Lecture 3 - Buyers Behaviors Flashcards
How do we evaluate an ad?
- What does this say about the brand?
o What does the brand want to say? - What does this say about the target consumers?
o Who do they want to communicate with?
o What do these targets wants? - What is the ad? How has the brand value been communicated to consumers?
o What are the most effective, interesting, and engaging ways that we could communicate?
5 step of buyers behaviors
- Problem recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation
Problem recognition
- Gap between what you have and what you want
- Marketing triggered problem
o No actual gap, but a need is created
Internal search
During an internal search, a consumer thinks about brands that they have previously experienced. This include both brands that will be a part of the search, and brands that will not be included (because they didn’t not satisfy needs in the past)
External search
External Search involves bringing new brands and products into the decision set
Ability to search
A consumer’s ability to search is determined by multiple factors, including their education, intelligence, knowledge of the search field, and time available.
Motivation to search
The degree to which consumers are motivated to search is determined by three factors: level of involvement, need for cognition, level of enthusiasm for shopping.
Costs vs benefits (of the search)
- The costs and benefits of a given search relate to:
o The actual cost of the goods or services
o The subjective costs associated with the search (including time spent and anxiety experienced while making a decision)
o The opportunity cost of foregoing other activities to search for information
Consumer attitudes
An attitude reflects the mental position taken toward a topic, a person, or an event that influences the holder’s feelings, perceptions, learning processes, and subsequent behaviors.
* Cognitive (mental images, understandings, and interpretations)
* Affective (feelings or emotions)
* Conative (intentions, actions, and behaviours)
Consumer values
Strongly held beliefs about various topics or concepts. Values frame attitudes and lead to the judgments that guide personal actions.
- Comfort and Security
- Equality
- Freedom
- Fun / Happiness
- Inner Peace
- Family and Friendship
- Accomplishment
- Social Acceptance
- Wisdom
Evaluation of alternatives (3 ways)
- Evoked set
- Multi-Attribute Model
- Affect Referral
Evoked set
A person’s evoked set consists of the brands the person considers in a purchasing situation.
An evoked set might be reviewed during both the information search and evaluation stages of the buying decision-making process.
The inept set contains brands that are part of a consumer’s memory that are not considered because they elicit negative feelings
The inert set carries the brands that the consumer is aware of, and, as a result, the individual has neither negative nor positive feelings about them.
Moving a brand name into the evoked set is the primary goal of a marketing message
Multi-Attributes model
The multi-attribute approach assists in understanding high-involvement purchases. Consumers often examine sets of product attributes across an array of brands.
Consumer attitudes towards a brand are determined by:
- The brands performance on product or brand attributes
- The important of each attribute to the consumer
- It is most important for brands to determine which attributes are most important to customers (and how they are weighted) and how to advertise these features.
Affect referral
The concept of affect referral suggest that consumers choose brands they like the best or the ones with which they maintain emotional connections. The individual does not evaluate brands or think about product attributes. Instead, the consumer buys the bran she likes the best of the one that incites positive feelings.
- Products that are lower involvement or purchased more frequently are more likely to be purchased using affect referral (e.g., gum, toothpaste, soft drinks)
This approach:
* Saves mental energy
* Passes previous multi-attribute purchases into the present
* Allows consumer to develop emotional connections with brands
* These bonds generate brand loyalty, enhances brand equity, and reduces brand parity
* These bonds reduce the evaluation of alternatives
Segmentation
Segmentation is the process of grouping them into categories that are meaningful to consumption
- Socio-demographics : Grouping based on demographic, economic & social characteristics. E.g. Income, age, education, gender, race, religion, marital status.
- Geographic : Grouping based on region of the world, neighborhood, climate type, and physical environment
- Psychographics and lifestyles : Grouping based on consumer mindsets, values, opinions, and attitudes.
- Behavioral : Grouping based on consumer needs, expectations, and behaviors
- Volume and profitability : Grouping (potential and actual) customers based on their purchase volume and profitability
