Influencing Consumer Behaviors Chapter 10 Influencing Consumer Behaviors

Approaches to Influencing Overt Consumer Behavior Info about consumers’ affect and cognitions Marketing mix stimuli placed in the environment Influence consumers’ affect and cognitions Influent overt consumer behaviors Consumer research data Sales, market share data

Steps in Developing Consumer Behavior Influences Strategies No Measure current levels of consumer affect and cognition Analyze consumers and markets Select and implement influence strategy Measure strategic effects Desired influence occur? Yes Evaluate for performance improvement

A comparison of views on marketing Marketing issues Behavior Approaches Cognitive Approaches Role of marketing Modify consumer behavior to achieve organizational objectives Satisfy needs of consumers at profit Investigate strategies for influencing consumer affect and cognition Role of marketing & consumer research Investigate strategies for predicting & controlling consumer behavior

Two Types of Promotion Overall, “sales promotion” refers to any marketing strategy directed at changing behavior. Consumer Promotion - “Pull” strategy Trade Promotion - “Push” strategy

Pepsi offers a $5 rebate on the Home Alone video -- A type of consumer promotion

Rebates are often effective at changing purchase probabilities, even for big-ticket items

Types of consumer promotions Sampling. Consumers are offered regular or trial sizes of the product either for free or at a nominal price. America Online – 7, 500 hours free trial version. Price deals. Consumers are given discounts from the product’s regular price. For example, $1 off of Pepperidge Farm Raisin Bread. Bonus packs. Bonus packs consist of additional amounts of the product provided in the package or container. For example, 33% more free on Head and Shoulders.

Consumer promotions, cont. Rebates and refunds. Consumers, either at purchase or by mail, are given cash refunds for purchasing products. For example, A 2000$ rebate on GM trucks in April. Sweepstakes and contests. Consumers are offered chances to win cash and/or prizes either through chance selection or games of skill. For example, Marriott Hotels teamed with Hertz Rent-A-Car in a scratch-card sweepstakes that offered over $90 million in prizes.

Consumer promotions, cont. Premiums. A premium is a reward or a gift that comes from purchasing a product. For example, P & G offered a free package of Diaperene baby washcloths with the purchase of any size Pampers. Coupons. Consumers are offered cents-off or added value incentives for purchasing specific products. For example, Lenscrafters offered newspaper coupons for $20 off the purchase of contact lenses from its stores.

What can be influenced? Purchase probability Purchase Quantity try new product, position to purchase, brand switch, brand loyalty. Purchase Quantity Purchase Timing Purchase Location

Promotion effects on consumer behavior

Social Marketing Usually focus on behavior. Increase probability of desired behaviors (use car pools, save natural resources etc.) Decrease probability of undesired behaviors (unsafe driving, illegal drugs etc.)