Situational Influences Cognitive Dissonance Problem Solving Search Alternatives

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

Situational Influences • External Factors that may impact upon the consumer journey and decision process. 1. Communications context 2. Purchase stage / conditions – distress/relaxed? 3. Usage extending vs traditional trainers. 4. Disposition – ending an activity.

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…

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

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

Cognitive Dissonance

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

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? • ? ?

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

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

Consumer Behaviour Consumer Search and Evaluation HAUT Transfer Abroad Programme

Consumer Behaviour Stages of Search and Choice • Information Search – seeking values • Evaluation of Alternatives – assessing value • Purchase decision – buying value • Post Purchase – value in use HAUT Transfer Abroad Programme

Consumer Behaviour Three Problem Solving Variants • Routine • Limited • Extended HAUT Transfer Abroad Programme

Consumer Behaviour Routine Problem Solving Almost a Habit Little effort in buying process Low priced, frequently used products HAUT Transfer Abroad Programme

Consumer Behaviour Limited Problem Solving Moderate effort Buyer has little time or effort to spend HAUT Transfer Abroad Programme

Consumer Behaviour Extended Problem Solving All stages of decision making process used Time and effort spent on search and evaluation High involvement purchases HAUT Transfer Abroad Programme

Consumer Behaviour Information Search • Internal - memory of previous experiences • External - personal sources - public sources - marketing sources HAUT Transfer Abroad Programme

Consumer Behaviour Information Search aids Consumer by: • Suggesting purchase criteria • Identifying possible brand names • Developing value perceptions HAUT Transfer Abroad Programme

Consumer Behaviour Alternative Evaluation – Assessing Value Consumers evaluation criteria represent • Objective / functional attributes of product • Symbolic/subjective factors HAUT Transfer Abroad Programme

Consumer Behaviour Purchase Decision – Buying Value Three possibilities: • From whom to Buy • When to Buy • Do Not Buy HAUT Transfer Abroad Programme

Consumer Behaviour From Whom… • Terms of sale • Past experience of seller • Returns policy HAUT Transfer Abroad Programme

Consumer Behaviour When To Buy… • Store experience • Time pressure • Sales process HAUT Transfer Abroad Programme

Consumer Behaviour Five Situational Influences • Purchase Task • Social surroundings • Physical surroundings • Temporal effects • States (Mood) HAUT Transfer Abroad Programme

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

Set Theory All Brands Evoked Set Acceptable Brands Awareness Set Unawareness Set Inept Set Unacceptable Brands Inert Set Neutral Brands

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

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

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

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

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

E S A H C R U P T S O P S R O I V A H E B / N EVALUATIO • Review decision Information sources • Learn information • Update memory

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?

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.