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CHAPTER 3 CONSUMER BEHAVIOUR MODELS Chapter Overview The purpose of this chapter is to examine the field of consumer behaviour and to demonstrate how knowledge and understanding of the consumer can be used in developing promotional strategies and programs. This chapter utilizes the basic consumer decision making process model as a framework for examining consumer behaviour. The chapter takes the student through the various stages of this model and discusses what occurs at each and how advertising and other forms of promotion can be used to influence consumer decision making. The influence of various psychological concepts or influences such as motivation, perception, attitudes and integration processes are examined at the appropriate stages of the decision process model. Attention is also given to the three major variations in the consumer decision making process: routine response behaviour, limited problem solving and extended problem solving. Consideration is given to how advertising and promotional strategies may differ depending on the type of decision making process consumers are likely to be using. Learning Objectives 1. To understand the role that consumer behaviour plays in the development and implementation of advertising and promotional 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 advertising and promotion. 4. To recognize external factors such as culture, social class, group influences, and situational determinants and how they affect consumer behaviour. Chapter and Lecture Outline I. AN OVERVIEW OF CONSUMER BEHAVIOUR A. A brief introduction to the field of consumer behaviour and an indication of the increased importance that this domain of study has assumed in marketing would be a good starting point. The instructor should discuss the fact that to operationalize the marketing concept it is critical that the marketer have an understanding of some of the consumer decision making processes. Likewise, to effectively design effective advertising and promotions programs, these processes must be understood and considered. It is important to point out that the development of successful marketing communication programs begins with understanding why consumers behave as they do. Those who develop advertising and other promotional strategies begin by identifying relevant markets and then analyzing the relationship between target consumers and the product/service or brand. Consumer Behaviour can be defined as the process and activities that people engage in when searching for, selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires. The decision process model should be introduced and a brief description given of the five stages: Need recognition B. Chapter 3 – Consumer Behaviour Models 29 Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation You should let the students know that this model will be used as a framework for analyzing the consumer decision making process. You will be going through the various stages of the model, discussing what occurs at each and how advertising and promotion can be used to influence consumer decision making. II. THE CONSUMER DECISION-MAKING PROCESS The consumer purchase decision process is generally viewed as consisting of sequential steps or stages through which the buyer passes in purchasing a product or service. Figure 3-1 of the text shows the various steps in this process as well as the relevant internal psychological processes that occur at each stage such as motivation, perception, attitude formation, integration and learning. A. Need recognition—The first step in the consumer decision-making process is that of problem recognition, which is caused by a difference between the consumer’s ideal state and actual state. There are various causes of sources of problem recognition. These include: 1. Out of stock 2. Dissatisfaction 3. New needs/wants 4. Related products/purchases 5. Marketer induced problem recognition 6. New products Examining Consumer Motivations—the way a consumer perceives a need and becomes motivated to solve a consumption problem will influence the remainder of the decision making process. To better understand the reasons underlying consumer purchases, marketers develop considerable attention to examining motives or factors that compel or drive a consumer to take a particular action. Hierarchy of needs—one of the most basic and popular approaches to understanding consumer motivation is the classic theory of human motivation popularized by Maslow. His hierarchy of needs postulates five basic levels of human needs: physiological needs safety needs social/love and belonging needs esteem needs self-actualization needs The implications of Maslow’s hierarchy for developing advertisements that appeal to different types of needs should be discussed. Motivation research in marketing—While very popular in the late 1950s, this area of study— known as motivation research—received much less attention through the 1960s and 1970s. The text brings up several associations related to products and brands. Very recent applications of motivation research are discussed. Chapter 3 – Consumer Behaviour Models 30 B. C. Major corporations and advertising agencies continue to use motivation research to help them market their products. However, since motivation research studies typically use so few participants, there is also concern that it really discovers the idiosyncrasies of a few individuals and its findings are not generalizable to the whole population. Problems and Contributions—Because of problems with reliability and validity, and the fact that consumers were often considered as unaware and unable to control their motivations, this area has received substantial criticism. Nevertheless, as noted in the text, the 1990’s has seen a return of this theory in the formulation of advertising programs and strategies as demonstrated in this chapter. Information Search—the second step in the consumer decision making process is information search. Internal search involves a scan of information stored in memory to recall past experiences or knowledge regarding purchase alternatives. External search involves go to outside sources to acquire information such as personal sources, marketer controlled sources, public sources, or through personal experiences such as examining of handling a product. Perception—perception is the process by which an individual receives selects, organizes, and interprets information to create a meaningful picture of the world. There are a number of processes involved in perception which determine how marketing information will be received: Sensation—the immediate and direct response of the senses to a stimulus such as an advertisement. Selecting information—determining whether incoming information will be attended to and how much attention it will be given. Interpretation—the process by incoming information is interpreted and assigned meaning. Selective comprehension—interpreting information on the basis of the consumer’s own attitudes, beliefs, motives and experiences. Selective perception—a filtering or screening may occur at various stages of the perceptual process such as exposure, attention, comprehension and retention. Subliminal perception—refers to the ability of an individual to perceive a stimulus that is below the level of conscious awareness. The possibility that marketers could use subliminal advertising to influence consumers at a subconscious level has very strong ethical implications and can be discussed using Ethical Perspective 3-2. Alternative Evaluation—after acquiring information during the information search stage the consumer moves to alternative evaluation. At this stage the consumer compares the various brands and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. The evoked set is a subset of all the brands of which the consumer is aware. A goal of marketers is to ensure that their brands are included in the evoked set of consumers. There are a number of important factors and processes that are important during the alternative evaluation stage: 1. Evaluative criteria and consequences—evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Consequences are the specific events or outcomes that consumers experience when a product or service is purchased and/or consumed. Functional consequences are tangible and can be experienced directly by consumers. Psychosocial consequences refer are more intangible, subjective and personal. 2. Attitudes—attitudes refer to a summary construct that represents an individual’s overall feelings or evaluation of an object such as a brand, a company, another person, a retail store, or even an advertisement. Attitudes are one of the most heavily studied concepts in consumer Chapter 3 – Consumer Behaviour Models 31 behaviour. Marketers keen interest in attitudes is based on the assumption that they are related to purchase behaviour. Advertising and promotion are used to create favorable attitudes toward new products/services, reinforce or maintain existing favorable attitudes, and/or change negative attitudes. a. Multiattribute attitude models have been used by marketers to study consumer attitudes. These models view an object such as a product as possessing a number of attributes that provide the basis on which consumers form their attitudes. According to this model consumers have beliefs about specific brand attributes and attach different levels of importance to these attributes. b. Attitude change strategies—The multiattribute model focuses on the underlying structure or basis of an attitude and provides insight into ways marketers can influence or change consumers’ attitudes such as: increasing or changing the strength or belief rating of a brand on an important attribute changing consumers’ perceptions of the importance or value of an attribute adding new attributes to the attitude formation process changing perceptions of belief ratings for a competing brand D. Purchase Decision—as an outcome of the alternative evaluation stage the consumer may develop a purchase intention or predisposition to buy a certain brand. Once a purchase intention has been made and an intention formed, the consumer must still implement it and make the actual purchase. Many purchase decisions are made on the basis of brand loyalty which is a preference for a particular brand that results in its repeated purchase. Many purchase decisions for nondurable, low involvement items take place in the store and decision and purchase occur almost simultaneously. For these types of decisions top-of-mind awareness of a brand is important as is the influence of packing, shelf displays, point-of-purchase material, and various sales promotion tools. Integration Processes—an important aspect of the alternative evaluation stage is the way consumers integrate or combine information to evaluate alternatives and arrive at a purchase decision. Consumers may use formal integration rules which require examination and comparison of alternatives on specific attributes. These include both compensatory and noncompensatory integration strategies. Consumers may also use informal integration rules which are often referred to as heuristics. Promotional planners need to understand consumers’ integration processes and the types of decision rules they might use in a situation. Advertising messages can be constructed to be consistent with these decision rules or to suggest how consumers might go about making a decision. It is also important for marketers to recognize that some purchase decisions are the result of a constructive process that occurs at the time of purchase. E. Postpurchase Evaluation—the consumer decision process does not end once the product or service has been purchased. After using a product or service the consumer compares the level of performance with expectations. Satisfaction occurs when the consumer’s expectations are either met or exceeded, while dissatisfaction results when performance is below expectations. Another possible outcome of purchase is cognitive dissonance which refers to a feeling of psychological tension or postpurchase doubt a consumer may experience after making a difficult purchase choice. Consumers often look to advertising for supportive information regarding the choice they have made. Chapter 3 – Consumer Behaviour Models 32 F. Variations in Consumer Decision Making—consumers do not always engage in all five steps of the purchase decision process nor proceed in the sequence presented. There are three major variations of the consumer decision making process: 1. Routine response behaviour—many purchase decisions for low-priced, frequently purchased products are based on a habitual or routine choice process consisting of little more than recognizing the problem, engaging in brief internal search and making the purchase. Marketers of products characterized by routine response behaviour must get and/or maintain their brands in the consumers’ evoked set and encourage brand loyalty. Those not in the evoked set must encourage trial and brand switching. 2. Limited problem solving—often a consumer has a limited amount of experience in purchasing a product or service but in somewhat aware or knowledgeable of the brands available and/or the criteria to use in making a purchase decision. When consumers purchase a product through limited problem solving, marketers should make information available to consumers that will help them make their decision. 3. Extended problem solving—the most complex and detailed form of decision making occurs when consumers have little, if any, knowledge regarding the criteria to use in making a purchase decision or the various brands available. As with limited problem solving, marketers of products characterized by extensive problem solving must provide consumers with detailed information that helps them in making their purchase decision. III. BEHAVIOURAL LEARNING THEORY Up to this point of the chapter, the focus on consumer behaviour has been from a cognitive orientation. The decision process model looks at the consumer as a problem solver and information processor who engages in a variety of mental activities in evaluating and choosing among alternatives. There are, however, alternative perspectives regarding how consumers acquire the knowledge and experience they use in making purchase decisions. To examine some of these perspectives we examine various approaches to the consumer learning process and their implications for advertising and promotion. A. B. Behavioural Learning Theory—behavioural learning theory emphasizes the role of external or environmental stimuli in causing behaviour while minimizing the significance of internal psychological processes. There are two major behavioural learning approaches. 1. Classical conditioning—this approach assumes that learning is essentially an associative process whereby the relationship between an unconditioned stimulus and conditioned stimulus develops through repetition and contiguity. Classical conditioning has many applications in advertising as products and services are become associated with perceptions, images, and emotions that evoke favorable reactions from consumers. 2. Operant conditioning—this approach, which is sometimes called instrumental conditioning, requires the individual to operate or act on some aspect of the environment for learning to occur. Learning occurs as a result of the outcomes or consequences associated with a particular response. Reinforcement refers to a reward or favorable consequences associated with a behaviour and is an important element of instrumental conditioning. Many advertisements emphasize the benefits or rewards a consumer will receive from using a product or service or encourage a consumer to use a brand to avoid unpleasant consequences. There are a number of operant conditioning concepts that are particularly relevant to marketers such as schedules of reinforcement and shaping. Shaping is particularly relevant to the introduction of new products through the use of sales promotion tools and techniques. Cognitive Learning—Cognitive learning theory has as its basis a problem-solving, information processing, reasoning approach to human behaviour. In contrast to behavioural learning theory Chapter 3 – Consumer Behaviour Models 33 perspectives, cognitive orientations emphasize internal processing or thinking. Many consumer researchers disagree with the simplified explanations of behaviour offered by behavioural learning theories and are more interested in examining the complex mental processes that might underlie consumer decision making. Thus the cognitive approach to studying learning and consumer decision making has dominated the field of consumer behaviour. The various processes examined during the discussion of the consumer decision making process are all relevant to a cognitive learning approach to consumer behaviour. IV. ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOUR Consumers do not make purchase decisions in isolation as there are various external factors that may influence their purchase decisions. These include: A. B. C. D. E. Culture—culture refers to the complexity of learned meanings, values norms, and customs shared by members of a society. The importance of understanding the impact of culture on consumer behaviour has become increasingly important as marketers expand their international marketing efforts. Subcultures—subcultures refer to smaller groups or segments in a society that possess similar beliefs, values, norms and patterns of behaviour that set them apart form the larger cultural mainstream. Subcultures may be based on age, geography, race, religion, racial, lifestyles, and ethnicity. Social Class—social class refers to relatively homogenous divisions in a society into which people sharing similar lifestyles, values, norms, interests, and behaviours can be grouped. Social class structures in Canada are generally based on occupational status, educational attainment and source or income. Social class is important to marketers because consumers within various social stratum often exhibit similar values, life styles and buying behaviour and thus provide a natural basis for market segmentation. Reference Groups—a reference group is a group whose perspective or values are being used by an individual as the basis for his/her judgments, opinions and actions. Marketers utilize reference group influences in developing advertisements by associating, or sometimes disassociating, products, services or certain behaviours with certain types of groups. Many purchase decisions are made by families rather than by individuals. Marketers must understand the various roles in the family decision making process such as initiator, information provider, influencer, decision maker, purchaser and user or consumer. They must also determine who in the family is responsible for the various roles in the decision making process so messages can be targeted to them. Messages must also be designed so as to appeal to the appropriate family member(s). Situational Determinants—another type of external factor that promotional planners must consider is that of situational determinants on consumer behaviour. Three types of situational determinants may have an effect—the specific usage situation, the purchase situation, and the communications situation. Teaching Suggestions Because of the consumer emphasis dictated by the marketing concept, consumer behaviour has increased in importance, and has found its way into virtually every aspect of marketing. Of course, advertising and promotion are no exception. As a result, it is very important for the student to understand that advertising and promotion strategies are designed for the purpose of influencing customer behaviour. Thus, it is important for promotional planners to have some understanding of consumer behaviour including the way Chapter 3 – Consumer Behaviour Models 34 consumers relate to products and services, the goals and motives they seek to achieve and satisfy, and the process by which they make purchase decisions. You should emphasize that the success marketers have in influencing the purchase behaviour of their target customers depends in large part on how well they understand their purchase patterns and behaviour. This is one of the longer chapters in the text as it covers an extensive amount of material. Some students may have covered some of this material in a basic marketing or consumer behaviour class. However, this chapter will still be valuable to them since it discusses how this material is used in the development of advertising and promotional programs. You may wish to divide the topics into two lectures to reduce the possibility of information overload. Answers to Discussion Questions 1. Explain how consumers might engage in each of the processes of selective perception described in the chapter. Provide examples. As noted in the text, consumers may engage in selective perception for a variety of reasons, and in a number of different ways. These include: Selective exposure – Consumers may selectively decide what they will allow themselves to be exposed to. For example, if a consumer knows information will be provided that may lead to dissonance or the potential for inconsistency, they may consciously avoid the information. If one just purchased a new Ford, having selected this model over Chevrolet, they may avoid advertisements for Chevy’s to not create further dissonance. Changing stations during commercial breaks on television or radio, or leaving the room, skipping over ads in magazines, or simply ignoring banner ads are all forms of selective exposure. On the other hand, consumers may actually seek out information as well. Accessing the Internet to obtain more information, reading Consumer Reports, etc. are also forms of selective exposure. Selective attention—Some consumers may stay in the room during commercials, but not pay attention to them. Consumers will be more inclined to pay attention to ads when they are in a search and/or evaluation stage of the decision process, and the ad is relevant to this decision. For example, if you were in the market for a new car stereo, you might be more inclined to pay attention to commercials, print ads and publicity regarding brands, sales, etc. Once the purchase has been made, the consumer may engage in selective attention to these messages. Selective comprehension—There is no guarantee that the information provided by an advertiser will be comprehended in the manner intended. Consumers may distort information to meet their needs, or take away a different meaning than intended. For example, a consumer is torn between two attractive alternative automobiles. One gets 9.2 litres per 100 kilometres highway, the other 7.78. Depending on which car is purchased, the differences in gas mileage may be distorted. If the higher of the two was bought, the 9.2 may be made out to be significantly higher than 7.78. If the lower mpg car was purchased, the difference would seem to be much less. Selective retention—Using the example of the two cars just above, what is remembered may be a result of selective retention. “Oh, I don’t remember the difference in mpg, but I recall it was only slightly higher” or “I remember there was a significant difference. My car got 1.41 litres per 100 kilometres more, and over a year this would amount to $200 in savings”. Consumers have a tendency to forget that information that is inconsistent or contrary to what they want to believe, and may be more likely to recall that that reinforces their existing beliefs, values, and/or attitudes. Chapter 3 – Consumer Behaviour Models 35 2. Focusing on the multiattribute attitude model discussed in the chapter, discuss how marketers might change consumers’ beliefs about a product or service. Also explain how attitude change might be achieved through changing the importance of these beliefs. Cite current examples. An excellent example of changing attitudes by changing beliefs is the current advertising program being run by Volvo. Long considered the safest car in North America, Volvo has (unfortunately for them) also been considered one of the least stylish, and usually thought of as a family car, with poor performance. In an attempt to compete with similar foreign cars such as BMW and Mercedes, Volvo had to change these beliefs. First, they redesigned the car to make it less boxy and more stylish. Then they ran an advertising campaign depicting the car as more stylish and attractive. Additional ads were run making direct comparisons to BMW on performance and acceleration tests. The result of these campaigns was effective in changing attitudes among potential buyers. Interestingly, both BMW and Mercedes have focused on safety as an important feature in their campaigns. BMW—“the ultimate driving machine”—has embarked on a campaign to demonstrate to consumers that they are one of the safest cars on the market. A TWA airlines campaign took a different approach—that of attempting to change attitudes by changing beliefs. Targeting business travelers, the airline asked the question “What is most important to you as a business traveler?”. The answer was not the food, not the friendliness of the flight attendants, not even legroom. The answer was getting there on time. The commercial went on to explain the purpose of business travel was to get to one’s destination on time, otherwise, there may be no purpose of going at all. TWA was then positioned as the “on time airline”, in an attempt to stress the importance of this attribute. Companies, of course, will attempt to influence attitudes by changing perceptions of beliefs and importance. For example, Internet companies commonly stress the importance of speed and then attempt to create the belief that they are the fastest provider. Phone companies stress the importance of safety in selling cell phones, and then position themselves as the most reliable providers. 3. Describe how cultural differences might impact viewers’ perceptions of advertisements. Provide examples. Cultural mores, values and experiences will directly impact perceptions of advertisements. As noted in the text, understanding these differences may lead to success or failure of the message. For example, in Oriental cultures, family is an extremely important value. Thus, messages often focus on the benefits of the product or service to the family as opposed to the individual. An ad that suggested that the buyer purchase the product for self pleasure would meet with little or no acceptance. Another example relates to age. In Far Eastern countries, age is to be respected, even revered. Ads describe the knowledge and wisdom of the elders. In North America, youth is more desirable. Many products stressing “how young it will make you feel” are advertised, cosmetic surgery is common, and fitness to stay young is almost mandatory. Cultures even differ in respect to eating habits. European countries, particularly the French, dine. That is, they take their time eating meals, enjoy the setting and the moment, and have multiple courses. The concept of fast foods, so common in North America, is still alien to many of these cultures (though there is some evidence that this is changing among the youth). 4. In the text it was indicated that families may influence the consumer decision making process. Describe how various family members may assume the different roles described in figure 3-6. Also explain how these roles might change depending upon the product under consideration. Chapter 3 – Consumer Behaviour Models 36 Research has shown that the family can both directly and passively influence the consumer decision process. The amount of influence they may exert will depend on the product category, the level of involvement of various family members with the product or product class, relative resource contributions, etc. Family members may also assume various roles in the decision process, such as: Initiator—different family members may initiate the purchase decision process. For example, a teenager who is very much into music may request the family consider the purchase of a new music system. The mother or the father may initiate the idea for a new family car, etc. Information provider—different levels of expertise in product categories may lead to various family members assuming the role of information provider. For example, as teenagers become more involved with the Internet, they may be called upon to provide information into a variety of areas. For example, they may be asked to search the Internet for vacation destination, music equipment or other products or services and provide information back to the family. The father may be the primary information provider for the family car, while the mother may have most of the input on furniture. The influencer—each family member may have their own criteria in mind in the purchase decision process. The father may want an economical car, the mother an SUV for functional purposes, the children something more sporty to impress their friends. Again, depending on their involvement and expertise, various family members may be able to exert more or less influence. Another example might be a stereo system. If the teenager is more involved in music than other family members, they may have more interest and be more able to exert more influence than those with less product expertise. The decision maker—who actually makes the purchase decision? It used to be that the mother had influence at various stages for autos, but the father actually made the final decision. In many families, this is not longer the case. In two car families, the mother may have her car, and the father his, both of whom made the decision as to what it would be. In families where children work, they may actually purchase their own cars, preferring to do so to make their own decisions rather than have the parents make it for them. The purchasing agent—regardless of the various roles assumed, the parent(s) may actually be the purchasing agent. When children are not of age to make the purchase, do not qualify for financing, or for other reasons, the parent may act as the purchasing agent to expedite or culminate the purchase decision. The consumer—in the case of the family car, vacation or stereo all family members may ultimately be consumers. For other products, perhaps computers, all may use the product, but some may use it more than others. In others, some family members may be involved in the decision making process, but never use the product ( the child researches the vacation, but doesn’t actually go along). 5. Explain how the screening processes involved in selective perception might impact a viewer of TV commercials. As noted in the text, the consumer may engage in a screening process known as selective perception. This process may be enacted through selective exposure, selective attention, selective comprehension, and/or selective retention. The problem that this screening process may present is that the advertisers’ ad may not have the impact desired due to the fact that these processes are being enacted. For example, viewers may decide not to expose themselves to the information provided in an ad or commercial by skipping over it, changing stations, etc. Even if the consumer is exposed to the ad, there is no guarantee that he or she will attend to it. Consumers may pay attention to some ads, while ignoring others, or may pay attention only to information that is considered relevant or of interest to them. Consumers may also distort or comprehend information provided in ads in a way other than the Chapter 3 – Consumer Behaviour Models 37 advertiser intended, again in an attempt to support their previously held beliefs. Finally, consumers do not retain all of the information provided in the ads, perhaps even selectively forgetting discrepant information. Consumers may use selective screening processes to assure themselves that they made the proper decisions by selecting only supportive information, and screening out any information that might create dissonance or conflict. Perhaps the most effective way for advertisers to avoid the selective perception processes is to design more effective advertisements. By more effective we mean more interesting, more attention-getting, and more informative ads. Given the high volume of ads to which the consumer is exposed, it is critical that the ad break through the clutter. If the ad is not noticed and does not attract the interest of the viewer, higher order processing (comprehension and retention) will never take place. The use of mnemonics, or memory aiding devices, will also help the retention process. (You probably often catch yourself humming a tune or jingle without even thinking about it, or liking it, if it is well done.) 6. What is subliminal perception? Describe how marketers are attempting to use this concept in the marketing of goods and services. While many marketers argue that the controversy surrounding subliminal advertising be put to rest because of a preponderance of evidence that such tactics cannot work, many others still believe that it is possible to influence consumers subliminally. In fact, many companies have successfully marketed subliminal improvement tapes—and argue that they can provide data to substantiate their effectiveness. For purposes of this question, let’s assume that subliminal or other subconscious methods might work. If this were the case, as is suggested by William Bryant Key, advertisers could manipulate us without our even knowing that such manipulations were taking place. Given that subliminal advertising would not be evident to the consumer, then the advertiser could suggest behaviours, present product benefits, etc. that might influence our purchase behaviours. A number of books have been written suggesting how this might occur through the implanting of symbols and words in ads and commercials, by auditorially sending messages through the airwaves, encouraging consumers to buy by sending subliminally messages through the store’s public address system, etc. Even if less sinister methods were employed (for example, selling products that supposedly offer subliminal benefits) one must argue that the consumer is being taken advantage of. Each year millions of dollars are spent on the purchase of subliminal tapes that supposedly help the buyer in some way. If these tapes do not have the benefits they claim, then the advertiser is engaging in deception, and the consumer is spending monies for products that do not work. While most advertisers claim that they do not believe in, nor employ subliminal advertising, there are many who believe that the practice continues to exist. Subliminal implants in ads would appear to be the most common form, with the goal more likely being to create awareness or interest rather than actually persuading the consumer to buy. 7. Discuss the three variations of the consumer decision-making process. What is the importance of communications in each type? The three variations of the decision making process are (1) routine response, (2) limited problem solving and (3) extensive problem solving. Obviously, the role of marketing communications will differ in each. Routine response behaviours are close to habits. As a result, they require little external search (if any) and there is little or no reliance on communications. The role of advertising and promotions is more Chapter 3 – Consumer Behaviour Models 38 of one of reinforcement, and of reminding the consumer that it is time to purchase. The role of providing information for evaluation is minimal. Limited problem solving involves both internal and external search behaviours. As a result, the role of marketing communications increases. Consumers are more likely to have recognized the problem, and are using advertising and other forms of communication to provide information for evaluation. Consumers are also more likely to employ a variety of sources of information in the process, and the marketers wants to be sure that his/her product is considered in the evoked set. The consumer’s most extensive use of communications is likely to occur in the extensive problem solving situation. Decisions are given much more thought, external search is more involved, and there is a much greater reliance on advertising, sales persons, friends, family, etc. as input into the decision. As a result, the responsibility of communications is increased as the marketer wants to have the information readily available to consumers when and where they want it. Additional Discussion Questions (not in text) 8. Discuss the various attitude change strategies recognized by the multiattribute model. Discuss how an airline could use some of these attitude change strategies in their advertising and marketing programs. The multiattribute model provides insight into several ways marketers can influence consume attitudes. Each of these strategies might be used by an airline to influence the attitudes of flyers toward their airline. Each will be discussed. The first strategy is increasing or changing the strength or belief rating of the airline on an important attribute. The airline should identify which attributes are important to flyers and emphasize them in their ads. For example, most airline flights are priced similarly so they focus their marketing and advertising on the quality of their service. They run ads that stress the high quality of customer service they provide at all levels of the flying experience. Another strategy is changing consumers’ perceptions of the importance or value of an attribute. An airline may want to emphasize a particular feature or benefit and why it is should be important to flyers. For example, many airlines talk about their frequent flyer programs and encourage consumers to accumulate miles by being loyal to them. Adding a new attribute to the attitude formation process is another strategy recognized by the multiattribute model. An airline may find a new service or benefit it wants to provide to consumers that isn’t currently offered by competitors. For example, some airlines have increased the amount of leg room they offer in coach class while others offer wider seating. A final strategy is changing perceptions of belief ratings for a competing brand. An airline may identify an area where a competitor is weak or vulnerable and note this in a comparative ad. For example, one airline may have a better offering of flights between two cities or may have a better ontime arrival record. These advantages could be pointed out in a comparative advertisement. 9. Discuss how promotional planners can use the principles of various behavioural learning theories, such as classical and operation conditioning and shaping, in the design of advertising and promotional strategies. Classical conditioning involves an associative process between a stimulus and a response. Advertisers may attempt to create favorable impressions of their brands through this associative processes. Positive perceptions and images will evoke positive reactions from consumers, while negative ones will do the same (that is, evoke negative responses). For example, if the advertiser can have the consumer link his/her brand to a positive unconditioned stimulus, s/he may be effective in getting the Chapter 3 – Consumer Behaviour Models 39 consumer to respond favorably to the brand as they do toward the unconditioned stimulus. Likewise, associating brands with negative stimuli (high fat, obesity) may lead to similar responses as those evoked by the unconditioned stimulus. Operant (instrumental) conditioning makes a direct link between the stimulus and the response. Advertisers will attempt to create this link—for example, winning a contest by purchasing a product, getting a free prize with each purchase, or, as discussed in the text, engage in the process of shaping the consumer. Customer loyalty programs designed to instill consumers with brand loyalty are yet another example of an attempt to associate rewards with each purchase decision (for example, air miles.) Many companies, in an attempt to stimulate trial, will offer sweepstakes or rewards that may be gained by exhibiting a specific behaviour (i.e. trial). When ATM machines have been introduced in many parts of the country, mobile machines mounted on trailers are driven to designated areas. Consumers are encouraged to engage in trial of the machines, with the inducement of winning prizes and/or money for these behaviours. Other examples in which a reward or punishment is directly associated with specific responses can also be cited. 10. Why is it important for promotional planners to have an understanding of consumer behaviour? What are some of the aspects of consumer behaviour that need to be understood by those planning advertising and promotion programs? It would be very difficult to develop advertising and promotional programs without a thorough understanding of the consumers who constitute the target markets and the way they related to the product or service. Promotional planners need to understand the purchasing goals or motives consumers seek to satisfy, and the process by which they make purchase decisions. They need to understand the process by which consumers acquire and use or integrate this information to choose among alternatives. They must also understand the various types of decision making process a consumer may go through such as routine response, limited or extended problem solving. Many purchase decisions are made at the point-of-purchase and promotional planners must recognize the importance of using various sales promotional tools and techniques to influence these purchases. They must also understand the potential influence of various sociocultural and situational factors that might influence buyer behaviour. 11. Explain the process of shaping. Give an example of a marketing communications strategy that employs this technique. Shaping involves the reinforcement of successive acts that lead to a desired behaviour pattern or response. Marketers often use shaping procedures in the introduction of a new product. Using a new cookie product as an example, a company might employ shaping procedures through the following process. First, free samples of the product would be distributed. This might take place through the mail, door to door, or by sampling in grocery stores. Coupons might be given out with the samples to provide an incentive for the customer to make the initial purchase. Next, an additional coupon might be placed on or in the cookie package, encouraging the consumer to rebuy. Follow up coupon distribution through newspaper inserts, direct mailings, and/or magazines might follow—with the coupon amount being reduced. By this time, assuming the product is of good quality and is liked, the coupons might be eliminated. Occasional couponing in the future might be used to maintain loyalty. 12. Analyze the purchase of a cereal from a family decision making perspective. Discuss the roles various family members would play in the decision process and how advertising and promotion could be used to influence them. Chapter 3 – Consumer Behaviour Models 40 The purchase of a brand of cereal often involves the influence and actions of multiple family members. If there are children in the household, they are likely to be the primary users or consumers of the cereal and may also be influencers as well if they make their preferences known to their parents. One of the parents may be the actual purchaser of the cereal since they do the shopping for the family. The parent(s) may take the influence of the children into consideration when making the purchase. They may, however, ignore the children’s influence if they do not agree with it (for example the parents may not want to purchase cereal that has a lot of sugar). Advertising will be directed to various family members. Ad for adult cereal may appear on adult-oriented TV shows or in magazines. Commercials for cereals targeted to children will appear on children’s programming such as Nickelodeon or cartoon shows. Sales promotion efforts such as coupons are likely to be targeted toward the mother either through flyers in newspapers. 13. Use the basic model of consumer decision making to analyze the purchase process a consumer would go through in purchasing a laundry detergent versus a new computer. Discuss the role advertising and other forms of promotion would play at each stage of the decision process. The purchase of laundry detergent would be characterized by routine response behaviour since this is a product the consumer has probably purchased many times before. The decision making process would consist of little more than recognizing that one is running low on detergent and replenishing the supply during a shopping trip. The consumer will spend little effort engaging in external search or alternative evaluation as the purchase process for such products is relatively automatic. Decision making will be minimal if the consumer is loyal to a particular brand of detergent. If the consumer is not loyal to any particular brand, s/he may be influenced at the actual point-of-purchase through shelf displays, price deals or other types of promotion. Advertising will be important in getting a brand of detergent into the consumers evoked set and keeping it there. For a new brand, advertising may be particularly important in generating awareness and interest. Sale promotion techniques such as samples and coupons will also be used to encourage consumers to try new brands or switch brands. The purchase of a new computer will be characterized by limited or extended problems solving, depending on the consumers level of prior knowledge or familiarity with alternative brands. The consumer will go through each stage of the consumer decision making process and spend considerable time and effort on external information search and in identifying and evaluating alternatives. Advertising will play a very important role in providing consumers with information about computers and what they should be looking for in evaluating various alternatives. Direct marketing may also be used to send consumers information that will be helpful in evaluating a brand and making the purchase decision. Personal selling efforts by in-store sales personnel will also be very important since consumers may rely on knowledgeable sale people to learn about the various alternatives and make a choice. 14. Discuss the various sources of need recognition. Discuss how marketers can influence need recognition. Find an example of an advertisement that is designed to create or appeal to need recognition. The causes or sources of need recognition may range from being very simple to being very complex. Some of the sources of need recognition include running out of a product, dissatisfaction with one’s current situation or state of affairs, new needs or wants, related products or purchases, the appeal of new products or services that are brought to the consumers attention Marketers can influence need recognition in a variety of ways. They use advertising to encourage consumers not to be satisfied or content with their current state or situation and to desire new products. They may also use advertising to create insecurities among consumers that can only be resolved through the purchase of a product or service. Marketers also change styles, designs and features of their products to encourage consumers to purchase new products. Students should be Chapter 3 – Consumer Behaviour Models 41 encouraged to find an example of an ad that focuses on the need recognition and explain how the message is designed to appeal to this stage of the decision making process. 15. Explain how reference groups influence buyers’ behaviours. Give an example of how both aspirational and disassociateive groups might have an impact. Reference groups are defined as “two or more individuals who share a set of norms”. As such, these groups can be both aspirational—those to which one might wish to aspire—to disassociative—those to which one does not wish to be associated. As such, these groups may pose both a boon and a threat to marketers. For example, aspirational reference groups may serve as a goal, or an image to which consumers might aspire. The growth of the athletic shoe market—particularly the expensive basketball shoes like Nike Air- have benefited, as young athletes aspire to play like Michael Jordan , or Grant Hill or other NBA stars. People aspire to own certain types of cars, or live in certain areas to let others know that “they have arrived”. The attractiveness of name brand clothing like Versace, Calvin Klein, and others have become identified with specific groups—attractive to large segments of society. On the flip side, disassociative groups can also be motivating. Many of use do not wish to be identified with the likes of drug users or alcoholics. Obesity has almost become an obsession, as consumers join health clubs, jog and purchase diet pills and programs so as not to be seen as fat. These disassociative groups then serve as a group which is to be avoided through the purchase of products, services or just specific behaviours. Finally, disassociative reference groups can hurt marketers. Many auto buyers see the Volvo as a family car of someone in the suburbs or the BMW as a “Yuppie” car. Others see specific name brands as associated with “snobs”, etc., and (whether these true or not) do not wish to purchase these brands and become affiliated with these groups. 16. Postmodern research often involves a sociological perspective to understanding consumer behaviour. Give examples as to how sociology might impact purchase behaviours. A number of sociological factors may impact consumer behaviours. For example, social class has been shown to influence purchase behaviours such as brands purchased, stores shopped and even activities in which one engages (bowling versus tennis). Reference groups, including families provide both aspirational and disassociative groups influencing purchases. Where one shops, or for that matter, where one has the opportunity to shop may be affected by social factors. For example, rural dwellers may have a limited number of options available to them for shopping. Cultural and subcultural differences have been shown to impact all aspects of the purchase decision process. Likewise, many sociologists take the perspective that not only do sociological factors impact consumer behaviours, but consumption also directly shapes the way that we live, our values, motives and behaviours. Advertising has been accused of shaping society—often in a negative way—as well as being designed in response to societal needs. In sum, it can be said that sociological factors both shape and are shaped by consumer behaviours. IMC Exercise Have the class collect ads that reflect some of the aspects of consumer behaviour discussed in the text such as stages of the decision process, Maslow’s hierarchy of needs, multiattribute attitude models, various learning theories, culture, subculture, reference groups or family influences or situational factors. Have them bring the ads to class and explain which aspect it reflects and how marketers might be appealing to this particular aspect of consumer behaviour. Chapter 3 – Consumer Behaviour Models 42 IMC Comprehensive Project At this stage of the project students should be analyzing the consumer decision making process for their product or service. The specific assignment for this chapter is as follows: IMC Project Assignment for Chapter 3 Describe the consumer decision process for your product/service. Explain what factors would motivate this purchase, the search process, what attributes might be important at the alternative evaluation stage, the degree of problem solving, etc. What external factors might influence consumers’ decision making process for this product or service such as culture, subculture, social class and reference group. What are the implications of your consumer behaviour analysis for the development of your IMC plan? Chapter 3 – Consumer Behaviour Models 43