mkt3050 – consumer behavior week 7 april 30, 2012
TRANSCRIPT
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MKT3050 – Consumer Behavior SeminarWeek 7 – April 30, 2012
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
So how do Consumers make decisions?Consumption Process and Decision-Making
• CHOICE occurs throughout the process.– These choices are always
linked to finding value!• Doesn’t necessarily lead to
a product –– May be a service– Participation– Attendance
• Decision making is also linked to motivation and emotion
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives
• This week, we’ll apply planning, forecasting and evaluation skills to consumer behavior patterns within the marketing process.
• More specifically, we’ll examine:– Evaluation models for selecting an alternative– The idea of choice and how cultural, ethnic, family and social
changes are affecting how consumers make decisions– Consumer consumption and its effect on satisfaction– Consumer switching behavior and loyalty
• We’ll also talk about the Capstone Project: New Product Case Study.
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Consumers Develop Criteria to Evaluate Options…
Evaluative Criteria AND Determinant Criteria
Evaluative criteria are the attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem.
Determinant criteria are the evaluative criteria that are related to the actual choice that is made.
Remember – criteria are ‘built’ around aspects the consumer VALUES !
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Remember that when we are gathering information, we place it into categories….
• So we can understand it and provide meaning.
• With products, we have 2 levels of organization:– Superordinate categories
• Highest level – somewhat abstract – global
– Subordinate categories• More detailed, more
relevant for evaluations
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What determines the type of evaluative criteria consumers use?
• Situational influences• Product knowledge• Expert opinions• Social influences – reference groups• Online sources• Marketing communications
• How many criteria are necessary? – 10-15 before overload– Sometimes it’s just ONE!
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How good are Consumers evaluating options? Consumer Judgment
• Consumer judgment is the mental assessments of the presence of attributes and the benefits associated with those attributes.
• Consumers make judgments about:– Presence of features– Feature levels– Benefits associated with features– Value associated with the benefit– How objects differ from each other– http://www.youtube.com/watch?v=4oQ4hjQ_9Bc
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Issues Affecting Consumer Judgments
Attribute correlation – does long wait = poor service or individual
attention?
Brand name associations
Just noticeable difference – can
consumers perceive a difference?
Quality perceptions – does price = quality?
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Consumers have rules for choices…Sometimes we make trade-offs.
Compensatory rules
Allow consumers to
select products that may
perform poorly on one
attribute by compensating
for the poor performance
by good performance on
another attribute.
(Our Fishbein model
exercise)
Noncompensatory rulesStrict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated
from consideration.
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Non compensatory rules for selection
• Lexicographic – Strong performance on most important attribute yields a ‘yes’
• Conjunctive – Acceptable cutoffs established for each important attribute. A
‘miss’ on any one eliminates a brand. Choice must ‘hit’ on all attributes.
• Disjunctive– Minimum cutoff for features… usually high.
• Elimination by Aspects– Measure performance on most important attribute – if more than 1
brand ‘passes’ then compare on next attribute. Continue process of elimination until 1 choice left.
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What is Consumption?And What is the Basic Consumption Process?
ConsumptionThe process that converts time and goods, services, or ideas into value.
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What are the types of Consumption Behavior?
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Helps with Segmentation
Opportunities for
Expansion
Promo/ Coupons to
Push Consumption
http://www.youtube.com/watch?v=4DHT7b0QjW8
http://www.youtube.com/watch?v=MOBdTP9ZB-I&feature=related
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How can Marketers Change Consumption?
• Increasing Consumption– Increase frequency, sometimes through product
modification– Increase usage per occasion
• Large packages = more consumption!
– Offer greater variety• Decreasing Consumption
– Change location – make it less convenient– Change messaging – warn of risks / danger
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What are the Outcomes of Consumption?
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Satisfaction and DissatisfactionDefined
SatisfactionA mild, positive emotional state resulting from a favorable appraisal of a consumption outcome.
DissatisfactionA mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome.
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Consumer Reactions
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Why good / bad happened
Was my experience the sameas others?
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Strategies for Keeping Customers
• Offer some type of customization• Demonstrate a commitment to quality• Develop an early warning system (measure
customer satisfaction)• Don’t overpromise• Provide guarantees
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Consumer and Company: Travelocity
• Watch this clip on how Internet travel company Travelocity handles consumer relationships.
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Characteristics of Relationship Quality
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Value Types and Loyalty
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Remember that building loyalty also involvesAssociations
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EMPIRE, La. (AP) — BP chief executive Tony Hayward took a day off Saturday to see his 52-foot yacht “Bob” compete in a glitzy race off England’s shore, a leisure trip that further infuriated residents of the oil-stained Gulf Coast.While Hayward’s pricey ship whipped around the Isle of Wight on a good day for sailing — breezy and about 68 degrees — anger simmered on the steamy Gulf Coast, where crude has been washing in from the still-gushing spill.“Man, that ain’t right. None of us can even go out fishing, and he’s at the yacht races,” said Bobby Pitre, 33, who runs a tattoo shop in the crossroads town of Larose, La. “I wish we could get a day off from the oil, too.”
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Loyalty affected by Market Relationships
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Tactics for Building Loyalty
Appreciation(Thank you
‘points’)
Rewards(just because)
Rebates(money back)
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Consumer Value Framework (CVF)