24.09.07 szmiginpiacentini2e_ch03.ppt

Szmigin & and Piacentini Piacentini Consumer Behaviour Chapter 3 : Decision-Making and Involvement © Oxford University Press, 2018. All rights reserved.  By the end of this chapter you will:...

Szmigin & and Piacentini Piacentini Consumer Behaviour Chapter 3 : Decision-Making and Involvement © Oxford University Press, 2018. All rights reserved.  By the end of this chapter you will: Be able to explain decision-making in low and high involvement situations. Understand the nature of involvement and how this affects people’s decision-making. Analyse the stages in the decision-making process. Identify different types of shopping behaviour and consumer shopping motives. Explain the problems that people have with choice, and the strategies used to deal with choice situations, such as satisficing and maximising behaviour, and the use of heuristics, anchoring, and framing. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  High and low involvement decision-making ←Stimulus internal ← online review, WOM Information → Regrets → Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Learning in low and high involvement decision-making Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Routine decision process in a high involvement situation Szmigin & Piacentini: Consumer Behaviour, 2nd edition  High and low involvement purchases Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Types of Involvement Product involvement is the perceived personal relevance of the product, based on needs, values, or interest. Message-response involvement reflects the consumer’s interest in marketing communications. Enduring involvement is ‘the pre-existing relationship between an individual and the object of concern’ (Houston and Rothschild, 1978, 3). Ego involvement is when consumers perceive products or brands as relevant to their personal interests. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  How to increase involvement Link the brand to hedonic needs Use distinctive or novel ways of communicating your product Use celebrities Tell a story Build a relationship Get the consumer to participate Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Problem Recognition Problem recognition is the realization that a problem needs to be solved through purchase. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Information Search Information search is the process by which we identify appropriate information to help aid our choice. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Information Needs Vogt and Fesenmaier (1998) identified five classes of information need: 1. Functional needs are the acquiring of knowledge from experience, and through stimuli such as advertising, to increase knowledge and reduce risk. They act to educate a consumer about the product’s utility, attributes and applications. 2. Hedonic needs relate to the elements of pleasurable experiences that may occur during decision-making. 3. Sign needs are the social and identity aspects of information search, what the product might say about us (is it socially acceptable? Eg: buying laptop are you acceoatble by your friends). 4. Innovation needs relate to the searching for something that is new or different to the consumer. 5. Aesthetic needs are where information is viewed as a stimulus to visual thinking, to imagining the product and how it looks in your life. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Alternative Evaluation The evoked set includes the possible brands already known to the consumer from which to choose. The consideration set includes brands from the evoked set that you might actually consider buying. The inept set are those brands that the consumer may have come across during their search or from previous experience but would not consider for this decision. The inert set includes those brands not under consideration at all. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Evaluation Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Outcomes of Choice The disconfirmation paradigm is the difference between a consumer’s pre-purchase expectations of the product’s performance and their post-purchase experience. Attributions arise when one evaluates the extent to which the initial product performance corresponds to one’s level of aspiration vis-à-vis that product, and one then questions the cause of outcome (Weiner, 2000:383). Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Disposal of Goods To friends and family or given away freely through specialized sites such as Freecycle (http://uk.freecycle.org/); To charity; Direct disposal either in general rubbish or recycled; Through exchange for another item; Through car boot sales, private advertisements, auction sites. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Motives for Shopping Personal Motives Social Motives Role playing Social experiences Diversion Communicating with Self-gratification others with similar Learning about new interests trends Peer group attraction Physical activity Status and authority Sensory stimulation Pleasure of bargaining Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Different ways to shop Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Is choosing a problem? The paradox of choice (Schwartz 2009) Satisficing – making ‘good enough’ consumption decisions, usually based on some kind of threshold, such as price Maximising – trying to consider all alternatives, which can be difficult in environments where there is a lot choice! Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Heuristics Heuristics are methods to aid decision-making to arrive at satisfactory solutions by simplifying the complexity of assessing the probability and prediction of value in a choice situation. – Prediction heuristics are where the consumer is trying to predict an outcome; – Persuasion heuristics refer to how consumers take short cuts when processing advertisers’ messages; – Choice heuristics allows us to reduce the number of attributes to be considered for the possible alternative choices; – Compliance heuristics are built around the likelihood of choosing something based on complying with a request. Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Example of Persuasion Heuristics Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Practitioner Insight: Simon Tunstill Head of Communications, Thinkbox TV is often described as a ‘passive’ or ‘lean back’ experience; But in fact we are often active when watching TV, deciphering plots, thinking about quiz questions, laughing at jokes; TV creates an emotional connection between the viewer and the brand; Not only is it what we watch but also how we watch and with whom. When we are with others either in person or by social media we have the opportunity to have conversations which may well be about the TV programmes or brands we have seen; Multi-screening (using a number of different screens e.g. tablet, mobile phone, computer) while watching TV means that there can be greater interaction between what you watch and what you do (i.e. tell people about brands, search the internet for comparison prices, purchase). Szmigin & Piacentini: Consumer Behaviour, 2nd edition  Conclusions In this lecture we have: Examined the stages in the decision-making process and how high and low involvement may impact it; Considered other types of involvement and how companies might increase involvement with their brand; Identified the different types of shopping behaviour and motivations for shopping; Explained the differences between maximising and satisficing, and considered how factors including heuristics, anchoring and framing may affect people’s behaviour. Szmigin & Piacentini: Consumer Behaviour, 2nd edition