1. 3-1 Chapter Overview Consumer purchase process Consumer buying environment Traditional factors affecting consumer buying Recent trends in consumer behavior Discussion Slide Consumer Buying Behavior 3

2. 3-2 Starbucks Why are consumers willing to pay $2.00 for a cup of coffee? Who are Starbucks’ target markets? What is the marketing communication message Starbucks wants to convey? Why has Starbucks been successful? Discussion Slide 3

3. 3-3 Consumer Decision-Making Process

4. 3-4 Information Search Internal search Evoked set External search

5. 3-5 External Search Factors Affecting Search: 1. Ability to search 2. Motivation Level of involvement Need for cognition Shopping enthusiasm 3. Perceived costs 4. Perceived benefits

6. 3-6 Attitudes and Values Affect Information Processing

7. 3-7 Attitude An Attitude is a mental position taken toward a topic, person or event that influences the holder’s feelings, perceptions, learning processes and subsequent behaviors.

8. 3-8 Attitude – 3 components Affective – feelings/emotions Cognitive – thinking/interpretations Conative – intentions/actions

9. 3-9 Attitude Sequence Cognitive  Affective  Conative Affective  Conative  Cognitive Conative  Cognitive  Affective

10. 3-10 What emotion does this Pamper Wipes advertisement solicit? Which attitude sequence would be the most likely for this product? “Some things can be rough.” “Her wipe shouldn’t be one of them.”

11. 3-11 Personal Values Help Shape Attitudes Values are strongly held beliefs about various topics or concepts.

12. 3-12 Personal Values Comfortable life Equality Excitement Freedom Fun, exciting life Happiness Inner peace Mature love Personal accomplishment Pleasure Salvation Security Self-fulfillment Self-respect Sense of belonging Social acceptance Wisdom

13. 3-13 Which personal values does this Aetna ad target?

14. 3-14 Information Processing Elaboration Likelihood Model (ELM) Central route – cognitively process message Peripheral route – other cues (e.g., music, background, colors, actors, etc.) influence Hedonic, Experiential Model (HEM) Central route Peripheral route Route depends on Motivation Ability

15. 3-15 Cognitive Map for Ruby Tuesday’s

16. 3-16 Processing of new information Cognitive map Reinforce a current linkage. Modify a current linkage. Create a new linkage. What linkage is Miracle Whip attempting to create or reinforce with this TV advertisement? Click picture to play video.

17. 3-17 Principles concerning processing of information and cognitive mapping. Cognitive mapping enhances movement of messages from short-term memory to long- term memory. Most persuasive messages reinforce current linkages. Repetition is necessary to establish new linkages. Difficult to modify or create new linkages.

18. 3-18 Evaluation of Alternatives Evoked set method Evoked set Inept set Inert set Multiattribute approach Affect referral

19. 3-19 How important is it for each of the following brands to be a part of a consumer’s evoked set?  Advil (pain medicine)  Head & Shoulders (shampoo)  Black & Decker (power tools)  C & H (sugar)  Smith & Kline (attorneys)  Hall’s (cough drops)  Blockbuster (video rentals)  Dr. Nelson (neurosurgeon)  Andersen Consulting Services  Pearle Vision (optical) Discussion Slide

20. 3-20 Purchase Decisions May cause shifts from alternative chosen: Temporary change in consumer’s situation. Desire for variety. Impulse purchase. Marketing communication material. Influence of friend or relative.

21. 3-21 How likely is each of the following marketing material to alter your purchase decision for food items? An advertisement A coupon A sweepstake or contest offer A price-off offer An in-store display The food package A in-store sample A billboard Discussion Slide

22. 3-22 Postpurchase Evaluation Evaluation of product performance. Cognitive dissonance. Impacts future purchases. Impacts word-of-mouth communications.

23. 3-23 Traditional factors affecting consumer purchasing behaviors Demographics (age, gender, income, etc.) Heredity and home environment Family life cycle Life changing events Cultural environment Social environment Situational environment

24. 3-24 What makes this advertisement appealing to teenagers? Is it an effective ad design? Discussion Slide

25. 3-25 Family Life Cycle Single Newlyweds First families Divorce and mixed families Full nest Empty nest Remaining partner

26. 3-26 An advertisement directed to first families and the arrival of a new baby.

27. 3-27 Who is the target of this State Farm advertisement? Is it an effective advertisement? Is there a difference between men and women in how this advertisement is viewed? Discussion Slide Click image to enlarge.

28. 3-28 Common Reasons Purchases Are Made Products/services provide utility To satisfy physical needs To satisfy psychological needs To satisfy social needs To satisfy emotional needs To satisfy epistemic needs

29. 3-29 VALS Segments Actualizers Fulfilleds Believers Achievers Strivers Experiencers Makers Strugglers High Resources Low Resources Action-oriented Principle-oriented Status-oriented VALS Segment Profiles http://www.sric-bi.com/VALS/

30. 3-30 Recent Trends Affecting Consumer Buying Behavior Changes in cultural values and attitudes Time pressure and busy lifestyle Cocooning Indulgences and pleasure binges Desire for excitement, fantasy Emphasis on health Clanning

31. 3-31 Seven Excuses for Not Eating Better How do the following excuses for not eating better, more healthful meals relate to the consumer trends just presented? Eating right costs too much. I can’t fit in the recommended 5 daily servings of fruits and vegetables. I don’t have time to eat right. My sweet tooth rules, so I can’t eat well. I enjoy (or depend on) fast food too much to eat right. It doesn’t matter because I take a vitamin pill. I eat too much to ever be able to eat right. Source: “Seven Excuses for not Eating Better,” Tufts University Health & Nutrition Letter, Dec. 1998, Vol. 16, No. 10, p. 8.

32. 3-32 INTEGRATED LEARNING EXPERIENCE STOP Marketing to specific demographic and international groups Asian Consumer Marketing Http://www.apmforum.com/emerald/asian-consumer-marketing.htm Women Http://www.women.com Senior citizens Http://online96.com/seniors Lesbian and gay community Http://www.planetout.com Hispanics http://www.hispaniconline.com/ African-Americans Http://www.targetmarketnews.com

33. 3-33 Describe the typical consumer decision process. Describe the typical attitude sequence. Think about the cognitive map. Investigate factors most likely to influence purchase decisions. How does the product fit into recent consumer trends? Building Your IMC Campaign