Situational Influences

1. Situational Influences Cognitive Dissonance Problem Solving – Search Alternatives Set Theory Week 2 Lecture 3/4 Chapter 13

2. Situational Influences • External Factors that may impact upon the consumer journey and decision process. • Communications context • Purchase stage / conditions – distress/relaxed? • Usage extending vs traditional - trainers. • Disposition – ending an activity.

3. External Factors impacting upon behaviour • Physical surroundings • Retail Environment • Colours Pink is calming • Aromas – smell is a strong sensation • Music – sounds relaxing • Overloading less is more…

4. Social Context • On own? • With? friends / parents/ boss • Temporal Factors • Pay day? • During working day • Weekend – leisure?

5. Website design • Easy to load • Good visuals] • Easy to navigate • Use of videos • ????

6. Cognitive Dissonance

7. Cognitive Dissonance • Cognitive dissonance is the term used in modern psychology to describe the discomfort felt by a person seeking to hold two or more conflicting cognitions (e.g., ideas, beliefs, values, emotional reactions) simultaneously. In a state of dissonance, people may feel surprise, dread, guilt, anger, or embarrassment.[1] The theory of cognitive dissonance in social psychology proposes that people have a motivational drive to reduce dissonance by altering existing cognitions, adding new ones to create a consistent belief system, or alternatively by reducing the importance of any one of the dissonant elements.[1] An example of this would be the conflict between wanting to smoke and knowing that smoking is unhealthy; a person may try to change their feelings about the odds that they will actually suffer the consequences, or they might add the consonant element that the short term benefits of smoking outweigh the long term harm. The need to avoid cognitive dissonance may bias one towards a certain decision even though other factors favour an alternative.[2] • WIKIPEDIA accessed 04092012

8. Questions Faced By Consumers • Are veggie burgers actually healthy? • What makeup should you use to get an “even” skin tone? • Do I get any useful benefits from buying a digital watch? • Should I colour my hair?” What should I do? • Is my car mechanic honest? • Should I join Facebook? • Should I give my wife roses, chocolate, or a new iron? • ????

9. Consumer Problems and Recognition • Consumer problem:Discrepancy between ideal and actual state--e.g., consumer: • Has insufficient hair • Is hungry • Has run out of ink in his or her inkjet cartridge • Problems can be solved in several ways--e.g., stress reduction <----- vacation, movie, hot bath, medication

10. CONSUMER DECISIONS:Theory and Reality in Consumer Buying PROBLEM RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES PURCHASE POSTPURCHASE EVALUATION/ BEHAVIORS Theory Complications

11. Consumer Search and Evaluation

12. Stages of Search and Choice • Information Search – seeking values • Evaluation of Alternatives – assessing value • Purchase decision – buying value • Post Purchase – value in use

13. Three Problem Solving Variants • Routine • Limited • Extended

14. Routine Problem Solving Almost a Habit Little effort in buying process Low priced, frequently used products

15. Limited Problem Solving Moderate effort Buyer has little time or effort to spend

16. Extended Problem Solving All stages of decision making process used Time and effort spent on search and evaluation High involvement purchases

17. Information Search • Internal - memory of previous experiences • External - personal sources - public sources - marketing sources

18. Information Search aids Consumer by: • Suggesting purchase criteria • Identifying possible brand names • Developing value perceptions

19. Alternative Evaluation – Assessing Value Consumers evaluation criteria represent • Objective / functional attributes of product • Symbolic/subjective factors

20. Purchase Decision – Buying Value Three possibilities: • From whom to Buy • When to Buy • Do Not Buy

21. From Whom… • Terms of sale • Past experience of seller • Returns policy

22. When To Buy… • Store experience • Time pressure • Sales process

23. Five Situational Influences • Purchase Task • Social surroundings • Physical surroundings • Temporal effects • States (Mood)

24. Problem Solving – Search Alternatives • Internal Search • External Search • Limited Decision Making • Extended Decision Making • Ongoing search for pleasure as part of a hobby and information for future use – Opinion leaders

25. Set Theory

26. Options Identified and Considered UNIVERSAL SET All possible options RETRIEVED SET Options that readily come to mind EVOKED SET Options that will be considered by the consumer Note: Retrieved and evoked sets will vary among different consumers

27. Approaches to Search for Problem Solutions INTERNAL Long Term Memory Remembering Experience EXTERNAL Word of mouth, Opinion leaders, media, internet – types of sites, store visits, - sales people, POS, Trial if possible CATALOG

28. Evaluative Criteria • May be part of the search process. • Refining of needs • EG Digital Camera. • Set theory before.... • Desired Characteristics. • Specifically and general aspects.

29. Evaluative Criteria -Specifically • Technical specification.... • Performance • Features • Price / Cost of ownership • Desired Characteristics. • Other aspects >>>>

30. Evaluative criteria - Wider aspects. Penult • Visibility of purchase • Emotional Purchase • Maslow aspects .

31. POSTPURCHASEEVALUATION/BEHAVIORS • Review decision Information sources • Learn information • Update memory

32. Moore’s Law Computer power growing exponentially Prices remaining stable if not falling Equals better value but when does the consumer buy and how does this impact upon new products and profits and the marketing mix generally?

33. Search Exercise For the products below identify a two types of consumers and devise a list of features that each may consider important when considering purchasing them. Smartphone. (Electric) Bike, Trainers/Sports shoes.