Marketing Lecture 2 PDF

Preview

Summary

Download Marketing Lecture 2 PDF

Description

Marketing lecture 2 summary and notes: consumer behaviour

1. Purchase decision processes

Consumer Needs: consumer needs drive industries



It is the customer who determines what a business is, what it produces, and whether it will prosper”

Consumer level and marketing level:

Consumer level (examples) How do consumers make purchasing

Marketing level (examples) Companies introduce a new product

decisions? What are consumers influenced by in their

Companies develop a marketing campaign

purchasing decisions?

The 4 purchase decision processes



“involvement indicates the level of motivation to seek and process information about a product or service”

What are different forms of involvement?



High-involvement purchases Comprehensive information processing



Low-involvement purchases “learn” after repeated messages



Conscious search for information



“random” information intake



Intensive dealing with advertising



Passive reception of advertising



Search for best or most useful alternative



Selection of a satisfactory alternative



Strong relationship of products to



Products for personality, lifestyle of consumer are unimportant

personality, lifestyle of consumer 



Strong influence of ref. group on decision

Low influence of ref. groups on decision

1.1 Extensive purchase decisions 

How do consumers make decisions?  5 step process



Problem identification: 

Consumers become aware of a need:

No problem

Needs through new

Needs through deficit

opportunities



Information search: 

Where do customers look for information?



Recommendations from social contacts play the most important role in the

information search and influence the purchase decision 

Evaluations from other consumers online are also of great importance



In comparison, information “controlled” by the companies is rather unimportant

(i.e., owned media versus earned media)



Evaluation of alternatives 

How do customers develop attitudes? The Fischbein Model:

Purchase Decisions: How do consumers actually make choices in extensive purchase decisions?

Conjunctive heuristic: A minimum level is set for each characteristic. The consumer chooses the first alternative that has reached the minimum threshold for all features Lexicographic heuristic: Here, the consumer determines the most important feature. The mark with the highest expression of it is then chosen Elimination-by-aspect heuristic: According to elimination-by-aspect, a minimum level is set for each relevant feature. For example, the storage space should be above 124 GB. If a product alternative does not meet this requirement, then it is eliminated. Elaboration on likelihood model: How does advertising affect attitudes?

The attitude-behaviour gap: Positive attitudes do not always result in purchase

Evaluation of the purchase decision: The confirmation/disconfirmation model:

Customer satisfaction: The Net Promoter Score (NPS) for determining customer satisfaction “how likely is it that you would recommend this product to a friend or colleague?”

1.2 Limited purchase decisions

Behavioural economics in purchasing decisions How do consumers shorten their decision making?

Consumers go for the option in

Consumers pick well-known

Consumers go for expensive

the middle

brands and products

items (>quality indicator)

1.3 Habitualized purchase decisions

How does a brand manage to be considered by the consumer?



Subscription models (e.g., Spotify)

1.4 Impulsive purchase decisions



Impulsive purchase decision come unexpectedly and quickly

1.5 B2B purchase decisions

What is changing with B2B purchase decisions

Product Distribution

B2B Usually, smaller quantities Often directly

B2C Standard, “mass market” Different trade levels

Communication Price Decision-making processes

Personal sales relationship List prices or individual pricing Various members of the

(wholesale, stationary trade) Advertising List prices Individual consumer or

organization make decision

household makes decision

The buying centre (e.g., hospital)h

2. Influences on consumer behaviour

2.1 Individual factors 

“individual, social, and situational factors influence consumers when making purchase / consumption decisions”





Personal factors: demographics: 

Age



Gender



Place of residence



Income

Personal factors: values: 



Lifestyle:

Sustainable values strongly influence consumers

2.2 Social factors 

“consumers want to feel they belong to a group”

Reference groups: 

Consumers want to feel they belong to a reference group



Actual reference group / Aspiring reference group / Reference group to be avoided

Marketing application: benefits of group effects What happens to consumers in groups? 

Customers are more risk-tolerant



Customers divide responsibility among group members



Customers often follow the first voice that is expressed in group settings

2.3 Situational factors 

“researchers assume that 2/3 of buying decisions are made in the situation”

Situational factors I: physical factors 

Consumes are influenced by sensory impressions: 

Olfactory



Acoustic



Visual



Combinations of 2 or more of the above

Situational factors II: social factors 

Consumers are influenced by social surroundings 

Family environment



Professional environment



Private environment

Situational factors III: temporal factors 

Consumers are influenced by the time of the day, week, season of the year

Situational factors IV: type of purpose 

Consumers are influenced by the purpose of the purchase (e.g., chocolate as a gift / chocolate for personal use)

Situational factors V: psychological states 

Consumers are influenced by their psychological state 

When consumers go shopping hungry, they tend to behave irrationally. For instance,

they might purchase things they had not planned on purchasing 

When consumers do not feel hungry while shopping, they find it easier to behave

rationally...