Group & Situational Effect___Decision Making part 2___

Andrew - Nawel - Perry

What are the external factors that influence our purchase ?

What is the point of this presentation ?Are consumers rational ? Or are they influenced ?Marketers’ Roles :

⇒ Fulfill consumers Wants and Needs

⇒ Understand their Choices

⇒ Sell our product easily

Situational Effect on

Consumer Behavior

A consumption situation includes :- a Buyer

- a Seller

- a Product or Service

As well as other factors...

A consumer will make different purchase depending on

⇒ The mood of the consumer

⇒ If the is consumer alone or not

⇒ If he is in a hurry or not

⇒ How he will use the product

DAY RECONSTRUCTION METHODPeople’s mood increased gradually throughout the day and is punctuated by occasional anxiety, anger and frustration.

Activities such as watching tv or socializing make people happy

Activities such as commuting or housekeeping make them feel unhappy, annoyed and stressed

The self-image A person’s self image is the idea, conception or mental image one has of oneselfIt will tend to influence what the he or she will buy. ⇒ Some consumers imitate the people they admire and may buy the same brands⇒ Others will buy different product depending on how they want people to see them.

(Eg: Guy on a date Vs with friends)

Usage of the productConsumers make different purchase choices depending on how they plan to use it

(Eg : Shoes)

The importance of

Time

Time, one of our most important resource ● Time is an important factor in decision making ● It is an economical variable

⇒ We try to maximize satisfaction by dividing time between activities

⇒ Different Time Styles

⇒ Same perception of time poverty

It is the subjective experience of the passage of time

● Five time perspectives metaphors :

⇒ Time is a pressure cooker (shopping is stressful)

⇒ Time is a map (research before buy)

⇒ Time is a mirror (loyal consumer)

⇒ Time is a river (spontaneous shoppers)

⇒ Time is a feast (variety seekers)

Psychological time

Waiting Time Queuing theory is the mathematical study of waiting in line.

The experience when we wait has a big effect on our evaluations of what we get at the end of the wait.

The Shopping Experience

Physical environment Many environmental factors influence decision-makingMarketers have control over some of these, such as atmospherics

⇒ Wall colors

⇒ Smells

⇒ Sounds

⇒ Store layout

⇒ The number of consumers

( packed or empty store ?)

Shopping orientation We segment people in term of their shopping orientation (ie, view of shopping)

Why people shop ?

- Social experience- Sharing of common interest - Instant Status - The thrill of the Hunt

E-Commerce: Clicks Versus Bricks

Showroomingvisiting a store to examine a product before buying it

E-Commerce will replace traditional retailing

Benefits● Shop 24 Hours● Less traveling● Lower Prices● More choices of product● Receive relevant information● Fast delivery● Virtual auctions

E-CommerceLimitations

● Lack of Security● Fraud● Can’t touch items● Expensive to order & then return● Exact colors may not reproduce

on computer monitors

Retailing as Theater Landscaping themes

Association with Images of nature, earth, and animals

Marketscape ThemesAssociation with man-man made places

Cyberspace ThemesImages of information & communication technology

Mindscape ThemesAbstract ideas & concepts, fantasy, and spiritual overtones

Store ImageStore have “Personalities”● Location● Merchandise suitability● Knowledge & congeniality of sale staff

Atmospherics“Conscious designing of space and various dimensions to evoke certain effects in buyers”

-- M.R. Solomon p. 363--

In-store Decision MakingMental budgetsTypically composed of both an itemized portion

Mobile shopping appsImaginative new ways for retailers to guide shoppers

Unplanned buyingrecognize a new need while in a store

Spontaneous ShoppingImpulse buyingexperience an urge that you can’t resist

Interaction Styles● Nonassertive person (non-social)● Assertive person (stand-out)● Aggressive person (rude)

Salesperson role● Knows Customers traits● And preferences better than an

inexperienced salesperson

Dyadic encountertwo parties (buyer and seller) reach an

agreement about roles of each participant

The salesperson: A lead Role in the Play

The Social Power ___ of ___

Group

Social PowerThe capacity to alter others’ action

6 types● Reference● Information● Legitimate● Expert● Reward ● Coercive

Reference PowerYou admire a person or a group,then you try to copy their behaviors

Information PowerThey know things others love to knowThey have Information Power!

Legitimate PowerPositional or Authoritical Power

Expert PowerYou follow his recommendations because he’s the expert!

Police Soldier Professors

Reward PowerProvide positive reinforcement

Coercive PowerInfluence by social or physical intimidation

Informational“You use the brand because it has good reviews from your friends”

Utilitarian “You use the brand to satisfy your family’s expectations of you”

Value-Expensive“You think using the brand will enhance your image in those girls’ eyes”

Reference GroupWho can significantly influence people’s evaluations, aspirations; or behaviors

Name letter effectAll things equal, we like people who share our names or even initials better than those who don’t

Platypus

My name is Perry, so I will like...

Pizza Hut

Peter Pennsylvania

Normative InfluenceReference groups that help set & enforce fundamental standards of conduct

Comparative InfluenceReference groups that influence decisions about specific brands & activities

Parents may influence you in attitudes towards marriage or future career

Your sorority sisters may influence your decisions on newest clothes brands

“Brandfest”Brand-sponsored events intended to promote strong

brand loyalty among customers

Who’s wanna join Apple’s community?

“Collective Value Creation” Brand community members work together to develop better ways to use & customize products

Brand CommunityGroup of consumers who share a set of social relationships based on usage or interest in products

Consumer TribeGroup of people who share a lifestyle and can identify with each other because of a shared allegiance to an activity or a product.

Consumer Tribe: specific product - Brand community: specific brand

Tribal Marketing StrategyLink a product’s identity to an activity-based “tribe”

Membership Reference GroupPeople you actually know

PropinquityCloser physical distance - closer relationship

Mere ExposureThe more you see them - the more you like them

Group cohesivenessAs group’s value to you increase - the more they can influence your decision

Aspirational Reference GroupYou don’t know them but you admire them anyway!

Application Brand ambassador

DeindividualizationWhen individual identities become submerged within a group

Home shopping partyWhen a brand representative make a sales presentation to a group gathering at a member’s house - direct selling

Group ShoppingWe get away with more when we do it in a group

Cultural PressuresDifferent cultures have different level of conformity

Fear of deviance“They fear of being boycotted if they do something different”

CommitmentThe more you commit - the more you conform

Group unanimity, size & expertiseLarger & more powerful group has more conformity

Susceptibility to interpersonal influencePeople’s need to have others think highly of them

ConformityPeople change in beliefs / actions to react to group pressure

NORM - informal rule, govern what is right or wrong

WHAT INFLUENCE YOUR CONFORMITY?

Thank you

~~~ for ~~~listening