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JM602 PowerPoint Presentation

JM602

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JM602

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Presentation Transcript

  1. JM602 Summary

  2. Consumer behaviour & marketing strategy • Successful marketing strategies require a thorough understanding of consumer behaviour • Basis for many marketing strategies: • Product positioning • Market segmentation • New product development • New market applications • Global marketing • Marketing mix decisions • Marketing regulation

  3. An overall model of consumer behaviour (Neal et al p25)

  4. Consumer decision processSituational Influences • All behaviour takes place within the context of a certain situation. Therefore, behaviour will not only vary between consumers but the same consumer will exhibit different behaviours from one situation to the next.

  5. Situational influence • Types of situations • Communication situation • Purchase situation • Usage situation • Disposal situation • Classes of situational influence • Physical surroundings • Social surroundings • Temporal perspective • Task definition • Antecedent states

  6. Problem recognition • Discrepancy between actual & desired state • Size of discrepancy & magnitude of importance • Habitual, limited and extended decision making • Controllable & uncontrollable factors • Marketing implications: • Responding to problems (generic or selective) • Triggering problem recognition • Influence timing of problem recognition • Suppress problem recognition

  7. Information Search • Internal & external search • Type of information sought: • Evaluative criteria • Appropriate alternatives: awareness set, evoked set, inert set, inept set • Sources of information • Memories of past searches, low involvement learning • Personal sources • Independent sources • Marketing sources • Experiential sources • Amount of information search: • Cost verses the benefits • Marketing strategies based on information search patterns

  8. Evaluating & selecting alternatives • Nature of evaluative criteria: • performance levels or characteristics • Accuracy of consumer judgements: • Use of surrogate indicators • Decision rules: • Disjunctive, conjunctive, lexicographic, elimination-by-aspects & compensatory rules • Marketing strategy: • Type of criteria used, perception of various alternatives, relative importance of each criterion • Decision rules

  9. Store choice and purchase • Factors affecting retail outlet selection • Store image, type and amount of retail advertising, outlet location, outlet size • Shopping orientations of consumers • Affects outlet selection • In-store influences • Pop displays, price reduction, store layout, sales personnel, product stock-outs • Decision sequence • Marketers seek to influence in-store purchases

  10. Post purchase processes • Postpurchase process • Dissonance, usage & disposal • Post purchase dissonance • Product use: • Importance for customer satisfaction, product development, compliance with product liability laws • Product disposal • Customer satisfaction • Customer loyalty

  11. Perception • Nature of perception • Activities by which individuals acquire and assign meaning to stimuli (information processing) • Exposure, Attention, Interpretation • Stimulus factors • Individual factors • Situational factors • Marketing strategy: • Media strategy • Retail outlets • Packaging • Advertising • Selecting brand names

  12. Learning and memory • High and low involvement learning situations • Conditioning: • Classical & operant • Cognitive learning • Iconic rote, vicarious learning, reasoning

  13. Learning Theories in High- and Low-Involvement Situations

  14. General characteristics of learning • Strength of learning: • Importance, message involvement, mood, reinforcement, repetition, imagery • Extinction • Stimulus generalisation • Stimulus discrimination • Response environment • Memory: • Short and long term memory

  15. Marketing applications of memory and learning • Brand image • Product positioning • Product repositioning • Brand equity and brand leverage

  16. Motivation, personality and emotion • Nature of motivation: • Energising forces that activate behaviour • Theories of motivation • Maslow’s hierarchy of needs • McGuire’s psychological motives • Appealing to motives: • Manifest and latent motives • Motivational conflict • Personality & brand personality • Emotions

  17. Attitude & Attitudinal change • Attitudes • Components of attitude • Cognitive, affective and behavioural • Attitudinal change strategies: • Affective component • Classical conditioning, affect towards the advertisement, mere exposure • Behavioural component: • Operant conditioning • Cognitive component: • Changing beliefs, shifting importance, adding belief, changing the ideal

  18. Attitudinal change • Communication characteristics affecting attitudinal change: • Source characteristics • Appeal characteristics • Message structure characteristics • Marketing strategy: • Market segmentation • Product development

  19. Demographics • Size, structure and distribution of the population • Demographic trends are important considerations for marketers • Subcultures • Changing gender roles • Nature of lifestyle • Psychographics

  20. Household structure • Types of households (family/non family) • Household life cycle • Household decision making: • Information gatherer, influencer, decision maker, purchaser, user • Current and future trends in household consumption • Computers & video games, purchase of services, pets

  21. Group influence & communication • Types of groups • Reference groups • Aspirational reference groups • Types of reference group influence: • Informational • Normative • Identification • Degree of reference group influence: • Visibility, degree needed • Marketing strategy: • Personal selling strategies • Advertising

  22. Types of Groups (cont.)

  23. Groups & communication • Opinion leadership • Innovation • Marketing strategies and the diffusion process: • Segmentation • Diffusion-enhancement strategies

  24. Social class • Concept of social class • Status crystallisation • occupation, income, education, ownership • Social class structure: • Functional approach • Reputational approach • Measurement of social class • Single index/multiple index measures • Marketing strategy • advertising

  25. Exam • 3 sections • A: one compulsory question • B: answer 3 out of 4 mid length responses • C: case study – answer both questions