What are the five steps of the consumer buying decision-making process? Which two steps are the most important with regard to developing quality integrated marketing communications?
Answer the following questions
From the textbook Chapter 3
1.What are the five steps of the consumer buying decision-making process? Which two steps are the most important with regard to developing quality integrated marketing communications?
2.Define attitude. What are the three main components of attitude, and how are they related to purchasing decisions?
3.What trends in the consumer buying environment affect consumer purchasing decisions?
From the textbook Chapter 4
1.What three forms of market research are used to develop marketing communications?
2.Define market segment and market segmentation.
3.How can firms take advantage of target markets by gender?
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Integrated Advertising, Promotion, and Marketing Communications
Eighth Edition
Chapter 3
Buyer Behaviors
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
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Chapter 3 covers both consumer and business-to-business buyer behaviors. Understanding how and why consumers and businesses make purchases is important in developing integrated marketing communications.
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Chapter Objectives (1 of 2)
3.1 What elements are involved in internal and external information searches by consumers, as part of the purchase process?
3.2 What three models explain how individuals evaluate purchasing alternatives?
3.3 What trends are affecting the consumer buyer environment?
3.4 How do the roles played by various members of the buying center and the factors that influence them impact business purchases?
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
These are the objectives for Chapter 3.
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Chapter Objectives (2 of 2)
3.5 What types of business-to-business sales are made?
3.6 What are the steps of the business-to-business buying process?
3.7 How does dual channel marketing expand a company’s customer base and its sales?
3.8 How can a company overcome international differences when adapting a buying process?
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
These are additional objectives for Chapter 3.
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Nescafe
China – change daily routine
Rural – 5 cups coffee per year
Urban – drink coffee almost daily
Nescafe instant coffee – market leader
E-commerce and social media
Weibo microblogging service
Campaign – White Valentine’s Day
Discussion and contest
Focus younger consumers
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Nescafe instant coffee has been the market leader for nearly two decades, but coffee consumption was primarily an urban activity. In rural China, consumption was less than 5 cups of coffee per year. The goal was to change this routine, from tea to coffee. The campaign focused on the Internet, e-commerce, and social media. Using the microblogging service Weibo, Nescafe launched a campaign around White Valentine’s Day, in which women gave gifts to men. The goal was to generate discussions on line in the social media, with a contest as a complementary piece of the campaign.
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Chapter Overview
Consumer purchase process
Consumer buying environment
Recent trends in consumer behavior
Business buying center
B-to-B purchasing process
Dual channel marketing
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Chapter 3 begins with an overview of the consumer purchasing process and the consumer buying environment. Both are important in designing marketing communications. The next part of the chapter addresses current trends in consumer behavior. The last part of the chapter examines business-to-business buying behaviors. The buying center is an important part of the buying process. Often, products are introduced in the B-to-B market, then later marketed to consumers. Dual channel marketing involves marketing to both consumers and businesses.
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Figure 3.1 Consumer Decision-Making Process
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The consumer decision-making process involves five steps. The first step is problem recognition. It involves a consumer recognizing he/she needs something, has run out of something, or has an interest in something. Step two is information search. Consumers will first search internally for information. If they have enough information already stored in memory, then they will move to the next step. If not, then the consumer will conduct an external search. For high involvement and high dollar purchases, most consumers will conduct an external search. Step three is evaluation of alternatives. This may take only a few minutes for low cost, low involvement decisions to several months for high involvement decisions. After alternatives are evaluated, consumers will move to the next step, the purchase decision. While consumers will normally purchase the brand they intended to buy, sometimes in-store signage or deals will alter the purchase decision. The last step in the process is postpurchase evaluation. Consumers will determine the level of satisfaction with the purchase, which will impact their next purchase decision for that product.
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Consumer Purchasing Process
Consumers recognize a need or want
Physical
Social
Psychological
Can be triggered by advertising
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The first step in the consumer decision-making process is the recognition of a need or want. It can be a physical need or want, such as thirst or hunger. It can be a social need or want, such as seeing a friend with the latest cell phone or a new car. It can be a psychological need or want, such as purchasing a new outfit to wear to feel good about themselves, or because they are depressed and buying something lifts their spirits. Many purchases are triggered by running out of something, such as groceries, food, and beverages. But, advertising can also trigger a need or want. This advertisement for Skyjacker can trigger a desire for a lift kit for a vehicle. The desire can be reinforced through seeing someone else’s vehicle with one installed, or the reverse can occur.
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Information Search
Internal search
External search
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Once a problem, need, or want has been recognized, consumers move to the next stage of the process, information search. Understanding information search is important for marketing communications. There are two types of information search, internal and external.
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Internal Search
Think about brands
Quickly reduce options
Choice based on past experience
Brand awareness and brand equity are important.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The internal search for information is a mental activity. Consumers search their memories for information. They think about brands they have purchased in the past. If the brand met their needs and the experience was good, it is very likely they will buy the same brand again. If not, they will conduct a longer internal search or move to the external search for additional information. Past experience is an important part of an internal search and how long the individual thinks about various brands. Consumers typically reduce the number of options quickly and concentrate on only a couple or small set of options. With internal search, brand awareness and brand equity are important. If a consumer is not aware of a brand, such as Kraft, then it will not be considered as a purchase option unless the search process moves to an external search. The higher the level of brand equity, the more likely the brand will be purchased with little mental effort and no additional consideration of other brands.
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Figure 3.2 External Search
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The external search for information normally occurs under three conditions. First, the consumer was not happy with the last purchase experience and wants another brand or product. Second, it is a high-involvement decision, and the consumer wants more information. Third, it is a socially visible product ,and the consumer wants to make sure others will approve or be impressed with the purchase decision. The amount of time consumers spend searching for information depends on 1) their ability to search for information, 2) their level of motivation to search for information, and 3) the perceived cost of searching versus the perceived benefit of searching.
Three arrows converge at the midpoint of the time spent arrow, labeled as follows from bottom to top: ability to search. Motivation to search: 1, level of involvement; 2, need for cognition; 3, level of shopping enthusiasm. Costs versus benefits of search.
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Ability to Search
Determines extent of search
Education level
Increases search
Knowledge of product and brands
Moderate level – most likely to search
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The ability to search for information determines the extent of the information search process. Ability consists of a person’s educational level combined with their knowledge of the product and brands. Educated individuals tend to search for more information and spend more time searching than individuals with less education. Knowledge of products and brands has an inverted U-shape curve. Individuals with little knowledge of a product category or brands tend not to search for information, primarily because they do not know where or how to search for information. They don’t know the product category well enough to know what to look for. At the other extreme, individuals with a great deal of knowledge spend less time searching since they already possess the knowledge. The group that spends the most time searching is in the middle. They have some knowledge, so they have an idea of what to look for and what to ask, but not enough knowledge to make a decision.
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Level of Motivation
Level of involvement
Need for cognition
Level of shopping enthusiasm
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The level of motivation has an impact on the amount of time spent in external search. Motivation is determined by involvement, cognition, and shopping enthusiasm. The higher the level of involvement, the more time a consumer will spend in searching for additional information. The need for cognition is the level of mental activity a person enjoys. People who have a high need for cognition, that is they want to think about options before making a decision, will spend more time searching for information. Some people want to weigh every option and make sure they are right, so this need to consider all angles will lengthen the search process. The last motivating factor is the person’s enthusiasm for shopping. Individuals who enjoy shopping and comparing brands will spend more time than individuals who dislike shopping.
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Cost Versus Benefits
Actual cost
Subjective cost
Time
Anxiety
Opportunity cost
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Consumers will weigh the cost versus the benefits of an external search. There are the actual costs to search, such as driving to the mall to look at various brands. Then there is the cost of the product. If a particular brand is purchased and the consumer doesn’t like it, that money is basically lost. So for high cost items, there is more pressure to search to make sure the right decision is made. Then there are subjective costs, the amount of time spent and the anxiety involved. For most people, time is valuable. Yet, if the purchase decision causes anxiety, then spending more time searching for information is worth it to reduce the anxiety and ensure the right decision is made. The last consideration is opportunity cost. Once the purchase is made, the consumer forgoes the alternatives. The higher the perceived costs to search for information, the less consumers will search. Alternatively, the higher the perceived benefit in gathering additional information, the more time a person will spend searching.
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Consumer Attitude
Affective
Cognitive
Conative
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Consumer attitude can be impacted by effective marketing communications. Attitude is the mental position a person takes towards a topic, person, or an event that influences an individual’s feelings, perceptions, learning processes, and behaviors. Attitude consists of three components.
Affective is the feeling and emotional part of attitude.
Cognitive is the individual’s knowledge, understanding, and interpretation of a topic, person, or thing.
Conative is an individual's intentions, actions, or behavior.
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Attitude Sequence
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
In terms of influencing or changing consumer attitudes, marketers have three options. The most common sequence is to first impact a person’s cognitive beliefs and knowledge about a product, then develop emotions and feelings for the brand, which then results in purchasing the product. The second sequence begins with affective, the feelings and emotions. The marketing message is designed to elicit an emotional response followed by the purchase action. Then once the person has tried the product, he/she will make judgments about it. The third sequence begins with the conative. The idea is to get the person to try it. Food items and other low cost products often use this approach. After trying a product, a person will develop thoughts about it and then decide if he/she likes it or not. Feelings follow the knowledge. The sequence determines the content and how an ad is designed. Ads aimed at the affective component will look different than ads designed to impact the cognitive or conative component of attitude.
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Figure 3.3 Personal Values
Comfortable life
Equality
Excitement
Freedom
Fun, exciting life
Happiness
Inner peace
Mature love
Personal accomplishment
Pleasure
Salvation
Security
Self-fulfillment
Self-respect
Sense of belonging
Social acceptance
Wisdom
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Attitudes reflects an individual’s personal values. Values are strongly held beliefs about various topics and concepts. Values frame attitudes and guide personal actions. This is a list of some of the primary values individuals hold. The strength of the value will determine a person’s attitude and actions. Individuals who value and crave excitement will have different attitudes and make different purchase decisions than people who value mature love, wisdom, or personal accomplishment. In designing marketing messages, creatives need to consider personal values and how products can help an individual obtain the values being sought.
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Which Personal Values Does This Ad Target?
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
While student answers to the question will vary, fun and excitement would be a typical response.
In the left image, a close-up shows a woman’s heels walking in front of rolling luggage. The right image completes the woman’s right foot, which is now on a standing paddle board, with a man and two children visible.
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Figure 3.4 Top Ten Most Patriotic Brands
| Rank | Company | Patriotic Emotional Engagement Score |
| 1 | Jeep | 98% |
| 2 | Hershey | 97% |
| 3 | Coca-Cola | 97% |
| 4 | Levi-Strauss | 95% |
| 5 | Walt Disney | 95% |
| 6 | Colgate | 94% |
| 7 | Zippo | 93% |
| 8 | Wrigley’s | 92% |
| 9 | Ralph Lauren | 91% |
| 10 | Kodak | 90% |
Source: Based on “Jeep Leads List of 25 Most Patriotic Brands,” U S A Today,
http://www.usatoday.com/story/driveon/2013/07/01/most-patriotic-brands-jeep/2481337/
, July 1, 2013.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The table shows the results of a survey of 4,500 consumers who were asked to rate the most patriotic brands. The study was conducted by Brand Keys. Jeep had the highest patriotic emotional engagement score, but was followed closely by Hershey and Coca-Cola.
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Figure 3.5 Cognitive Map for Ruby Tuesday
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Cognitive maps are simulations of the knowledge structure and memories embedded in an individual’s brain. These structures contain a person’s assumptions, beliefs, interpretations of facts, feelings, and attitudes about the world around them. These thoughts interpret new information and determine a response to fresh information or a novel situation. This map is a crude illustration of the structure of the brain and the many linkages that are present. This represents one individual’s cognitive map of Ruby Tuesday. Ideas connected to Ruby Tuesday are restaurants, dine-in, excellent service, and slow. When the person thinks of slow, they immediately think of Mel’s Diner. When the person thinks of restaurants, fast foods come to mind, then pizza, then Pizza Hut and Little Caesar’s. It is easy to see from this illustration how concepts, thoughts, and ideas are all interconnected in our brains.
Rub Tuesday is connected to restaurants, dine-in, excellent service, and slow. Restaurants, is connected to fast foods, Ruby Tuesday, and dine-in. Dine-in is connected to Ruby Tuesday and Applebee’s. Applebee’s is connected to great food, dine-in, and excellent service. Slow is connected to Mel’s diner. Fast foods is connected to hamburger and pizza. Pizza is connected to Pizza Hut and Little Caesar’s.
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Cognitive Mapping
Show cognitive linkages
Process new information
Retain information
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Cognitive mapping serves a number of functions. It provides an idea of how the brain contains many linkages at a number of levels. Cognitive maps allow individuals to deal with new information in one of three ways. New information that is consistent with current information will strengthen linkages that already exist. If no linkage is there, then the consumer may develop a new linkage between the concepts. On the other hand, the person may determine the new information is not consistent with current linkages and dismiss it immediately. It is these linkages that allow consumers to retain information in long-term memory. Unless it is connected in some manner in the cognitive map, the information will not be stored for future use.
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Figure 3.6 Role of Marketing Messages in Cognitive Mapping
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Marketing messages have three roles when it comes to cognitive mapping. First, the message may be designed to strengthen current linkages. Second, it may be designed to modify current linkages. Third, it may create new linkages. Adding new linkages or modifying current linkages is more difficult than strengthening current linkages.
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Principles Concerning Processing of Information and Cognitive Mapping
Cognitive mapping enhances the movement of messages from short-term to long-term memory.
Most persuasive messages reinforce current linkages.
Repetition is necessary to establish new linkages.
Modifying or creating new linkages is difficult.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Cognitive mapping helps explain how consumers process information and how messages are moved from short-term memory to long-term memory. Most persuasive messages reinforce current linkages, which is the easiest task for marketers. Establishing new linkages is more difficult. It requires repetition. Just like repeating a phone number several times helps move the number from short-term to long-term memory, seeing an advertisement message a number of times helps establish new linkages. It is difficult to modify and create new linkages. It takes time.
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Figure 3.7 Methods of Evaluating Alternatives
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The third stage of the consumer decision-making process is the evaluation of alternatives. Understanding how consumers evaluate brands and products is important for creating effective marketing messages. Three models illustrate the nature of evaluation of alternatives: evoked set, multiattribute, and affect referral.
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The Evoked Set Method
Evoked set
Inept set
Inert set
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The evoked set consists of brands that an individual considers in making a purchase decision. Evoked sets are often generated internally during the information search stage of the process. It consists of brands the consumer is aware of and would consider purchasing, often brands that the consumer has used in the past. Two other sets of interest to marketers are the inept and inert sets. The inept set are the brands the consumer will not purchase, either because of a bad personal experience or information received from another source. It may be something someone told them. The inert set are brands the consumer does not know anything about or has so little information a judgment cannot be made. If a brand is in a consumer’s inert set, the goal is to transfer it to the evoked set because in most purchase situations only brands in the evoked set will be considered. For instance, if a consumer decides to dine-out, in most cases, only brands in the evoked set will be considered.
The, at home, section shows boxes of guacamole in a refrigerator. The, and now at sonic too, section shows a sonic hot dog topped with guacamole. Coupons for grocery stores and sonic restaurants are at the bottom.
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How Important Is It for Each of the Following Brands to Be a Part of a Consumer’s Evoked Set?
Guess (jeans)
Advil (pain medicine)
Head & Shoulders (shampoo)
Black & Decker (power tools)
C & H (sugar)
Smith & Kline (attorneys)
Hall’s (cough drops)
Netflix (video rentals)
D r. Nelson (neurosurgeon)
Pearle Vision (optical)
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If consumers are not likely to conduct an external search for information, then being in the evoked set becomes more important. Also, for lower involvement type products, being part of the evoked set is important because consumers will not spend a great deal of time evaluating alternatives. The less time spent in the evaluation of alternatives, the more important it is to be part of the evoked set. Also, if a brand wants to develop a high level of brand equity with consumers, it starts with being in the evoked sets of individuals.
Answers will vary among students on how important the evoked set would be for these brands. Certainly, for an attorney and neurosurgeon, being part of the evoked set is not too important since people will very likely do a more extensive search for information.
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The Multiattribute Approach
High-Involvement Products
Brand’s performance for each attribute
Importance of each attribute
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The multiattribute approach is used for high-involvement purchases, such as vehicles. With the multiattribute approach, the evaluation is based on two dimensions: 1) the brand’s performance on product or brand attributes and 2) the importance of each attribute. The higher that a brand rates on attributes that are important to consumers, the more likely the brand will be chosen. It would be extremely rare for a brand to score the highest on all attributes. Instead, there are trade offs. In purchasing a car, not one single automobile is likely to have every feature the consumer wants, especially if the auto is being purchased from a dealer’s lot and not being ordered. The same is true for purchasing a home. Consumers must make tradeoffs. The final choice comes down to the brand that offers the most features desired by consumers. While consumers aren’t likely to do this mathematically on paper, they will conduct a simulated approach by mentally comparing one brand against another on various attributes.
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Affect Referral
Saves mental energy
Multiattribute approach may have been used previously
Consumers often develop emotional bonds with brands.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Affect is the thir
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