Role of Research in Consumer Behavior
Module 2
--- Content provided by FirstRanker.com ---
Consumer Research
- Primary research
- Secondary Research
--- Content provided by FirstRanker.com ---
Role of Research in CB
- Better consumption Experience
- Potential for Building Customer Relationship
- Determining Consumer Needs
- Identifying the problems
- Minimising losses
- Obtaining Industry Information
--- Content provided by FirstRanker.com ---
Consumer Research Paradigm
- Qualitative Research
- Quantitative Research
--- Content provided by FirstRanker.com ---
Quantitative Research
- Quantitative Research is used to quantify generating numerical data or data that can be useable statistics. It is used to quantify behaviours.
- Quantitative data collection methods are much Qualitative data collection methods.
- Quantitative data collection methods include - online surveys, paper surveys, mobile surveys, face-to-face interviews, telephone interviews, website interceptors, online polls, and systems.
--- Content provided by FirstRanker.com ---
Qualitative Research
- Qualitative Research is primarily exploratory to gain an understanding of underlying motivations. It provides insights into the problem or ideas or hypotheses for potential quantitative.
- Qualitative data collection methods vary using structured techniques.
- Some common methods include focus groups, individual interviews, and participation/observation.
- The sample size is typically small, and respondents fulfill a given quota.
--- Content provided by FirstRanker.com ---
The Consumer Research
--- Content provided by FirstRanker.com ---
Design Qualitative Research
- Method
- Screener questionnaire
- Discussion guide
Conduct Research
--- Content provided by FirstRanker.com ---
(Using highly trained interviewers)
Analyze Data
(Subjective)
Prepare Report
Develop Objectives
--- Content provided by FirstRanker.com ---
Collect Secondary Data
Exploratory Study
Models of Consumer Behaviour
--- Content provided by FirstRanker.com ---
Model Framework
Input-Process-Output (McGra
INPUT
PROCESS
Inputs are properties of group structure, the task, and properties of the environment
--- Content provided by FirstRanker.com ---
Process represent interdependent acts; con inputs to outcomes through cognitive, verbal, and behavioral action directed toward taskwork to achieve collective goals
INPUT
- External Environment
--- Content provided by FirstRanker.com ---
- FIRM'S MARKETING EFFORTS
- Product
- Promotion
- Price
- Channels of distribution
--- Content provided by FirstRanker.com ---
- Social
- Family
- Information
- Social
- Sub c
--- Content provided by FirstRanker.com ---
PROCESS
- - CONSUMER DECISION MAKING
- Need recognition
- Pre-purchase search
- Evaluation of alternatives
--- Content provided by FirstRanker.com ---
Output
--- Content provided by FirstRanker.com ---
- Post Decision Behaviour
- Purchase
- Trial
- Repeat Purchase
- Post Purchase Evaluation
--- Content provided by FirstRanker.com ---
The Howard-Sheth Model
- Inputs in the form of stimuli
- Output beginning with the attention stimulus & ending with purchase
--- Content provided by FirstRanker.com ---
HOWARD-SHETH MODEL
- ASSUMPTIONS:
- Consumer behaviour is a rational exercise in problem solving
- It is a systematic & orderly approach causing stimuli & results like output
- This model is based upon the theory that between the receipt of stimuli ie: input and output is consumer behaviour
--- Content provided by FirstRanker.com ---
Inputs
--- Content provided by FirstRanker.com ---
Stimulus display
Significative
a. Quality
b. Price
c. Distinctiveness
--- Content provided by FirstRanker.com ---
d. Service
e. Availability
Symbolic
a. Quality
b. Price
--- Content provided by FirstRanker.com ---
c. Distinctiveness
d. Service
e. Availability
Social
a. Family
--- Content provided by FirstRanker.com ---
b. Reference groups
c. Social class
Perceptual constructs
Learning
Overt search
--- Content provided by FirstRanker.com ---
Confidence
Stimulus ambiguity
Attitude
Motives
Choice criteria
--- Content provided by FirstRanker.com ---
? Information flow
Feedback effects
Attention
Perceptual bias
--- Content provided by FirstRanker.com ---
Implications
- It identifies variables which influences customer, they interact each other.
- Helps in customer problem solving and information.
- Helps marketers to understand how customer.
--- Content provided by FirstRanker.com ---
Nicosia Model
- This model tries to explain buyer behaviour between the organization and its consumer.
- It suggests that messages from the firm first predisposition of the consumer towards the
--- Content provided by FirstRanker.com ---
Contemporary Models- Nicosia
Field 1 From Sources of a Message to Consumer's Attitude
Sub field 1
--- Content provided by FirstRanker.com ---
Firms
Attributes
Message
Exposure
Sub field 2
--- Content provided by FirstRanker.com ---
Consumers
attributes
(predisposition)
Experience
Field 4
--- Content provided by FirstRanker.com ---
The
Feedback
Consumption
Storage
--- Content provided by FirstRanker.com ---
Purchasing
Behavior
Implications
--- Content provided by FirstRanker.com ---
- It enhances knowledge about the customers marketers.
- Consumers moves from general knowledge of brand knowledge.
Engel, Kollat, and Blackwell (EKB) Model
--- Content provided by FirstRanker.com ---
- The EKB model is comprehensive shows the components of decision making and the relationship interactions among them.
- The five distinct parts of the decision making present.
- Input, information process, process, decision process, external influences
--- Content provided by FirstRanker.com ---
Input Information Processing
Decision Process
Decision Variables
Stimuli from Marketers:
Ads in TV, radio, dailies, weeklies, internet, worth-of-mouth etc.
--- Content provided by FirstRanker.com ---
Exposure
Problem Recognition
Beliefs
Motives
Attention
--- Content provided by FirstRanker.com ---
Comprehension
Acceptance
MEMORY
Search
Attitude
--- Content provided by FirstRanker.com ---
Alternative Evaluation
Lifestyle
Choice
Intention
Evaluation Criteria
--- Content provided by FirstRanker.com ---
Retention
Purchase
Normative Compliance
Outcomes
Satisfaction
--- Content provided by FirstRanker.com ---
Dissatisfaction
Influences of Consumer
Internal Influences
--- Content provided by FirstRanker.com ---
Personal Factors
a) Age
b) Income
c) Occupation
d) Life Style
--- Content provided by FirstRanker.com ---
e) Personality
Psychological Factors
External
Cultural Factors
a) Motivation
--- Content provided by FirstRanker.com ---
a) Culture
b) Perception
b) Sub
c) Learning
c) Social
--- Content provided by FirstRanker.com ---
d) Beliefs &
Attitude
Reference Group
--- Content provided by FirstRanker.com ---
- A Reference Group is any person or group comparison (or reference) for an individual in specific values, attitudes, or a specific guide for life.
- From a marketing perspective, reference groups frames of reference for individuals in their purchase decisions.
- These groups place no restriction on group size require that consumers identify with a tangible group.
- Reference groups that influence general or broadly behavior are called Normative Reference Group. Normative Reference Group is the immediate.
- Reference Groups that serve as benchmarks defined attitudes or behavior are called Comparative. (A Comparative Reference Groups might be one lifestyle appears to be admirable and worthy.
--- Content provided by FirstRanker.com ---
REFERENCE GROUPS
Types of reference groups
Friendship
--- Content provided by FirstRanker.com ---
Brand communities
Shopping groups
Virtual groups
Work groups
--- Content provided by FirstRanker.com ---
Levels of Consumer Decisions
- Extensive Problem Solving
- A lot of information needed
- Must establish a set of criteria for
- Limited Problem Solving
- Criteria for evaluation established
- Fine tuning with additional information
- Routinized Response Behavior
- Usually review what they already
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
LEVELS OF CONSUMER DECISION MAKING
Routine Response Behavior
Limited Decision Making
--- Content provided by FirstRanker.com ---
Extensive Decision Making
Less Involvement
Four Views of consumer decision
--- Content provided by FirstRanker.com ---
- An Economic View
Rationale in the economic sense, aware of all alternatives, able to identify best alternatives
- A Passive View
Irrational, impulsive, depending on promotion
- A Cognitive View
Information Processor; either receptive or active
--- Content provided by FirstRanker.com ---
Heuristics (shortcut); information overload (ex
- An Emotional View
Joy, fear, love, hope, sexuality, magic with certain
--- Content provided by FirstRanker.com ---
Online Shoppers' Decision Making Process
Problem Recognition
Search
Alternative
--- Content provided by FirstRanker.com ---
Purchase
Post sale evaluation
Perceived Value
Trust
Dissatisfaction/ Satisfaction
--- Content provided by FirstRanker.com ---
Behavioral Intention
Repurchase
Loyalty Int
Word of Mouth
Willing
--- Content provided by FirstRanker.com ---
Situational Influences
--- Content provided by FirstRanker.com ---
The Nature of Situational Influence
Situational influence 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.
--- Content provided by FirstRanker.com ---
The Nature of Situational Influence- a General
Situation
Communications
Purchase
Use
--- Content provided by FirstRanker.com ---
Disposition
Situation characteristics
Physical features
Social surroundings
Temporal perspective
--- Content provided by FirstRanker.com ---
Task definition
Antecedent states
Individual characteristics
Culture and subculture
Problem
--- Content provided by FirstRanker.com ---
Demographics
Information
Social class
Alternatives
Motivation
--- Content provided by FirstRanker.com ---
Purchase
Personality
Use
Marketing activity
Attitudes
--- Content provided by FirstRanker.com ---
Disposition
Lifestyle
Evaluation
Product
Package
--- Content provided by FirstRanker.com ---
Advertisement
Sales presentation
Retail outlet
--- Content provided by FirstRanker.com ---
- Four situations
- Communication situation
- Where? Alone or with others? Social
- Purchase situation
- Where? Alone or with others? In
- Usage situation
- With guests or alone? For pleasure
- Disposal situation
- Before the next purchase? Trade
- After the purchase, e.g. packaging
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
The Nature of Situational Influence
The Communications Situation
The situation in which consumers receive information has an impact on their behavior.
--- Content provided by FirstRanker.com ---
Marketers advertise ads in appropriate contexts to increase effectiveness.
Movie ads are strategically place so that consumers see them on their way to and from work
The Nature of Situational Influence
--- Content provided by FirstRanker.com ---
The Purchase Situation
The situation in which a purchase is made can influence consumer behavior.
Marketers must develop strategies to the purchase situation.
Home purchase is a unique social situation.
To succeed, recognize the opportunity for interpersonal relations.
--- Content provided by FirstRanker.com ---
Consumer behavior Product–Person–Situation
FIGURE 2.1 / Situation influences combine with individual preferences and subsequent behaviour.
Weather situation
--- Content provided by FirstRanker.com ---
PREFERENCES AND DESIRES
Individual characteristics
The Nature of Situational Influence
--- Content provided by FirstRanker.com ---
The Usage Situation
Marketers need to understand the usage situations in which their products are, or may become, relevant.
Research indicates that expanded usage strategies can produce major sales gains.
Classic: Arm and Hammer baking soda many uses have been found and marketed in increased sales.
--- Content provided by FirstRanker.com ---
The Nature of Situational Influence
The Disposition Situation
Consumers must frequently dispose of products or packages.
Disposal can create significant social problems as well as opportunities for marketers.
--- Content provided by FirstRanker.com ---
Some consumers consider ease of disposition an important product attribute.
Role of situation in consumer behaviour
FIGURE 2.2 / The role of situation in consumer behaviour
--- Content provided by FirstRanker.com ---
Situation
CONSUMER
Product
Stimuli
Organism
--- Content provided by FirstRanker.com ---
Five dimensions of situational influence
- Physical surroundings
- Social surroundings
- Temporal perspectives
- Task definition
- Antecedent states
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
- Examples of physical surroundings
- Store location
- Interior decor
- Music
- Smell/aromas
- Temperature (air-conditioning)
- Choice provided (by product category or across categories)
--- Content provided by FirstRanker.com ---
Situational Characteristics and Consumption Behavior
--- Content provided by FirstRanker.com ---
Physical Surroundings
Atmospherics is the sum of all the physical features of a retail environment.
Atmospherics influences consumers judgments of the quality of the store and the store's image.
Atmosphere is referred to as servicescape describing a service business such as a bank or restaurant.
--- Content provided by FirstRanker.com ---
Typology of service environments
FIGURE 2.3 / Typology of service environments
Time spent in facility
Utilitarian
--- Content provided by FirstRanker.com ---
Consumption purpose
Short (minutes)
Drycleaner Bank
Fast food Hair salon
Moderate (hours)
--- Content provided by FirstRanker.com ---
Medical appointment Legal consultation
Business dinner Evening class
Extended (day(s) or week(s))
Hospital Trade show
Conference hotel Training centre
--- Content provided by FirstRanker.com ---
Note: The darker the shading, the more important the physical features of the service
Situational Characteristics and Consumption Behavior
Physical Surroundings
--- Content provided by FirstRanker.com ---
Colors
Certain colors and color characteristics create feelings of excitement and arousal which are related to.
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.
--- Content provided by FirstRanker.com ---
Situational Characteristics and Consumption Behavior
Physical Surroundings
Aromas
There is increasing evidence that odors can affect consumer shopping. Several aroma studies have found that:
--- Content provided by FirstRanker.com ---
- A scented environment produced a greater intent to visit the store, higher purchase intention for some products, and reduced sense of time spent shopping.
- A pleasantly scented environment enhanced brand recall and evaluations particularly for unfamiliar brands.
Situational Characteristics and Consumption Behavior
--- Content provided by FirstRanker.com ---
Physical Surroundings
Music
Music influences consumers' moods, and in turn affects a variety of consumption behaviors.
Firms exist to develop music programs for 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.
--- Content provided by FirstRanker.com ---
Situational Characteristics and Consumption Behavior
Physical Surroundings
Crowding
--- Content provided by FirstRanker.com ---
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 purchase experiences, shopping, and reduced likelihood of returning to the outlet.
Marketers need to design outlets to reduce crowding perceptions.
--- Content provided by FirstRanker.com ---
Impact of physical density (crowd perceptions
FIGURE 2.4/ The effect of physical density on shopper perceptions, shopping strategies
Physical situation
--- Content provided by FirstRanker.com ---
Increased physical density
Shopper perceptions
Confined, closed-in feeling
Crowded feeling
Adaptive strategies
--- Content provided by FirstRanker.com ---
Alter use of in-store information
Shorten planned purchases
Postpurchase responses
Store dissatisfaction
Unpleasant experience
--- Content provided by FirstRanker.com ---
Source: Adapted from G. Harrell, M. Hutt and J. Anderson (1980), Path Analysis of Buyer Behavior Under Conditions
Journal of Marketing Research, February, pp. 45-51.
Situational Characteristics and Consumption Behavior
--- Content provided by FirstRanker.com ---
Social Surroundings
Social surroundings are the other individuals present in a 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.
--- Content provided by FirstRanker.com ---
The use of many publicly consumed brands is subject to social influences.
Situational Characteristics and Consumption Behavior
Social Surroundings
--- Content provided by FirstRanker.com ---
Embarrassment is a negative emotion influenced by both the product and the situation.
Certain products are more embarrassing than others, and
Embarrassment is driven by the presence of others.
For extremely sensitive products, strategies include home delivery options.
--- Content provided by FirstRanker.com ---
Situational Characteristics and Consumption Behavior
Temporal Perspectives
Temporal perspectives deal with the effect of time on consumer behavior.
Limited purchase time often limits search
--- Content provided by FirstRanker.com ---
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 needed (snack between lectures)
- Time available for shopping limited (the product may be an excuse
- How long the previous product is expected to last
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Temporal perspective decisions
EXHIBIT 2.3/ The temporal perspective of purchase decisions can fit in well into seasonal elements, which may suggest purchase and use of specific times of the year. For example, this product is positioned specifically for summer USA.
SUNSILK Summer Care.
UV protection for your hair
--- Content provided by FirstRanker.com ---
Situational Characteristics and Consumption Behavior
Task Definition
Task definition is the reason the
--- Content provided by FirstRanker.com ---
This download link is referred from the post: VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University