Marketing mix? for the types of consumer behaviour?
Tackling Routine/limited problem solving...
for products with low involvement (by low perceived risk) the decision process is more determined by ENVIRONMENTAL CUES, e.g. special offer, display ads. (chewing gums, carries layout near cashier)
What are environmental cues?
The way products are presented to trigger purchasing behaviour e.g. chewing gum
Tackling Extended problem solving...
for products with high involvement (by high perceived risk) the decision process is more complex and rational (based on reason/logic) - need to put more effort in to convince customers.
Steps to convince customers for extended problem solving...
1 - at the problem recognition stage..
normal needs or stimulate needs (e.g. ads)
2 - at information search stage
advertisement in various media channels, tv, webpage (e.g. paid search, making info easily accessible on TopGear, LocationLocation?)
3 - at the option evaluation stage
we need to educate customers on which evaluation criteria really matters (which criteria their product excels at) e.g. criteria for a car (power,space,comfort,price,style) - criteria for property (size,bedrooms,garden,parking?) - weights of each criterion depends on customer and situation.
4 - at the product choice stage
form the consideration set, heuristics (simple rules such as price = quality) (brand loyalty - get used to believing brand is better, why bother making effort in searching for others when loyalty is strong enough - price premium, avoid brand switching) - First time buyer? (country of origin e.g. germany, japan?)
5 - at the evaluation stage
unsatisfied customers may never come back - engage in negative work of mouth - lose the opportunity for brand loyalty, expensive to attract new consumers
often irrational/unpredictable, can progress through 5 stages, does not always follow these stages in sequence - strong brand loyalty can move consumers directly from need to purchase
Does brand equity have equal impact on each type of consumer decision processes? - If you are a small brand, what should you do?
As a small brand, we need to ‘push’ consumers from ‘simple’ decision process to ‘complex’ decision process E.g. we can educate our consumers about the product, give them more information, so that they do not only rely on the brand name when they make the purchase.
In-store display, special offer, word of mouth, trial samples
We pay ATTENTION to even the smallest signs of communication, our INTERPRETATION is shaped by our background e.g. needs,biases,experiences. - through the comm process - the encoder and audience interprets message differently.
Exposure (must see message) > attention (must look at message) > Interpretation (must take in) - (Fruity and refreshing: coke life)
(Exposure = consumers coming into contact with marketing stimulus) - (Attention = when person allocates mental activity to the stimulus)
MASLOWS HIERARCHY of needs (psychological, safety, belongings, ego needs, self-actualisation)
PAVLOVS experiment (Pavlov used a bell as his neutral stimulus. Whenever he gave food to his dogs, he also rang a bell. After a number of repeats of this procedure, he tried the bell on its own. As you might expect, the bell on its own now caused an increase in salivation.)
Using positive scenes in ads, creating some sort of visual story - celebrity endorsements (brand extensions)
INNOVATIVENESS - the degree to which a person likes to try new things
MATERIALISM - desire for ownership SELF CONFIDENCE - degree to which person has positive evaluation of their ability to make a good choice..
People of different age groups share difference past experiences - user experience
A pattern of living which determines how people choose to spend their time, money and energy and that reflects their values, tastes and preference - overlapped with demographics