Marketing Strategy Topic 2 Flashcards
Consumer Decision-Making Process (5)
- Need recognition and problem awareness
- Information search
- Evaluation of Alternatives
- Purchase
- Post-purchase evaluation
Evaluation of Alternatives (3)
Evoked Set (Brands that come to mind) Inert Set (Brands you are aware of but not interested in) Inept Set (Brands you are aware and think poorly of)
Evaluation and Purchase Models: Low Involvement
The Ehrnberg and Goodhart repeat purchase model
- Awareness
- Trial
- Repeat Purchase
2 Factors that affect purchase decisions
Attitudes of others
Unexpected situational factors
2 factors of post purchase evaluation
Determined by relationship between consumer’s expectation and product performance
Cognitive Dissonance - discomfort when consumer holds conflicting thoughts about a belief or product e.g. Dell laptop
What is consumer deceleration?
“Consumer deceleration” is a perception of a slowed down temporal experience achieved via a decrease in certain quantities (travelled distance, use of technology, experienced episodes) per unit of time through altering, adopting, or avoiding forms of consumption.
Husemann et al. (2019) explanation of deceleration (3)
Embodied deceleration - physical slowing down e.g. walk instead of bus
Technological deceleration - reducing use of technology
Episodic deceleration - engaging in only a few activities per day
What does deceleration mean for companies?
Companies are starting to provide spaces where consumers can decelerate beginning to provide spaces where consumers can decelerate on embodied, technological and episodic deceleration.
e. g. Patagonia, less consumption
e. g. Selfridges quiet room
Marketing implications of nature as extended self (3)
Companies can highlight positive outcomes to the self which generates positive attitudes towards responsible consumption behaviour
Reshape perceptions of nature to tackle environmental problems
Stronger attachment to nature means less focus on benefits to the self
Consumer tribes (5)
- Unlike brand communities, consumer tribes pay attention to the relationships between its members
- Brand becomes deep expression of self. Tribes can be global or mass movements across countries
- Tribes create loyalty and are cheaper for brands to maintain their consumers than switching
- Largest potential in terms of brand extensions. Tribal members will look for new products from same brand (e.g. Apple)
- Tribes become carriers of the brand
What is an attitude?
A mental position regarding idea or object is positive or negative
- Evaluations
- Feelings
- Actions
What are habits?
Acquired behaviour pattern and much consumer behaviour is habitual because it is:
- Safe
- Simple
- Easy
What is Brand Loyalty?
Consumers propensity to repurchase a brand
Three advertising aims related to brand loyalty
- Break habits
- Acquire habits
- Reinforce habits
Implications for marketers regarding highly complex consumer decision-making processes
In highly complex situations individuals will spend a great deal of time, effort and money to ensure they make the right decision, therefore marketers must provide useful and high-quality information
Implications for marketers regarding low complex consumer-decision making processes
Low complexity purchase tasks are relatively non-involving for most consumers, with purchase tasks becoming routine, therefore marketers must create an effective brand image and ensure their product is recognisable
What is a reference group?
act as a point of comparison and source of product information - a consumer’s purchase decisions tend to fall in line with the advice, beliefs and actions of reference groups
What are opinion leaders?
When consumers feel that they lack personal expertise they seek advice of opinion leaders, so, marketers will often seek out opinion leaders before trying to reach more mainstream consumers
Criteria for succesful segmentation (5)
- Identifiable and measurable
- Substantial
- Accessible
- Responsive
- Viable and sustainable
Target marketing strategies (5)
- Single segment targeting
- Selective targeting
- Mass market targeting
- Product specialisation
- Market specialisation
Customer’s perceptions used to compare products (4)
- Products attributes
- Relative importance to consumer
- Perception of each brand’s image
- Consumer’s utility function for each of the attributes
How can marketers modify the product to suit customer perceptions? (6)
- Changing the physical product
- Changing beliefs about the product by giving greater emphasis to particular attributes
- Changing beliefs about competitors’ products by comparative advertising
- Changing the relative importance of particular attributes as a product moves through the product life cycle
- Emphasising particular product features that previously have been largely ignored
- Changing buyers’ expectations
Evaluation and Purchase Models - High Involvement
Fishbein and Ajzen (1977)
Evaluation and Purchase Models - Low Involvement
Ehrnberg and Goodhart
