Consumer Behavior Final
Perceptual Mapping
1. Consumers judge the similarity of alternative brands. (Usually begins with consumers looking at possible pairs of brands and indicating which pair is most similar, second most similar, and so on, until all are ranked). 2. A computer processes these ranking to create a perceptual map. No evaluative criteria is specified by the consumer. This unnamed evaluative criteria are the dimensions of the configuration.
Decision sequence
1. Outlet First, brand second 2. Brand first, outlet second 3. Simultaneous
Outlet Selection process/ steps
1. Recognizes a problem that requires outlet selection 2. Engages in internal and possibly external search 3. Evaluates the relevant alternatives 4. Applies a decision rule to make a selection
5 elements of relationship marketing
1.Developing a core service or product around which to build a customer relationship 2.Customizing the relationship to the individual customer 3.Augmenting the core service or product with extra benefits 4.Pricing in a manner to encourage loyalty 5.Giving incentives to employees so that they will perform well for customers
Attribute-based Choice
A choice that requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands
relationship marketing
An attempt to develop an ongoing, expanding exchange relationship with a firm's customers. Includes: Databases, customized mass communications, advanced employee training and motivation
Rational Choice Theory
Assumes that the customer has sufficient skills to calculate which option will maximize his/her value (identifying one optimal choice, collects information levels of attributes across alternatives, applies the appropriate choice rule, and the superior option is revealed)
indirect research methods (evaluative criteria)
Assuming customers will not/cannot state evaluative criteria, these include projective techniques that allow the respondent to indicate the criteria someone else might use, or perceptual mapping in which the researcher uses to determine dimensions underlying consumer evaluations of brand similarity)
Inept Set
Brands found to be completely unworthy of further consideration
Evoked Set
Brands or products consumers will evaluate
outlet location and size
Closest store and larger rather than smaller outlets
Internal Search
Consumers search long-term memory to determine if a satisfactory solution is already known
Post-purchase consumer behavior
Dissonance, consumption guilt
Dissonance
Doubt or anxiety, can be increased or decreased due to the: degree of commitment or irrevocability of the decision, importance of the decision to the consumer, the difficulty of choosing among the alternatives, and the individual's tendency to experience anxiety.
Retail advertising
Emphasizing service, selection and other benefits, not price
Affective Choice
Evaluations for this choice generally focus on how they will make the user feel as they are used (ex. dress shopping)
Awareness Set
Evoked Set, Inept Set, Inert Set
External Search
If a resolution isn't reached through internal, then the search process is focused on relevant external information
Satisfaction can have 4 outcomes: Increased use, repeat customers, brand loyalty, WOM.
Increased use, repeat customers, brand loyalty, word of mouth
Decision Rules for Attribute-Based Choices
Lexicographic, Compensatory Rules, Elimination, Disjunctive, Conjunctive [Help to remember: LCEDC - Lexi-Could Eliminate (the) DECISION Codes]
Internal (memory sources) passively acquired
Low-involvement learning
Marketing tactics/programs that effect decision making
Outlet image, retailer brands, retail advertising, outlet location and size
Internal (memory) sources actively acquired
Past searches, personal experience [Independent groups (magazines, consumer groups, government agencies), personal contacts (friends, family, others), marketer information (sales personnel, websites, advertising), experiential (inspection or product trial)]
Retailer brands
Private Labeling, high quality and reasonable price
Metagoals in Decision Making
Refers to the general nature of the outcome being sought (either 1. Maximizing the accuracy of the decision, 2. minimizing the cognitive effort required for the decision, 3. Minimizing the experience of negative emotion, or 4. Maximizing the ease of justifying the decision)
Factors affecting external search:
The more alternatives, larger price range, store concentration, information availability, price, differentiation, and positive products, social status, perceived risk, time availability, pleasant surroundings, and physical/mental energy the more external searching that will be done - Learning & experience and purchasing for yourself decrease the external search. - Shopping orientation, age and household lifecycle, product involvement, and social surroundings are mixed.
Evaluative criteria
These are typically product attributes associated with the benefits desired by customers. Criteria can differ in type, number, and importance (imp. influenced by how, where and when the product is used, the competitive context, and the advertising effects).
Lexicographic Rule (decision rules for attribute based choices)
This decision rule is one in which the CUSTOMER RANKS the criteria in order of importance, then selects the brand that performs best on THE MOST important attribute.
Compensatory (decision rules for attribute based choices)
This decision rule states that the brand that rates the highest on the sum of the CONSUMER'S judgements of the relevant evaluative criteria will be chosen.
Importance determined (Evaluative criteria)
This is also measured by either direct or indirect methods (as is evaluative criteria). The most common DIRECT method is the CONSTANT SUM SCALE. The most popular INDIRECT method is CONJOINT ANALYSIS.
Churn
This is turnover in a firm's customer base. It costs more to get new customers than to retain existing customers, as new customers are not as profitable as long-term customers.
Surrogate Indicator
This is used to indicate another attribute when consumers have difficulty differentiating and identifying complex brand criteria (such as quality or durability). Example: when choosing for quality, consumers often use these which may include price, advertising, warranties, brand, or country of origin.
Conjunctive (decision rules for attribute based choices)
This rule establishes a minimum required performance for each evaluative criterion. (Selecting from the brands that meet or exceed minimum standards)
Elimination (elimination-by-aspects) (decision rules for attribute based choices)
This rule is a process. 1. evaluative criteria are ranked in terms of importance. 2. a cutoff point for each criterion is established. 3. (In order of criterion importance) brands are eliminated if they fail to meet or exceed the cutoff.
Decision Process
What alternatives exist to evaluate? What are the criteria to help evaluate the alternatives? How does each alternative perform on each criteria
Consumption Guilt
When negative emotions or guilt feelings are aroused by the use of a product or service. Ex. Driving a large car (negative feelings about polluting the earth).
Preference
[Marketing strategies - Search Patterns] Extended decision making with the brand in the evoked set requires a preference strategy. Marketer needs to structure information so brand becomes preferred by target market. (Ex. Mercedes saying "You're not buying a car, you're buying a belief")
Intercept
[Marketing strategies - Search Patterns] If limited decision making and brand is not part of evoked set, objective will be to intercept the consumer during search. Emphasis will be on local media, point-of-purchase displays, shelf space, package design, etc. Coupons can also be effective.
Capture
[Marketing strategies - Search Patterns] Limited decision making generally involves a few brands evaluated on only a few criteria. Brand is in evoked set, search occurs mainly at the point-of-purchase or in readily available media. Objective is to capture as large a share as practical.
Acceptance
[Marketing strategies - Search Patterns] Similar to preference, but target market is not seeking info about the brand. Marketing must attract consumer attention or motivate brand learning. Incentives to try product, long-term advertising to enhance low-involvement learning and use of the internet are useful
Disrupt
[Marketing strategies - Search Patterns] if the brand is not part of the evoked set and the target market engages in nominal decision making, the marketer's first task is to break the existing decision pattern. (Soy products, like Silk and weird organic milk that didn't come from an animal are a good example - tactics: free samples, coupons etc.)
Maintenance
[Marketing strategies - Search Patterns] if the brand is purchased habitually by the target market, the marketing wants to maintain that behavior. This requires consistent attention to product quality, distribution, and a reinforcement advertising strategy.
Attitude-Based Choice
a choice that involves the use of general attitudes, summary impressions, intuitions, and no attribute-by-attribute comparisons are made at the time of choice. (ex. car shopping, "my friend drives a Kia and it runs well..." etc.)
Bounded Rationality
a limited capacity for processing information
6 Marketing strategies based on info Search patterns
acceptance, capture, disrupt, intercept, maintenance, preference
direct research methods (evaluative criteria)
asking consumers what criteria they use in a particular purchase
Inert Set
brands for which the consumer is aware of but basically indifferent toward
Internet Retailing barriers
lack of internet access, credit card concerns, lack of "touch", don't have a debit/credit card, delivery cost too high, don't want to wait for delivery
Way researchers find out about product use
observations, innovativeness (seeing how customers use the product), surveys
outlet Image
perception of attributes
multi-channel retailing
shoppers are consumers who browse and/or purchase in more than one channel. Interaction: Retail store, online and Catalog (ex. Consumers browse online and purchase the product in the store OR browse i the Catalog and purchase online etc.)
Disjunctive (decision rules for attribute based choices)
this rule establishes a minimum required performance for each important attribute (Selecting all brands that meet or exceed the minimum performance level for any key attribute. In this rule, some attributes may be labeled as "not critical" and not be evaluated.)