Consumer Agenda

Housekeeping

M&S Problem statement

Using the consumer decision making
model, explain how Canadians decide on
donating blood.
This week Canada Blood Services and a
session on Competition.

Problem Statement M&S

The key problem being faced at M&S was

marketing myopia, where the focus was only
on product and not consumer and brand
needs.

Case Focus

What should Stan Doolby do and why?

Consumer Problem
Objectives

Understanding the Organization

Funded by health ministries and territories.

Board of directors appointed by health
ministers
NGO

Organization culture
Key business issues
Problem definition

Supply chain
One month for whole blood
One week for platelets
Increased demand in summer/winter vacations

What is the key problem & objectives

Consumer resistance to donate blood

Change in Attitude versus change in Behavior. Which comes first?

Objectives: Increase blood supply

Short term : Increase no of donors
Long term: Increase no of donations per
donor

Model of Consumer Behavior

INPUT
EXTERNAL

INTERNAL
PROCESS OUTPUT

Which works for high involvement and low involvement products?

Socio economic Classification

Urban : Occupation & Education ( SEC A,

B,C & D )
Rural : Type of House ( pucca, semi-pucca
and kucha ) and education ( R 1, R2 etc )

Recent studies take into consideration ownership of

Consumer durables.

Socioeconomic Classification (SEC) MatrixIndia (Urban)

The rural area is segregated in to: R1,

R2, R3, R4.

Education of chief
wage earner

Type of House
Pucca
R1

Semi-pucca
R2

Kuchcha
R3

R1

R2

R3

College
SSC/HSC
Class 4-Class 9

R1
R2
R3

R2
R3
R3

R3
R3
R4

Up to class 4

R3

R3

R4

Self-learning

R3

R4

R4

Illiterate

R4

R4

R4

Professional
degree
Graduation/ PG

No of HHs ( % of HH) in each segment

Urban
A1:1
A2: 1.9
B1: 2.5
B2: 2.6
C: 6.2
D: 7.0
E1: 3.2
E2: 5.4
Sub-Total : 28.8

Rural
R1: 2.7
R2: 7.6
R3: 26.9
R4: 33.0
Sub-Total : 70.2

Source : Marketing Whitebook

Bases for Market Segmentation

Slide 3-7

What is the profile of the CBS donor?

First time
Repeat

Emotions

Personality
Personality - distinguishing human psychological
traits that lead to relatively consistent and enduring
responses to environmental stimuli.
Personality can be a useful variable in analyzing
consumer brand choices.

Brand Personality

Sincerity
Excitement
Competence
Sophistication
Ruggedness

Psychographic Profiles of Donors

1. Patients come first - Friends/Family need

blood
2. Community givers I may need too
3. Karma is King - Humanitariasm
4. Life Savers - when blood shortage
5. Healthy souls
Demographics
6. Social clubbers
17-24 years, 50 Kgs, good health
Repeat donors, first time.
7. Personal gratifiers

Key Psychological Processes

Copyright 2009
Dorling Kindersley

Motivation

Perception

Learning

Memory

Motivation

Freuds
Theory

Maslows
Hierarchy
of Needs

Herzbergs
Two-Factor
Theory

Behavior
is guided by
subconscious
motivations

Behavior
is driven by
the lowest,
unmet need

Behavior is
guided by
motivating
and hygiene
factors

Copyright 2009
Dorling Kindersley

Maslows Hierarchy of Needs

Copyright 2009
Dorling Kindersley

Herzbergs Two-Factor Theory

Copyright 2009
Dorling Kindersley

Absence of dissatisfiers not enough. Satisfiers

Herzbergs theory
Herzbergs theory has two implications.
First, sellers should do their best to avoid
dissatisfiers (for example, a poor training manual
or a poor service policy). Although these things
will not sell a product, they might easily unsell it.
Second, the seller should identify the major
satisfiers or motivators of purchase in the market
and then supply them. These satisfiers will make
the major difference as to which brand the
customer buys.

Perception

Selective attention
Selective retention
Selective distortion
Subliminal perception

Learning
Drive: A strong internal stimulus impelling action
Cue: Minor stimuli that determine when, where,
and how a person responds
Discrimination: Learning to recognize differences
in sets of similar stimuli and adjusting our
responses accordingly

Memory

Short term memory

Long term memory

Figure 5.3 Hypothetical LIC Mental Map

Figure 5.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation of alternatives

Purchase Decision

Postpurchase Behavior

Dissonance
Theory

Figure 5.5 Successive Sets in Decision Making

Sources of Information

Personal

Commercial

Public

Experiential

Figure 5.6 Steps Between Alternative

Evaluation
and Purchase

LOHAS (Lifestyles of Health and

Sustainability) Market Segments
Sustainable Economy
Healthy Lifestyles
Ecological Lifestyles
Alternative Health Care
Personal Development

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Dorling Kindersley

Mental Accounting

Consumers tend to
Segregate gains
Integrate losses
Integrate smaller losses with larger gains
Segregate small gains from large losses

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Dorling Kindersley

Consumer Buying Process

Problem Recognition
Information Search
Evaluation

Purchase Decision
Postpurchase
Behavior
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Dorling Kindersley

Sources of Information

Copyright 2009
Dorling Kindersley

Personal

Commercial

Public

Experiential

Rural Consumer Behaviour

Rural consumers are more brand loyal

Restrictions on consumption
Collective consumption behaviour: for
family rather than individual
Seasonality of consumption based on
seasonality of agricultural
production/income
Specific patterns in the five-stage buying
decision process
Copyright 2009
Dorling Kindersley

Other Theories of
Consumer Decision Making
Involvement
Elaboration likelihood
model
Low-involvement marketing
strategies
Variety-seeking buying
behavior

Decision Heuristics (
non rational)
Availability quickness & ease
Representativeness ie how
similar is the outcome
Anchoring and adjustment .
First impressions are lasting
impressions.

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