Chapter 10Chapter 10Influencing Consumer BehaviorsInfluencing Consumer Behaviors

Approaches to Influencing Overt Approaches to Influencing Overt Consumer BehaviorConsumer Behavior

Marketing mix stimuli

placed in the environment

Influence consumers’ affect and cognitions

Influent overt

consumer behaviors

Consumer research data Sales, market share data

Info about consumers’ affect and cognitions

Steps in Developing Consumer Behavior Steps in Developing Consumer Behavior Influences StrategiesInfluences Strategies

Measure current levels of consumer affect and cognition

Evaluate for performance improvement

Analyze consumers and markets

Select and implement influence strategy

Desired influence occur?

Measure strategic effects

Yes

No

Marketing issues

Behavior Approaches

Cognitive Approaches

Role of marketing

Role of marketing

& consumer research

Modify consumer behavior to achieve organizational objectives

Investigate strategies for predicting & controlling consumer behavior

Satisfy needs of consumers at profit

Investigate strategies for influencing consumer affect and cognition

A comparison of views on marketing

Two Types of Promotion

• Overall, “sales promotion” refers to any marketing strategy directed at changing behavior.

• Consumer Promotion - “Pull” strategy

• Trade Promotion - “Push” strategy

Pepsi offers a $5 rebate on the Home Alone video -- A type of consumer

promotion

Rebates are often effective at changing purchase probabilities, even for big-ticket items

Types of consumer promotionsTypes of consumer promotions

Sampling. Consumers are offered regular or trial sizes of the product either for free or at a nominal price.

America Online – 7, 500 hours free trial version.

Price deals.. Consumers are given discounts from the product’s regular price.

For example, $1 off of Pepperidge Farm Raisin Bread.

Bonus packs.. Bonus packs consist of additional amounts of the product provided in the package or container.

For example, 33% more free on Head and Shoulders.

Consumer promotions, cont.Consumer promotions, cont.

Rebates and refunds.. Consumers, either at purchase or by mail, are given cash refunds for purchasing products.

For example, A 2000$ rebate on GM trucks in April.

Sweepstakes and contests. Consumers are offered chances to win cash and/or prizes either through chance selection or games of skill.

For example, Marriott Hotels teamed with Hertz Rent-A-Car in a scratch-card sweepstakes that offered over $90 million in prizes.

Consumer promotions, cont.Consumer promotions, cont.

Premiums. A premium is a reward or a gift that comes from purchasing a product.

For example, P & G offered a free package of Diaperene baby washcloths with the purchase of any size Pampers.

Coupons. Consumers are offered cents-off or added value incentives for purchasing specific products.

For example, Lenscrafters offered newspaper coupons for $20 off the purchase of contact lenses from its stores.

What can be influenced?

• Purchase probability – try new product, position to purchase, brand

switch, brand loyalty.

• Purchase Quantity

• Purchase Timing

• Purchase Location

22

70

73

59

70

21

17

36

51

48

46

17

12

24

26

17

17

9

20

46

41

23

47

16

Bought - didn't need

Bought - never tried

Bought - dif. Brand

Bought - more

Bought - sooner

Bought - later

Premiums

Sweepstakes

Rebates

Coupons

Promotion effects on consumer behaviorPromotion effects on consumer behavior

Social Marketing

• Usually focus on behavior.

• Increase probability of desired behaviors (use car pools, save natural resources etc.)

• Decrease probability of undesired behaviors (unsafe driving, illegal drugs etc.)