Transcript PPT chapter 05

Chapter 5
Starting with the consumer:
developing consumer insights
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-1
Learning objectives
1. To understand the role consumer behaviour plays in the
development and implementation of IMC programs.
2. To understand the consumer decision-making process
and how it varies for different types of purchases.
3. To understand various internal psychological processes,
their influence on consumer decision making, and
implications for IMC.
4. To recognise the various approaches to studying the
consumer learning process and their implications for IMC.
5. To recognise external factors such as culture, social class,
group influences and situational determinants and how
they affect consumer behaviour.
6. To understand alternative approaches to studying
consumer behaviour
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-2
Attitudes
Integration
Perceptions
Motivation
Consumer
decision-making
processes
Consumer
decision-making
models
Culture
Learning
Influences on
consumer decision
processes
Subculture
Behavioural
Reference
groups
Studying
Consumer
Behaviour
Cognitive
Interpretive/
postmodern
Situational
determinants
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-3
Neuroscience: mapping the mind
In their never-ending quest
to learn more about
consumers, marketers have
turned to other disciplines,
including science,
psychology, anthropology
and medicine. Techniques,
including PET scans and
MRI are shedding new light
on information processing
and product preferences.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-4
Consumer behaviour: definition
Consumer behaviour refers to the processes
and activities people engage in when searching
for, selecting, purchasing and using, evaluating
and disposing of products and services so as to
satisfy their needs and desires.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-5
Consumer decision making
Decision stage
Psychological process
Problem recognition
Motivation
Information search
Perception
Alternative evaluation
Purchase decision
Postpurchase evaluation
Attitude formation
Integration
Learning
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-6
Honda CR-V
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-7
Problem recognition
• Problem recognition represents the first stage
in the consumer-decision process.
• Problem recognition motivates consumers to
search for solutions.
Problem
recognition
=
Ideal
state
Less
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Actual
state
5-8
Sources of problem recognition
Out of stock
Dissatisfaction
New needs
or wants
Related product
purchase
Marketer-induced
recognition
New
products
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-9
Oxy
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-10
Problem-solution with Rexona
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-11
Sheridan’s new towel
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-12
Maslow’s hierarchy of needs
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-13
Quorn
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-14
Guardian Insurance
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-15
Psychoanalytic approach
Strong
inhibitions
Symbolic
meanings
Subconscious
mind
Complex and
unclear motives
Surrogate
behaviours
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-16
Motivation research
In-depth
interviews
Projective
techniques
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Association
tests
Focus
groups
5-17
Problems and contributions
of MR
Problems
Contributions
Qualitative results
from very small
samples
Reveals hidden
feelings, drives and
fears
Highlights importance
of symbolic factors
Shifts attention from
‘what’ to ‘how’ and
‘why’
Motivation
research
Varying, subjective
interpretations
Difficult or impossible
to verify or validate
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-18
Consumer information search
Personal
sources
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-19
Perception
Marketers are interested in:
1. how consumers sense external
information
2. how consumers select and attend to a
diverse range of information sources
3. how this information is interpreted and
given meaning.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-20
Perception involves three
processes
Sensation: direct response of the senses
Perception
Selection of information: determines
which inputs will receive attention
Interpretation: organising, categorising
and interpreting the information inputs
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-21
The selective perception process
Selective exposure
Selective attention
Selective comprehension
Selective retention
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-22
Evaluation of alternatives
 After gathering and selecting information, the
consumer moves to evaluation of alternatives.
 A set of brands with the potential to meet the
consumer’s needs is identified.
 The various brands identified as purchase
options to be considered are known as the
evoked set.
 Consumers will evaluate these brands further
before proceeding to a purchase decision.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-23
Evaluation: the evoked set
All available brands
Brand A
Brand B
Brand C
Brand D
Brand E
Brand F
Brand G
Brand H
Brand I
Brand J
Brand K
Brand L
Brand M
Brand N
Brand O
Evoked set of brands
Brand B
Brand E
Brand I
Brand F
Brand M
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-24
Evaluation
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-25
Evaluative criteria
 Evaluative criteria refers to the
dimensions or attributes of a product or
service used to make comparisons.
 Many marketers view products and
services as bundles of benefits.
 Consumers tend to think about products
and services as consequences.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-26
Two types of consequence
Consequences
Functional
Psychosocial
Concrete outcomes
Intangible outcomes
Examples
Example
Beverage—satisfies thirst
Sports car—cool appearance
Raincoat—keeps me dry
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-27
Evaluation and consequences
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-28
Different perspectives: marketer’s
view
Enough
power?
Traction
okay?
Too
pricy?
Product is seen
as a bundle of
attributes or
characteristics.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-29
Different perspectives: consumer’s
view
How does it cut
the taller grass?
How close can I
get to the
shrubs?
Is it going to be as
fun to use later this
summer?
Will it pull that
little trailer I saw
at the store?
Functional
Will the neighbours
be impressed with
my lawn?
Will I enjoy having
more time for golf?
Product is seen as
a set of outcomes
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Psychological
5-30
Consumer attitudes
Products
Individuals
Ads
Brands
Attitudes
toward:
Companies
Media
Retailers
Organisations
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
5-31
Attitudes
 Attitudes summarise a consumer’s
evaluation of an object (or brand or
company).
 Attitudes are strongly related to the
consumer’s behavioural intentions.
 A great deal of advertising attempts to
create favourable attitudes, reinforce
current positive attitudes and/or change
negative attitudes.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-32
Attitudes: multiattribute models
 A multiattribute model views an attitude
towards a brand as a composite of attitudes
towards a number of brand attributes.
 The model proposes that consumers attach
different weights to specific attributes.
 Consumers weigh up their beliefs about
attributes alongside their subjective
estimation of the attribute’s importance.
 To predict attitudes, marketers must know
how much importance is attached to given
attributes.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-33
Attitudes: multiattribute models (cont.)
n
Ab= ∑Bi X Ei
Where
i=1
Ab = attitude towards brand
Bi = beliefs about the brand’s performance on
attribute i
Ei = importance attached to attribute i
n= the number of attributes considered
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-34
Attitudes: multiattribute models (cont.)
 A multiattribute model views an attitude
towards a brand as a composite of attitudes
towards a number of brand attributes.
 The model proposes that consumers
attach different weights to specific attributes.
 Consumers weigh up their beliefs about
attributes alongside their subjective
estimation of its importance.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-35
Attitude change strategies
Change beliefs about an important attribute
Change perceptions of the value of an attribute
Add a new attribute to the attitude formation mix
Change perceptions or belief ratings about a competing brand
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-36
Adding attributes changes
attitudes
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-37
Changing perceptions of belief
ratings for a competing brand
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-38
Purchase decision and evaluation
Postevaluation
Preevaluation
Decision
Integration
processes
Purchase
intention
Satisfaction
Heuristics
Brand loyalty
Dissatisfaction
Affect referral
decision rule
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
Cognitive
dissonance
5-39
Brand loyalty: faithful or fickle?
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-40
Post purchase
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-41
Variations in consumer
decision making
 The decision process provides a general
framework for understanding consumers.
 Not all consumers proceed through each of
the steps in the purchase decision cycle.
 Routine or habitual purchases—little effort
or energy expended on information search
and evaluation of alternatives.
 Established brands are likely to be in the
evoked set.
 New products—complex decision making
involving information search, learning and
comparison of alternatives.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-42
Extended problem-solving
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-43
Attitudes
Integration
Perceptions
Motivation
Consumer
decision-making
processes
Consumer
decision-making
models
Culture
Learning
Influences on
consumer decision
processes
Subculture
Behavioural
Reference
groups
Studying
Consumer
Behaviour
Cognitive
Interpretive/
postmodern
Situational
determinants
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-44
Behavioural learning
 Consumer learning refers to a process by
which individuals acquire the purchase
and consumption knowledge and
experience they apply to future related
behaviour.
 Behavioural learning theories are based
on the stimulus-response orientation.
S—R
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-45
Classical conditioning process
Unconditioned
stimulus
Unconditioned
response
(grapes)
(fresh and moist)
Association develops through
contiguity and repetition
Conditioned
stimulus
Conditioned
response
(Lancôme moisturiser)
(fresh and moist)
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-46
Classical conditioning
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-47
Operant conditioning process
Behaviour
(consumer uses
product or service)
Positive or negative
consequences occur
(reward or
punishment)
Behaviour that is reinforced
strengthens the bond between
a stimulus and a response
Increase or decrease
in probability of repeat
behaviour (purchase)
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-48
Shaping procedures in marketing
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-49
Cognitive learning process
Goal
Purposive behaviour
Insight
Goal achievement
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-50
Attitudes
Integration
Perceptions
Motivation
Consumer
Decision-Making
Processes
Consumer
Decision-Making
Models
Culture
Learning
Influences on
Consumer Decision
Processes
Sub-Culture
Behavioural
Reference
Groups
Studying
CB
Cognitive
Interpretive/
Post Modern
Situational
Determinants
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-51
Environmental influences on
consumer behaviour
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-52
Subcultures
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-53
Reference groups
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-54
Situational determinants
Types of structural
determinants
Usage situation
Purchase situation
Communications
situation
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-55
New methodologies in
consumer research
Traditional
approach
New approaches
Psychology
Sociology, anthropology,
history, semiotics,
linguistics
Experimental
design, surveys
Field work, ethnographic
studies
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-56
Summary and conclusions
 This presentation provides an overview of consumer
behaviour and some of the methods used to conduct
consumer research.
 A five-stage model of consumer decision making
consists of problem recognition, information search,
alternative evaluation, purchase and post-purchase
evaluation.
 The consumer decision process model views
consumer behaviour primarily as a cognitive
orientation.
 Behavioural learning can also shed light on
consumer decision making and purchasing activity.
Copyright  2012 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell
5-57