s-8 external influences on consumer behavior
TRANSCRIPT
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Store image – Is what consumers think about a particular
store. – Includes perceptions and attitudes based on
sensations of store-related stimuli received through the five senses.
– Developing a consistent store image is a common goal of retailers.
Store-Related Affect and Cognition
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Store atmosphere – Primarily involves affect in the form of in-store
emotional states that consumers may not be fully conscious of when shopping.
– Environmental stimuli affect consumers’ emotional states, which in turn affect approach or avoidance behaviors.
– The four types of approach or avoidance behaviors are physical, exploratory, communication, and performance and satisfaction approach.
Store-Related Affect and Cognition
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A Model of Store Atmosphere Effects
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Store Atmosphere
Pleasure and arousal were found to influence consumers’ stated: – Enjoyment of shopping in the store. – Time spent browsing and exploring the
store’s offerings. – Willingness to talk to sales personnel. – Tendency to spend more money than
originally planned. – Likelihood of returning to the store.
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o With few exceptions, the visual dimension has, to date, been the only sense to have been nurtured by the advertising and associated design community
o Much of our understanding of our environment is informed by our senses
o In turn, our experiences inform our senses, the senses being linked to memory
o We store our values, feelings and emotions in memory banks
Atmosphere – Sensory stimuli
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- Victoria's Secret, have long used fragrance as part of the sensory environment
in their stores
- The aroma of Starbucks coffee, for example, is instantly identifiable across
the globe!
Leaders in sensory branding
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Rolls-Royce have long recognized the smell of a new car as one of the most powerful tools in
their arsenal for cementing a love affair between their brand and a new owner
- Fliers on Singapore Airlines relish the scented towels the airline distributes before
meals, they have gone a step ahead and spray the same fragrance in their
magazines, tissue paper etc. - Even, the apparels and cosmetics used by
air hostesses fall under their brand guidelines
Leaders in sensory branding
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What is the necessity for Sensory stimuli now?
² With the launch of new stores / expansion of existing store in almost all categories the market is cluttered with many players more than the consumers can afford!
² We can’t make the customers stick to us, just by positioning on QUALITY of the product, since almost all companies nowadays do not compromise on quality
² There has to be SOMETHING, which even the customer might not aware of, should make them loyal to our brand
² That SOMETHING can’t be made via press ads, TVCs, Hoardings etc.. That has to be done when the consumer is around or having physical connection with the brand!
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What they see…
Standardization of the AMBIENCE, i.e. Color of the light, total number of lights in a SQ. FT,
Uniforms of the store assistants has to be matched to the brand colors
- And a LOT more…
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What they hear...
- Music plays a major role in ambience
- Based on the brand essence, the music has to be chosen
- If it’s a ethnic brand, obviously a mild instrumental can be used
- Techno music can be used for the brands which is new age, trendy etc…
- Even the timetable and sound level has to be same across the stores (in case of multiple outlets)
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What they smell...
- All stores across the geographies has to have a unique fragrance, based on the brand essence
- The same fragrance could be used in AC / packaging, Tissue papers etc…
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What they taste...
- Coffee / Tea / biscuits which is been given to customers can be made custom
- If you are a food retailer, then you can look at 1000 ways to make your taste stay in their HEADS!
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What they touch...
- This is the only sense which has physical connection with your product! - Packaging to made with a unique texture which relates to our brand essence (silky texture for kids apparel brand!)
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Store loyalty – Repeat patronage intentions and behavior. – Strongly influenced by the arrangement of the
environment, particularly the reinforcing properties of the retail store.
– Is a major objective of retail channel strategy and has an important financial impact.
Store-Related Behavior
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Store Location
• Good locations allow ready access, can attract large numbers of consumers, and can significantly alter consumer shopping and purchasing patterns.
• Store location decisions represent long-term financial commitments, and changing poor locations can be difficult and costly.
• Retail location models are quite sophisticated and
can deal with a variety of criteria.
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Store Layout
• Grid layout – The grid layout is more likely to be used in
department and specialty stores to direct customer traffic down the main aisles.
• Free-form layout – This arrangement is particularly useful for
encouraging relaxed shopping and impulse purchases.
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In-Store Stimuli
• Signs and price information – Benefit sign – Price-only sign
• Color – Warm colors – Cool colors
• Shelf space and displays – Normal display, expanded display, and special
display
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In-Store Stimuli
• Music – The tempo of background music influences
consumer behavior • Scent – Scents vary in terms of how pleasant they are
perceived to be, how likely they are to evoke physiological responses, and how strong they are.
– Ambient scent can influence feelings about stores and their products.
– Neutral and pleasant scent categories can be diffused in a store to influence consumers.
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Nonstore Consumer Behavior
• Consumer purchase mode refers to the method a consumer uses to shop and purchase from store or nonstore alternatives.
• Choices made among the various consumer purchase modes are influenced by many factors.
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Benefits of Stores for Consumers
Browsing
Touching and Feeling
Personal Service
Cash and Credit
Entertainment and Social Interaction
Instant Gratification
Risk Reduction
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Benefits of the Internet and Multichannel Retailing
Deeper and Broader Selection
Personalization
Gain Insights into Consumer Shopping Behavior
Increase Customer Satisfaction and Loyalty
Expand Market Presence
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Reference Groups
Reference Group – An actual or imaginary individual or group conceived
of having significant relevance upon an individual’s evaluations, aspirations, or behavior
– Three ways reference groups influence consumers • Informational • Utilitarian • Value-Expressive
– Some people are more influential than others in affecting consumers’ product preferences.
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Types of Reference Groups
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Membership vs. Aspirational Reference Groups
• Aspirational Reference Groups – Comprise idealized figures such as successful business
people, athletes, or performers.
• Membership Reference Group – Ordinary people whose consumption activities provide
informational social influence. • Propinquity: Physical nearness. • Mere Exposure: Liking persons or things simply as a result of
seeing them more often (mere exposure phenomenon) • Group Cohesiveness: The degree to which members of a
group are attracted to each other and value their group membership.
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Positive Versus Negative Reference Groups
• Avoidance Groups – Groups that consumers purposely try to
distance themselves from • Nerds • Druggies • Preppies
– The motivation to distance oneself from a negative reference group can be as powerful or more powerful than the desire to please a positive group
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When Reference Groups are Important
• Social Power: – The capacity to alter the actions of others
• Referent Power: – When consumers imitate qualities by copying
behaviors of a prominent person they admire.
• Information Power: – Able to influence consumer opinion by virtue of their
(assumed) access to the “truth”
• Legitimate Power: – Granted to people by virtue of social agreements,
sometimes conferred by a uniform
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When Reference Groups Are Important
• Expert Power: – Derived from possessing specific knowledge
about a content area • Reward Power:
– When a person or group has the means to provide positive reinforcement
• Coercive Power: – Influencing a person by social or physical
intimidation
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Types of Reference Groups
• Reference Group: – Any external influence that provides social
cues
• Normative Influence: – The reference group helps to set and enforce
fundamental standards of conduct.
• Comparative Influence: – When decisions about specific brands or
activities are affected.
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• Reference groups are cultural groups in that members share certain common cultural meanings. – Marketers try to determine the content of
the shared meanings of various reference groups. – Reference groups can have both positive
and negative effects on consumers. • Associative reference groups • Dissociative reference groups
Analyzing Reference Groups
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People identify and affiliate with particular reference groups for three reasons: – To gain useful knowledge. – To obtain rewards or avoid punishments. – To acquire meanings for constructing,
modifying, or maintaining their self-concepts.
Types of Reference Group Influence
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• Informational reference group influence transmits useful information to consumers about themselves, other people, or aspects of the physical environment such as products, services, and stores.
• Utilitarian reference group influence occurs when the reference group controls important rewards and punishments.
• Value-expressive reference group influence can affect people’s self-concepts.
Types of Reference Group Influence
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Reference groups do not influence all product and brand purchases to the same degree. – Influences vary on at least two dimensions: • Degree to which the product or brand is a
necessity or a luxury. • Degree to which the object in question is
conspicuous or know by other people. – Public good – Private good
Reference Group Influence on Products and Brands
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Relative Reference Groups’ Influence on Purchase Intention
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Opinion Leadership
• The Nature of Opinion Leadership – Opinion Leaders: People who are knowledgeable about
products and whose advice is taken seriously by others. – Homophily: The degree to which a pair of individuals is
similar in terms of education, social status, and beliefs.
• How Influential Is an Opinion Leader? – Generalized Opinion Leader: Somebody whose
recommendations are sought for all types of purchases. – Monomorphic: An expert in a limited field. – Polymorphic: An expert in many fields.
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Family
Marketers are interested in both families and households. – A household is a housing unit having people living
in it. – Nonfamily households include unrelated people
living together. – A family has at least two people, the householder
and someone who is related to the householder by blood, marriage, or adoption. • Nuclear family and extended family
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Family Decision Making
Family decision making refers to how family members interact and influence one another when making purchase choices for the household. – Identification of roles of family members in family
decision making is important. Types of decision-making roles include:
• Influencers • Gatekeepers • Deciders • Buyers • Users • Disposers
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Family Decision Making
Influences on family decision making – Differences in product class and their relationship to
family decision making. – The structure of husband/wife roles. – The determinants of joint decision making.
• Children and family decision making – Children can have major influences on:
• Budget allocation decisions • Purchase choices
– The birth of a child creates demand for a wide variety of products most couples never would have considered purchasing previously.
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A Modern Family Life Cycle
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Brand Communities and Tribes
• Brand Community: – A set of consumers who share a set of social
relationships based upon usage or interest in a product. • Brandfests
• Consumer Tribe: – A group of people who share a lifestyle and who can
identify with each other because of a shared allegiance to an activity or product.
• Tribal Marketing: – To link one’s product to the needs of a group as a
whole.
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Harley Owners Group
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Conformity
• Conformity – A change in beliefs or actions as a reaction to real or
imagined group pressure. • Norms – Informal rules that govern behavior.
• Factors Influencing the Likelihood of Conformity – Cultural Pressures – Fear of Deviance – Commitment
• Principle of Least Interest – Group Unanimity, Size, and Expertise – Susceptibility to Interpersonal Influence
• Role-relaxed consumers
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Social Comparison
• Social Comparison Theory: – Asserts that people look to the behavior of others to
increase the stability of their self-evaluation – Co-oriented peer: A person of equivalent standing
• Resisting Conformity: – Independence: Being oblivious or indifferent to the
expectations of others – Anticonformity: Defiance of the group is the actual
behavior – Reactance: The negative emotional state that results
when we are deprived of our freedom to choose
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Word-of-Mouth Communication
• Word-of-Mouth (WOM): – Product information transmitted by individuals
to individuals.
• Negative WOM and the Power of Rumors: – Negative WOM: Consumers weigh negative
info from other consumers more heavily than they do positive comments
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Cutting-Edge WOM Strategies
• Virtual Communities – Virtual Community of Consumption: A collection
of people whose online interactions are based upon shared enthusiasm for and knowledge of a specific consumption activity. • Multi-user Dungeons (MUD) • Rooms, rings and lists (e.g. chat rooms) • Boards • Blogs (weblog)
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Four Types of Virtual Community Members
• Tourists: – Lack strong social ties to the group
• Minglers: – Maintain strong social ties, but are not interested
in the central consumption activity • Devotees: – Express strong interest in the activity, but have
few social attachments to the group • Insiders: – Exhibit both strong social ties and strong interest
in the activity
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Guerrilla Marketing
• Guerrilla Marketing – Promotional strategies that use
unconventional locations and intensive word-of-mouth campaigns to push products. • Brand Ambassadors
• Viral Marketing – Refers to the strategy of getting customers to
sell a product on behalf of the company that creates it.
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Guerrilla Marketing Ads
Ads painted on sidewalks are one form of guerrilla marketing.