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Understanding Consumer Behavior in Marketing

The document outlines key concepts in marketing and consumer behavior, including the definition of marketing, consumer behavior, and the application of these concepts in marketing strategies. It discusses various types of decision-making processes, the importance of information search, and the evaluation criteria consumers use when making choices. Additionally, it highlights the significance of postpurchase behavior, cultural influences on consumer behavior, and strategies for retaining customers.

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0% found this document useful (0 votes)
18 views35 pages

Understanding Consumer Behavior in Marketing

The document outlines key concepts in marketing and consumer behavior, including the definition of marketing, consumer behavior, and the application of these concepts in marketing strategies. It discusses various types of decision-making processes, the importance of information search, and the evaluation criteria consumers use when making choices. Additionally, it highlights the significance of postpurchase behavior, cultural influences on consumer behavior, and strategies for retaining customers.

Uploaded by

mokshatf
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Lecture 1

Marketing is the activity, set of institutions, and processes for creating,


communicating, delivering, and exchanging offerings that have value for
customers, clients, partners and society.
Consumer behavior is the study of individuals , groups, or organizations and
the processes they use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society.

Application in Consumer Behavior


1. Marketing Strategy: Based on explicit or implicit beliefs about consumer
behavior. Provide customer value. Defined as the ratio between the
customer's perceived benefits and the cost.
Utilitarian value: The value derived from a product that helps the
customer with some tasks
Hedonic value: The value derived from the immediate gratification that
comes from some activity.

2. Regulatory Policy: Various regulatory bodies exist to develop, interpret,


and/or implement policies designed to protect and aid consumers.
3. Social Marketing: Social marketing is the application of marketing
strategies and tactics to alter or create behaviors that have a positive
effect on the targeted individuals or society as a whole.
4. Informed Individuals: It is important that consumers accurately
understand the strategies used so that we can set appropriate limits on
them when required.

Outcomes:
Firm Outcomes: Product position, sales & profit, customer satisfaction
Individual Outcomes: need satisfaction & injurious consumption
Society Outcomes: economic & physical environment

Lecture 2
Behavioral Targeting: Sending consumers personalized and prompt offers and
promotional messages designed to reach the right consumers and deliver to
them highly relevant messages.
Through analysis, data can be turned into insights, which can then inform the
various CRM processes and, indeed, the business itself.
Purchase Involvement: is the level of concern for the purchase process,
triggered by need to consider a particular purchase, and so it is a temporary state
influenced by the interaction of individual and product.

Product involvement it’s based on:


1. Dagree of complexity
2. Monetary value of the product
3. Life expectancy and general importance of the product

A consumer may be very involved with a product category, BUT have low
purchase involvement due to brand loyalty, time pressures.
Types of decision making:
1. Nominal decision making (habitual decision making)
➔ It occurs when there is very low involvement with the purchase.
➔ A completely nominal decision does not include consideration of
the “do not purchase” alternative.
2. Limited decision making
➔ It involves internal and limited external search, few alternatives,
simple decision rules on a few attributes, and little post purchase
evaluation.
➔ Middle ground between nominal and extended decision making.
➔ It involves recognizing a problem for which there are several
possible solutions.
3. Extended decision making
➔ It involves extensive internal and external search followed by a
complex evaluation of multiple alternatives.
➔ It is a response to the high level of purchase involvement.
➔ During post purchase evaluation, doubts are likely and a thorough
evaluation takes place.
Desire to resolve a problem depends on:
1. The magnitude of the discrepancy between the desired and actual
states.
2. The relative importance of the problem

Marketing managers have 4 concerns:


1. Discovering Consumer Problems
2. Responding to Consumer Problems
3. Helping Consumers Recognize Problems
4. Suppressing Problem Recognition

Discovering Consumer Problems


Monitoring and tracking is not enough. A variety of approaches are used to
determine the problems including Survey, Personal Interviews and Focus
Groups.
Responding to Consumer Problems
Once a consumer problem is identified, the manager may structure the
marketing mix to solve the problem. This can involve:
➔ Developing a new product or altering an existing one
➔ Modifying channels of distribution
➔ Changing pricing policy
➔ Revising advertising strategy

Suppressing Problem Recognition; try to minimize the recognition of


problems related to the usage of the product.
McDonald’s Campaign “It Is Not Just About What You Eat It Is About What
You Do”
Lecture 3
Information Search: it is the information collected by consumers and is the
basis for evaluation and choice behavior.
So internal and external searches for information to solve problems are ongoing
processes.

Internal Search External Search


Search of long-term memory to If a resolution isn’t reached by
determine: internal search, then it will be focused
1. A satisfactory solution is on relevant external information.
known
2. What are types of potential Ongoing Search is done to acquire
solutions info and because the process is
3. Ways to compare the possible pleasurable.
solutions

Consumer decisions require information about:


➔ Appropriate evaluative criteria
1. Government agencies and consumer organizations want consumers
to use sound evaluative criteria
2. Marketers wanted consumer to use evaluative criteria that match
their brand’s strengths
3. Both marketers and government agencies provide information
designed to influence the evaluative criteria used
➔ The existence of various alternatives
➔ Performance of each alternative on each evaluative criterion

Appropriate Alternatives
The awareness set is composed of 3 subcategories of considerable importance to
marketers:
➔ The evoked set or consideration set contains brands or products one will
evaluate.
➔ The inept set consists of brands found to be completely unworthy of
further consideration.
➔ The inert set contains brands for which the consumer is aware of but
basically indifferent toward.

Alternative Characteristics:
1. To choose among the brands in the evoked set, the consumer compares
them on the relevant evaluative criteria.
2. This process requires the consumer to gather information about each
brand on each pertinent evaluative criterion.
Internet is a Major Search Avenue: Online information is expected, online
information boosts offline sales, online sources are viewed as valuable, and
online sources reduce salesperson’s role.

Google Search Console: it monitors your performance in Google Search results


and it shows you how Google “sees” your site.
There are 2 major strategic issues marketers face; how can they drive info to
consumers
1. Banner ads
2. Permission-based e-mail
3. Social media
How can they drive consumers to their info
1. Offline media
2. Tracking consumer click patterns on a website
3. Search engine optimization (SEO) (to make sure co. pages are accessible)

The level of external information search done by the customer is based on:
1. Market Characteristics (alternatives, price differences)
2. Product characteristics (price levels, differentiation)
3. Consumer characteristics personality, social status, age, household life
cycle, product involvement)
4. Situation characteristics (time, physical surroundings)
➔ Maintenance strategy
1. Requires attention to product quality, distribution, and a
reinforcement advertising strategy.
➔ Disrupt strategy
1. Free samples, coupons, rebates, and tie in sales.
2. Striking package designs and point of purchase displays.
3. Comparative advertising
➔ Capture strategy
1. Search occurs mainly at the point of purchase or in media
2. Objective is to capture as large a share as practical
➔ Intercept strategy
1. Emphasis will be on local media, point of purchase displays, shelf
space, package design.
2. Coupons can also be effective.
➔ Preference strategy
1. A simple capture strategy is not likely adequate.
2. A marketer needs to structure information so brand becomes
preferred by target market.
➔ Acceptance strategy
1. Beyond preference strategy, marketers must attract consumer
attention or motivate brand learning.
2. Incentives to try products, long term advertising to enhance low
involvement learning and use of the Internet are useful for gaining
acceptance.
Lecture 4
Consumer Choice & Types of Choice Processes

Meta-goals in Decision Making:


● Maximize the accuracy of the decision
● Minimize the cognitive effort required for the decision
● Minimize the experience of negative emotion
● Maximize the ease of justifying the decision

Attitude-Based Choice: Involves the use of general attitudes, summary


impressions, intuitions; no attribute-by-attribute comparisons are made at the
time of choice.
Attribute-Based Choice: Requires the knowledge of specific attributes at the
time the choice is made, and it involves attribute-by-attribute comparisons
across brands.

Nature of Evaluation Criteria: are typically associated with desired benefits


and can differ in type (tangible & intangible), number, and importance.

Measurement of evaluation criteria: involves a determination of evaluation


criteria used (direct & indirect method).
1. Direct methods include asking consumers what criteria they use in a
particular purchase.
➔ Asking consumers
➔ Focus groups
2. Indirect techniques assume consumers will not or cannot state their
evaluative criteria.
➔ Projective techniques allow the respondent to indicate the criteria
someone else might use.
➔ Perceptual mapping researchers use judgement to determine
dimensions underlying consumer evaluations of brand similarity.

Individual Judgment and Evaluative Criteria:


1. Accuracy of individual judgements
Sensory discrimination: the ability of an individual to distinguish between
similar stimuli.
2. Use of surrogate indicators
An attribute to stand for or indicate another attribute. (use of price)
3. Evaluative criteria, individual judgments, and marketing strategy

Decision Rules for Attribute-Based Choices:


➔ Conjunctive rule
Establishes minimum required performance for each evaluative criterion.
Selects the first brand that meets or exceeds these minimum standards. If
minimum performance was:
➔ Disjunctive rule
Establishes a minimum required performance for each important attribute
(often a high level). All brands that meet or exceed the performance level
for any key attribute are acceptable. If minimum was:

➔ Elimination-by-aspects rule
First, evaluative criteria are ranked in terms of importance. Second, the
cutoff point for each criterion is established. Finally brands are eliminated
if they fail to meet or exceed the cutoff. If rank and cutoff were:

➔ Lexicographic rule
Consumers rank the criteria in order of importance. Then select the brand
that performs best on the most important attribute. If two or more brands
tie, they are evaluated on the second most important attribute. This
continues through the attributes until one brand outperforms the others.
➔ Compensatory rule
The compensatory decision rule states that the brand that rates highest on
the sum of the consumer’s judgments of the relevant evaluative criteria

will be chosen.
Lecture 5
Selecting a retail outlet involves the same process as selecting a brand:
1. recognizes a problem that requires outlet selection
2. engages in internal and possibly external search
3. evaluates the relevant alternatives, and
4. applies a decision rule to make a selection
Outlet choice vs product choice (which one comes first)

The Retail Scene:


Internet retailing
➔ Characteristics of Online Shoppers access to Internet, young, high income
and education level
➔ Barriers to Internet Shopping
Barriers to Internet Shopping:
1. Appropriate landing page
2. Deal with privacy and security concerns
➔ Direct control through "opt-in" features
➔ The use of privacy statements (VeriSign)
➔ Signalling the firm's investment in the website
3. Deal with lack of touch
Store-based retailing: In store shopping is perceived as neither fun nor efficient
by many.
The internet as part of a multi-channel strategy & omnichannel strategy
➔ This approach can take many forms and can be successful for a number
of reasons, such as a regional in store retail utilizing online to become
national/international in scope.
➔ Multi channel shoppers are consumers who browse and/or purchase in
more than one channel.
Retail outlet selection involves a comparison of the alternative outlets on
consumer’s evaluative criteria:
1. Outlet Image (Bricks-and-Mortar Image, Online Image)
2. Retailer Brands
Traditionally, retailers carried only manufacturers' brands, developed their
own brands. (Sears)
Increasingly retailers are developing and promoting high quality brands
with either the store’s name or an independent name. (Walmart)
The key to success is high quality and reasonable price
3. Retail Advertising
Use advertising to communicate their attributes, particularly sale prices,
to consumers.
Spillover: sales are the sales of additional items to customers who came
to purchase an advertised item.
4. Outlet Location and Size
Location and size play an important role in store choice. Consumers
generally select the closest store and prefer larger outlets.

The Nature of Unplanned Purchases:


Specifically planned: A specific item decided on before visiting the store and
purchased as planned
Generally planned: A prestore decision to purchase a product category but not
the specific item
Substitute: A change from a specifically planned item to a functional substitute.
Unplanned: An item bought the shopper didn’t have in mind on entering the
store.
In store decisions: The sum of generally planned, substitute, and unplanned
purchases.
Strategies used by manufacturers and retailers to influence in-store and
online decisions:
1. Point-of-purchase materials
2. Price reductions and promotional deals
(coupons, discounts, gifts) generally accompanied by the use of some
point-of-purchase materials. Sales increase come from 4 sources:
1. Current brand users may buy ahead of their anticipated needs
(stockpiling)
2. Users of competing brands may switch to the reduced price brand.
3. Non Product category buyers may buy the brand because it is now
a superior value to the substitute product or to “doing without”.
4. Consumers who do not normally shop at the store may come to the
store to buy the brand
3. Outlet atmosphere
Atmospherics is the process managers use to manipulate the physical
retail or service environment to create specific mood responses in
shoppers.
4. Stockouts
Affect a consumer’s purchase decision by:
1. Buy the same brand but at another store
2. Switch brands
3. Delay the purchase
4. Forgo the purchase altogether
5. Website functioning and requirements
Consumers often research online then buy in traditional stores. Only 5%
that visit online outlets make a purchase.
6. Sales personnel
Lecture 6
Postpurchase Consumer Behavior

Postpurchase Dissonance occurs when a consumer has doubts or anxiety


regarding the wisdom of a purchase made and is a function of the following:
1. The degree of commitment or irrevocability of the decision
2. The importance of the decision to the consumer
3. The difficulty of choosing among the alternatives
4. The individual’s tendency to experience anxiety

After the purchase is made the consumer may:


➢ Increase the desirability of the brand purchased
➢ Decrease the desirability of rejected alternatives
➢ Decrease the importance of the purchase decision
➢ Reverse the purchase decision (return before use)
Disposition

The evaluation process

Dissatisfaction:
● Take action
1. Complain to store or manufacturer
2. Stop buying that brand
3. Engage in negative word of mouth
4. Complain to private of government agencies (consumer protection
agency)
5. Initiate legal action
● Take no action
➔ Less favourable attitude
Creating Committed Customers is increasingly the Focus of Marketing Strategy

Repeat purchasers continue to buy the same brand though they do not have an
emotional attachment to it.
Switching costs are the costs of finding, evaluating, and adopting another
solution.
Brand loyalty involves commitment to the brand it is a biased behavioral
response expressed over time.

Churn → is a turn overrate, when someone chooses to stop using your products
or services.
Reducing churn is a major objective; it typically costs more to obtain a new
customer than to retain an existing one, and new customers generally are not as
profitable as longer term customers.
Developing a marketing strategy for a particular segment includes identifying
specific objectives to be pursued, such as

Lecture 7
Marketing across cultural boundaries
Globalization: it changed from one-way influence to mutual influence.

The concept of culture: is the complex whole that includes knowledge, belief,
art, law, morals, customs, and any other capabilities and habits acquired by
humans as members of society.
Cultural values give rise to norms and associated sanctions, which in turn
influence consumption patterns

Variations in Cultural Values:


A. Other-oriented values
Reflect a society’s view of the appropriate relationships between
individuals and groups within that society.
1. individual/collective
Ex: Asian cultures are Collective. U.S. culture is Individualistic.
2. youth/age
3. extended/limited family
4. masculine/feminine
5. competitive/cooperative
6. diversity/uniformity
Does the culture embrace variation or not?

B. Environment-oriented values
Prescribe a society’s relationship to its economic and technical as well as
its physical environment.
1. Cleanliness
Ex: U.S. very high on personal hygiene – some think to an
extreme.
2. performance/status
Status-oriented society is more likely to prefer quality, established
band names and high priced items.
3. tradition/change
4. Risk taking/security
A society that does not admire risk taking is unlikely to develop
enough entrepreneurs to achieve economic change and growth.
5. Problem solving/fatalistic
Mexico and Middle-East Countries tend to fall toward the fatalistic
end of the continuum.
6. Nature
Ex: Packaging and environmental regulations Sweden.
C. Self-oriented values
Reflect the objectives and approaches to life that the individual members
of society find desirable.
1. active/passive
Is a physically active approach to life valued more highly than a
less active orientation.
2. Sensual gratification/abstinence
Cultures differ in their acceptance of sensual gratification. (sensual
pleasures such as food, drink).
3. material/nonmaterial
4. Hard work/leisure
Is a person who works harder than economically necessary admired
more than one who does not? Has consequences for lifestyle and
demand for leisure activities.
5. Postponed gratification/immediate gratification
6. religious/secular
to what extent are behaviors and attitudes based on the rules
specified by a religious doctrine.

➔ Cultural variations in verbal communications


Ex: General Motors released the Chevy Nova in South American
Markets; they failed to account for the fact that Nova means, " It wont
go" in Spanish.
➔ Cultural variations in non-verbal communications

Time: the culture’s overall orientation toward time (monochronic or


polychronic)
Space: personal space meaning differ widely among cultures
Symbols: failure to recognize the meaning of one could result in a serious
problem.
Relationships: how quickly and easily does the culture form relationships
and make friends.
Agreements: How does a culture ensure business obligations are honored.
Some cultures rely on a legal system; others rely on relationships,
friendships.
Things: The cultural meaning of things leads to purchase patterns that one
would not otherwise predict. For example, what type of gift is appropriate
and when does receipt of a gift a gift in return.
Etiquette: The generally accepted ways of behaving in social situations.
Behaviours considered rude or obnoxious in one culture may be quite
acceptable in another.

Global Cultures (Youth):


Mass media and the Internet have had an impact on uniformity among teens
around the world.
Technology is important factor but U.S. youth and brands no longer lead the
way
Lecture 8
Price Perception: Give percentage discounts when your price is under $ 100.
Display prices in a smaller font size. The reverse works for discounts. Since you
want to maximize the size of discounts.
Remove the comma.
Separate the shipping and handling; partitioned pricing.

The nature of perception:


1. Exposure
occurs when a stimulus comes with range of a person’s sensory receptor
nerves (vision).
2. Attention
occurs when the stimulus is “seen” (the receptor nerves pass the
sensations on to the brain for processing).
3. Interpretation
is the assignment of meaning to the received sensations.
4. Memory
is the short term use of the meaning for immediate decision making or the
longer term retention of the meaning.
5. Purchase and consumption decision

Types of exposure:
1. Selective: The highly selective nature of consumer exposure is a major
concern for marketers, since failure to gain exposure results in lost
communication and sales opportunities
Product placement: Involves incorporating brands into movies , television
programs, and other entertainment venues in exchange for payment or
promotional or other consideration.

2. Voluntary: Although consumers often avoid commercials and other


marketing stimuli, sometimes they actively seek them out for various
reasons including purchase goals, entertainment, and information (ex.
Visit the company's website to purchase a car).

Infomercials are program length commercials to which consumers


voluntarily expose themselves
Example:
A consumer who clicks on a banner ad or pop up (clickthrough)

First Moment of Truth (FMOT) when a customer is first confronted with the
product, in which s/he: STOP, HOLD AND CLOSE.

Attention:
1. Stimulus factors: Are physical characteristics of the stimulus itself.
➔ Size: Larger stimuli are more likely to be noticed than smaller
ones.
➔ Intensity: In online contexts, one aspect of intensity is
intrusiveness, or the degree to which one is forced to see or interact
with a banner ad or pop up.
➔ Attractive Visuals: Any factor that draws attention to itself and
away from the brand has to be used with caution.
➔ Color and Movement
➔ Position: is the placement of an object in physical space or time.
TV commercials aired first vs last. Object in a person's visual field

➔ Isolation: is separating a stimulus object from other objects.


Examples of isolation include. In store use of a stand alone kiosk
2. Individual factors: Are characteristics which distinguish one individual
from another.
3. Situational factors: Include stimuli in the environment.

Interpretation is the assignment of meaning to sensations. Interpretation is


related to how we comprehend and make sense of incoming information based
on characteristics of the stimulus, the individual, and the situation.

Social Media - Perception


➔ Growth Hacking: teams of engineers whose job is to hack people’s
psychology.
➔ Behavioral Surplus: is data that goes beyond online product and service
use. It can include information related to a person's location, age,
profession, lifestyle.
Lecture 9
An attitude is an enduring organization of motivational, emotional, perceptual,
and cognitive processes with respect to some aspect of our environment.

1. Cognitive Component: consists of consumer’s beliefs about an object.


For example, an individual may believe that Mountain Dew:
➔ Is popular with younger consumers
➔ Contains a lot of caffeine
➔ Is competitively priced
Marketers must promote benefits not features especially for complex
products.
2. Affective Component: are the feelings or emotional reactions to an
object. Ex: I like Diet
3. Behavioural Component: of an attitude is one’s tendency to respond in a
certain manner toward an object or activity. Response tendency, not
necessarily actual behavior. Ex: Recommend product.

Attitude Component Consistency:


1. Lack of Need might already own an acceptable, though less preferred
brand
2. Lack of Ability might not have sufficient funds to purchase
3. Failure to Consider Relative Attitudes ex. Purchase a less expensive
phone, to save resources to buy Playstation
4. Failure to Consider Interpersonal Influence ex. To meet the needs of
entire family such as iPad instead of laptop as you children like to play
with it
5. Situational factors theory of reasoned action (intention to perform a
certain behavior precedes the actual behavior)

Attitude Change Strategies:


➔ Change the cognitive component
1. Change beliefs
Providing information about the brand. Ex: Egg consumption and
cholesterol.
2. Shift importance
Communicate the importance of other attributes. Ex: Smart Electric
Drive.
3. Add beliefs
Add dimensions you didn’t consider before.
4. Change ideal
Specify what should be most important about the brand.
➔ Change the affective component
1. Classical conditioning
Build up positive feelings through rewards, positive music or
emotive symbols (Pavlov’s work on dogs).
2. Affect toward ad
If you like the ad there is a greater chance you’ll like the product.
Use of humour, celebrities, or emotional appeals increases affect
towards ad.
3. Mere exposure
Reminder ads “familiarity breeds liking”.
➔ Change the behavioural
Based primarily on operant conditioning: Changing behavior prior to
changing affect or cognition. Ex: Give free samples

Three types of communication characteristics:


1. Source characteristics “who deliver the msg”
1. Source Credibility: Persuasion is easier when the target market
views the message source as highly credible.
2. Celebrity Sources: can be effective in enhancing attention, attitude
toward the ad. It is widely used. Risk: If a celebrity endorses many
products, consumers' reactions may become less positive.
3. Sponsorship: it often works in much the same manner as using a
celebrity endorser.
Ambush Marketing: The practice by which a rival company
attempts to associate its products with an event that already has
official sponsors.
2. Appeal characteristics “how the msg is communicated”
1. Fear Appeals make people feel accountable to act
2. Humorous Appeals loosely tied to product. It is risk
3. Comparative Ads directly compare feature
4. Emotional Appeals elicit positive affective response rather than to
provide information.
5. Value Expressive VS. Utilitarian Appeals
3. Message structure characteristics “how msg is presented”
1. One Sided versus Two Sided Messages: one point of view is
expressed versus presenting both good and bad points.
2. Positive versus Negative Framing: refers to presenting one of two
equivalent value outcomes either in positive or gain terms (positive
framing or in negative or loss terms negative framing)

3. Nonverbal Components: Pictures, music, and other nonverbal cues


are also effective in attitude change.

Lecture 10
Consumers often behave very differently depending on the situation.
The consumption process occurs within 4 broad types of situations:
➔ Communication situation
The situation in which consumers receive information has an impact on
their behavior. Marketers attempt to place ads in appropriate media
contexts to enhance effectiveness.
➔ Purchase situation
The situation in which a purchase is made can influence consumer
behavior. Marketers must adapt strategies to the purchase situation.
➔ Usage situation
Marketers need to understand the usage situations for which their
products are, or may become, appropriate. Research indicates that
expanded usage situation strategies can produce major sales gains.
➔ Disposition situation
Consumers must frequently dispose of products or product packages.
Disposal can create significant social problems as well as opportunities
for marketers. Some consumers consider ease of disposition an important
product attribute.

The five key dimensions or characteristics are:


1. Physical surroundings: Store Atmosphere is the sum of all the physical
features of a retail environment. Atmospherics influences consumer
judgments of the quality of the store and the store’s image.
Atmosphere is referred to as servicescape when describing a service
business such as a hospital, bank or restaurant.
1. Colors
2. Aromas
➔ 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
➔ A pleasantly scented environment enhanced brand recall and
evaluations particularly for unfamiliar brands.
3. Music
4. Crowding: can lead to less satisfactory purchases, unpleasant
shopping, and reduced likelihood of returning to the store.
2. Social surroundings
● Social influence is a significant force
● Presence of others during a shopping trip can influence impulse
buying.
3. Temporal perspectives
● Limited purchase time often limits search.
● Internet shopping is growing rapidly as a result of the time
pressures felt by consumers.
4. Task objectives: 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
5. Antecedent states: are features of the individual person that are not lasting
characteristics.
● Mood (state of mind): Transient feeling states that are generally not
tied to a specific event or object.
● Momentary conditions (state of being)

A ritual situation is a socially defined occasion that triggers a set of interrelated


behaviours that occur in a structured format and that have symbolic meaning.
Critical to marketers because they often involve prescribed consumption
behaviors.

Situational Influences and Marketing Strategy


Identify the different situations that might involve the consumption of a product.
➔ One method of dealing with this question is to jointly scale situations and
products.
Lecture 11
Artificial Intelligence: The theory and development of computer systems able
to perform tasks normally requiring human intelligence.
AI enables behavioral targeting. Helps predict the purchasing behavior of their
target customer in the easiest way possible.

Augmented reality (AR) is an enhanced version of the real physical world that is
achieved through the use of digital visual elements, sound, or other sensory
stimuli delivered via technology.

Children are an enormous and growing market for advertising. Regulations:


1. Concerns about the Ability of Children to Comprehend Commercial
Messages.
Two Major Issues Relating to Comprehension:
➔ Do Children Understand the Selling Intent of Commercials
➔ Can Children Understand the Words and Phrases in Commercials
2. Concerns about the Effects of the Content of Commercial Messages
on Children
➔ Values
➔ Health and safety
3. Controversial Marketing Activities Aimed at Children
➔ Mobile Marketing and Children
➔ Commercialization of Schools (In-school, Ads in Classroom)
➔ Internet Marketing and Children
1. Invading children’s privacy
2. Exploitation of children through manipulative sales
techniques.
4. Children’s Online Privacy Issues

Regulation and Marketing to Adults:


1. Consumer privacy
2. Marketing communication
➔ Advertising and Values
➔ Consumer Information Accuracy
➔ Adequacy of Consumer Information
3. Product issues
4. Pricing issues

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