Professional Documents
Culture Documents
SHAMIM AKHTAR
BUAD 307
MARKET RESEARCH
INFO SEARCH
COGNITION
STRATEGY
AFFECT
CHOICES
PREFERENCES BELIEFS
CONSUMER
COMMUNICATION SOCIAL AND OTHER INFLUENCE
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CONSUMER BEHAVIOR
True or False?
1. If you have bad breath, you cannot smell it yourself. 2. If you eat a balanced diet, you do not need vitamin supplements. 3. Using a razor with five blades will reduce the likelihood of cutting yourself and will result in less skin irritation. 4. Dell Computers tend to be of higher quality than those made by HP and Sony. 5. Rust stains on clothes can be removed with the use of lemon juice. Bleach actually makes these stains worse.
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CONSUMER DECISIONS:
Theory and Reality in Consumer Buying
PROBLEM RECOGNITION
INFORMATION SEARCH
Theory Complications
INTERNAL
Memory Thinking
EXTERNAL
Word of mouth, media, store visits, trial
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CATALOG
Note: Retrieved and evoked sets will vary among different consumers
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REMINDER
For low involvement products, efforts aimed at affecting internal search tend to be more effectivethe consumer is usually not willing to expend energy on external search. External search is more likely for higher involvement products.
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Evaluation Type
IMPORTANT
Compensatory: Decision based on overall value of alternatives (good attribute can outweigh bad ones) Non-compensatory: Absolutely must meet at least one important criterion (e.g., car must have automatic transmission) Hybrid: Combination of the two (e.g., one noncompensatory measure, then compensatory tradeoffs on other attributes Abandoned strategy: Consumer finds initial criteria unrealistic and proceeds to less desirable solution
SHAMIM AKHTAR CONSUMER BEHAVIOR
Lars Perner, Instructor
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LESS IMPORTANT
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If either Coke or Pepsi is on sale, buy that brand; otherwise, buy Coke The larger the navels, the better the orange The larger package is likely to offer a lower unit price (not true in reality)
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Attitudescomponents
BELIEFS
AFFECT (FEELING)
BEHAVIORAL INTENTIONS
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Attitude Components
Beliefs
Can be positive, negative, or neutral May or may not be accurate May contradict other beliefs held by the other person
Behavioral Intentions
An individuals plan or expectations of what he or she will do May appear inconsistent with beliefs May not predict well what the individual will do in reality
Affect
May be positive or negative May take on specific dimension (e.g., pleasure, disgust)
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Ab i 1WiXib
n
Ab= attitude toward brand b Wi: weight of attribute I Xib: belief about brand bs performance on attribute I Model assumes rationality
Calculations will not be required on the exam. You should know conceptually what this involves conceptuallyi.e., weighing importance and intensity of feeling.
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Multiattribute Models
Caveats
Different segments exist that will weight factors differentlythus, overall averages can be misleading. Separate analyses should be done for different segments of interest. (Segments can be identified by certain statistical techniques). Individual differences exist in scale intensityfor some, it is much easier to be extremely good or extremely bad. Prior research may be needed to identify issues (dimensions) to be weighted. Some factors may be intangibleWhat are the substantive differences between Windows and Apple computers? Non-compensatory factorsmust-haves may determine final result.
Applications
Determining Overall performance Areas of strength and weakness Comparison to competitors Overall Areas of strength and weakness
REMINDER:
PERCEPTIONS ARE NOT NECESSARILY ACCURATE. We are looking to work with what consumers believe.
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Affect
Based on
past emotional associations of product emotional effect of beliefs
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Attitude Characteristics
Availability/ accessibility
Strength
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Feelings
Likert Scales (Strongly agree Strongly Disagree)
This product makes me happy.
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Measurement
Behavioral Intention
Rating of likelihood of purchase May need projection if social desirability affects willingness to admit to product use
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REMINDER
Changing currently held beliefs tends to be difficultpeople know the marketer has an ulterior motive Adding new beliefs that are not inconsistent with what is already believed may be more effective
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SINGLE PARENT
BLENDED
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OLDER SINGLE
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Self-esteem
Feeling of power
Performance
Fast acceleration
Large engine
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Message Framing
Many tradeoffs can be stated in two, mathematically equivalent ways e.g.,
80% lean vs. 20% fat $49.00 per person per night based on double occupancy
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Some Consumer Behavior Issues That Will Come Up Elsewhere in the Course
Demographics (segmentation) Lifestyle (segmentation) Culture/subculture (segmentation, international marketing) Diffusion of innovation (product) Attention (promotion)
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Organizational Buyers
Types
Industrial Reseller Government and nonprofit organizations
Characteristics
Greater involvement Bureaucracy Long term relationships Price is important but may not be the most important factor
Purchase types
Straight rebuy Limited decision making Extended decision making
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