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Consumer Behavior
Issues on the Internet
Marketing Strategy
. . . a plan designed to influence
exchanges to achieve organizational
objectives. Accomplished by
developing and presenting marketing
mixes directed at selected target
markets.
Marketing Strategy
• Marketing strategies create marketing
stimuli (products, advertisements,
distribution points, ...) in the consumer’s
environments in order to influence their
affect, cognition, and behavior.
• Marketing strategies influence and are
influenced by affect and cognition,
behavior, and the environment.
The Wheel of Consumer Analysis
Marketing
Strategy
Environment
Affect and Cognition
. . . two types of internal, psychological
responses that consumers may have to
environmental stimuli and events.
Affect (feelings) and Cognition
(thinking)
Behavior
. . . the overt acts or actions of
consumers that can be directly
observed.
•behavior deals with what consumers
actually do
Environment
• . . . the complex of physical and
social stimuli in the external world
of consumers.
Aspects of the Environment
The Social Environment
The Physical Environment
The Social Enviroment
• The Social Environment - includes all social
interactions between and among people
– Macro - the indirect and vicarious social interactions
among very large groups of people.
• Culture
• Subculture
• Social Class
– Micro - face-to-face social interactions among smaller
groups of people.
• Families
• Reference groups
Flows of Influence in Social Environment
Culture
Subcuture
Social Class
Organizations
Reference
Groups
Family
Individual Consumer
Media
The Physical Environment
• time
– time of day
– day of week
– season of year
• weather
– winter products vs. summer products
• lighting
• What else????
– smells, sounds, ...
Generic Consumer Situations
Marketers study situations that are experienced by
large numbers of consumers. These 5 are relevant
for most products:
• Information Acquisition Situations
• Shopping Situations
• Purchasing Situations
• Consumption Situations
• Disposition Situations
Generic Consumer Situations
• Information Acquisition Situations - Includes
physical and social aspects of environments where
consumers acquire information relevant to a
problem-solving goal, such as a store choice or a
decision to buy a particular brand
• Shopping Situations - The physical and spatial
characteristics of the environments where consumers
shop for products and services.
• Purchasing Situations - Includes the physical and
social stimuli that are present in the environment
where the consumer actually makes the purchase.
Generic Consumer Situations
• Consumption Situations - The social and physical
factors present in the environments where
consumers actually use and consume the products
and services they have obtained.
• Disposition Situations - The physical and social
aspects of the environments in which consumers
dispose of products, as well as consumers’ goals,
values, beliefs, feelings, and behaviors while in
those environments.
Content of Culture
• All the beliefs, attitudes, goals and values
shared by most people in a society, as well as
the typical behaviors, rules, customs and
norms that most people follow, plus
characteristic aspects of the physical and
social environment.
• Look at the Lifestyles and Values of the
society within which the person is immersed.
Affect and Cognition
Affect Defined
Affect = feeling responses
• Related to affection
• Includes:
–
–
–
–
Emotions
Moods
Feelings
Evaluations
Types of Affective Responses
Type of
Affective
Response
Level of
Intensity or
Physiological Strength of
Arousal
Feeling
Emotions
Higher arousal
and activation
Stronger
Examples of
Positive and
Negative Affect
• Joy, love
• Fear, guilt, anger
Specific
Feelings
• Appreciation, satisfaction
• Disgust, sadness
Moods
• Alert, relaxed, calm
• Blue, listless, bored
Lower arousal
Evaluations and activation
Weaker
• Like, good, favorable
• Dislike, bad, unfavorable
Cognition Defined
Cognition = thinking responses
• Includes:
– Knowledge
– Meanings
– Beliefs
ENVIRONMENT
AFFECT
Affective
Responses
•Emotions
•Feelings
•Moods
•Evaluations
COGNITION
Cognitive
Responses
•Knowledge
•Meanings
•Beliefs
Aspects of Consumer Decision Making
• Activation - the process by which product
knowledge is retrieved from memory and used in
interpreting and integrating information
• Spreading Activation - Activation of one
meaning spreads into other associated concepts.
• Capacity Limits - there is a limit on the amount
of information that the human brain can process
at once.
Motivation
Maslow’s Hierarchy of Needs
• SelfActualization
• Esteem
• Belongingnes
s
• Safety
• Physiological
Maslow’s Hierarchy of Needs
Education, artistic
endeavors
Autos, Jewelry,
Paintings
Clubs, Cigarettes
Tires, Smoke Alarms,
Condoms
Clothing, Shelter
Operant Conditioning
Operation
Performed after
behavior
Presents positive
consequences
Name
Effect
Positive
reinforcement
Increases the
probability of
behavior
Increases the
probability of
behavior
Decreases the
probability of
behavior
Decreases the
probability of
behavior
Removes aversive
consequences
Negative
reinforcement
Neutral
consequences occur
Extinction
Presents aversive
consequences
Punishment
Reinforcement Schedules
... the rate at which rewards are offered in attempts to
operantly condition behavior.
Three Major Schedules:
• Continuous schedule
• Fixed ratio schedule
• Variable ratio schedule
Continuous Schedule
• it is possible to arrange conditions so a positive
reinforcer is administered after every desired
behavior.
• Services attempt to follow this schedule
– Airlines (Bad Weather, Flight Delays, . . . )
– Sporting Events (rowdy fans, spilled beer, team loses)
• Ex: Pop machine
1
2
3
4
5
6
7
Reward Reward Reward Reward Reward Reward Reward
Fixed-Ratio Schedule
• a type of reinforcement schedule where every
second, third, tenth, and so on response is
reinforced.
• Ex: Sub Club Card
• Ex2: Pay check
1
2
Reward
3
4
Reward
5
6
Reward
7
Variable Ratio Schedule
• occurs when a reinforcer follows a desired
consequence on an average of one-half, one-third,
or one-fourth (and so on) of the time the behavior
occurs, but not necessarily every second, third, or
fourth time.
• Ex: Slot Machine, Lottery
1
2
Reward
3
4
5
Reward
6
7
Reward
Traditional Models
of the Adoption
Process
View purchase or
adoption process as a
series or chain of
cognitive events
followed by a single
behavior
Attention
Interest
Desire
Action
A Behavior Sequence for a Retail Purchase
Consumption Stage Type of Behavior
Prepurchase
Purchase
Information Contact
Read newspaper, magazine ads
Listen to radio commercials
Watch T.V. commercials
Listen to friends, salesperson
Funds Access
Withdraw cash from bank or ATM
Cash a check
Obtain loan
Store Contact
Locate outlet
Travel to outlet
Enter outlet
Product Contact
Transaction
Postpurchase
Examples of Behaviors
Consumption
Communication
Locate product in store
Obtain product
Take product to checkout
Exchange funds for product
Arrange delivery
Take product to use location
Consume/use product
Dispose of packaging/used product
Repurchase
Tell others of product experience
Fill out warranty cards
Provide other information to firl
Making
Problem Recognition
Information Search
Evaluation of Alternatives
Product Choice
Outcomes
Information Search
• Internal - the acquisition of information
that is available in memory
• External - the quest for information,
relevant to the product, brand, or shopping
behavior, not found in memory
–Prepurchase
–Ongoing
Information Search
The Internal Search Process
Need
Recognition
Determinants of
Internal Search
u Existing Knowledge
uAbility to Retrieve
Information
Internal
Search
Internal Search
Successful?
YES
Proceed with
Decision
NO
Undertake
External Search
Information Search
Two types of external search:
Prepurchase Search - Information
seeking to make a better purchase
decision
Ongoing Search - Information search
activities that are independent of
needs or a purchase decision
Behavior
ROUTINE RESPONSE BEHAVIOR
(No problem solving)
LIMITED PROBLEM SOLVING
EXTENSIVE PROBLEM SOLVING
Low-cost products
More expensive products
Frequent purchasing
Infrequent purchasing
Low consumer involvement
High consumer involvement
Familiar product class and
brands
Unfamiliar product class and
brands
Little thought, search, or
time given to purchase
Extensive thought, search,
and time given to purchase
Alternative Evaluation
Compensatory versus
Noncompensatory Decision Rules
Noncompensatory Decision
–Lexicographic -Rules
the brand that is best on
the most important attribute is selected.
In the event of a tie, brands are evaluated
on the next most important attribute.
–Elimination by Aspects - brands are
compared for the presence of the attribute
considered most important. If the feature
is not present, that alternative is rejected.
–Conjunctive Rule - minimum cutoffs are
established for each attribute the brands
possess. The brand must meet all cutoffs
to be considered.
Elements in the Communication
Process
Source
(Encodes
message)
Message
Message
channel
Noise
Feedback
Receiver
(Decodes
message)