Chapter 13: Situational Influence. Nature of situation Communication situation Purchase situation Usage situation Disposition situation.

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Presentation transcript:

Chapter 13: Situational Influence

Nature of situation Communication situation Purchase situation Usage situation Disposition situation

Communication situation Place ad in appropriate media contests Mandate to pull out ad if negativity seen After Bangladesh lost WC QF Final exams tomorrow You have flue

Purchase situation Bad mood Ailment

Usage situation- what will would you like to eat? Friday afternoon after your final exam With your parents for lunch Dinner on a cold, rainy night Dinner with a friend you have not seen in several years Feeling sad or homesick

Disposition situation Soft drink in a can, there is no sign of recycling container Old mobile phone

Physical surroundings Agora V Shopno Store atmosphere Atmospherics Servicescape– for service Colors/aromas/music/crowding

Social surroundings Studying alone for a final Meeting at the library with friends of opposite gender First date at Pizza hut Office interview Embarrassment  negative emotion influenced by product and situation Temporal perspective– online grocery

Task Definition Reason of consumption is occurring Gift giving wedding gift v birthday gift

Antecedent states Moods Momentary condition- tired, illness, broke, having extra money

Ritual Situations Rooh Afza Laccha shemai

Situational Influence and Marketing strategy Positioning

Consumer Decision Process and Problem Recognition

Types of Decision Nominal decision making Limited decision making Extended decision making

Problem Recognition Gap between actual state and desired state Depends on- the magnitude of difference and relative importance Types of consumer problem- active problem and inactive problem Generic v selective

Uncontrollable determinants of problem recognition Halal food Rice Alcohol Trophy hunting

How to discover problem Intuition – soundless generator Activity analysis (women’s car) (fair and lovely max) (packet spice) Product analysis (revlon lipstick) Problem analysis Human factor Research

Information Search

Nature of Info Search Internal and external External – touchpoint analysis Source of information –memory, personal sources, independent, marketing Total set  Awareness set  evoked set Inept set- do not want it Inert set- indifferent

Cost v benefit of external search Cost can be monetary and non monetary Market characteristics: Number of alternatives Perceived range of price Store distribution Information availability Product characteristics Product differentiation Positive product v negative product

Consumer characteristics: Overconfident consumers – Experience Social status Shopping orientation Perceived risk Social Financial Time Effort physical Situation characteristic Temporal Task definition Antecedent state Social surrounding

Alternative Evaluation and Selection Affective choice Attribute based choice Consummatory motives Instrumental motives (to achieve a second goal)

Evaluative Criteria Can be Functional v emotional Weight assigning Surrogate indicator (COO)

Decisions rule Conjunctive decision rule Disjunctive decision rule Elimination by aspects Lexicographic Decision rule (wedding dress)

Outlet Selection and Purchase Next class :Quiz and Case Bring your text book

Outlet choice versus product choice Outlet first, brand second Brand first, outlet second simultaneous

The Retail Scene Internet shopping (plus points and minus points) Store based retailing Internet as a part of a multi channel strategy

Attributes affecting retail outlet selection Outlet image  retailer brands Retail advertising Price advertising decisions- reference price

Consumer characteristics and outlet choice Risk Social Financial Time Effort Physical Impluse purchase  POP materials

Post purchase processes, customer satisfaction and customer commitment

Postpurchase dissonance Consumption guilt

Determinants of satisfaction and dissatisfaction Core service failures Service encounter failure Pricing Response to service failures Attraction by competitors

Dissatisfaction responses Complain to store Stop buying (churn Engage in negative WOM Complain to third party Initiate legal action What should marketer do?

Marketing strategy for satisfied customer