13-1 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

13-2 PART IV: CONSUMER DECISION PROCESS

13-3 CHAPTER 13 SITUATIONALINFLUENCES

13-4 Consumer Behavior In The News… A Rose by any other name…?  Mother’s Day is an $11 billion + holiday in the U.S.!  What are the primary Mother’s Day gifts?  Can you guess what’s new in Mother’s Day giving? Source: M. Brosk, “Electronics replacing flowers for Mom,” Knight Ridder Tribune Business News, May 7, 2005, p. 1.

13-5 Consumer Behavior In The News… A Rose by Any Other Name?  What are the primary Mother’s Day gifts?  Flowers and greeting cards – 50% of market.  Can you guess what’s new in Mother’s Day giving?  Electronics products!  26% of market!  Example: Heavy advertising and special promo deals by Verizon and Cingular. Source: M. Brosk, “Electronics replacing flowers for Mom,” Knight Ridder Tribune Business News, May 7, 2005, p. 1.

13-6 The Nature of Situational Influence Situational influence Situational influence includes all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior. Consumers often behave very differently depending on situation.

13-7 The Nature of Situational Influence

13-8 The Nature of Situational Influence Four types of situations: 1.The Communications Situation 2.The Purchase Situation 3.The Usage Situation, and 4.The Disposition Situation

13-9 The Nature of Situational Influences The situation in which consumers receive information has an impact on their behavior. The Communications Situation Marketers attempt to place ads in appropriate media contexts to enhance effectiveness. Movie ads are strategically place so that consumers see them on their way to and from work

13-10 The Nature of Situational Influences The situation in which a purchase is made can influence consumer behavior. The Purchase Situation Marketers must adapt strategies to the purchase situation. Home purchases occur in a unique social situation. To succeed, realtors must take the opportunity to develop interpersonal relationships.

13-11 The Nature of Situational Influences Marketers need to understand the usage situations for which their products are, or may become, appropriate. The Usage Situation   Research indicates that expanded usage situation strategies can produce major sales gains.   Classic: Arm and Hammer baking soda, where many uses have been found and marketed resulting in increased sales.

13-12 The Nature of Situational Influences Consumers must frequently dispose of products or product packages. The Disposition Situation Disposal can create significant social problems as well as opportunities for marketers. Some consumers consider ease of disposition an important product attribute. Appliances at a dump in the United Kingdom

13-13 Situational Characteristics and Consumption Behavior The five key dimensions or characteristics are 1. 1.Physical surroundings 2. 2.Social surroundings 3. 3.Temporal perspectives 4. 4.Task definition 5. 5.Antecedent states Situations can be described on a number of dimensions which determine their influence on consumer behavior.

13-14 Situational Characteristics and Consumption Behavior Physical Surroundings DecorSounds Aromas LightingWeather Configurations of Merchandise Material Around Stimulus Object

13-15 Situational Characteristics and Consumption Behavior Physical Surroundings Atmospherics Atmospherics is the sum of all the physical features of a retail environment.  Atmospherics  Atmospherics influences consumer judgments of the quality of the store and the store’s image.  Atmosphereservicescape  Atmosphere is referred to as servicescape when describing a service business such as a hospital, bank or restaurant.

13-16 Situational Characteristics and Consumption Behavior Typology of Service Environments Physical Surroundings

13-17 Situational Characteristics and Consumption Behavior Components of physical surroundings: 1.Colors 2.Aromas 3.Music 4.Crowding

13-18 Situational Characteristics and Consumption Behavior Physical Surroundings Colors Certain colors and color characteristics create feelings of excitement and arousal which are related to attention. Brighter colors are more arousing than dull ones. Warm colors such as reds and yellows are more arousing than cool colors such as blues and grays.

13-19 Situational Characteristics and Consumption Behavior Physical Surroundings Aromas There is increasing evidence that odors can affect consumer shopping. Several aroma studies have found the following: 1. 1.A scented environment produced a greater intent to revisit the store, higher purchase intention for some items, and a reduced sense of time spent shopping A pleasantly scented environment enhanced brand recall and evaluations particularly for unfamiliar brands.

13-20 Situational Characteristics and Consumption Behavior Physical Surroundings Music Music influences consumers’ moods, and in turn, influences a variety of consumption behaviors.   Firms exist to develop music programs to meet the unique needs of specific retailers.   An emerging trend is having music more in the foreground so it becomes part of the shopping experience and drives store image.

13-21 Situational Characteristics and Consumption Behavior Physical Surroundings The Impact of Background Music on Restaurant Patrons

13-22 Situational Characteristics and Consumption Behavior Physical Surroundings Crowding Most consumers find feelings of crowding to be unpleasant resulting in: Less time in the store and less buying Faster decisions and less use of information Crowding can lead to less satisfactory purchases, unpleasant shopping, and reduced likelihood of returning to the store. Marketers need to design outlets to reduce crowding perceptions.

13-23 Situational Characteristics and Consumption Behavior Social surroundings Social surroundings are the other individuals present in the particular situation.   Social influence is a significant force.   Individuals tend to comply with group expectations, particularly when the behavior is visible.   Shopping is a highly visible activity.   The use of many publicly consumed brands are subject to social influences. Social Surroundings

13-24 Situational Characteristics and Consumption Behavior Embarrassment Embarrassment is a negative emotion influenced both by the product and the situation. Social Surroundings Certain products are more embarrassing than others, and Embarrassment is driven by the presence of others. For extremely sensitive products, strategies include home delivery options.

13-25 Situational Characteristics and Consumption Behavior Temporal Perspectives Limited purchase time often limits search Internet shopping is growing rapidly as a result of the time pressures felt by consumers. Temporal perspectives Temporal perspectives deal with the effect of time on consumer behavior.

13-26 Situational Characteristics and Consumption Behavior Task Definition Task definition Task definition is the reason the consumption activity is occurring. Major distinction between purchases for self versus gift. Consumers give gifts for many reasons: social expectations ritualized situations to elicit return favors

13-27 Situational Characteristics and Consumption Behavior Antecedent States Antecedent states Antecedent states are features of the individual person that are not lasting characteristics

13-28 Situational Characteristics and Consumption Behavior Types of antecedent states:  Moods Transient feeling states that are generally not tied to a specific event of object.  Momentary Conditions Temporary states of being (tired, ill, having extra money, being broke, etc.)

13-29 Situational Characteristics and Consumption Behavior Moods Moods Moods tend to be less intense than emotions and may operate without the individual’s awareness.  moods  Although moods may affect all aspects of a person’s behavior, they generally do not completely interrupt ongoing behavior as an emotion might.  mood moods  Consumers actively manager their mood states, often seeking situations, activities, or objects that will alleviate negative moods or enhance positive ones.

13-30 Situational Characteristics and Consumption Behavior Momentary Conditions Thus, a great deal of marketing activity is directed toward momentary conditions. momentary conditions As with moods, individuals attempt to manage their momentary conditions, often through the purchase or consumption of products and services.

13-31 Ritual Situations Critical to marketers because they often involve prescribed consumption behaviors. However, ritual behavior can involve injurious consumption, such as binge drinking. ritual situation A ritual situation is a socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning.

13-32 Applications in Consumer Behavior Courtesy R.C. Bigelow: Agency: Mason, Inc. The Bigelow tea ad is a great example of presenting a product as a ritual.

13-33 Situational Influences and Marketing Strategy Identify the different situations that might involve the consumption of a product Determine which products or brands are most likely to be purchased or consumed across those situations.   One method of dealing with this question is to jointly scale situations and products.

13-34 Situational Influences and Marketing Strategy

13-35 Situational Influences and Marketing Strategy Five Steps for Developing Situation-Based Marketing Strategies 1.Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage satiations that influence the consumption of the product. 2.Survey a larger sample of consumers to better understand and quantify how the product is used and the benefits sought in the usage situation by the market segment. 3.Construct a person-situation segmentation matrix. 4.Evaluate each cell in terms of potential. 5.Develop and implement a marketing strategy for those cells that offer sufficient profit potential given your capabilities.

13-36 Situational Influences and Marketing Strategy