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Chapter 10 INFLUENCING CONSUMER BEHAVIORS AUTHOR’S OVERVIEW OF THE CHAPTER This chapter focuses on strategies for influencing overt consumer behaviors. It begins by offering a general model of influence approaches (Exhibit 10.1) and details four strategies (Exhibit 10.2). Affective strategies. Affective strategies are designed to influence consumers’ emotions, moods, feelings, and evaluations in order to ultimately influence their overt behaviors. Cognitive strategies. Cognitive strategies are designed to influence consumers’ knowledge, meaning, and beliefs in order to ultimately influence their overt behaviors. Behavioral strategies. Behavioral strategies are designed to influence consumers’ overt behavior somewhat directly in situations where behaviors are habitual and involve little decision-making. Combination strategies. Combination strategies attempt to influence more than one of the above in order to ultimately influence overt behavior. The chapter then turns to sales promotion methods for influencing overt consumer behavior and discusses how they are used to change purchasing probabilities, purchase quantities, purchase timing, and purchase locations. Next, social marketing is discussed briefly as this area has also recognized the need to change overt consumer behavior in order to have successful marketing strategies. Social marketing strategies are designed to increase desired behaviors and decrease undesired behaviors. The remainder of the chapter focuses on a strategic model for influencing consumer behavior (Exhibit 10.4). This model begins with efforts to measure current levels of consumer affect, cognition, and behavior concerning a company’s products, stores, or other offerings. Consumer and market information is then analyzed and an influence strategy is selected and implemented. The effects of the strategy are then measured and, if successful, the strategy is evaluated for performance improvement. If not, marketing strategists must return to the analysis of consumers and markets, find the reasons for the failure of the strategy, and determine whether a new strategy is needed. While this model is new, it reflects a commonly used approach to strategy development and implementation KEY CONCEPTS AND ISSUES The need for marketing strategies to focus on overt consumer behavior Affective, cognitive, behavioral, and combination influence strategies The use of sales promotion tools to influence consumers Social marketing’s use of influence techniques A strategic model for influencing consumer behaviors OUTLINE OF THE CHAPTER Chapter 10. INFLUENCING CONSUMER BEHAVIORS A. What Were These Marketers Trying To Do? B. Consumer Behavior Influence Strategies C. Sales Promotion 1. 2. 3. 4. 5. Purchase Probability Purchase Quantity Purchase Timing Purchase Location Effectiveness of Sales Promotion D. Social Marketing 1. Increasing Desired Behaviors 2. Decreasing Undesired Behaviors E. A Strategic Model for Influencing Consumer Behaviors 1. Measure Current levels of Consumer Affect, Cognition, and Behavior 2. Analyze Consumers and Markets 3. Select and Implement Influence Strategy 4. Measure Strategic Effects 5. Evaluate for Performance Improvement 6. Marketing Implications F. Back to ….. What Were These Marketers Trying To Do? LEARNING OBJECTIVES Upon completion of this chapter, the student should be able to: appreciate the importance of influencing overt consumer behavior. classify marketing strategies as to whether they are affective, cognitive, behavioral, or combination strategies. determine whether a sales promotion is being used to influence purchase probability, purchase quantity, purchase timing, or purchase location. determine how social marketing can be used to influence behavior. systematically develop behavior influence strategies. TEACHING IDEAS AND SUGGESTIONS This chapter should help students understand that marketing strategies must ultimately influence overt consumer behavior in order to be successful. Exhibits 10.1, 10.2, and 10.4 can be used for discussion of the key chapter issues. Students can be asked to bring in examples of ads or sales promotions and explain whether they are part of an affective, cognitive, behavioral, or some combination strategy. They should also be able to explain what overt consumer behaviors the strategies are designed to influence. They can also be asked to evaluate how successful they think the strategies are for influencing consumer behavior. In-Class Exercise: Sales Promotions. The text identifies many types of sales promotions (pages 243-245). You can encourage students to think about the potential impacts of various sales promotions on consumers. Bring several current examples of sales promotions to class, or ask students to find one and bring it to class. Depending on the depth of analysis you want, one or several sales promotion strategies could be examined. These could be coupons, premiums, sweepstakes, contests, rebates and refunds, free samples, etc. Many examples are described in Advertising Age each week. Ask students to identify the target behavior of each sales promotion strategy. This could be to (a) increase the probability of brand or product purchase, (b) influence the quantity (number of units) purchased on an occasion, (c) influence the timing of purchase, or (d) influence the location of purchase. Then, for each sales promotion strategy, ask students if there are any other factors besides the target behavior that are important. Here, the Wheel of Consumer Analysis is useful to stimulate students’ thinking. Cognitive factors can influence the behavior of interest. For instance, coming to the showroom is a highly desirable consumer behavior for appliance and car retailers. To encourage store visits, the dealer might hold a contest to win a vacation to Hawaii. But if consumers do not know where the showroom is located, or how to get there, the store visit behavior is less likely. The environment can also influence the behavior (ex. store visits may decrease if the street in front of the store is being torn up for resurfacing). Some students may have the insight that other behaviors may facilitate or block the performance of the target behavior. One has to stop doing whatever other behaviors to go to the appliance store (stop watching TV, gardening, playing with the kids, preparing meals). Going to a nearby mall might make a stop at the appliance store more likely. But, students should consider the major problems or blocks in the cognitive/affective, behavioral, and environmental areas. Students should also consider problems caused by how these factors interact. Finally, students should consider strategies to deal with these problems. In-Class Exercise: A Sales Promotion for Old Style Beer. This is one type of sales promotion in contests. Old Style Beer, a brand sold by a Wisconsin brewery, once ran a contest in which three cans were produced with the word “car” printed on the bottom. Al Gonzalez, an Old Style drinker, found one of the cans and won a new Porsche automobile. The company promoted his good fortune with a newspaper advertisement that described the contest and featured Al as one of the winners. In addition to the two remaining “car” cans in circulation, Old Style circulated 100 cans containing the words “coat” and 100 others with “specs” on the bottom. Possessing one of these cans entitled the finder to a Porsche design racing jacket or a pair of Porsche Design sunglasses, respectively. This promotion was so successful for Old Style that they repeated it the next year with a Corvette as the grand prize. Ask students to describe how Old Style managers could judge the effectiveness of this promotion. They should describe “effectiveness” in behavior terms –additional cases of beer sold, numbers of new drinkers attracted to the brand, etc. Of course, some effectiveness measures could refer to consumers’ affect and cognition (increases in positive brand attitude, intentions to purchase). Ask students how many of them would switch brands of beer (or soft drinks or some other product) for the (remote) chance to win a Porsche and to explain why they would do so. Jot down their reasons on the board as a useful beginning for discussion of the first question below. NOTES AND ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 1. This chapter argues that influencing overt consumer behavior is more critical for marketers than influencing only affect and cognition. Do you agree? Why or why not? This question is designed to get students to think carefully about what marketing strategies are designed to do. Surely, much of marketing is about creating knowledge, meanings, and beliefs about why products, services, stores, and brands are superior to competitive offerings and influencing consumers’ feelings and emotions relative to offerings. However, if consumers do not perform any overt behaviors relative to marketed offerings, then no sales are made and company objectives for market share, sales and profits are not obtained. While influencing consumer affect and cognition are important in the marketing process, ultimately marketing strategies must influence over consumer behavior to be effective. One way to bring this point home is to ask students to think about the car they like best and would like to own. They can be asked to think about all of the attributes of the car, why it is the coolest car, what other people would think about them if they owned one, and how they would feel about themselves if they had one. Now point out that as long as those thoughts and feelings are only in their minds, there are no consequences for marketers. Unless they actually do something relative to the car, actually perform some overt behaviors, nothing happens. For example, if they tell others about the car and why they like it, fill out a questionnaire about their car preferences and intentions, visit a dealership and test drive one, or actually buy one, then behaviors are being performed that could have consequences for marketers. What goes on in the private world of a consumer’s mind doesn’t matter to anyone else unless it influences overt behavior. 2. Offer one example of each of the seven types of sales promotions listed in the chapter. How many of these have influenced your consumer behavior? Which ones do you prefer? Students can be asked to write down an example of each of these prior to class or bring in an old ad featuring them. A good source for these is Sunday supplements in many newspapers that have many examples of sales promotions for various products and services. The discussion can proceed by first identifying examples of each type and deciding which ones the class thinks are most effective. Then, students can be asked individually which ones they prefer and have used. They can be asked why they used them and whether the sales promotion led to a brand switch or just gave them a better deal on a brand they usually purchased anyway. For any new products featured, they can be asked whether the sales promotion led to trial and whether they would have tried the product without it. Also, they can be asked whether a product they tried because of a sales promotion led to repeat purchases. 3. Offer one example of a situation when a sales promotion could affect your purchase probability, purchase quantity, purchase timing, or purchase location. This question is designed to get students to think about how sales promotions influence consumer behavior. Purchase probability could be easily influenced by sampling a product in a grocery store, a price deal at the point of purchase, or a coupon or rebate offer. Purchase quantity could be influenced by these, but particularly by bonus packs and price deals or coupons for purchasing larger sizes or quantities. Purchase timing could be influenced by all of these, but sweepstakes and contests might encourage purchase before they are over, premiums are usually offered for a limited time, and most coupons are dated. All of these can influence purchase locations when they are offered by particular stores or other nonstore retail sources. 4. What factors do you think influence whether consumers respond to a social marketing campaign to donate blood to the Red Cross? This discussion can begin by asking whether anyone in the class had donated blood and the reasons why they did so. Likely, they did so because they felt good about helping others, an organization they belong to donated to a blood drive, a friend asked them to, a relative needed blood for an operation, or they wanted to help out during a crisis such as a hurricane or flood. If no one has done so, then the class can be asked why not. Likely, most will have not done so because they saw no need to donate, they hadn’t thought about it or thought it was an important thing to do, or just didn’t want to take the time or effort to go do it. A key issue is that the payoff to do such things offers little in the way of tangible rewards in most cases. This is a key problem for many social marketers. 5. What factors do you think influence whether consumers respond to a social marketing campaign to reduce drunken driving or other unsafe driving? Discussion of this question can focus first on the stiffer penalties and fines that result from being caught driving drunk or impaired and whether this type of punishment is effective. Also, the class can be asked whether they think groups such as SADD (Students Against Drunk Driving) or MADD (Mothers Against Drunk Driving) have heightened awareness of this problem and have helped reduce it. Do they think designated driver programs are effective at reducing this problem? The discussion can also focus on the process by which people who have driven while intoxicated decide not to do so again. What factors lead to changes in the person’s behavior? If they were in an accident, had a friend hurt or killed by a drunk driver, or were arrested for drunk driving, then the probability of the behavior should decrease. Also, as society becomes less tolerant of drunken driving, individuals may be less likely to think that such behavior is acceptable. 6. List everything you know (cognition), feel (affect), and do (behavior) concerning Crest toothpaste. How could marketers identify your level of each of these? Students will likely have some information about this product and users of Crest will know, feel, and do more relative to it. The key discussion should be on how marketers can get this information. Some consumers call the company with compliments or complaints about products. However, consumer research is needed to find out what the majority of the market think and feel. Sales data gives some indication of behavior but other behaviors may have to be observed or reported on by consumers. The class should be asked to develop a questionnaire or design a research project to get information about each of these. Since understanding consumer/product relationships is an important first step for effective marketing strategies, students should be aware of the need for research on these topics. 7. In reviewing Exhibit 10.5, which methods do you think are best for measuring the effects of a marketing strategy? This exhibit presents a variety of methods for measuring overt consumer behaviors. Students should be familiar with most of them, including Nielsen data on TV viewing and Starch reports on magazine readership. Scannercable data are discussed in the chapter and students should recognize these as valuable information for examining a variety of consumer behaviors. Garbology is not discussed in the chapter but deals with examining consumers’ garbage to see what products they’ve used and how much was wasted. Discarded packaging is used to infer what products they purchased and used. An interesting discussion can be developed on the value of “hits” as a measure of the effectiveness of web pages. While more hits would seem desirable and gives some information about consumer behavior relative to products featured, it does not indicate the number or size of actual purchases from the company. Thus, it could be a misleading measure of the effectiveness of a marketing strategy. 8. Why is it so difficult to determine the reasons for a strategic failure to influence consumers? As discussed in the text, there are many reasons why a strategy could fail. The objectives of the strategy could be set too high; the strategy could be faulty; the strategy could be good but implemented poorly; the measurement of the strategy’s effects could be faulty; changes in competitors or consumers during implementation could ruin an otherwise excellent strategy; some combination of these occurs. 9. If a consumer behavior influence strategy met its objectives, can the marketer conclude that everything was done as effectively as possible? Why or why not? As discussed in the text, even when strategies meet their objectives, there could still be problems in the process. Objectives could have been set too low; measurement could have overstated the response; competition could have made a strategic error that helped the company. Also, a better strategy could have been available but was not used. Thus, the process of developing consumer behavior influence strategies needs to be frequently evaluated and of course, strategy development and implementation is an ongoing process. NOTES TO DISCUSSION QUESTIONS FOR MARKETING STRATEGY IN ACTION-Cub Foods Overview. This case describes a successful warehouse grocery chain and many of its key marketing strategies. Most of the strategies presented in the case concern how the store environment was designed and constructed to increase the probability of purchase behaviors. These strategies seem to have been successful. Most Cubs stores have average sales of $800,000 to $1 million per week, four times that of a conventional supermarket. Before dealing with the specific discussion questions, you might conduct a general discussion of consumers' decision-making processes while shopping for groceries. Begin by asking students to consider how much conscious cognitive processing they do in a supermarket. Do they make up a list before shopping? Do they frequently compare alternative brands in the store by reading labels or comparing prices (integrate information to evaluate and choose)? The point is that much of consumers' cognitions in a familiar grocery store are automatic, and relatively little controlled integration processing occurs. Then ask students what factors they think influence their behavior in a supermarket. For example, what about the effects of in-store marketing stimuli like signs and displays? We have found that most students underestimate the influence of the store environment on their cognitions, affective reactions, and overt behaviors. In fact, in-store stimuli can have a very significant effect on purchase behavior. If the discussion lags, ask students to consider the effects of signs ("Special today only!"), displays (at end of aisles), other people in the store (number of people, how they are dressed). What about the width of aisles, temperature and humidity, cleanliness of the store, friendliness of personnel? This discussion can help get students to think about the consumer/product relationship. In this case, the relationship is between a consumer and a store. Certainly, consumers vary in their level of involvement with grocery shopping. Most consumers probably have low levels of felt involvement, and some consumers may profess to hate grocery shopping. A few customers may be rather interested in grocery shopping and find it "fun" and involving. How would these consumers react to various aspects of the store environment? Suggested Answers for Discussion Questions. 1. List at least five marketing tactics Cub Foods employs in its stores to increase the probability of purchases. This question focuses on behavior modification strategies and tactics. Several tactics that were mentioned in the case can be analyzed in detail as to how they influence the probability of purchase. Placing specials close to the store entrance to facilitate exposure and encourage impulse purchases. Leaving ceiling joists and girders exposed to suggest spaciousness, no frills, and greater savings. What other meanings might this feature of the store environment have? To some consumers it may indicate low overhead (pun intended), massive buying, and inexpensive prices. Developing a store layout to encourage consumers to travel to areas containing the high-profit products such as produce and meat. Students should discuss the effects of different store layouts in different types of stores. Using extra-wide/deep shopping carts to encourage and facilitate more purchases. Organizing departments within the store layout to maximize purchases, such as placing the deli section before the meat to encourage impulse buying before consumers spend their budget on expensive essentials like meat. Ask students to consider the strategies used by different types of stores (like specialty clothing stores) in arranging their merchandise within the store layout. 2. What accounts for Cubs' success in generating such large sales per customer and per store? Many reasons can be offered for Cubs' success. For one thing, Cubs stores are very large and often attract people from as far as 50 miles away and more. Ask students to consider what type of shopping trips Cubs shoppers are likely to make. People who travel long distances are engaged in a major shopping trip and probably will buy large quantities of groceries for one or more weeks. Probably they have budgeted a large amount of cash for groceries and are not likely to be scrimping on purchases. The probability of including some impulse purchases is likely to be high. Thus, it is not surprising that many Cub shoppers have very large grocery bills--perhaps $100 to $200 or more per trip. Next, ask students to consider the effectiveness of Cub's in-store tactics. Students should discuss whether and how consumers are affected by deals, specials, assortments, store layout, arrangement of merchandise within the store. Encourage students to analyze how these various tactics affect consumers' cognitions and behaviors. For instance, how does the vast selection of products and brands and massive quantities (stacked to the ceiling) encourage consumers to buy more? For instance, an in-store deal (especially if highlighted by a colorful sign describing the special discount) is likely to affect consumers' affect and cognitions which in turn could influence their behaviors. In contrast, the store layout or aisle width is more likely to affect behaviors directly and may not be consciously considered. Finally, the "standard" reasons for success in grocery marketing should be mentioned. These include the store attributes consumers commonly mention in survey research--low prices, high quality meats and produce, clean stores, friendly checkout personnel, short waits at checkout, and good selections of merchandise. Point out that these factors are also aspects of the store environment that will increase the probability of purchase (as well as create favorable cognitions). 3. Given Cub's lower prices, quality merchandise, excellent locations, and superior assortment, offer reasons that many consumers in its trading areas refuse to shop there. Students should be able to come up with a number of reasons why shoppers might not like to shop at Cubs. For some shoppers the large size of the store and the huge assortment may create an information overload that makes decision-making difficult. This may inhibit them from returning to Cubs. For example, Leslie Wells, the shopper mentioned in the case, stopped shopping at Cubs because the store "overwhelmed" her and shopping trips took too long. Other shoppers have complained about overcrowding, or that they have to bag their own groceries. Others doubt that the price savings are significant. Other reasons for avoiding the Cubs environment include: Once a consumer is familiar with a particular grocery store, switching to a new store involves costs such as having to learn a new layout and the whereabouts of particular items. In addition, having to apply for check cashing privileges and abandoning "friends" who work at the old store may inhibit change. These factors all encourage store loyalty to one's "old" store. As a low-price warehouse store, Cubs may be perceived by some consumers as inappropriate for them. Some consumer may feel that the store is for low-income people who can't afford to pay for services such as bagging a delivery to the store. Some consumers may not want to associate with such people. Other consumers may infer that the quality is lower at Cubs given its warehouse image and low prices. Given the size of the store and the volume of traffic it generates, waiting lines may be quite long, or at least some consumers may expect them to be long. A significant amount of physical effort (lots of walking) and cognitive effort (lots of decisions) is required to shop at Cubs. This may discourage customers who are physically weak. In many cases, competitive stores have responded to Cubs by lowering their prices and instituting more sales promotions. This response of the competitive environment may make Cubs a less attractive alternative. We are aware of at least one shopper who refuses to shop at Cubs because of a fear that the twostory displays will fall. In fact, this shopper complained of her worry to one of the authors during her first shopping trip to Cubs. Within seconds after the author reassured her that the immense racks were carefully constructed and secure, one rack containing heavy canned goods crashed down within 15 feet of the couple, crushing the produce below. Fortunately no one was hurt, but this shopper vowed never again to return to Cubs!