1. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-1 Chapter 2: Situational influences Part 1: Consumer decision process

2. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-2 The next six chapters discuss the consumer decision process

3. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-3 Chapter 2: Situational influences Objectives – after studying this chapter you should understand: Situations influence decisions There are four main types of situations The nature of situational influences Situational influences can be categorised into five classes Situational influences have implications for marketing strategy The usefulness of the person-situation segmentation procedure

4. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-4 Situational influences Situations influence consumer behaviour – Four main types of situations – Can be categorised according to five main dimensions – Implications for marketing strategy

5. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-5 Topics covered Types of situational influence Nature of situational influence Dimensions of situation – Physical – Social – Time (temporal) – Task – Antecedent Situational influences and marketing strategy

6. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-6 Four situations Communication situation – Where? Alone or with others? Surrounding noise? Purchase situation – Where? Alone or with others? In a hurry? Usage situation – With guests or alone? For pleasure or for work? Disposal situation – Before the next purchase? Trade-ins? – After the purchase, e.g. packaging

7. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-7 Consumer behaviour is Product–Person–Situation specific

8. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-8 Role of situation in consumer behaviour

9. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-9 Five dimensions of situational influence Physical surroundings Social surroundings Temporal perspectives Task definition Antecedent states

10. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-10 Examples of physical surrounds Store location Interior decor Music Smell/aromas Temperature (airconditioning or heating) Choice provided (by product category or across the categories)

11. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-11 Typology of service environments

12. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-12 Impact of background music on restaurant patrons

13. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-13 Impact of physical density on shopper perceptions

14. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-14 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

15. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-15 Effect of social situation on desired dessert attributes

16. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-16 Examples of temporal influences Whether the product is seasonal Whether the product is urgently required (snack between lectures) Time available for shopping limited/excess (the product may be an excuse for shopping) How long the previous product lasted or was expected to last

17. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-17 Temporal perspective of purchase decisions

18. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-18 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. an everyday watch) or decorative? (e.g. a dress watch) Is the product intended for several uses? (e.g. a family computer for study and internet access)

19. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-19 Buying factors in gift-giving purchase situations

20. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-20 Examples of antecedent states Moods – Feeling sad triggers buying sweets or seeing a funny movie – Feeling rejected triggers buying games’ software Momentary conditions – Can’t eat ice cream because teeth hurt – Can’t buy a book because the credit card was left at home – Buy more groceries because hungry before shopping

21. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-21 Using positive mood influences in marketing

22. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-22 Ritual situations A ritual situation can be described as a set of interrelated behaviours that occur in a structured format, which have symbolic meaning, and that occur in response to socially-defined occasions Important to marketers as they define consumption, e.g. anniversaries, seasonal gifts Traditions and rituals being continued and developed, e.g. Valentine's Day

23. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-23 Situational influences and marketing strategy Developing a situational influence matrix Positioning the product based on situation Segmenting the market based on usage situation – alone – in combination with other segmentation variable – person/situation segmentation

24. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-24 Situational influence matrix

25. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-25 Usage situations and product positioning

26. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-26 Topics covered in this lecture There are four types of situational influence The nature of situational influence Dimensions of situation – Physical – Social – Time (temporal) – Task – Antecedent Situational influences and marketing strategy

27. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 2-27 Next lecture Chapter 3: Problem recognition