiver. The image and functionality of the gift implies the giver's impression of the image and personality of the receiver. The nature of a gift can signify the type of relationship the giver has or desires with the receiver, or it can alter the relationship between the giver and receiver.

Purchase involvement

The level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase. While purchase involvement is a continuum, it is useful to consider nominal, limited, and extended decision making as general descriptions of the types of processes that occur along various points along the continuum.

Actual state

The way an individual perceives his or her feelings and situation to be the the present time.

Desired state

The way an individual wants to feel or be at the present time. Any time the desired state is perceived as being greater than or less than the actual state, a problem exists. It is important to note that it is the consumer's perception of the actual state that drives problem recognition, not some objective reality.

Explain why rural situations are important to marketers

They often involve prescribed consumption behaviors. There is enough shared behavior across individuals and households that marketers can develop products and promotions around the common ritual situations that arise each year. Marketers also attempt to change or create consumption patterns associated with ritual situations. However, they must also be aware that ritual situations can result in injurious consumption (ex: binge or excessive drinking).