Lesson 5 Videos Flashcards
Consumption
Consumers’ usage of the acquired product
Understanding consumption is complex.
Consumption Behaviors Involve…
Knowing how many and which consumers fall into the user and nonuser categories.
Size of user market is one indicator of market attractiveness.
Size of nonuser group speaks to future growth opportunities.
What dimensions are consumption behaviors characterized along?
Entire Population:
-Non Users
- Users:
- -When is it consumed?
- —Proximity to purchase/Time of Day
- -Where is it consumed?
- —Situation A vs Situation B
- -How is it consumed?
- —Usage 1 vs Usage 2
- -How much is consumed?
- —Heavy Users/Moderate Users/Light Users
When does Consumption Occur?
How much time passes between purchase and consumption?
What time of day is product used?
When in the year or during which season is product consumed?
“Wine. What are you saving it for?”
“Orange Juice. It isn’t just for breakfast anymore”
Where Does Consumption Occur?
The situation in which consumption occurs can affect product choice -
e.g., domestic vs imported beers sales for in-home versus on-premise consumption
How Is the Product Consumed?
How is the product prepared?
Is it consumed alone or with other products?
Is it used as intended or have consumers invented a new use?
How Much Is Consumed?
Consumers may be similar in what they consume, but different in how much they consume.
“Use Innovativeness” (eg: Bounce Beyond the Dryer)
The idea that consumers can use a product they bought for one purpose to serve another purpose as well. (“Life Hacks”)
Usage volume segmentation
Dividing consumers into segments based on amount of consumption (heavy, moderate, and light users).
In the US 16% of consumers account for 88% of all wine consumption.
Firms can encourage consumption or change amount consumed.
Basic Strategies for Increasing the Amount of Consumption
- Enhance the frequency of consumption.
(“Murphy’s Once A Week”, “Got Milk”, etc.). - Enhance the amount consumed per consumption
occasion. (Toothpaste, shampoo, etc.).
The Influence of Package Size
Larger packages increase the usage of cooking oil, spaghetti, M&Ms. etc.
Consumption Experiences (Positive Reinforcement)
Purchase Need -> Product Purchase -> Product Consumption -> Receiving Positive Outcomes = Positive Reinforcement
(cycle restarts)
Consumption Experiences (Negative Reinforcement)
Purchase Need -> Product Purchase -> Product Consumption -> Avoiding Negative Outcomes = Negative Reinforcement
(cycle restarts)
ex: Advil for reducing pain
What about products that can give both Positive and Negative Reinforcement?
ex: Air freshner
Consumption Rituals
A type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time.
Holiday rituals (gift giving, parties), NFL gameday rituals, etc.
Positive reinforcement
when consumer receives positive outcome from product usage.
Negative reinforcement
when consumption helps person avoid negative outcome.
Punishment
when consumption leads to negative outcome.
Consumption Experiences (Punishment)
Purchase Need -> Product Purchase -> Product Consumption -> Receiving Negative Outcomes = Punishment
Beyond the consumption experience, consumers’ interpretation can be affected by…
…their expectations of the experience and their mood at the time of consumption.
Classic marketing study with beer brands
The expectation created by the brand label was powerful enough to alter consumer’s interpretation of what their taste buds were telling them.
Consumption Norms
informal rules that govern our consumption behavior (eg: corsage on a prom, hot dog at baseball game, suit & tie, etc.)
Multichannel Shoppers
(most people) customers that shop online, shop in store, shop on phone, etc.
Omnichannel Shoppers
Multichannel Shoppers that take it one step further—> shoppers that are shopping simultaneously in both channels
[ex: shopping in Best Buy (brick and mortar) while on Amazon (phone)]
