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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
