Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 1 Situational Influences Chapter 2  Situations influence consumer behaviour  There are four main types of situations  Situational influences can be categorised according to five main dimensions  Situational influences have implications for marketing strategy

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Topics Covered Today  Types of situations  The nature of situational influence  Situation classification  Physical  Social  Time  Task  Antecedent  Situational influences and marketing strategy 2

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Types of Situation  Communication ôWhere? Alone or with others? Surrounding noise?  Purchase situation ôWhere? Alone or with others? In a hurry?  Consumption situation ôPublic or private? For pleasure or for work?  Disposal situation ôRequired for next purchase? Trade-ins? 3

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 4 Consumer Behaviour is Product — Person— Situation Specific

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins The Role of Situation in Consumer Behaviour  Insert Fig /e 5

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 6 Five Classes of Situational Influence  Physical surroundings  Social surroundings  Temporal perspectives  Task definition  Antecedent states

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Examples of Physical Surroundings  Store location  Interior decor  Music  Smell  Temperature (air-conditioning or heating)  Amount of choice provided (by product category or across the categories) 7

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Examples of Social Surroundings  Types of customers in the store  Queues and crowding  Whether the consumer is likely to be known by others/recognised  Whether there are high profile people/celebrities shopping at that store  Whether the product will be consumed privately or in the presence of others 8

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Examples of Temporal Influences  Whether the product is seasonal  Whether the product is urgently required (broken calculator before the exam)  Whether there is time for shopping or not: the product may be just an excuse for shopping  How long the previous product lasted or was expected to last 9

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Examples of Task Influences  Is the product utilitarian or used as a status symbol?  Is it a gift or for oneself?  Must the product be long lasting/tough (e.g. a watch to be taken on a boat trip) or decorative (e.g. a dress watch)?  Is the product intended for several uses? (e.g. a laptop for study and internet access) 10

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Examples of Antecedent States  Moods  Feeling sad triggers buying sweets or going to a funny movie  Feeling rejected triggers buying games software  Momentary conditions  Can’t buy ice cream because teeth hurt  Can’t buy a book because left the credit card at home  Buy more groceries because hungry before shopping 11

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 12 Impact of Physical Density on Shopper Perceptions

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins Situational Influence and Marketing Strategy  Developing a situational influence matrix  Positioning the product based on situation  Segmenting the market based on usage situation ôalone ôin combination with other segmentation variable ôperson/situation segmentation 13

Copyright  2002 McGraw-Hill Australia Pty Ltd. PPTs t/a Consumer Behaviour: Implications for Marketing Strategy 3e by Neal, Quester and Hawkins 14 Use Situations and Product Positioning