Consumer Behavior

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9

Buying and Disposing


and Situational
influences

CONSUMER
BEHAVIOR, 11e
Michael R. Solomon

9-1
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Types of Groups
Marketing and Brand Communities

• Brand communities can add


value to the ownership of the
product and build intense
loyalty.
• When a consumer becomes
part of a brand community,
remaining generally requires Jeep has a longstanding loyal brand community
continuing to own and use the
brand.
• This can create intense brand
loyalty!

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Communications within Groups and
Opinion Leadership
WOM Versus Advertising
(% who put people vs. advertising as best source)

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Communications within Groups and
Opinion Leadership
Opinion Leaders

An opinion leader is the “go to person” for specific types


of information. This person filters, interprets, and
passes along information.
Opinion leaders possess enduring involvement for
specific product categories. This leads to greater
knowledge and expertise.
Opinion leadership is category specific – an opinion
leader in one product category is often an opinion
seeker in others.
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Communications within Groups and
Opinion Leadership
Mass Communication Information Flows

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Diffusion of Innovations

An innovation is an idea, practice, or product perceived to be


new by the relevant individual or group.

• The manner by which a new product spreads through a


market is basically a group phenomenon.
• New products can be placed on a continuum from no change
to radical change, depending on the market’s perception.

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Introduction
10

 The Adoption Process (also known as the Diffusion of


Innovation) is more than forty years old.
 It was first described by Bourne (1959), so it has stood the test
of time and remained an important marketing tool ever since.
 It describes the behavior of consumers as they purchase new
products and services.
Adoption process
11

1. Awareness
2. Interest OK, we will
3. Evaluation buy X.
If I have
4. Trial to buy it
I will.
5. Decision
6. Confirmation
Stages in adoption process

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Rejection??
• On the other hand, The process might end
in Rejection. Any of the stages can result
in rejection of the product. No brand recall,
No interest generated, Trial improper,
Product didnt satisfy, so on and so forth

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How can marketers deal to initiate the
trial??
• Product trial may be an important stage to be completed before
adopting some new products such as newly flavored soft drinks,
prompting marketers to offer free samples of the products in
supermarkets.
• One strategy adopted in FMCG’s is to give away small trial-sized
packages of products such as shampoos or laundry detergents to
encourage adoption. Yet, in adopting other products such as mobile
phones, awareness, interest, and evaluation become more
essential. Thus in these sectors, marketers emphasize on marketing
communications and promotions to lead consumers towards
adopting their product.
• Finally, Market research needs to be done by marketers to
understand the time and effort taken by the consumer in each stage
of the adoption process so as to lead the consumer to the final stage
of ADOPTION
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Adopter Categories

Innovators

Early Adopters

Early Majority

Late Majority

Laggards

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Marketing Strategies & Diffusion Process

Market segmentation: “moving target market” approach.

Market communications: different message theme &


media as the product gets acceptance.

Diffusion enhancement strategies: find out diffusion


inhibitors then find ways to overcome them

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Categories
17
Innovators
19

 First to adopt & display that they likely to want to be ahead


 To be the first to own new products, well before the average
consumer.
 They are often not taken seriously by their peers.
 They often buy products that do not make it through the early
stages of the Product Life Cycle (PLC).
Early adopters
20

 Are also quick to buy new products and services,


 So are key opinion leaders (KOLs) with their neighbors and
friends as they tend to be amongst the first to get hold of items
or services.
Early Majority
21

Look to the innovators and early majority to


see if a new product or idea works and begins
to stand the test of time.
They stand back and watch the experiences of
others.
Then there is a surge of mass purchases.
Late Majority
22

 Tends to purchase the product later than the average person.


 They are slower to catch on to the popularity of new products,
services, ideas, or solutions.
 There is still mass consumption, but it begins to end.
Laggards
23

 These tend to very late to take on board new products and


include those that never actually adopt at all.
 Here there is little to be made from these consumers.
How can marketers deal with the
consumer adoption process??
• Awareness
• Create marketing material. These can be one-sheets, video
teasers, images, and landing pages. Make these marketing
materials easily accessible. Utilizing creativity and wit is a great way
to engage consumers in this awareness stage. I recommend
creating a strong social presence for said product. In the era of
social media, many tools are available in the market that provide
companies with the techniques and methods to increase product
awareness through social channels – enabling them to reach a large
number of customers at a low cost!

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• Product interest
• Your organization must guide the
consumer through the interest stage by
providing easily accessible information on
your product. Among the methods used in
the todays business landscape include a
website describing the product, blog posts,
tutorial or instructional videos, white
papers, and other sources of info that the
potential consumer can discover and
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• Product evaluation
• in order to simplify a customer’s search and
evaluation of your product, I suggest creating
information that outlines the difference between
your product and other similar products, or
differences within the different products and
services you sell. Outline what separates your
product from others, and emphasize on
strength..

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• Product trial
• Nothing helps a consumer make a
decision about your product more than
actually trying your product out! There are
many ways this is accomplished. For
example, your company can provide your
consumer with a free trial or a proof of
concept campaign. In this stage it is very
important to set the customer expectations
correctly and deliver on said expectations.
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• Product adoption
• When the consumer enters the product adoption phase,
he/she is ready to purchase your companies product.
This is the critical stage that businesses need to get their
consumers to.

• When the customer is here, you need to make the


payment process simple, intuitive, and pain free. In
addition, you need to ensure that the consumer can
easily obtain the product. If you make it to and
through this last phase successfully, than you can
take money to the bank – A job well done!
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Very important in CB and especially
nowadays

• Situational Influences

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Situational Influences

 It includes all those factors particular to a time and place that


do not follow from a knowledge of the stable attributes of the
consumer and the stimulus and that have an effect on current
behavior.

 Consumers often behave very differently depending on


situation.
Four dimensions of situational influence

1. Physical surroundings (store image,


location, music, colors, aroma,
temperature…)
2. Social surroundings (types of customers
shopping there)
3. Temporal perspectives (time)
4. Task definition (reason of buying the
product for self or for a gift)
Temporal Perspectives
Temporal perspectives deal with the effect of
time on consumer behavior.
Limited purchase time often limits search
Internet shopping is growing
rapidly as a result of the time
pressures felt by consumers.
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.
The motives of shopping
• Many people shop for the social benefits. Shopping
areas are areas to hang out with friends and family.
• Stores frequently offer specialized goods that allow
people with shared interests to communicate.
• Shopping centers are a natural place to congregate.
• Shopping may make people feel important. Some people
pride themselves on their knowledge of the marketplace.

• And many other reasonsssssssssssssssssss

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Reasons for Shopping
• Social experiences
• Sharing of common interests
• Interpersonal attraction
• Instant status
• The thrill of the hunt

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Physical surroundings

 Atmospherics is the sum of all the physical features of a retail


environment.

 Atmospherics influences consumer judgments of the quality of


the store and the store’s image.

 Atmosphere is referred to as service when describing a service


business such as a hospital, bank or restaurant.
Store Image: The Store’s Personality
• Location + merchandise suitability +
knowledge/congeniality of sales staff
• Other intangible factors affecting overall
store evaluation:
• Interior design
• Types of patrons
• Return policies
• Credit availability
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Examples of physical surrounds
 Store location
 Interior decor
 Music
 Smell/aromas
 Temperature (air-conditioning or heating)
 Choice provided (by product category or
across the categories)
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Colors
Certain colors and color characteristics create
feelings of excitement and arousal which are
related to attention.
Brighter colors are more arousing than dull ones.
Warm colors such as reds and
yellows are more arousing than
cool colors such as blues and
grays.
How do Colors Influence People?

• Red – Creates a sense of urgency, which


is good for clearance sales. Encourages
appetite, thus is frequently used by fast-
food chains. Physically stimulates the
body, raising blood pressure and heart
rate, associated with movement,
excitement, and passion.

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• Blue – The preferred color of men. It’s
associated with peace, water, tranquility,
and reliability. Blue provides a sense of
security, curbs appetite, and stimulates
productivity. The most common color used
by conservative brands looking to promote
trust in their products.

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• Green – Associated with health, tranquility,
power, and nature. Used in stores to relax
customers and for promoting
environmental issues. Green stimulates
harmony in your brain and encourages a
balance leading to decisiveness.
•.

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• Purple – Commonly associated with
royalty, wisdom, and respect. Stimulates
problem solving as well as creativity.
Frequently used to promote beauty and
anti-aging products

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• Orange & Yellow – Cheerful colors that
promote optimism. Yellow can make
babies cry, while orange can trigger a
sense of caution. Used to create a sense
of anxiety that can draw in impulsive
buyers and window shoppers.

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• Black – Associated with authority, power,
stability, and strength. Often a symbol of
intelligence, but can become
overwhelming if used to frequently.
• Grey – Symbolizes feelings of practicality,
old age, and solidarity. But too much grey
can lead to feelings of nothingness and
depression

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Music
Music influences consumers moods and in
turn, influences a variety of consumption
behaviors.
Firms exist to develop music programs to meet
the unique needs of specific retailers.
An emerging trend is having music more in
the foreground so it becomes part of the
shopping experience and drives store image.
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Crowding
Most consumers find feelings of crowding to be
unpleasant resulting in:
Less time in the store and less buying
Faster decisions and less use of information
Crowding can lead to less satisfactory purchases,
unpleasant shopping, and reduced likelihood of
returning to the store.
Marketers need to design outlets to reduce
crowding perceptions.
Social Surroundings

Social surroundings are the other individuals


present in the particular situation.
Social influence is a significant force.
Individuals tend to comply with group
expectations, particularly when the behavior is
visible.
Shopping is a highly visible activity.
The use of many publicly consumed brands are
subject to social influences.
Examples of social surroundings
Types of customers in the store.
 Queues and crowding.
 Whether the consumer is likely to be known by
others/ recognized.
 Whether there are high-profile people/celebrities
shopping at that store.
 Whether the product will be consumed privately
or in the presence of others.
Task Definition

Task definition is the reason the consumption


activity is occurring.
Major distinction between purchases for self
versus gift.
Consumers give gifts for many reasons:
o Social expectations
o To elicit return favors
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)
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