23
Chapter 4 Consumer response to marketing actions Evans, Jamal, Foxall, Consumer Behaviour © 2006 John Wiley & Sons, Ltd

Consumer Response to Marketing Actions

Embed Size (px)

Citation preview

Page 1: Consumer Response to Marketing Actions

Chapter 4

Consumer response to marketing actions

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 2: Consumer Response to Marketing Actions

Chapter objectives

• Explain techniques that encourage consumers to act upon marketing activities.

• Explain impulse buying and customer satisfaction as important concepts.

• Apply cognitive dissonance theory to help explain how consumers can respond after purchase.

• Explain involvement and discuss implications of levels of involvement for consumer behaviour and for the relevance of sequential models of response to marketing activity.

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 3: Consumer Response to Marketing Actions

Sequential model of marketing

Post-purchase

ActionAttitude

Learning

Perception

Attention

Exposure Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 4: Consumer Response to Marketing Actions

Impulse buying

a sudden but powerful and persistent urge to buy a product offering immediately with diminished regard to the consequences of buying the offering (Rook, 1987)

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 5: Consumer Response to Marketing Actions

Four styles of impulse buying

• Accelerator Impulse

• Compensatory Impulse

• Breakthrough Impulse

• Blind Impulse

Bayley and Nancarrow (1998)

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 6: Consumer Response to Marketing Actions

Four forms of impulse buying

• Pure impulse buying

• Reminder impulse buying

• Suggestion impulse buy

• Planned impulse buy

Stern (1962)

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 7: Consumer Response to Marketing Actions

Airport impulse buying

Illustration

The holiday effect Consumer is going on a holiday with high levels of

excitement and more disposable income is at hand than

normal

The family effect Consumers think of buying gifts for family and friends

The guilt effect Business travellers buying for spouse and children to

compensate for the loss of family time due to business

travel

The reward effect Consumers’ self indulgence

The occasion effect Easter, Christmas, Mother’s Day, Valentine’s Day,

Birthday

The exclusivity effect You can only buy certain products in specific travel

related environment such as airport

The effect of forgetting I forgot to bring my umbrella

The effect of confusion Information overload causing impulse buying

The effect of disposing I need to get rid of some left over foreign currency

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

G Crawford and T Melewar, ‘The importance of impulse purchasing behaviour in the international airport environment’, Journal of Consumer Behaviour, 3:1 (2003), © John Wiley & Sons Limited. Reproduced with persmission.

Page 8: Consumer Response to Marketing Actions

Customer satisfaction

An attitude/feeling of a customer towards a product or service after it has been used.

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 9: Consumer Response to Marketing Actions

Cognitive dissonance

A kind of psychological tension resulting from perceived inconsistencies in cognitions. (Festinger 1957)

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 10: Consumer Response to Marketing Actions

Dissonance example

Take the example reported by Jones (1996) concerning the missing ash-tray from his BMW.

The BMW dealer had forgotten to replace the ashtray after a service, but a chance call to a Lexus dealer resulted in them collecting the ashtray from BMW and delivering it to Jones! Even though he had been a loyal BMW owner for 12 years, this seemingly minor incident over the ash-tray raised dissonance in his mind. The Lexus dealer’s actions suggested to him that there would be less dissonance if he were a Lexus customer, so that’s what he became.

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 11: Consumer Response to Marketing Actions

Dissonance reducing strategies in smoking

1. Change one’s behaviour Stop smoking

Change to smoking cigar or pipe

2. Distort the dissonant information

Refuse to accept cancer connection

3. Minimise the importance of the issue

To say there is more chance of death in a car crash

Ignore dissonant information and seek consonant information

Seek social support

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 12: Consumer Response to Marketing Actions

Unethical reassurances from marketers

Overcoming dissonance: healthy women smoke (seeking social support) and it’s good for you! Using positive cognitions.

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

© Rbert Opie. Reproduced by Permission

Page 13: Consumer Response to Marketing Actions

Comparative advertising

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Reproduced by permission of Bird’s Eye, a dicision of Unilever Plc. Illustrated by Anthony Burrill.

Page 14: Consumer Response to Marketing Actions

Negative advertising

A seminal example of negative political advertising attempting to raise dissonance over the competing political party. Perhaps unfortunately modern political campaigning seems to mostly ’knock’ the opposition parties.

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Photograph: Martin Evans

Page 15: Consumer Response to Marketing Actions

Reassurance

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

© Vauxhall Network Q. Reproduced by permission

Page 16: Consumer Response to Marketing Actions

Involvement

Consumers can be involved with:

• A brand (e.g. Nokia).

• An Advertisement (e.g. print ad for Nokia).

• A Medium (e.g. the internet).

• A purchase decision (e.g. deciding between alternatives when buying a mobile phone).

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 17: Consumer Response to Marketing Actions

Involvement

• Enduring Involvement• Situational Involvement

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 18: Consumer Response to Marketing Actions

Involvement and hierarchy of effects (sequential) models

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Inertia

Classical Conditioning

Loyalty

Instrumental conditioning

Habit

Less evidence for sequential models

Passive learning

Sequential models

Cognitive learning

Decision Making

Low involvementHigh involvement

Page 19: Consumer Response to Marketing Actions

Increasing involvement

This advertisement encourages emotional and physical involvement beyond merely eating ice cream…try this for yourself at home

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Source: General Mills UK

Page 20: Consumer Response to Marketing Actions

Routes to persuasion

High involvement leads to central route to persuasion, which ‘views attitude change, resulting from a person’s diligent consideration of information that she or he feels is central to the true merits of a particular attitudinal position’ (Petty, Cacioppo, and Schumann, 1983, p.135).

Low involvement leads to peripheral route to persuasion whereby consumers pay limited attention to non-product features and feelings. Here the information processing is largely unconscious with no or very limited elaborative activities.

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Page 21: Consumer Response to Marketing Actions

The FCB Grid

Berger (1986) Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

Soft Drinks

Burgers

Washing and Cleaning Products

Low

Sports Car

Cosmetics

Pension scheme

Economy Car

FeelThink

High

MotivesInvolvement

Page 22: Consumer Response to Marketing Actions

Involvement and Motivation

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd

J R Rossiter, L Percy and R J Donovan, ‘A better advertising planning grid’, Journal of Advertising Research, (1992). Reproduced with permission from Cambridge University Press.

Type of motivation

Examples: vacations, fashion clothing, cars

Examples: microwave oven, insurance, home renovations

High-involvement decision-making

Examples: candy, regular beer, fiction novels

Examples: aspirin, light beer, detergent,

Low-involvement decision-making

Transformational

(positive motivations)

Informational

(negative motivations)

Page 23: Consumer Response to Marketing Actions

Summary• Ways of encouraging consumers to ‘act’ and to respond positively after

purchase. • Impulse buying is pervasive and characteristic feature of most of our

purchases. • Customer satisfaction is a post-purchase attitude like feeling and is an

important theoretical as well as practical concept. • Antecedents of customer satisfaction include expectations, disconfirmation

of expectations, performance, affect, equity and attributions whereas complaining behaviour, negative word of mouth and repurchase intension are outcomes of satisfaction.

• Cognitive dissonance can occur before purchase as well as after purchase and marketing can help reduce dissonance.

• Consumers can become involved with product categories, brands, advertisements, communication mediums and even purchase decisions. Involvement reflects a consumer’s self-relevance and can be enduring, situational and response driven.

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd