13-1 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

13-1© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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PART IV: CONSUMER DECISION PROCESSPART IV: CONSUMER DECISION PROCESS

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CHAPTERCHAPTER 1313

SITUATIONAL SITUATIONAL

INFLUENCESINFLUENCES

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Consumer Behavior In The News…Consumer Behavior In The News…

A Rose by any other name…?A Rose by any other name…?

Mother’s Day is an $11 billion + holiday in the U.S.!Mother’s Day is an $11 billion + holiday in the U.S.!

What are the primary Mother’s Day gifts?What are the primary Mother’s Day gifts?

Can you guess what’s new in Mother’s Day giving?Can you guess what’s new in Mother’s Day giving?

Source: M. Brosk, “Electronics replacing flowers for Mom,” Knight Ridder Tribune Business News, May 7, 2005, p. 1.

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Consumer Behavior In The News…Consumer Behavior In The News…

A Rose by Any Other Name?A Rose by Any Other Name?

What are the primary Mother’s Day gifts?What are the primary Mother’s Day gifts?

Flowers and greeting cards – 50% of market.Flowers and greeting cards – 50% of market.

Can you guess what’s new in Mother’s Day giving?Can you guess what’s new in Mother’s Day giving?

Electronics products!Electronics products!

26% of market!26% of market!

Example: Heavy advertising and special promo Example: Heavy advertising and special promo deals by Verizon and Cingular.deals by Verizon and Cingular.

Source: M. Brosk, “Electronics replacing flowers for Mom,” Knight Ridder Tribune Business News, May 7, 2005, p. 1.

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The Nature of Situational InfluenceThe Nature of Situational Influence

Situational influenceSituational 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.

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Four types of situations:Four types of situations:

1.1. The Communications SituationThe Communications Situation

2.2. The Purchase SituationThe Purchase Situation

3.3. The Usage Situation, and The Usage Situation, and

4.4. The Disposition SituationThe Disposition Situation

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The Nature of Situational InfluencesThe Nature of Situational Influences

The situation in which consumers receive information has an impact on their behavior.

The Communications SituationThe Communications Situation

Marketers attempt to place ads in appropriate media contexts to enhance effectiveness.

Movie ads are strategically place so Movie ads are strategically place so that consumers see them on their that consumers see them on their

way to and from workway to and from work

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The situation in which a purchase is made can influence consumer behavior.

The Purchase SituationThe Purchase Situation

Marketers must adapt strategies to the purchase situation.

Home purchases occur in a unique social situation.

To succeed, realtors must take the opportunity to develop interpersonal relationships.

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Marketers need to understand the usage situations for which their products are, or may become, appropriate.

The Usage SituationThe Usage Situation

Research indicates that expanded usage situation strategies can produce major sales gains.

Classic: Arm and Hammer baking soda, where many uses have been found and marketed resulting in increased sales.

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Consumers must frequently dispose of products or product packages.

The Disposition SituationThe Disposition Situation

Disposal can create significant social problems as well as opportunities for marketers.

Some consumers consider ease of disposition an important product attribute.

Appliances at a dump in Appliances at a dump in the United Kingdomthe United Kingdom

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Situational Characteristics and Situational Characteristics and Consumption BehaviorConsumption Behavior

The five key dimensions or characteristics are

1. Physical surroundings

2. Social surroundings

3. Temporal perspectives

4. Task definition

5. Antecedent states

Situations can be described on a number of dimensions which determine their influence on consumer behavior.

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Physical SurroundingsPhysical SurroundingsDecorDecor

SoundsSounds

AromasAromas

LightingLightingWeatherWeather

Configurations Configurations of Merchandiseof Merchandise

Material Around Material Around Stimulus ObjectStimulus Object

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Physical SurroundingsPhysical Surroundings

AtmosphericsAtmospherics is the sum of all the physical features of a retail environment.

AtmosphericsAtmospherics influences consumer judgments of the quality of the store and the store’s image.

AtmosphereAtmosphere is referred to as servicescapeservicescape when describing a service business such as a hospital, bank or restaurant.

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Typology of Service EnvironmentsTypology of Service Environments Physical SurroundingsPhysical Surroundings

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Components of physical surroundings:Components of physical surroundings:

1.1. ColorsColors

2.2. AromasAromas

3.3. MusicMusic

4.4. CrowdingCrowding

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ColorsColors

Certain colors and color characteristics create feelings of excitement and arousal which are related to attention.

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.

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Physical SurroundingsPhysical SurroundingsAromasAromas

There is increasing evidence that odors can affect consumer shopping. Several aroma studies have found the following:

1. A scented environment produced a greater intent to revisit the store, higher purchase intention for some items, and a reduced sense of time spent shopping.

2. A pleasantly scented environment enhanced brand recall and evaluations particularly for unfamiliar brands.

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MusicMusic

Music influences consumers’ moods, and in turn, influences a variety of consumption behaviors.

Firms exist to develop music programs to meet 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.

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The Impact of Background Music on Restaurant PatronsThe Impact of Background Music on Restaurant Patrons

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CrowdingCrowding

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 purchases, unpleasant shopping, and reduced likelihood of returning to the store.

Marketers need to design outlets to reduce crowding perceptions.

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Social surroundingsSocial surroundings are the other individuals present in the 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.

The use of many publicly consumed brands are subject to social influences.

Social SurroundingsSocial Surroundings

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EmbarrassmentEmbarrassment is a negative emotion influenced both by the product and the situation.

Social SurroundingsSocial Surroundings

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.

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Temporal PerspectivesTemporal Perspectives

Limited purchase time often limits search

Internet shopping is growing rapidly as a result of the time pressures felt by consumers.

Temporal perspectivesTemporal perspectives deal with the effect of time on consumer behavior.

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Task DefinitionTask Definition

Task definitionTask definition is the reason the consumption activity is occurring.

Major distinction between purchases for self versus gift.

Consumers give gifts for many reasons:

•social expectations

•ritualized situations

•to elicit return favors

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Antecedent StatesAntecedent States

Antecedent statesAntecedent states are features of the individual person that are not lasting characteristics

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Types of antecedent states:Types of antecedent states:

MoodsMoods

• Transient feeling states that are generally not tied to a specific event of object.

Momentary ConditionsMomentary Conditions

• Temporary states of being (tired, ill, having extra money, being broke, etc.)

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MoodsMoods

MoodsMoods tend to be less intense than emotions and may operate without the individual’s awareness.

Although moodsmoods may affect all aspects of a person’s behavior, they generally do not completely interrupt ongoing behavior as an emotion might.

Consumers actively manager their moodmood states, often seeking situations, activities, or objects that will alleviate negative moodsmoods or enhance positive ones.

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Momentary ConditionsMomentary Conditions

Thus, a great deal of marketing activity is directed toward momentary conditions.

As with moods, individuals attempt to manage their momentary conditionsmomentary conditions, often through the purchase or consumption of products and services.

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Ritual SituationsRitual Situations

Critical to marketers because they often involve prescribed consumption behaviors.

However, ritual behavior can involve injurious consumption, such as binge drinking.

A ritual situationritual situation is a socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning.

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Applications in Consumer BehaviorApplications in Consumer Behavior

Courtesy R.C. Bigelow: Agency: Mason, Inc.Courtesy R.C. Bigelow: Agency: Mason, Inc.

The Bigelow tea ad is a great example of presenting a product as a ritual.

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Situational Influences and Marketing Situational Influences and Marketing StrategyStrategy

Identify the different situations that might involve the consumption of a product

Determine which products or brands are most likely to be purchased or consumed across those situations.

One method of dealing with this question is to jointly scale situations and products.

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Five Steps for Developing Situation-Based Marketing StrategiesFive Steps for Developing Situation-Based Marketing Strategies

1.1. Use observational studies, focus group discussions, depth Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage interviews, and secondary data to discover the various usage satiations that influence the consumption of the product.satiations that influence the consumption of the product.

2.2. Survey a larger sample of consumers to better understand and Survey a larger sample of consumers to better understand and quantify how the product is used and the benefits sought in the quantify how the product is used and the benefits sought in the usage situation by the market segment.usage situation by the market segment.

3.3. Construct a person-situation segmentation matrix.Construct a person-situation segmentation matrix.

4.4. Evaluate each cell in terms of potential.Evaluate each cell in terms of potential.

5.5. Develop and implement a marketing strategy for those cells Develop and implement a marketing strategy for those cells that offer sufficient profit potential given your capabilities.that offer sufficient profit potential given your capabilities.

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