|
|


 

 
 



 







 

 


 ] |
 
 

Marketers¶ success in influencing purchase behavior

depends on how well they understand consumer behavior
 6

   



Õ n 2009, US consumers spent $10.1 trillion!

Õ n 2009, over 125,000 new products were introduced

(most were brand extensions)

Õ 59% of purchases are unplanned

Õ
onsumers are more likely to make an unplanned

purchase when the product is displayed at the end
of an isle
|
 
 




  
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| 
 
|     
  
 

| 
   
 
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6


Decision--Making Stages
Decision Psychological Process
_roblem recognition Motivation (Maslow)

nformation search _erception, Attention,

Behvioral &
ognitive Learning

Alternative evaluation Attitude formation

_roduct choice Decision Rules: ntegration,

Heuristics

_ostpurchase evaluation
ognitive Dissonance, Bhv &

ognitive Learning

6

6
 
  


1 ± _roblem Recognition
2 ± nformation Search
3 ± Alternative Evaluation
4 ± _roduct
hoice
5 ± _ostpurchase Evaluation

_erceived Financial Risk

nvolvement
_erceived Social Risk

Œoutine (Habitual) Purchase Decision: Low Involvement

(2-3 steps)

Extensive Problem Solving: High Involvement

(all 5 steps)
 
 ! " # 


onsumer has a need (actual state ideal state)

New Needs
ÿut of Stock Dissatisfaction
or Wants

Related _roducts, Market- nduced New

_urchases Recognition _roducts
 6
 
  
$
 " "


 

Maslow¶s Hierarchy of Needs
Self-actualization
(self realization)

Esteem
(recognition, status)

Social
(sense of belonging, love)

Safety
(security, protection)

_hysiological
(hunger, thirst)
Which need is this ad tapping?
]  
 



 %

Maslow¶s Hierarchy of Needs

Self-actualization
(self realization)

Esteem
(recognition, status)

Social
(sense of belonging, love)

Safety
(security, protection)

_hysiological
(hunger, thirst)
 
&' 
 




O

 

Bob can search Bob can search

Internal sources External sources

Internal search Personal sources Market sources Internet : Brings up issues

(memory) (word of mouth) (TV, Mags, News) of behavioral targeting
 
 




Õ Behavioral targeting uses information collected on an individual's web-

browsing behavior (via cookies), such as the pages they have visited
or the searches they have made, to select which advertisements to
display to that individual.

Õ Behavioral Targeting allows site owners or ad networks to display

content more relevant to the interests of the individual viewing the
page.

Õ Theoretically: _roperly targeted ads will fetch more consumer interest,

 
 




Again, tracking a user¶s online travels (digital footprint, via cookies)

in order to strategically place ads or product recommendations
 #

()

1. You go to Google and search for µnew BMW convertible¶, which leads you to the BMW page
that tells you all about the new M6 convertible. Not a bad looking ride!

2. You take a look at the page for a while, but just like 98% of most web-surfers you don¶t
take any action on the page (email a dealership, download vehicle info, etc.) and you
take off to another page that you also found on your Google search.

3. Unknowingly to you (and most other online shoppers), BMW µdropped a ³cookie´ on
you, which basically means that they stored a little piece of data on your computer that
says something like µthis person is looking for a new BMW convertible¶. This piece of data
is small, but very powerful and can be used to follow your every move on the web for up
to several days and even weeks.

4. As you surf around other websites you may or may not notice that there is an increasingly
odd amount of BMW ads that seem to be popping up everywhere. f you do notice these
ads following you around, you might think that it¶s just a coincidence, but it isn¶t.

The intended goal of these retargeted ads are to follow you around long enough to
where you eventually make your way back to the original BMW site so that you¶ll make
a purchase, download some information or any other action that they would like you,
as a potential customer, to do.

 
&' 
 




O
 What determines

 
what information
Bob attends to?

Bob can search Bob can search

Internal sources External sources

Internal search Personal sources Market sources Internet

(memory) (word of mouth) (TV, Mags, News)
 
 


 6
 
!





_erception
_rocess of selecting, organizing, and interpreting information

nternal factors Stimuli themselves

These influence
(past experiences, what we perceive (color, size, etc)
culture, beliefs)

Selectivity occurs at all stages of the perceptual process

Selective Attention Selective
omprehension Retention
(we choose what (we interpret information based (we retain what is
to focus on) on our own attitudes, beliefs) relevant to us)
  *+,()

ount the number of ³F¶s´ in the passage below

è
è  
 

 è  è 

è

 



 
 è 
 How many F¶s were there?
è
è  
 

 è   è  

è

 



 
 è  

è

Even when you¶ve been told what to search for

and attend to, you may still ³miss´ the point

 

  
 



!
-


The information that we select, organize, and interpret

can be influenced by:

Behavioral Learning

Õ
lassical
onditioning (associative learning) ± process whereby a neutral

stimulus (Snuggle Fabric Softener) becomes a conditioned stimulus (
S)
capable of eliciting a given response (super soft) after being repeatedly
presented with an unconditioned stimulus (US) (teddy bear)

Teddy Bear (US) = Super soft (UŒ)

Fabric Softener (CS) + Teddy Bear (US) = Super soft

Fabric Softener (CS) = Super soft (CŒ)

6 |

|




Pro Athletes (US) = Incredible Athletic Talent (UŒ)

Nike (CS) + Pro Athletes (US) = Incredible Athletic Talent

Nike (CS) = Incredible Athletic Talent (CŒ)

 6 
 
.




Behavioral Learning

Õ ÿperant
onditioning ± learning that occurs as the result of rewards

or punishments





 





 
 


Page Example
Œewarded for using the soap Spray and Wash: _

(smell nice) Didn¶t work, clothes still stained

Punished for not using the soap Oxi Clean: 


(smell bad) Stains out, clothes clean
 


!





The information that we select, organize, and interpret

can also be influenced by:

ognitive Learning Learning via reasoning, problem solving

Õ ÿbservational Learning ± Learning by watching the actions of others

and noting what happens to them as a result of their actions
Page¶s interpretation thru Observation

Page Œeaction
do not want
one of these
6 /"


.




onsumer observes benefits of these products

 


 

 


 

.


  
#

Again, what information we select and interpret can be influenced by:
Example Reaction
Õ nowledge of famous

lassical
onditioning pro athletes ± gets attention
Õ Interpret brand as high
performance (b/c of pro assn)
Õ f involved with product
ÿperant
onditioning (care about laundry), likely to
attend to message
Õ Interpret brand as poor
based on past ³punishment´
Õ
ounter-argue the message
Õ f involved with product
ÿbservational Learning (want to get fit), likely to
attend to message
Õ Interpret brand as effective
(thru observation, works)

0' 

(



All Available Brands

Brand A Brand B Brand
Brand D Brand E

Brand F Brand G Brand H Brand Brand J

Brand  Brand L Brand M Brand N Brand ÿ

Evoked Set of Brands

Brand B Brand E

Brand F Brand

Brand M
 

(



Evoked Set Example:

When say ³fast food,´ what restaurants come to mind?

This is your Evoked Set

 

(



Alternative Evaluation - consumer compares the various

brands in his/her evoked set on the specific criteria (



 
which are important to his/her decision

Evaluation is all a matter of Attitudes

Attitudes - an individual¶s overall feeling toward an object

Õ affective evaluations (feelings about object)

Õ cognitive evaluations (beliefs or knowledge about object)

Õ behavioral evaluations (intentions to behave toward object)

  6
"6  
1

 " "  

2

Multiattribute Attitude Model: A consumer¶s attitude toward

a brand is a function of his/her

1- belief about the brand¶s performance on attribute(), and

2- the importance of the attribute to the overall evalulation

AB = Sum of (B X E)

AB = attitude toward a brand

B = belief about the brand¶s performance on attribute 
E= importance attached to attribute 
6
"()
AB = Sum of (B X E)
B = belief about the brand¶s performance on attribute 
E= importance attached to attribute 

Honda Accord Toyota
amry Nissan Altima

Õ 22 city/31 hwy Õ 23 city/33 hwy Õ 23 city/32 hwy
Õ safety rating 9.9 Õ safety rating 8.7 Õ safety rating 9.2

Design M_G Safety Total

(BxE) (BxE) (BxE)
Honda Accord + + =

Toyota
amry + + =

Nissan Altima + + =

Õ Change B Õ Add an Attribute

Õ Change E Õ Change perceptions of competitors¶ attributes
 AB = Sum of (B X E)
B = belief about the brand¶s performance on attribute 
E= importance attached to attribute 

Õ ADA Õ No ADA Õ ADA

Õ 8.0 Õ 9.8 Õ 7.9
Õ $3.50 Õ $2.25 Õ $3.60

ADA approved Whitening Rating _rice Total

(BxE) (BxE) (BxE)

olgate Total + + =
Ultrabrite Adv
+ + =
Whitening
Tom¶s of Main
Anticavity + + =

Õ Change B Õ Add an Attribute

Õ Change E Õ Change perceptions of competitors¶ attributes
 
3' ! | 

_roduct evaluation is not the same as actual choice

Õ May evaluate Honda as the best but actually choose Nissan
Õ May evaluate Ultrabite as the best, but actually choose Colgate

Actual Decisions may be based on:

Heuristics ÿR nformation ntegration

Mental rules-of-thumb used for a
speedy decision, such as:
Õ price equals quality
Õ brand loyalty
Õ country of origin
Õ always buy low prices

onsumers combine or integrate
pieces of information into one
overall judgment
Õ multiattribute attitude model

' ! 
(



Satisfaction/Dissatisfaction
Õ comes from creating an accurate expectation of the product
Marketers Goal:
reate an accurate expectation

ognitive Dissonance (post-purchase regret)

Õ anxiety or regret from purchase decision (³maybe should
have bought brand X instead´)
Marketers Goal: Reinforce purchase decision (³congratulations
on your new purchase ± you made the right choice), service-follow
up, relationship marketing
 
6

#


Stage _sychological _rocess Marketers nfluence

_roblem Recognition Motivation (Maslow) Stimulate or tap into a need

nformation Search _erception, Attention, Get consumer to pay attention to

Behavioral &
ognitive brand via behavioral and
Learning cognitive marketing strategies

Alternative Evaluation Attitudes
hange beliefs about an attribute,

change perceived importance of
an attribute, add an attribute,
change perceptions of competitors

_roduct
hoice nformation ntegration, ÿffer sales promotions, attractive

Heuristics financing, etc.

_ostpurchase Satisfaction/Dissatisfac.
reate accurate expectations of

Evaluation
ognitive Dissonance, product, service-follow-up,
relationship marketing
 |
 
6

 
Stages of
onsumer Decision Making:

1. _roblem Recognition - which of Maslow¶s needs could be used to target

the problem? How would you, as a college, stimulate students¶ need?

2. nformation Search - how did you search for information on different colleges?
What could Skidmore do better to attract your attention?

3. Alternative Evaluation - what attributes were important in your ³college

purchase´ decision? How were the attributes weighted

4. _urchase Decision - how did (or could) Skidmore induce you to ³purchase´ it
(once you¶ve decided that it¶s the best alternative)?

5. _ostpurchase Evaluation - are you satisfied or do you feel cognitive dissonance?




|
 
6



Social Influencers
Õ culture
Õ subculture (environmentalism)
Õ social class
Õ group membership
Õ opinion leaders
Õ gender roles

Internal Influencers Situational Influencers

Õ personality Õ physical environment
Õ age Õ time
Õ lifestyle Õ presence of others
Õ in-store cues
 




!



_ersonality

A unique set of psychological characteristics that consistently influence

The way a person responds to situations in the environment (and hence
nfluences their purchases)

Õ nnovative ± cutting edge consumers, try new things

Õ Materialism ± like status goods
Õ Self confidence ± positive evaluation of one self, buy what they like
Õ Sociablity ± enjoys social interactions, likes entertainment products
Õ Need for
ognition ± big thinkers, evaluates products before buying

6







 


 
 

 






 

  
  


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Generation Y Generation X Baby Boomers

 




.

_sychographics
Õ Grouping consumers according to their values and
lifestyles ± or their activities, interests, and opinions (A ÿ)

Õ Understanding consumers¶ lifestyles helps to better

promote a brand

Mountain Dew What are the lifestyle

characteristics of the
Fidelity Investments
consumers who buy
these products?
Huggies Diapers
 




! 

(




Wal Mart Bass _ro Shop

Õ Décor, smell, lighting

Õ arousal and pleasure determine consumers¶ reaction to store environment
Õ retail experience and entertainment help to enhance the shopping experience
  


|
Õ alues, beliefs, customs, and tastes of a group of people

Venezuelan Adidas ad: Picking your

team

US Nike ad: focus on

individual performance
  


"

Õ A group within a society whose members share a distinct

set of beliefs, characteristics, etc.

Õ Moms

Õ
ollege students

Õ Soccer players

Õ Trekkies
 


(
"

Major Ethnic Subcultures in the US 2010-2030

 


(
"
2008 data: census

_opulation Buying _ower Top _urchases

(in millions) (in millions)

White 228 9,136

Hispanic 46.9 951 groceries gasoline

(largest) phone services clothing
furniture footware

African 37.6 913 phone svcs footware

American
utilities groceries
apparel
food telecom svc
Asian 13.4 509
(fastest housing education
Growing) major appliances personal ins
* Total us _opulation is 309 million (table doesn¶t reflect ³others´)
 


(
"
þ  



 h r   ino
  n 
1 %
4%

 r o Ri n
10%
i n rk ing i k :

 ri n

64%

Treating all people within

an ethnic group as
4

 

 





 homogeneous

h r
14% hin
9%
i n
1 %

Kor n
1 % Filipino
J p n
%
9%
(


Maybelline's Garnier uses

Spanish-language ads to
target the Hispanic market.

Maybelline's Color
Sensational Lipstick uses
specific ads to target the
African American market.
  


6 
6

Green Marketing Greenwashing

Õ Marketing strategy that supports Õ Environmentally friendly claims
environmental stewardship that are exaggerated or untrue
(protect the environment in all
business activities)

BEESWAX vs PETŒOLATUM
Naturally replenishing A non-renewable material
moisturizer made by bees. derived from crude oil. Tyson chickens are injected
Hydrating barrier that Moisturizes with with antibiotics before they
keeps lips moisturized. an oil based film. are hatched
  


 
|


Õ ÿverall rank or social standing of groups of people

within a society (income, family background, education)

Õ nfluences 
  you promote your product

* Lexus, Fidelity -- during tennis matches

* Sirius XM, Dodge,
oors Light -- during Nascar races

  


 
|


Mass
lass
Õ Millions of consumers who enjoy a level of purchasing
power that¶s sufficient to afford them high-quality products
  


6 6 " 

Reference Group
Õ Group, class, or category of people which individuals
believe they belong to, or aspire to belong to

onformity
Õ
hanging one¶s behavior to in reaction to
group pressure (bandwagon effect)
Tupperware parties
 


/

.


Õ _eople who influence others¶ attitudes or behaviors

because others perceive them as having expertise

Õ Among the first to buy goods and are a powerful

marketing tool (they talk, blog, etc.)

Flip _hillips: _rofessor of Neuroscience

Õ nows all things technology
  


6
# 

Õ Society¶s expectations regarding appropriate attitudes,

behaviors, and appearance for men and women

Bratz Dolls Western fun is

(prosta-tots) for boys

Õ
onsumers often associate ³sex-typed´ products with

one gender or another

Õ Sex roles are evolving: e.g., Metrosexuals

6
|  

vs.
 6
|  

Avon _roExtreme Moisturizer
linique Maximum Hydration Fudge _utty Hair gel

Nivea Firming Eye Gel

6
|  

lear Nail _olish for Men

M4Men Hair Wax

6
|  

L¶ÿreal Anti-Wrinkle
ream for Men

6
|  |
C

1. Do you consider the purchase decision for male cosmetic-oriented products to be a
high or low involvement decision? Why?

2. Which of Maslow¶s Hierarchy of Needs do you feel most motivates men to purchase
cosmetic-oriented products?

3. How do men learn about male oriented cosmetics? Where do they search for
information?

4. Based on the multiattribute attitude model, how do you think the marketing of male
cosmetic products differs from the marketing of female products? Try contrasting the
marketing by product type.

For example:
- fragrances AB = Sum of (B X E)

- hair care B = belief about the brand¶s performance on attribute 

E= importance attached to attribute 
- skin care

5. Which social influence factor has the greatest impact on men¶s decision to purchase
cosmetic-oriented products? Culture, subculture, social class, group membership,
opinion leaders, gender roles
 6
|  
What¶s driving the market?
Metrosexuals, Queer Eye for the Straight Guy

How big is the market?

$37.5 billion (2 )

Who is the main target for male grooming products?

2 -35 year old males
Females: predominant buyers of male grooming products (55 )

What are the biggest brands of male grooming products?

Nivia, Gillette, Clarins, Clinique, L¶Oreal, Estee Lauder,
 6
|  
What are men buying?
Facial cleansers, moisturizers (including tinted)
hair coloring (tangible benefit), toning/firming products

How to market to men?

Language is key: Communicate the fact that the products are
functional, not effeminate
* no: ³enhances your appearance´
* yes: ³defends your skin´

Simple brand names with promise: Defender, Perfecter, Improver,

Œeviver, Enhancer

Promotion: Display active lifestyles, sports, the promise of sex

Educate: Explain the product (e.g., ³bar soaps dry the skin, Brand X
cleans 
 moisturizes)
6
|  
|
|

ntroduce a new cosmetic/grooming product aimed
at the male market (young men and/or older)

Õ what is the product?

Õ how would you package it?

Õ how would you promote it?

Õ where would you sell (distribute) it?