2 Consumer Behaviour and Target Audience Decisions.
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Transcript of 2 Consumer Behaviour and Target Audience Decisions.
2Consumer Behaviour and Target Audience Decisions
© 2005 McGraw-Hill Ryerson Limited
Chapter Objectives
• To understand the role consumer behaviour plays in the development and implementation of advertising and promotional programs.
• To understand the consumer decision-making process and how it varies for different types of purchases.
• To understand various internal psychological processes, their influence on consumer decision making, and implications for advertising and promotion.
• To understand the similarities and differences of target market and target audience.
• To understand the various options for making a target audience decision for marketing communications.
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Consumer Behaviour
• Processes and activities which people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy needs and desires.
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A Basic Model of Consumer Decision Making
Figure 2-1
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Consumer Decision Making
Information Search Perception
Postpurchase Evaluation Learning
Purchase Decision Integration
Alternative Evaluation Attitude Formation
Need Recognition Motivation
Purchase Decision Integration
Decision StageDecision Stage Psychological ProcessPsychological Process
Alternative Evaluation Attitude Formation
Information Search Perception
Need Recognition Motivation
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Consumer Decision Making
Need Recognition Motivation
Decision StageDecision Stage Psychological ProcessPsychological Process
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Sources of Need Recognition
Out of StockOut of Stock DissatisfactionDissatisfaction New Needsor Wants
New Needsor Wants
Related ProductPurchase
Related ProductPurchase
Market-InducedRecognition
Market-InducedRecognition
NewProducts
NewProducts
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Ads Help Consumers Recognize Needs
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Hierarchy of Human Needs: Love, Nurturance, Belonging
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Sexy Ads May Motivate Consumers
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Sexy Ads Get Noticed
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Consumer Decision Making
Information Search Perception
Need Recognition Motivation
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Decision StageDecision Stage Psychological ProcessPsychological Process
Need Recognition Motivation
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Information Search
Information Search
Information Search
Internal Search Internal Search External SearchExternal Search
•Undertaken if internal search does not yield enough information.
•Undertaken if internal search does not yield enough information.
•Scan memory to recall experiences and knowledge about past purchase alternatives.
•Scan memory to recall experiences and knowledge about past purchase alternatives.
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External Sources of Information
PersonalSources
MarketSourcesPublicSources
PersonalExperience
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Perception
• The process by which an individual receives, attends to, interprets, and stores information to create a meaningful picture of the world.
• Marketers can formulate communication strategies based upon how consumers acquire and use information from external sources.
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The Selective Perception Process
Selective RetentionSelective Retention
Selective ComprehensionSelective Comprehension
Selective AttentionSelective Attention
Selective ExposureSelective Exposure
Selective ComprehensionSelective Comprehension
Selective AttentionSelective Attention
Selective ExposureSelective Exposure
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Selective Exposure
• Occurs as consumers choose whether or not to make themselves available to information.– TV viewers may change channels or
leave the room during commercial breaks.
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Selective Attention
• Occurs when consumer chooses to focus on certain stimuli while excluding others.
• For example, combining colour with black and white grabs attention.
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Selective Comprehension
• Consumers may interpret information based on their own attitudes, beliefs, motives, and experiences.
• An ad disparaging a consumer’s favourite product may be interpreted as biased or untruthful.
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Selective Retention
• Consumers do not remember all the information they see, hear, or read – even after attending and comprehending it.
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Advertisers Attempt to Help Consumers Retain Information
• Mnemonics (symbols, rhymes, associations, and images) can assist in consumers’ learning and memory processes.
• Example: A telephone number spelling out the company’s name.
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Consumer Decision Making
Information Search Perception
Alternative Evaluation Attitude Formation
Need Recognition Motivation
Decision StageDecision Stage Psychological ProcessPsychological Process
Information Search Perception
Need Recognition Motivation
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Attitude Formation is Based on Evaluation of Alternatives
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 M
Brand F
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Consumers Must Evaluate Their Brand Choices
ObjectiveObjective
Evaluative CriteriaEvaluative Criteria
PriceWarrantyService
PriceWarrantyService
StyleAppearance
Image
StyleAppearance
Image
SubjectiveSubjective
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Evaluative Criteria
Evaluative Criteria
Evaluative Criteria
Consumer View
•Product or service viewed in terms of its consequences.
Consumer View
•Product or service viewed in terms of its consequences.
Marketer View
•Products are viewed as bundles of attributes.
Marketer View
•Products are viewed as bundles of attributes.
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Different Perspectives: The Consumer’s View
Product Is Seen As Product Is Seen As A Set of OutcomesA Set of Outcomes
FunctionalFunctionalFunctional Consequences
Functional Consequences
How does it cutthe taller grass?
How close can Iget to the shrubs?
Will the neighborsbe impressed with
my lawn?
Is it going to be asfun to use later this
summer?
Will I enjoy havingmore time for golf?
Will it pull that
little trailer I saw at the
store?
Psychosocial ConsequencesPsychosocial
Consequences
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Attitude
• “Attitudes are learned predispositions to respond to an object.”– Gordon Allport
• A summary construct representing an individual’s overall feelings toward an object or its evaluation.
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Consumer Attitudes Focus on Objects
IndividualsIndividuals ProductsProducts
BrandsBrands
CompaniesCompanies
OrganizationsOrganizationsRetailersRetailers
MediaMediaMediaMedia
RetailersRetailers OrganizationsOrganizations
CompaniesCompanies
BrandsBrands
ProductsProductsIndividualsIndividuals
AdsAds
Attitudes Toward: Attitudes Toward:
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Advertising, Promotion, and Attitudes
• Advertising and promotion are used to create favourable attitudes, and/or change negative attitudes.
• Here, the ad attempts to change attitudes by highlighting added attributes.
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Consumer Decision Making
Information Search Perception
Purchase Decision Integration
Alternative Evaluation Attitude Formation
Need Recognition Motivation
Decision StageDecision Stage Psychological ProcessPsychological Process
Alternative Evaluation Attitude Formation
Information Search Perception
Need Recognition Motivation
© 2005 McGraw-Hill Ryerson Limited
Purchase Decision
• At some point in the buying process, the consumer makes a purchase decision.– Consumer stops searching for and
evaluating alternative brands in the evoked set.
• The purchase decision starts with a purchase intention.– Predisposition to buy a certain brand.
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Purchase Decision
• The purchase decision is not the actual purchase. – Consumer must implement decision and
make purchase.– Additional decisions may be needed.– Time delay often exists between making
a purchase decision and purchase itself.– The time delay affects the marketing
strategy, and depends on:• Type of purchase to be made• Risk involved in purchase
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Brand Loyalty May Affect Purchase Decision
• Consumers may have a preference for a certain brand, which will result in its repeated purchase.
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Integration Processes
• The ways in which product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives.
• Analysis of the integration process focuses on the different types of integration rules or strategies used by consumers to decide among purchase alternatives.
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Types of Integration Strategies
Integration StrategiesIntegration Strategies
Formal Decision Rules
•Require examination and comparison of alternatives on specific attributes.
Formal Decision Rules
•Require examination and comparison of alternatives on specific attributes.
Simplified Decision Rules or Heuristics
•Easy to use and adapt to environmental situations.
•Price- or promotion-based
Simplified Decision Rules or Heuristics
•Easy to use and adapt to environmental situations.
•Price- or promotion-based
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Consumer Decision Making
Information Search Perception
Postpurchase Evaluation Learning
Purchase Decision Integration
Alternative Evaluation Attitude Formation
Need Recognition Motivation
Purchase Decision Integration
Decision StageDecision Stage Psychological ProcessPsychological Process
Alternative Evaluation Attitude Formation
Information Search Perception
Need Recognition Motivation
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Postpurchase Evaluation
• After purchase, consumer assesses the level of performance of product or service.
• Provides feedback from actual use of product to influence the likelihood of future purchases.
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Satisfaction
• “A judgment that consumers make with respect to the pleasurable level of consumption-related fulfillment.”
• Cognitive dissonance:– A feeling of psychological tension or
postpurchase doubt a consumer experiences after making a difficult purchase choice.
– More likely to occur when consumer has to choose between two close alternatives.
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Variations in Consumer Decision Making
Types of Decision Making
Types of Decision Making
Extended Problem Solving
Extended Problem Solving
Limited Problem Solving
Limited Problem Solving
Routine Problem Solving
Routine Problem Solving
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Variations in Consumer Decision Making
Group Decision Making• Group situations constitute many purchase
decisions.• Reference group
– “A group whose presumed perspectives or values are used by an individual as the basis for his or her judgments, opinions, and actions.”
– Used to guide consumers’ purchase decisions even when the group is not present.
– Marketers use aspirational or dissociative reference group influences in developing ads and promotional strategies.
© 2005 McGraw-Hill Ryerson Limited
Variations in Consumer Decision Making
Group Decision MakingFigure 2-4
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Target Audience Decision
• Consumer understanding is the key to the success of any IMC plan, program, or ad.
• The goal of an IMC plan, program or ad is to influence the behaviour of a target audience.
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Marketing and Promotions Process Model
Figure 2-5
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Target Market Process
Select Market To TargetSelect Market To Target
Determine Market SegmentationDetermine Market Segmentation
Identify Markets With Unfulfilled NeedsIdentify Markets With Unfulfilled Needs
Determine Market SegmentationDetermine Market Segmentation
Identify Markets With Unfulfilled NeedsIdentify Markets With Unfulfilled Needs
© 2005 McGraw-Hill Ryerson Limited
Target Market and Target Audience
• Target market– The group of consumers toward which
an overall marketing program is directed.
• Target audience– A group of consumers within the target
market for which the advertising campaign, for example, is directed.
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Target Market Process
Identify Markets With Unfulfilled NeedsIdentify Markets With Unfulfilled Needs
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Market Segmentation
• Marketer identifies a target market by:– Identifying the specific needs of groups
of people, or segments– Selects one or more segments as a
target– Develops marketing programs directed
to each.
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Beer is Beer? Not really!
Popular Imports Specialties Premium Light
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A Product for Every Segment
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A Package is More Than a Container
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The Marketing Segmentation Process
Take Marketing Actions To Reach Target Segments.Take Marketing Actions To Reach Target Segments.
Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.
Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.
Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.
Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.
Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.
Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.
Find Ways To Group Consumers According To Their Needs.
Find Ways To Group Consumers According To Their Needs.
Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.
Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.
Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.
Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.
Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.
Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.
Find Ways To Group Consumers According To Their Needs.
Find Ways To Group Consumers According To Their Needs.
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Bases for Segmentation
behaviourbehaviour
BenefitsBenefits
OutletsOutlets
BenefitsBenefits
OutletsOutletsBehaviourBehaviour
PsychographicPsychographic
GeographicGeographic
DemographicDemographicPsychographicPsychographic DemographicDemographic
GeographicGeographic
CustomerCharacteristics
CustomerCharacteristics
SocioeconomicSocioeconomic
BuyingSituationBuying
Situation
UsageUsage
SocioeconomicSocioeconomic
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Psychographic Segmentation
• Dividing the market on the basis of lifestyle, personality, culture, and social class.
• Criteria include:– Lifestyle
• VALS• VALS 2
– Personality– Culture – Social class
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Marketing to a Lifestyle
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Abercrombie & Fitch Targets Echo Boomers
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Benefit Segmentation
• The grouping of consumers on the basis of attributes sought in a product.
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Behaviouristic Segmentation
• Grouping customers according to their usage, loyalties, or buying responses to a product. – Product or brand usage. – Degree of use. – Brand loyalty.
• Can be used in combination with demographic and/or psychographic criteria to develop profiles of market segments.
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Target Audience Options: Rossiter and Percy Perspective
Brand Loyal Customers
Brand Loyal Customers
Non-Customers
Non-Customers
Favourable Brand
Switchers
Favourable Brand
Switchers
Regularly buy the firm’s product.
Buy focal brand but also buy others.
New category users
Other brand switchers
Other brand loyals
Customers not purchasing within a product category.
Not consistently purchasing focal brand.
Loyal to another brand.