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Permissions Department, Thomson Business and Economics

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1

2 Permissions Department, Thomson Business and Economics
Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3 The Consumer Decision Process
CHAPTER 3 The Consumer Decision Process

4 The Consumer Decision Process

5 The Consumer Decision Process
How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs?

6 The Consumer Decision Process
The CDP represents a road map of consumers’ minds that marketers and managers can use to help guide product mix, communications, and sales strategies

7 The Consumer Decision Process
By permission of Drexel. P&G used consumer information regarding various decision process stages to create and market Dryel

8 Consumer Decision Process Stages

9 Consumer Decision Process Model
Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment

10 Consumer Decision Process Model
Need Recognition

11 Need Recognition An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs

12 Need Recognition Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively

13 Need Recognition MEMORY Environmental Influences - Culture
- Social Class - Personal Influence - Family - Situation MEMORY Need Recognition Individual Differences - Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle

14 Consumer Decision Process Model
Need Recognition Search for Information

15 Environ- mental Influences Individual Differences
CDP Model Need Recognition Internal Search Search Environ- mental Influences Exposure Attention MEMORY Stimuli Individual Differences Comprehension Acceptance Retention

16 Search for Information
Internal search: retrieving know-ledge from memory or genetic tendencies External search: collecting informa- tion from peers, family, and the marketplace

17 Search for Information
Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior Search refers to a receptivity of information that solves problems or needs rather than a search for specific products

18 Environmental Influences Individual Differences
Search for Information Need Recognition Environmental Influences Internal Search Search Individual Differences MEMORY External Search

19 Search: Sources of Information
Marketer Dominated Non-Marketer Dominated Stimuli

20 Search: Sources of Information
Marketer Dominated - Advertising - Salespeople - Infomercials - Websites - Point-of-sales materials

21 Search: Sources of Information
Non-Marketer Dominated Stimuli - Friends - Family - Opinion leaders - Media

22 Information Processing
As a consumer is exposed to information from external search, they begin to process the stimuli

23 Information Processing
Exposure M EMORY Stimuli: - Marketer Dominated - Nonmarketer Attention Comprehension Acceptance Retention

24 Search: Information Processing
Exposure Attention Comprehension Acceptance Retention

25 Ads That Create a Brand Image

26 Consumer Decision Process Model
Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

27 CDP Model MEMORY Need Recognition Internal Search Search
Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Individual Differences Comprehension Acceptance Retention

28 Pre-purchase Evaluation of Alternatives
The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer

29 Pre-purchase Evaluation of Alternatives
Can use new or preexisting evaluations stored in memory Evaluative criteria: standards and specifications used to compare different products and brands Alternative can be considered on attributes that are salient or determinant

30 Pre-purchase Evaluation of Alternatives
Salient attributes such as price and reliability are important to the consumer Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose

31 Consumer Decision Process Model
Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase

32 CDP Model MEMORY Need Recognition Internal Search Search
Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Acceptance Retention

33 Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices

34 Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices Purchase intention can change during the purchase stage—it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

35 Consumer Decision Process Model
Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption

36 CDP Model MEMORY Need Recognition Internal Search Search
Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Consumption Acceptance Retention

37 Consumption The process of using the product or service purchased
Consumption can either occur immediately or be delayed

38 Consumption The process of using the product or service purchased
Consumption can either occur immediately or be delayed How consumers use a product affects satisfaction with product How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

39 An Emotional Appeal in Product Consumption

40 Consumer Decision Process Model
Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation

41 CDP Model MEMORY Need Recognition Internal Search Search
Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Consumption Acceptance Retention Post-consumption Evaluation External Search Dissatisfaction Satisfaction

42 Post-consumption Evaluation
Consumption is an important determinant of satisfaction Satisfaction: when consumers’ expectations are matched by perceived performance Dissatisfaction: when experiences and performance fall short of expectations

43 Post-Consumption Evaluation
Cognitive dissonance: questioning the purchase decision (post-purchase regret) Usually, the higher the price, the higher the level of cognitive dissonance Emotion strongly affects the evaluation of a product or transaction

44 Consumer Decision Process Model
Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment

45 CDP Model MEMORY Need Recognition Internal Search Search
Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Consumption Acceptance Retention Post-consumption Evaluation External Search Dissatisfaction Satisfaction Divestment

46 Divestment How consumers dispose of the packaging or product after use
Options include: Disposal Remarketing or reselling Recycling

47 How Organizations Use the CDP Model

48 Variables Shaping the Decision Process
Identify relationships and variables that affect consumer decision making Identify topics for additional research Develop and implement marketing mix strategies

49 Variables Shaping the Decision Process
Individual Differences: Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes

50 Variables Shaping the Decision Process
Environmental Differences: Culture Social Class Family Personal Influence Situation behaviors

51 Variables Shaping the Decision Process
Environmental Differences: Culture: values, ideas, artifacts, and symbols that help individuals interpret, communicate, and evaluate as members of society

52 Variables Shaping the Decision Process
Environmental Differences: Social Class: division within society composed of individuals sharing similar values, interests, and behaviors

53 Variables Shaping the Decision Process
Environmental Differences: Family: often the primary decision making unit with a complex and varying pattern or roles and functions

54 Variables Shaping the Decision Process
Environmental Differences: Personal Influence: our behaviors are often affected by those with whom we closely associate

55 Variables Shaping the Decision Process
Environmental Differences: Situation behaviors: as situations change, so does the individual’s behavior

56 Variables Shaping the Decision Process
Psychological Processes Influencing Consumer Behavior Information processing Learning Attitude and behavior change

57 Types of Decision Processes

58 Consumer Decision Process Continuum
Extended Problem Solving (EPS) Midrange Problem Solving Limited Problem Solving (LPS) Low High Degree of Complexity

59 Consumer Decision Process Continuum: Repeat Purchases
Extended Problem Solving Midrange Problem Solving Limited Problem Solving Habitual Problem Solving Low High Degree of Complexity

60 Types of Decision Processes
Initial Purchase Extended Problem Solving (EPS): Problem solving of a higher degree of complexity that influences consumers actions

61 Types of Decision Processes
Initial Purchase Extended Problem Solving (EPS): Often occurs with expensive items or can be fueled by doubts and fears Importance in making the “right choice” All seven consumer decision making stages are often activated Dissatisfaction is often vocal

62 Types of Decision Processes
Initial Purchase Limited Problem Solving (LPS): Problem solving of a lower degree of complexity that influences consumers’ actions

63 Types of Decision Processes
Initial Purchase Limited Problem Solving (LPS): Consumers don’t have motivation, time, or resources to engage in EPS Little search and evaluation before purchase Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance

64 Types of Decision Processes
Initial Purchase Midrange Problem Solving: Many decisions occur along the middle of the continuum Decisions are made with a minimal amount of time and only moderate deliberation

65 Types of Decision Processes
Repeat Purchases Repeated Problem Solving Habitual Decision Making

66 Types of Decision Processes
Repeat Purchases Repeated Problem Solving Habitual Decision Making Impulse Buying Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion (least complex form of LPS)

67 Types of Decision Processes
Repeat Purchases Repeated Problem Solving Habitual Decision Making Impulse Buying Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion Least complex form of LPS but differs in some important ways

68 Types of Decision Processes
Repeat Purchases Repeated Problem Solving Habitual Decision Making Impulse Buying Variety Seeking Consumers may be satisfied with the present brand but still engage in brand switching Can be triggered because bored with current brand or because of special offer

69 Factors Influencing Problem Solving Extent

70 Factors Influencing Problem Solving Extent
Degree of Involvement: Level of perceived personal importance and interest evoked by a stimulus in a specific situation (High-Low)

71 Factors Influencing Problem Solving Extent
Degree of Involvement (High-Low) Personal Factors (self-image, health, beauty, or physical condition) Product Factors (is there perceived risk in purchasing and using a particular brand or product?) Situational Factors (is the product purchased for personal use or as a gift?)

72 Factors Influencing Problem Solving Extent
Degree of Involvement (High-Low) Perceptions of differences among alternatives

73 Factors Influencing Problem Solving Extent
Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made?

74 Factors Influencing Problem Solving Extent
Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made? Consumers’ Mood State How people feel at a particular moment Mood can reduce or increase length and complexity of decision process

75

76 Permissions Department, Thomson Business and Economics
Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

77 Pre-Purchase Processes: Need Recognition, Search, and Evaluation
CHAPTER 4 Pre-Purchase Processes: Need Recognition, Search, and Evaluation

78 Need Recognition

79 Need Recognition The difference between consumers’ actual and desired states The need recognition process centers on the degree of discrepancy between the actual state and desired state

80 Need Recognition Process

81 Need Recognition Process

82 Need Recognition Understanding need recognition may identify a segment with unsatisfied desires Unsatisfied needs help identify new business and product opportunities for the future Analyzing need recognition can reveal existing barriers

83 How Companies Can Activate Need Recognition
Change consumers’ desired state with new products or innovations

84 How Companies Can Activate Need Recognition

85 How Companies Can Activate Need Recognition
Change consumers’ desired state with new products or innovations Influence how consumers perceive their current state

86 How Companies Can Activate Need Recognition
Change consumers’ desired state with new products or innovations Influence how consumers perceive their current state Remind consumers of a need

87 How Companies Can Activate Need Recognition
Generic need recognition occurs when companies seek to grow the size of the total market for a product category

88 How Companies Can Activate Need Recognition
Selective need recognition is the result of stimulating the need for a specific brand within a category

89 Search

90 Search The motivated acquisition of knowledge stored in memory or acquisition of information from the environment

91 Internal Search Internal search involves scanning and retrieving decision-relevant knowledge stored in memory

92 Internal Search

93 External Search External search involves collecting information from the environment

94 During external search, consumers may gather information from a variety of sources including:
- Advertisements - Magazines - Internet - Friends and family members

95 External Search When motivated by an upcoming purchase decision, external search is known as pre-purchase search

96 External Search When information acquisition takes place on a relatively regular basis, regardless of sporadic purchase needs, it is known as ongoing search

97 External Search External search can occur:
to make better consumption choices to create a knowledge base for future decisions simply for enjoyment

98 What to Search? Which choice alternatives should the consumer search?
Those choice alternatives that consumers gather information about during pre-purchase search are referred to as the external search set

99 What to Search? Depending on the consumer’s experience and the importance of the decision, a considerable amount of effort may be invested into identifying search set members Consumers must also decide what they wish to learn about each of the set members

100 Where to Search? Different informational sources are available to the consumer

101 Where to Search? Consumers are more likely to rely upon the opinions of other individuals than information sources with vested interests in their decisions Other consumers respected for their expertise in a particular product category are referred to as opinion leaders or influentials

102 Consumer Search on the Internet
Consumers are increasingly turning to the Internet for their search needs

103 Consumer Search on the Internet
Particular search words or phrases used by consumers fall into three categories 70% Generic terms; representing product categories 20% Specific retailers; e.g., Best Buy, Gateway.com 10% Specific products; e.g., Canon digital camcorder, HP notebook

104 Consumer Search on the Internet

105 How Much Do Consumers Search?
Cost versus benefit perspective: people search for decision-relevant information when the perceived benefits of the new information are greater than perceived costs of acquiring the information

106 How Much Do Consumers Search?
Cost versus benefit perspective: people search for decision-relevant information when the perceived benefits of the new information are greater than perceived costs of acquiring the information Benefit: making better decisions Cost: time/effort spent searching

107 How Much Do Consumers Search?
While making better purchase decisions is the primary benefit of pre-purchase search, this benefit depends on the perceived risk involved - Perceived risk represents consumers’ uncertainty about the potential positive and negative consequences of the purchase decision

108 Consumers’ Knowledge and the Amount of Search

109 How Companies Benefit from Understanding Search
Adjusting the breadth of a product line based on consumers’ willingness to search Monitoring consumers’ price comparison activities to gauge their price sensitivity

110 How Companies Benefit from Understanding Search
Focus promotions on sources that consumers search most, including individuals that provide information Monitor search activities to identify new ways to reach and gain customers

111 Pre-purchase Evaluation

112 Pre-purchase Evaluation
The evaluation of choice alternatives Intertwined with the search process

113 Pre-purchase Evaluation

114 Forming the Consideration Set

115 Pre-purchase Evaluation
Consideration set: alternatives considered during decision making (also known as the evoked set)

116 How Companies Can Get Into Consumers’ Consideration Sets
Ask to be in the set Offer incentives Modify the product offering

117 Constructing the Consideration Set Primarily from Memory
Retrieval set: consideration set that depends on recall of alternatives from memory

118 Constructing the Consideration Set Primarily from Memory
Retrieval set: consideration set that depends on recall of alternatives from memory Not all alternatives retrieved from memory will be considered Consumers limit their consideration to those alternatives toward which they are favorably predisposed

119 Constructing the Consideration Set Without Prior Knowledge
Consumers may talk to others or consider all brands in the store

120 Constructing the Consideration Set Without Prior Knowledge
Consumers may talk to others or consider all brands in the store External factors have greater oppor-tunity to affect consideration set with less knowledgeable consumers than when search is from memory Recognition of brands or products at point of sale is important to get into consumers’ consideration set

121 Evaluating Alternatives

122 Deciding How to Evaluate Choice Alternatives
Rely on preexisting product evaluations stored in memory Direct Experience: prior purchase or consumption experiences with product Indirect Experience: experiences or impressions gained second-hand

123 Deciding How to Evaluate Choice Alternatives
Rely on preexisting product evaluations stored in memory Direct Experience: prior purchase or consumption experiences with product Indirect Experience: experiences or impressions gained second-hand Construct new evaluations based on information acquired through internal or external search

124 Evaluating Alternatives

125 Constructing New Evaluations
The Categorization Process: the evaluation of a choice alternative based on the evaluation of the category to which it is assigned

126 Constructing New Evaluations
The Categorization Process: the evaluation of a choice alternative based on the evaluation of the category to which it is assigned Categories may be general (drinks) or specific (colas) Evaluation of a category can be transferred to a new product assigned to that category Brand extensions allow firms to use categorization to their advantage

127 Constructing New Evaluations
The Piecemeal Process: constructing an evaluation of a choice alternative by considering its advantages and disadvantages along important product dimensions

128 Constructing New Evaluations
The Piecemeal Process: Determine the particular criteria or product dimensions to be used in evaluation Evaluate each considered alternative based on the identified criteria Cutoff: restriction or requirement for acceptable performance Signals: product attributes used to infer other product attributes (e.g., using high price to infer higher quality)

129 Consumer Perceptions Based on Signals

130 Constructing New Evaluations
Noncompensatory Evaluation Strategies: a product’s weakness on one attribute cannot be offset by strong performance on another attribute

131 Constructing New Evaluations
Noncompensatory Evaluation Strategies Lexicographic strategy: brands are compared initially on the most important attribute, and the winner is chosen. If more than one is evaluated similarly on that attribute, the second most important is considered, and so on, until a winner is identified.

132 Constructing New Evaluations
Noncompensatory Evaluation Strategies Elimination by aspects: similar to the lexicographic strategy; however, the consumer imposes cutoffs Conjunctive strategy: each brand is compared, one at a time, against a set of attributes which is established for each salient attribute. If a brand meets the cutoffs for all attributes, it is chosen.

133 Constructing New Evaluations
Noncompensatory Evaluation Strategies

134 Constructing New Evaluations
Compensatory Evaluation Strategies

135 Constructing New Evaluations
Compensatory Evaluation Strategies: a perceived weakness of one attribute may be offset or compensated for by the perceived strength of another attribute

136 Constructing New Evaluations
Compensatory Evaluation Strategies Simple additive: the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria. The alternative with the largest number of positive attributes is chosen.

137 Constructing New Evaluations
Compensatory Evaluation Strategies Weighted additive: judgments about an alternative’s attribute performance are weighted by the attribute’s importance. The alternative with the best overall performance is chosen.

138 How Good Are We at Evaluating Alternatives?
Consumers are often not very good at figuring out which alternative is best for them - Tend to rely on certain signals (e.g., price, brand name, warranty, package) to make inferences about a product quality; however, such signals may be inaccurate - Often possess limited abilities to accurately evaluate choice alternatives

139

140 Permissions Department, Thomson Business and Economics
Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

141 CHAPTER 5 Purchase

142 To Buy or Not to Buy?

143 The Purchase Process

144 The Purchase Process Consumers decide: Whether to buy When to buy
What to buy (product type/brand) Where to buy How to pay

145 The Purchase Process Fully Planned Purchase Partially Planned Purchase
Unplanned Purchase

146 The Purchase Process Fully Planned Purchase: both the product and brand are chosen in advance Purchase planning is more likely to occur when product involvement is high with purchase affected by in-store factors and marketing efforts

147 The Purchase Process Partially Planned Purchase: intent to buy the product exists, but brand choice is deferred until shopping When involvement is low, consumers resort to buying a brand they know and like but may also be influenced by price reductions or special displays

148 The Purchase Process Unplanned Purchase: both the product and brand are chosen at point of sale In-store influences can guide product and brand choices made by consumers reminding them of a need and triggering a purchase

149 The Purchase Factor When and if purchase occurs is affected by timing factors such as seasonality Timing also affects the price and the likelihood of a purchase When making a purchase, consumer must also decide how to pay—cash, checks, or plastic

150 Why People Shop While consumers may shop “to acquire something,” there are many other personal and social reasons

151 Why People Shop While consumers may shop “to acquire something,” there are many other personal and social reasons Consumers who dislike shopping embrace the Internet and other forms of direct marketing to make shopping quicker, easier, and less personally involving

152 Why People Shop

153 Why People Shop While consumers may shop “to acquire something,” there are many other personal and social reasons Consumers who dislike shopping embrace the Internet and other forms of direct marketing to make shopping quicker, easier, and less personally involving Marketers should consider how their core customers think of shopping—is it fun or is it a chore for them?

154 The Purchase Decision Process

155 The Purchase Decision Process

156 The Purchase Decision Process
Deciding where and how to purchase - Retail choice is an interactive process where the type of store and specific retailer affect each other - Consumer characteristics are matched to store characteristics and purchase characteristics - Past experience and store image also influence specific store choice

157 Retail Image Consumers rely on their overall perception of a store (store image) Involves both functional and emotional attributes The perceived level of crowding within the store may also affect shopping behavior, reducing shopping for some consumers while appealing to other segments

158 Retail Image

159 Retail Image

160 Retail Image

161 Determinants of Retailer Success
- Location - Nature and quality of assortment - Price - Advertising and promotion - Sales personnel - Service offered - Physical store attributes - Nature of store clientele - Point-of-purchase-displays - Consumer logistics

162 Location Perceived in terms of time and hassle in addition to actual distance Cognitive maps or consumer perceptions of store locations and shopping areas are more important than actual location Consumers generally overestimate both actual distance and time

163 Nature and Quality of Assortment
Depth, breadth, and quality of assortment - Specialty stores - Mass merchandisers - Department stores - Value merchants

164 Nature and Quality of Assortment
Assortment breadth: how vast or wide the variety of products sold (mass retailers)

165 Nature and Quality of Assortment
Assortment breadth: how vast or wide the variety of products sold (mass retailers) Assortment depth: how deep the categories of product sold (specialty store)

166 Nature and Quality of Assortment

167 Nature and Quality of Assortment
Assortment breadth: how vast or wide the variety of products sold (mass retailers) Assortment depth: how deep the categories of product sold (specialty store) Category killers: specialize in one category of merchandise and provide a dominant assortment of products (Home Depot, Toys ’R Us)

168 Price Price as a determinant of store patronage varies by type of product Importance of price depends on the nature of the buyer The consumer’s perception of price is usually more important than the actual price Consumers ultimately rely on their overall image of a retailer to filter the effects of price advertising

169 Price Effects of price promotions on: - Building store patronage
- Demand for different brands - Short-term buying behavior - Long-term buying behavior

170 Advertising and Promotion
Image advertising: Visual components and words that help consumers form an expectation about their experience in the store and about what kinds of consumers will be satisfied with the store’s experience

171 Image Advertising

172 Advertising and Promotion
Information advertising: Details provided about products, prices, hours of operation, locations, and other attributes that might influence purchase decisions

173 Sales Personnel Salespeople are important when choosing a store or shopping center

174 Sales Personnel Salespeople are important when choosing a store or shopping center What makes a salesperson effective?

175 Sales Personnel Salespeople are important when choosing a store or shopping center What makes a salesperson effective? - Perceived knowledge and expertise - Perceived trustworthiness - Customer knowledge - Adaptability

176 Sales Personnel Salespeople are important when choosing a store or shopping center What makes a salesperson effective? - Perceived knowledge and expertise - Perceived trustworthiness - Customer knowledge - Adaptability Recruiting, training, and motivating effective sales associates benefits retailers

177 Services Offered Varies depending on the type of outlet and consumer expectations Includes such considerations as self-service facilities, ease of merchandise return, delivery, credit, and overall good service

178 Physical Store Attributes
The physical properties of the retail environment designed to create an effect on consumer purchases are referred to as store atmospherics Can help shape the direction and duration of consumer attention, express the store’s character, or elicit particular emotional reactions

179 Physical Store Attributes
Store atmospherics - Elevators - Lighting - Air conditioning - Convenient and visible washrooms Layout - Aisle placement and width Parking facilities - Carpeting - Architecture

180 Store Clientele The type of person who shops in a store affects consumer purchase intention because of the tendency to match one’s self-image with that of the store Some customers may be attracted to or repelled from a store due to their perception of the store and its clientele

181 Point-of-Purchase Materials
POP displays and signs can increase the odds of capturing attention and stimulating purchase - E-Theater - Digital POP - Computer Enhanced Merchandising - Digital Self-Service

182 Point-of-Purchase Materials
Advantages of POP displays: Inexpensive compared to other forms of promotion They reach people where they buy the products They add atmosphere to retail stores

183 Consumer Logistics The speed and ease with which consumers move through the retail and shopping process - Preparation to shop - Arriving at the store - Entering the store - Movement through the store - Checkout - Travel home and home-warehousing - Inventory stockouts (which prompt repurchase)

184 Consumer Logistics The purchase process is facilitated, positively or negatively, by consumer logistics What consumers expect and demand from a purchase situation changes depending on what type of store they are visiting

185 The Changing Retail Landscape

186 The Changing Retail Landscape
Consumers want to purchase goods and services from a variety of retailing formats Marketers have implemented multichannel retailing to reach diverse segments through a variety of formats based on their lifestyles and shopping preferences

187 The Changing Retail Landscape
Location-Based Retailing Retailers that have a physical location for consumers to visit Can be free-standing or housed in a mall, strip center, central market, or central business district

188 The Changing Retail Landscape
Location-Based Retailing Value-oriented retailers - offer consumers lower prices than other retailing forms because of the large economies of scale generated by high sales volume - convenience of buying many different types of products in one store or have a large selection of items

189 The Changing Retail Landscape
Location-Based Retailing The Shopping Mall - People visit malls less often and spend less time than they used to - Malls are becoming lifestyle centers and emphasizing the entertainment value of shopping - Shift toward making malls become “a place to be,” not just “a place to shop”

190 The Changing Retail Landscape
Direct Marketing refers to strategies used to reach consumers somewhere other than a store

191 The Changing Retail Landscape
Direct Marketing More consumer shopping and buying activities are occurring in someplace other than the store Most in-home shoppers are active retail shoppers who shop at home for reasons other than deliberate avoidance of the store or shopping mall

192 The Changing Retail Landscape
Direct Marketing Direct selling: any form of face-to-face contact between a salesperson and a customer away from a fixed retail location - door-to-door selling - in-home parties

193 The Changing Retail Landscape
Direct Marketing Direct selling: any form of face-to-face contact between a salesperson and a customer away from a fixed retail location - door-to-door selling - in-home parties Direct mail ads

194 The Changing Retail Landscape
Direct Marketing Direct selling: any form of face-to-face contact between a salesperson and a customer away from a fixed retail location -door-to-door selling -in-home parties Direct mail ads Direct mail catalogs

195 The Changing Retail Landscape
Direct Marketing Telemarketing - outbound telemarketing - inbound telemarketing: use a toll free number to place orders directly

196 The Changing Retail Landscape
Direct Marketing Telemarketing - outbound telemarketing - inbound telemarketing: use a toll free number to place orders directly Direct response ads: ads that require a direct response from consumers

197 The Changing Retail Landscape
Purchase Behavior and E-Commerce

198 The Changing Retail Landscape
Purchase Behavior and E-Commerce The technology of websites determines what can be offered to consumers, but only consumers determine which technologies are accepted Today, more people use the Internet for search and pre-purchase evaluation than purchase

199 Consumer Resources: What People Spend When They Purchase
Money Attention Time

200 Concept of Time Budgets
People have “unlimited” money budgets: have potential to earn as much money as they want People have limited time budgets: maximum of 24 hours per day How consumers allocate their time depends on their timestyles

201 Concept of Time Budgets

202 Time and Money Budgets Timestyles: determines how consumers allocate their time As people work and make more money, leisure time decreases—leading to an increased value of time

203 Time and Money Budgets Discretionary time: leisure time when individuals feel no sense of economic, legal, moral, social or physical compulsion or obligation Nondiscretionary time: Includes physical obligations, social obligations and moral obligations

204 Time and Money Budgets Time-Using Goods

205 Time and Money Budgets Time-Using Goods
Goods that require time to use, such as television, skiing, fishing, golfing, and playing tennis As consumer have less leisure time, they are often willing to spend more money on the precious time they do have (travel, extreme sports, and eating out)

206 Time and Money Budgets Time-Saving Goods

207 Time and Money Budgets Time-Saving Goods
Goods and services that gain leisure time by decreasing nondiscretionary time expenditures Housecleaning services or dishwashers and microwave ovens free up time to spend on leisure or other activities Some firms position products with time-saving benefits

208 Polychronic Time Use Polychronic time involves combining activities simultaneously

209 Polychronic Time Use Polychronic time involves combining activities simultaneously Trend has given rise to products: cellular phones (talk and walk or drive) online radio services (listen to music while working on computers) beepers for dental patients (wait for appointments and shop) prepared meals (shop for groceries and buy completed dinner at same store)

210 Time and Money Budgets Time Prices

211 Time and Money Budgets Time Prices
Products have economic prices as well as time prices How much time it takes to shop for, install, or use a product Firms sometimes use time prices in their ads (only takes 2 hours to install or 10 seconds for quick-dry paint)

212 Cognitive Resources Cognitive resources: mental capacity available for undertaking various information-processing activities

213 Cognitive Resources Cognitive resources: mental capacity available for undertaking various information-processing activities Capacity: cognitive resources that an individual has available at any given time for processing information

214 Cognitive Resources Cognitive resources: mental capacity available for undertaking various information-processing activities Capacity: cognitive resources that an individual has available at any given time for processing information How much of this resource do consumers spend when shopping or making a purchase?

215 Cognitive Resources Attention: allocation of cognitive resources

216 Cognitive Resources Attention: allocation of cognitive resources
Attention consists of two dimensions:

217 Cognitive Resources Attention: allocation of cognitive resources
Attention consists of two dimensions: Direction: focus of attention Intensity: the amount of capacity focused in a particular direction

218 Cognitive Resources Attention: allocation of cognitive resources
Attention consists of two dimensions: Direction: focus of attention Intensity: the amount of capacity focused in a particular direction Gaining attention represents one of the most formidable challengers a marketer may face

219 Cognitive Resources Shallow Attention
Many products are not important enough to warrant consumers investing a large amount of cognitive resources Consumers attempt to find acceptable rather than optimal solutions for their consumption needs

220 Cognitive Resources Exceeding Cognitive Capacity
Because capacity is limited, it is possible to provide too much information and exceed capacity (information overload) Consumers can become confused and make poor choices or they may stop processing information before they are overloaded

221 Cognitive Resources Exceeding Cognitive Capacity
The amount of attention given to a product or specific purchase choice depends on factors such as involvement, situation, personality, and other variables

222 Communicating with Consumers:
Integrated Marketing Communications

223 Integrated Marketing Communications (IMC)
A systematic, cross-organizational marketing communication process that is customer-centric, data-driven, technically anchored, and branding effective

224 Integrated Marketing Communications (IMC)
IMC programs are comprehensive IMC programs are unified IMC programs are targeted IMC programs have coordinated execution of all the communications components of the organization IMC programs emphasize productivity in reaching targets when selecting communication channels and allocating resources to media

225

226 Permissions Department, Thomson Business and Economics
Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

227 Post-Purchase Processes: Consumption and Post-Consumption Evaluations
CHAPTER 6 Post-Purchase Processes: Consumption and Post-Consumption Evaluations

228 Consumption Behavior

229 Consumption Consumers’ usage of the acquired product

230 Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories

231 Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories Size of user market is one indicator of market attractiveness Size of nonuser group speaks to future growth opportunities Characterized along many dimensions

232 Consumption Behavior

233 Consumption Behavior When Does Consumption Occur?

234 Consumption Behavior When Does Consumption Occur?
How much time passes between purchase and consumption?

235 Consumption Behavior When Does Consumption Occur?
How much time passes between purchase and consumption? What time of day is product used?

236 Consumption Behavior When does Consumption Occur?
How much time passes between purchase and consumption? What time of day is product used? When in the year or during which season is product consumed?

237 An Attempt to Expand Consumption

238 Consumption Behavior Where Does Consumption Occur?

239 Consumption Behavior Where Does Consumption Occur?
The situation in which consumption occurs can affect product choice— e.g., beers sales for in-home versus on-premise consumption

240 Consumption Behavior How Is the Product Consumed?

241 Consumption Behavior How Is the Product Consumed?
How is the product prepared? Is it consumed alone or with other products? Is it used as intended or have consumers invented a new use?

242 Consumption Behavior How Much Is Consumed?

243 Would Consumers Pour the Same
Amount into Each Glass?

244 Consumption Behavior How Much Is Consumed?
Consumers may be similar in what they consume, but different in how much they consume Usage volume segmentation: dividing consumers into segments based on amount of consumption (heavy, moderate, and light users) Firms can encourage consumption or change amount consumed

245 Consumption Behavior Basic Strategies for Increasing the Amount of Consumption Enhance the frequency of consumption Enhance the amount consumed per consumption occasion

246 Consumption Behavior Encouraging more frequent consumption

247 Consumption Behavior The Influence of Package Size

248 Consumption Experiences

249 Consumption Experiences
How Does It Feel?

250 Consumption Experiences
How Does It Feel? Positive or negative things you feel when using a product

251 Consumption Experiences
How Does It Feel? Positive or negative things you feel when using a product Firms can position products based on: - Positive feelings resulting from consumption - Elimination of negative feelings resulting from consumption

252 Consumption Experiences
How Rewarding or Punishing Was the Experience?

253 Consumption Experiences
How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage

254 Receiving Positive Outcomes
Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement

255 Consumption Experiences
How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome

256 Receiving Positive Outcomes Avoiding Negative Outcomes
Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement

257 Consumption Experiences
How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome Punishment: when consumption leads to negative outcome

258 Receiving Positive Outcomes
Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement Purchase Need Product Purchase Product Consumption Receiving Negative Outcomes Punishment

259 Consumption Experiences
Did It Confirm or Disconfirm Expectations?

260 Consumption Experiences
Did It Confirm or Disconfirm Expectations? Consumption can meet, exceed, or fall short of expectations

261 How Well Different Brands Are Meeting Consumers’ Expectations

262 Shaping Interpretation of the Consumption Experience
Beyond the consumption experience, consumers’ interpretation can be affected by their expectations of the experience and their mood at the time of consumption

263 Consumption Norms and Rituals
Consumption norms: informal rules that govern our consumption behavior Consumption rituals: a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time Holiday rituals (gift giving, parties)

264 Consumption Norms and Rituals

265 Compulsive Consumption
A response to an uncontrollable drive or desire to obtain, use, or experience a feeling, substance, or activity that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others Gambling Addiction (shopping, alcohol, food) Internet (web dependency)

266 Understanding Consumption
Ethnography involves describing and understanding consumer behavior by interviewing and observing consumers in real-world situations

267 Post-Consumption Evaluations

268 Post-Consumption Evaluations
Evaluations also occur following consumption

269 Post-Consumption Evaluations
Evaluations also occur following consumption Consumers experience satisfaction or dissatisfaction

270 Satisfaction Scores by Company

271 Importance of Satisfaction
It Influences Repeat Buying Positive post-consumption evaluations are essential for retaining customers The likelihood that customers will remain loyal depends on their level of satisfaction However, customer satisfaction does not guarantee loyalty

272 Importance of Satisfaction
It Shapes Word-of-Mouth and Word-of-Mouse Communication Consumers often communicate with others about their consumption experiences

273 Negative Word-of-Mouth

274 Word-of-Mouse

275 Importance of Satisfaction
Dissatisfaction Can Lead to Complaints and Lawsuits

276 Consumer Complaints

277 Importance of Satisfaction
Satisfaction Affects Consumers’ Price Sensitivity

278 Customer Satisfaction-Price Sensitivity Relationship

279 Importance of Satisfaction
Implications for Customer Recruitment Monitor satisfaction levels of competitors’ customers Formulate strategies to attract dissatisfied customers of competitors

280 Importance of Satisfaction
It Ultimately Affects Shareholder Value

281 What Determines Satisfaction?
Product performance Consumption feelings Expectations

282 Expectancy Disconfirmation Model
Satisfaction depends on a comparison of pre-purchase expectations to actual outcomes

283 Expectancy Disconfirmation Model
Negative disconfirmation: when product delivers less than expected Positive disconfirmation: when product delivers more than expected Confirmation: product matches expectations

284 Negative Disconfirmation Can Cause:
Regret: when consumers believe that an alternative course of action other than the once chosen would have produced a better outcome Rage: when consumers are extremely upset

285 Biggest Threats to Consumers’ Satisfaction

286 What Increases Consumers’ Satisfaction

287

288 Permissions Department, Thomson Business and Economics
Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

289 CHAPTER 8 Consumer Motivation

290 Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption

291 Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption Gives insights into why people buy certain products

292 Consumer Motivation Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption Gives insights into why people buy certain products Stems from consumer needs: industries have been built around basic human needs

293 Types of Consumer Needs

294 Types of Consumer Needs
Physiological Needs Fundamental human needs, including food, water, and sleep

295 Types of Consumer Needs
Safety and Health Needs Threats to our safety and health motivate purchases for personal security and protection

296 Types of Consumer Needs
Safety and Health Needs Protecting our personal information and computers represents new types of safety needs Businesses provide a variety of products and services to appeal to safety and health conscious consumers

297 Safety and Health Needs

298 Types of Consumer Needs
Need for Love and Companionship Humans are social creatures who need to experience and express love and companionship

299 Types of Consumer Needs
Need for Love and Companionship Services and products help individuals find and attract others Products are often used as symbols of love and caring

300 Love and Companionship

301 Types of Consumer Needs
Need for Financial Resources and Security A need that includes others important to the individual

302 Types of Consumer Needs
Social Image Needs Conspicuous consumption: purchases motivated to some extent by the desire to show other people how successful they are Companies reinforce the notion that products enable users to communicate their social image

303 Social Image Needs

304 Types of Consumer Needs
Need for Pleasure Products, services, and consumption activities provide fun and excitement

305 Consumers’ Need for Pleasure
© SETH WENIG/Reuters/Landow

306 Types of Consumer Needs
Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors

307 Consumers’ Need to Possess

308 Types of Consumer Needs
Need to Possess Consumers often acquire products simply because of their need to own such products— e.g., collectors Plays a role in impulse buying: where consumers unexpectedly experience a sudden and powerful urge to buy something immediately

309 Types of Consumer Needs
Need to Give Give something back to others or reward ourselves Self-gifts let us motivate, reward, and console ourselves

310 Types of Consumer Needs
Need for Information One reason we read or watch TV Fuels Internet usage Plays an important role in persuasion—if an ad appears when consumers need information, they are more likely to pay attention than when they don’t need the information

311 Types of Consumer Needs
Need for Variety Marketers may introduce different versions of original brand Variety may become focus of product positioning

312 Motivational Conflict and Need Priorities

313 Motivational Conflict and Need Priorities
Satisfying a need often comes at the expense of another need—these trade-offs cause motivational conflict

314 Types of Motivational Conflict
Approach-approach: deciding between two or more desirable options Avoidance-avoidance: deciding between two or more undesirable options Approach-avoidance: behavior has both positive and negative consequences

315 Motivational Conflict and Need Priorities
Resolving motivational conflicts requires prioritizing needs Maslow’s hierarchy Some needs take precedence over other needs—physiological needs take top priority Differences in the importance attached to various needs affects how consumers evaluate products

316 Motivational Conflict and Need Priorities
Because of consumers’ different motivational priorities, companies use benefit segmentation: dividing consumers into different market segments based on benefits they seek from purchase and consumption

317 Maslow’s Hierarchy of Needs

318 Motivational Intensity
Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance

319 Motivational Intensity
Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance Involvement: degree to which an object or behavior is personally relevant Motivational intensity and involve-ment determine amount of effort consumers exert in satisfying needs

320 The Challenge of Understanding Consumer Motivation

321 The Challenge of Understanding Consumer Motivation
Reasons underlying consumer motivation are not always “obvious” Research is necessary to discover real motivations behind behaviors People don’t always want to disclose real reasons for their actions People don’t always know why they do what they do—unconscious motivation Motivations change over time

322 Unconscious Motivation

323 Motivating Consumers

324 Motivating Consumers Motivating with Money

325 Motivating Consumers Motivating with Money
Price cuts, specials, rebates, and coupons motivate purchase Resulting sales may increase, but profits may not Attracts consumers less likely to repeat Price reductions may increase price sensitivity

326 Motivating with Money

327 Motivating Consumers Provide Other Incentives

328 Motivating Consumers Provide Other Incentives
Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase

329 Motivating with Other Incentives

330 Motivating Consumers Provide Other Incentives
Premiums, free products, contests, and sweepstakes are designed to motivate consumers to purchase There are limitations and shortcomings for this strategy in addition to the products offered as a premium being valued less (value-discounting hypothesis)

331 Motivating Consumers Implement a Loyalty Program
Motivate repeat buying by providing rewards to customers based on how much business they do with the company Tracks consumer purchases and provides estimates of Customer Lifetime Value

332 Participation in Loyalty Programs

333 Motivating Consumers Enhance Perceived Risk

334 Motivating Consumers Enhance Perceived Risk
Perceived risk: consumers’ apprehensions about the consequences of their behavior (buying and consuming the product) Greater perceived risk increases search Educating consumers about risks may motivate them to make more informed choices that reduce exposure to risk

335 Informing Consumers of Their Risks

336 Motivating Consumers Arouse Consumers’ Curiosity

337 Motivating Consumers Arouse Consumers’ Curiosity
For new products, educating potential customers is crucial Curiosity often leads to an enhanced need for information May advertise a benefit that is not normally associated with the product

338 Arousing Curiosity

339

340 Permissions Department, Thomson Business and Economics
Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

341 Consumer Beliefs, Feelings, Attitudes, and Intentions
CHAPTER 10 Consumer Beliefs, Feelings, Attitudes, and Intentions

342 Attitudes Global evaluative judgments

343 Intentions Subjective judgments by people about how they will behave in the future

344 Beliefs Subjective judgments about the relationship between two or more things

345 Feelings An affective state (e.g., current mood state) or reaction (e.g., emotions experienced during product consumption)

346 Relationships between Consumer Beliefs, Feelings, Attitudes, and Intentions

347 Consumer Beliefs

348 Consumer Beliefs A Sampling of Consumer Beliefs
If a deal seems to good to be true, it probably is. You can’t believe what most advertising says these days. Auto repair shops take advantage of women. People need less money to live on once they retire. It’s not safe to use credit cards on the Internet. Appliances today are not as durable as they were 20 years ago. Extended warranties are worth the money. You get what you pay for: lower price means lower quality. Changing the oil in your car every three thousand miles is a waste of money.

349 Consumer Beliefs Expectations Brand Distinctiveness
Inferential Beliefs Consumer Confusion

350 Consumer Expectations
Expectations are beliefs about the future Consumers’ willingness to spend is influenced by beliefs about their financial future

351 Brand Distinctiveness
Why should consumer want to buy your brand instead of the competitor’s? The desirability of products having something unique to offer to their consumers is also known as the Unique Selling Proposition

352 Communicating the Product’s Unique Selling Proposition

353 Inferential Beliefs Consumers use information about one thing to form beliefs about something else Beliefs are often inferred when product information is incomplete Also undertaken when consumers interpret certain product attributes as signals of product quality—e.g., price-quality inferential beliefs

354 Visual Advertising Elements and Inferential Beliefs

355 Consumer Confusion Sometimes consumers do not know what to believe due to many different reasons May arise due to conflicting information and knowledge Mistaking one company’s product for the product of another company Due to changes in a product’s position and image

356 Consumer Confusion Consumers respond to confusion by:
Undertaking further information search Basing their decision on things that are perfectly clear—e.g., price Deferring product purchase indefinitely

357 Consumer Feelings

358 Types of Feelings Upbeat Negative Warm

359 Types of Feelings Upbeat Negative Warm Active Adventurous Alive
Attractive Confident Creative Elated Energetic Good Happy Pleased Angry Annoyed Bad Bored Critical Defiant Disgusted Fed-up Insulted Irritated Regretful Affectionate Calm Concerned Contemplative Emotional Hopeful Kind Peaceful Pensive Touched Warm-hearted

360 Consumer Feelings Feelings as part of the advertising experience
Feelings as part of the shopping experience Feelings as part of the consumption experience

361 Consumer Feelings Feelings as part of the advertising experience
Feelings activated by the advertisement have the potential to influence attitudes formed about the featured product The program in which advertising appears can induce feelings and affect post-message attitudes

362 Advertising that Evokes Positive Feelings

363 Consumer Feelings Feelings as part of the shopping experience
The retail environment elicits different feelings in consumers ultimately affecting their attitudes and behaviors in the store The shopping environment can evoke pleasure, arousal, or dominance in consumers

364 Consumer Feelings Feelings as part of the consumption experience
Some consumption experiences are liked primarily for the feelings they induce Feelings during consumption will influence post-consumption evaluations Consumers are more satisfied when product consumption leads to positive feelings while avoiding negative ones

365 Emphasizing the Product’s Mood Altering Properties

366 Emphasizing How Negative Feelings May Be Avoided

367 Measuring Feelings How often, if at all, do you experience the following feelings as a result of eating chocolate? Happy never _:_:_:_:_:_:_:_:_ very often Excited never _:_:_:_:_:_:_:_:_ very often Delighted never _:_:_:_:_:_:_:_:_ very often Joyous never _:_:_:_:_:_:_:_:_ very often Satisfied never _:_:_:_:_:_:_:_:_ very often Proud never _:_:_:_:_:_:_:_:_ very often Annoyed never _:_:_:_:_:_:_:_:_ very often Depressed never _:_:_:_:_:_:_:_:_ very often Guilty never _:_:_:_:_:_:_:_:_ very often Regretful never _:_:_:_:_:_:_:_:_ very often

368 Consumer Attitudes

369 Consumer Attitudes Properties of Attitudes
Valence: Whether the attitude is positive, negative or neutral Extremity: The intensity of liking or disliking Resistance: Degree to which the attitude is immune to change Confidence: Belief that attitude is correct Accessibility: How easily the attitude can be retrieved from memory

370 Types of Attitudes Attitude towards the object (Ao) represents the evaluation of the attitude object Attitude towards the advertisement (Aad) represents the global evaluation of an advertisement

371 Types of Attitudes Attitude towards the behavior (Ab) represents the evaluation of performing a particular behavior involving the attitude object Preferences represent attitudes toward one object in relation to another

372 Attitude toward the behavior:
Buying a Dell personal computer would be: Very good Very bad Very rewarding Very punishing Very wise Very foolish Attitude toward the object: How much do you like/dislike Dell computers? Like very much Dislike very much Preference: Compared to Apple personal computers, how much do you like Dell personal computers? Like IBM much Like Apple much more than Apple more than IBM

373 Using Multiattribute Models to Understand Consumer Attitudes

374 Ao = Σ bi ei The Fishbein Multiattribute Attitude Model n i =1
Ao = attitude toward the object bi = strength of the belief that object has attribute i ei = evaluation of attribute i n = number of salient or important attributes

375 The Fishbein Multiattribute Attitude Model
The Fishbein Model Model proposes that attitude toward an object is based on the summed set of beliefs about the object’s attributes weighted by the evaluation of these attributes Attributes can be any product or brand association

376 The Fishbein Multiattribute Attitude Model
Running shoe example Whether the shoe is shock absorbent for use on hard surfaces Whether it is priced less than $50 Durability of the shoe How comfortable the shoe is to wear Whether the shoe is available in the desired color Amount of arch support

377 The Fishbein Multiattribute Attitude Model
Developing the ei and bi measures

378 The Fishbein Multiattribute Attitude Model
Developing the ei and bi measures ei Buying running shoes priced less than $50 is very good _ : _ : _ : _ : _ : _ : _ very bad

379 The Fishbein Multiattribute Attitude Model
Developing the ei and bi measures ei Buying running shoes priced less than $50 is very good _ : _ : _ : _ : _ : _ : _ very bad bi How likely is it that brand A running shoes are priced less than $50? very likely _ : _ : _ : _ : _ : _ : _ very unlikely

380 The Fishbein Model: Sample Results
Beliefs Brand Brand Brand Attribute Evaluation A B C Shock absorbent Price less than $ Durability Comfort Desired color Arch support Total Σ bi ei score

381 Consumer Attitudes Companies want consumers to perceive their products as: Possessing desirable attributes (when ei positive, bi should be positive) Not possessing undesirable attributes (when ei is negative, bi should be negative)

382 Communicating the Presence of Desirable Attributes

383 Communicating the Absence of Undesirable Attributes

384 AP = Σ Wi Ii - Xi The Ideal-Point Multiattribute Attitude Model n i =1
AP = attitude toward product Wi = importance of attribute i Ii = ideal performance on attribute i Xi = belief about product’s actual performance on attribute i n = number of salient attributes

385 The Ideal-Point Multiattribute Attitude Model
Consumers indicate where they believe a product is located on scales representing the various levels of salient attributes Also report where ideal product would fall on these scales The closer the ideal and actual ratings, the more favorable the attitude

386 The Ideal-Point Multiattribute Attitude Model
Soft drink example Sweetness of taste Degree of carbonation Number of calories Amount of real fruit juices Price

387 The Ideal-Point Multiattribute Attitude Model
Developing a scale to represent various levels of each attribute very sweet taste _ : _ : _ : _ : _ : _ : _ very bitter taste

388 The Ideal-Point Multiattribute Attitude Model
Developing a scale to represent various levels of each attribute very sweet taste _ : _ : _ : _ : _ : _ : _ very bitter taste Provide ratings of attribute importance not at all important _ : _ : _ : _ : _ : _ : _ extremely important

389 The Ideal-Point Model: Sample Results
Beliefs Import- Ideal Brand Brand Attribute ance Point A B Taste: sweet(1) - bitter (7) Carbonation: high(1) - low (7) Calories: high (1) - low (7) Fruit juices: high (1) - low (7) Price: high (1) - low (7) Total Σ Wi Ii-Xi score 16 29

390 Benefits of Using Multiattribute Attitude Models
Diagnostic power: examine why consumers like or dislike products Simultaneous importance-performance grid with marketing implications for each cell

391 Stimulus Importance-Performance Grid
Attribute Our Competitor’s Simultaneous Importance Performance Performance Result HIGH LOW POOR GOOD Poor Good Neglected Opportunity Competitive Disadvantage Competitive Advantage Head-to-head competition Null Opportunity False Alarm False Advantage False Competition

392 Benefits of Using Multiattribute Attitude Models
Can provide information for segmentation (based on importance of product attributes) Useful in new product development Guidance in identifying attitude change strategies

393 Attitude Change Implications from Multiattribute Attitude Models
Three primary ways for changing consumer attitudes: Change beliefs Change attribute importance Change ideal points

394 Changing Consumer Attitudes: Changing Beliefs
Firms hope that changing beliefs about products will result in more favorable product attitudes and influence what consumers buy If beliefs are false, they need to be brought into harmony with reality If beliefs are accurate, it may be necessary to change the product Comparative advertising can hurt beliefs about a competitive brand

395 Changing Consumer Attitudes: Changing Attribute Importance
Changing an attribute’s importance is more difficult than changing a belief How is a brand perceived relative to ideal performance? Increasing attribute importance is desirable when the competitor’s brand is farther from the ideal point than your product Firms may add a new attribute

396 Changing Consumer Attitudes: Changing Ideal Points
Altering consumers’ preferences for what the ideal product should look like

397 This Ad Attempts to Change Consumers’ Ideal Point

398 Estimating the Attitudinal Impact of Alternative Changes
How expensive are the product modifications required to change attitude? Are they possible to accomplish? How resistant to change are consumers? What is the potential attitudinal payoff each change might deliver?

399 Consumer Intentions

400 Consumer Intentions Useful for firms when predicting how people will act as consumers How much existing product should be produced to meet demand? How much demand will there be for a new product?

401 Consumer Intentions Useful for firms when predicting how people will act as consumers How much existing product should be produced to meet demand? How much demand will there be for a new product? Firms interested in many types of consumer intentions

402 Types of Intentions Spending intentions Purchase intentions
Repurchase intentions Shopping intentions Search intentions Consumption intentions

403 Types of Intentions Spending intentions reflect how much money consumers think they will spend Will you spend at least $1,000 on Christmas gifts this year? No chance I definitely will

404 Types of Intentions Purchase intentions represent what consumers think they will buy Will you buy a Mercedes-Benz automobile during the next 12 months? No chance I definitely will

405 Types of Intentions Repurchase intentions indicate whether consumers anticipate buying the same product or brand again The next time you purchase coffee, will you buy the same brand? No chance I definitely will

406 Types of Intentions Shopping intentions capture where consumers plan on making their product purchases Will you shop at Wal*Mart during the next 30 days? No chance I definitely will

407 Types of Intentions Search intentions indicate consumers’ intentions to engage in external search The next time you need to be hospitalized, will you speak to your doctor before choosing a hospital? No chance I definitely will

408 Types of Intentions Consumption intentions represent consumers’ intentions to engage in a particular consumption activity Will you watch the next Super Bowl? No chance I definitely will

409 How Firms Can Predict Behavior

410 How Firms Can Predict Behavior
Rely on past behavior to predict future behavior

411 How Firms Can Predict Behavior
Rely on past behavior to predict future behavior Problems: Situations change (changes in market can cause unpredictable changes in demand) Sales trends are sometimes erratic Past behaviors not available for new products or first-time behaviors

412 How Firms Can Predict Behavior
Rely on consumers’ reported intentions People often do what they intend

413 Constraints on Predictive Power of Intentions

414 Constraints on Predictive Power of Intentions
Intentions can change Intend to do something and don’t Intend not to do something and do Can’t control whether consumers act upon their intentions Can influence predictive accuracy

415 Constraints on Predictive Power of Intentions
Intentions’ predictive accuracy strongly depends on how they are measured The more closely intention measures correspond to the to-be-predicted behavior, the greater the predictive accuracy

416 Constraints on Predictive Power of Intentions
Measuring intentions may be less predictive of future behavior than measuring what they expect to do

417 Constraints on Predictive Power of Intentions
Measuring intentions may be less predictive of future behavior than measuring what they expect to do Behavioral expectations: represent perceived likelihood of performing a behavior (Although smokers may intend to quit smoking, they may report more moderate expectations due to past failures)

418 Constraints on Predictive Power of Intentions
Accuracy of forecasts also depends on when intentions are measured How far into the future is being predicted? Accuracy depends on the to-be-predicted behavior (behaviors repeated with regularity are easier to predict)

419 Constraints on Predictive Power of Intentions
Volitional control: the degree to which a behavior can be performed at will

420 Constraints on Predictive Power of Intentions
Volitional control: the degree to which a behavior can be performed at will Existence of uncontrollable factors interfere with the ability to do as intended Perceived behavioral control: the person’s belief about how easy it is to perform the behavior

421 Consumer Intentions: Other Uses
Indicator of the possible effects of certain marketing activities Intentions may provide an informative indication of a company’s likely success in retaining customers


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