s-8 external influences on consumer behavior
TRANSCRIPT
Store image – Is what consumers think about a particular
store. – Includes perceptions and attitudes based on
sensations of store-related stimuli received through the five senses.
– Developing a consistent store image is a common goal of retailers.
Store-Related Affect and Cognition
Store atmosphere – Primarily involves affect in the form of in-store
emotional states that consumers may not be fully conscious of when shopping.
– Environmental stimuli affect consumers’ emotional states, which in turn affect approach or avoidance behaviors.
– The four types of approach or avoidance behaviors are physical, exploratory, communication, and performance and satisfaction approach.
Store-Related Affect and Cognition
A Model of Store Atmosphere Effects
Store Atmosphere
Pleasure and arousal were found to influence consumers’ stated: – Enjoyment of shopping in the store. – Time spent browsing and exploring the
store’s offerings. – Willingness to talk to sales personnel. – Tendency to spend more money than
originally planned. – Likelihood of returning to the store.
o With few exceptions, the visual dimension has, to date, been the only sense to have been nurtured by the advertising and associated design community
o Much of our understanding of our environment is informed by our senses
o In turn, our experiences inform our senses, the senses being linked to memory
o We store our values, feelings and emotions in memory banks
Atmosphere – Sensory stimuli
- Victoria's Secret, have long used fragrance as part of the sensory environment
in their stores
- The aroma of Starbucks coffee, for example, is instantly identifiable across
the globe!
Leaders in sensory branding
Rolls-Royce have long recognized the smell of a new car as one of the most powerful tools in
their arsenal for cementing a love affair between their brand and a new owner
- Fliers on Singapore Airlines relish the scented towels the airline distributes before
meals, they have gone a step ahead and spray the same fragrance in their
magazines, tissue paper etc. - Even, the apparels and cosmetics used by
air hostesses fall under their brand guidelines
Leaders in sensory branding
What is the necessity for Sensory stimuli now?
² With the launch of new stores / expansion of existing store in almost all categories the market is cluttered with many players more than the consumers can afford!
² We can’t make the customers stick to us, just by positioning on QUALITY of the product, since almost all companies nowadays do not compromise on quality
² There has to be SOMETHING, which even the customer might not aware of, should make them loyal to our brand
² That SOMETHING can’t be made via press ads, TVCs, Hoardings etc.. That has to be done when the consumer is around or having physical connection with the brand!
What they see…
Standardization of the AMBIENCE, i.e. Color of the light, total number of lights in a SQ. FT,
Uniforms of the store assistants has to be matched to the brand colors
- And a LOT more…
What they hear...
- Music plays a major role in ambience
- Based on the brand essence, the music has to be chosen
- If it’s a ethnic brand, obviously a mild instrumental can be used
- Techno music can be used for the brands which is new age, trendy etc…
- Even the timetable and sound level has to be same across the stores (in case of multiple outlets)
What they smell...
- All stores across the geographies has to have a unique fragrance, based on the brand essence
- The same fragrance could be used in AC / packaging, Tissue papers etc…
What they taste...
- Coffee / Tea / biscuits which is been given to customers can be made custom
- If you are a food retailer, then you can look at 1000 ways to make your taste stay in their HEADS!
What they touch...
- This is the only sense which has physical connection with your product! - Packaging to made with a unique texture which relates to our brand essence (silky texture for kids apparel brand!)
Store loyalty – Repeat patronage intentions and behavior. – Strongly influenced by the arrangement of the
environment, particularly the reinforcing properties of the retail store.
– Is a major objective of retail channel strategy and has an important financial impact.
Store-Related Behavior
Store Location
• Good locations allow ready access, can attract large numbers of consumers, and can significantly alter consumer shopping and purchasing patterns.
• Store location decisions represent long-term financial commitments, and changing poor locations can be difficult and costly.
• Retail location models are quite sophisticated and
can deal with a variety of criteria.
Store Layout
• Grid layout – The grid layout is more likely to be used in
department and specialty stores to direct customer traffic down the main aisles.
• Free-form layout – This arrangement is particularly useful for
encouraging relaxed shopping and impulse purchases.
In-Store Stimuli
• Signs and price information – Benefit sign – Price-only sign
• Color – Warm colors – Cool colors
• Shelf space and displays – Normal display, expanded display, and special
display
In-Store Stimuli
• Music – The tempo of background music influences
consumer behavior • Scent – Scents vary in terms of how pleasant they are
perceived to be, how likely they are to evoke physiological responses, and how strong they are.
– Ambient scent can influence feelings about stores and their products.
– Neutral and pleasant scent categories can be diffused in a store to influence consumers.
Nonstore Consumer Behavior
• Consumer purchase mode refers to the method a consumer uses to shop and purchase from store or nonstore alternatives.
• Choices made among the various consumer purchase modes are influenced by many factors.
Benefits of Stores for Consumers
Browsing
Touching and Feeling
Personal Service
Cash and Credit
Entertainment and Social Interaction
Instant Gratification
Risk Reduction
Benefits of the Internet and Multichannel Retailing
Deeper and Broader Selection
Personalization
Gain Insights into Consumer Shopping Behavior
Increase Customer Satisfaction and Loyalty
Expand Market Presence
Reference Groups
Reference Group – An actual or imaginary individual or group conceived
of having significant relevance upon an individual’s evaluations, aspirations, or behavior
– Three ways reference groups influence consumers • Informational • Utilitarian • Value-Expressive
– Some people are more influential than others in affecting consumers’ product preferences.
Types of Reference Groups
Membership vs. Aspirational Reference Groups
• Aspirational Reference Groups – Comprise idealized figures such as successful business
people, athletes, or performers.
• Membership Reference Group – Ordinary people whose consumption activities provide
informational social influence. • Propinquity: Physical nearness. • Mere Exposure: Liking persons or things simply as a result of
seeing them more often (mere exposure phenomenon) • Group Cohesiveness: The degree to which members of a
group are attracted to each other and value their group membership.
Positive Versus Negative Reference Groups
• Avoidance Groups – Groups that consumers purposely try to
distance themselves from • Nerds • Druggies • Preppies
– The motivation to distance oneself from a negative reference group can be as powerful or more powerful than the desire to please a positive group
When Reference Groups are Important
• Social Power: – The capacity to alter the actions of others
• Referent Power: – When consumers imitate qualities by copying
behaviors of a prominent person they admire.
• Information Power: – Able to influence consumer opinion by virtue of their
(assumed) access to the “truth”
• Legitimate Power: – Granted to people by virtue of social agreements,
sometimes conferred by a uniform
When Reference Groups Are Important
• Expert Power: – Derived from possessing specific knowledge
about a content area • Reward Power:
– When a person or group has the means to provide positive reinforcement
• Coercive Power: – Influencing a person by social or physical
intimidation
Types of Reference Groups
• Reference Group: – Any external influence that provides social
cues
• Normative Influence: – The reference group helps to set and enforce
fundamental standards of conduct.
• Comparative Influence: – When decisions about specific brands or
activities are affected.
• Reference groups are cultural groups in that members share certain common cultural meanings. – Marketers try to determine the content of
the shared meanings of various reference groups. – Reference groups can have both positive
and negative effects on consumers. • Associative reference groups • Dissociative reference groups
Analyzing Reference Groups
People identify and affiliate with particular reference groups for three reasons: – To gain useful knowledge. – To obtain rewards or avoid punishments. – To acquire meanings for constructing,
modifying, or maintaining their self-concepts.
Types of Reference Group Influence
• Informational reference group influence transmits useful information to consumers about themselves, other people, or aspects of the physical environment such as products, services, and stores.
• Utilitarian reference group influence occurs when the reference group controls important rewards and punishments.
• Value-expressive reference group influence can affect people’s self-concepts.
Types of Reference Group Influence
Reference groups do not influence all product and brand purchases to the same degree. – Influences vary on at least two dimensions: • Degree to which the product or brand is a
necessity or a luxury. • Degree to which the object in question is
conspicuous or know by other people. – Public good – Private good
Reference Group Influence on Products and Brands
Relative Reference Groups’ Influence on Purchase Intention
Opinion Leadership
• The Nature of Opinion Leadership – Opinion Leaders: People who are knowledgeable about
products and whose advice is taken seriously by others. – Homophily: The degree to which a pair of individuals is
similar in terms of education, social status, and beliefs.
• How Influential Is an Opinion Leader? – Generalized Opinion Leader: Somebody whose
recommendations are sought for all types of purchases. – Monomorphic: An expert in a limited field. – Polymorphic: An expert in many fields.
Family
Marketers are interested in both families and households. – A household is a housing unit having people living
in it. – Nonfamily households include unrelated people
living together. – A family has at least two people, the householder
and someone who is related to the householder by blood, marriage, or adoption. • Nuclear family and extended family
Family Decision Making
Family decision making refers to how family members interact and influence one another when making purchase choices for the household. – Identification of roles of family members in family
decision making is important. Types of decision-making roles include:
• Influencers • Gatekeepers • Deciders • Buyers • Users • Disposers
Family Decision Making
Influences on family decision making – Differences in product class and their relationship to
family decision making. – The structure of husband/wife roles. – The determinants of joint decision making.
• Children and family decision making – Children can have major influences on:
• Budget allocation decisions • Purchase choices
– The birth of a child creates demand for a wide variety of products most couples never would have considered purchasing previously.
A Modern Family Life Cycle
Brand Communities and Tribes
• Brand Community: – A set of consumers who share a set of social
relationships based upon usage or interest in a product. • Brandfests
• Consumer Tribe: – A group of people who share a lifestyle and who can
identify with each other because of a shared allegiance to an activity or product.
• Tribal Marketing: – To link one’s product to the needs of a group as a
whole.
Harley Owners Group
Conformity
• Conformity – A change in beliefs or actions as a reaction to real or
imagined group pressure. • Norms – Informal rules that govern behavior.
• Factors Influencing the Likelihood of Conformity – Cultural Pressures – Fear of Deviance – Commitment
• Principle of Least Interest – Group Unanimity, Size, and Expertise – Susceptibility to Interpersonal Influence
• Role-relaxed consumers
Social Comparison
• Social Comparison Theory: – Asserts that people look to the behavior of others to
increase the stability of their self-evaluation – Co-oriented peer: A person of equivalent standing
• Resisting Conformity: – Independence: Being oblivious or indifferent to the
expectations of others – Anticonformity: Defiance of the group is the actual
behavior – Reactance: The negative emotional state that results
when we are deprived of our freedom to choose
Word-of-Mouth Communication
• Word-of-Mouth (WOM): – Product information transmitted by individuals
to individuals.
• Negative WOM and the Power of Rumors: – Negative WOM: Consumers weigh negative
info from other consumers more heavily than they do positive comments
Cutting-Edge WOM Strategies
• Virtual Communities – Virtual Community of Consumption: A collection
of people whose online interactions are based upon shared enthusiasm for and knowledge of a specific consumption activity. • Multi-user Dungeons (MUD) • Rooms, rings and lists (e.g. chat rooms) • Boards • Blogs (weblog)
Four Types of Virtual Community Members
• Tourists: – Lack strong social ties to the group
• Minglers: – Maintain strong social ties, but are not interested
in the central consumption activity • Devotees: – Express strong interest in the activity, but have
few social attachments to the group • Insiders: – Exhibit both strong social ties and strong interest
in the activity
Guerrilla Marketing
• Guerrilla Marketing – Promotional strategies that use
unconventional locations and intensive word-of-mouth campaigns to push products. • Brand Ambassadors
• Viral Marketing – Refers to the strategy of getting customers to
sell a product on behalf of the company that creates it.
Guerrilla Marketing Ads
Ads painted on sidewalks are one form of guerrilla marketing.