Chapter Two: Situational Influences

2-1

Chapter 2: Situational influences

Part 1: Consumer decision process

2-2

The next six chapters discuss the consumer decision process

2-3

Chapter 2: Situational influences

Objectives after studying this chapter you should understand: 1. Situations influence decisions 2. There are four main types of situations 3. The nature of situational influences 4. Situational influences can be categorised into five classes 5. Situational influences have implications for marketing strategy 6. The usefulness of the person-situation segmentation procedure
2-4

The Nature of Situational Influence

Situational influence includes all those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior. Consumers often behave very differently depending on situation.
2-5

Situational influences
Situations influence consumer behavior

Four main types of situations Can be categorized according to five main dimensions Implications for marketing strategy

2-6

The Nature of Situational Influence- a General Model

2-7

Four situations
Communication situation Where? Alone or with others? Surrounding noise? Purchase situation Where? Alone or with others? In a hurry? Usage situation With guests or alone? For pleasure or for work? Disposal situation Before the next purchase? Trade-ins? After the purchase, e.g. packaging

2-8

The Nature of Situational Influences

The Communications 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.

Movie ads are strategically place so that consumers see them on their way to and from work

2-9

The Nature of Situational Influences

The Purchase Situation The situation in which a purchase is made can influence consumer behavior. Marketers must adapt strategies to the purchase situation. Home purchases occur in a unique social situation. To succeed, realtors must take the opportunity to develop interpersonal relationships.
2-10

Consumer behaviour is
ProductPersonSituation specific

2-11

The Nature of Situational Influences

The 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. Classic: Arm and Hammer baking soda, where many uses have been found and marketed resulting in increased sales.

2-12

The Nature of Situational Influences

The 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.

Appliances at a dump in the United Kingdom

2-13

Role of situation in consumer behaviour

2-14

Five dimensions of situational influence

1. Physical surroundings 2. Social surroundings 3. Temporal perspectives 4. Task definition 5. Antecedent states

2-15

Examples of physical surrounds

Store location Interior decor Music Smell/aromas Temperature (air-conditioning or heating) Choice provided

(by product category or across the categories)

2-16

Situational Characteristics and Consumption Behavior

Physical Surroundings Atmospherics is the sum of all the physical features of a retail environment. Atmospherics influences consumer judgments of the quality of the store and the stores image. Atmosphere is referred to as servicescape when describing a service business such as a hospital, bank or restaurant.

2-17

Typology of service environments

2-18

Situational Characteristics and Consumption Behavior

Physical Surroundings
Colors

Certain colors and color characteristics create feelings of excitement and arousal which are related to attention. Brighter colors are more arousing than dull ones. Warm colors such as reds and yellows are more arousing than cool colors such as blues and grays.
2-19

Situational Characteristics and Consumption Behavior

Physical Surroundings
Aromas There is increasing evidence that odors can affect consumer shopping. Several aroma studies have found the following: 1. 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. 2. A pleasantly scented environment enhanced brand recall and evaluations particularly for unfamiliar brands.

2-20

Situational Characteristics and Consumption Behavior

Physical Surroundings
Music Music influences consumers moods, and in turn, influences a variety of consumption behaviors. Firms exist to develop music programs to meet the unique needs of specific retailers. An emerging trend is having music more in the foreground so it becomes part of the shopping experience and drives store image.

2-21

Impact of background music on restaurant patrons

2-22

Situational Characteristics and Consumption Behavior

Physical Surroundings
Crowding Most consumers find feelings of crowding to be unpleasant resulting in: Less time in the store and less buying Faster decisions and less use of information Crowding can lead to less satisfactory purchases, unpleasant shopping, and reduced likelihood of returning to the store. Marketers need to design outlets to reduce crowding perceptions.
2-23

Impact of physical density (crowding) on shopper perceptions

2-24

Situational Characteristics and Consumption Behavior

Social Surroundings Social surroundings are the other individuals present in the particular situation. Social influence is a significant force. Individuals tend to comply with group expectations, particularly when the behavior is visible. Shopping is a highly visible activity. The use of many publicly consumed brands are subject to social influences.
2-25

Examples of social surroundings

Types of customers in the store Queues and crowding Whether the consumer is likely to be known

by others/recognised Whether there are high-profile people/celebrities shopping at that store Whether the product will be consumed privately or in the presence of others

2-26

Effect of social situation on desired dessert attributes

2-27

Situational Characteristics and Consumption Behavior

Social Surroundings
Embarrassment is a negative emotion influenced both by the product and the situation. Certain products are more embarrassing than others, and Embarrassment is driven by the presence of others. For extremely sensitive products, strategies include home delivery options.
2-28

Situational Characteristics and Consumption Behavior

Temporal Perspectives Temporal perspectives deal with the effect of time on consumer behavior. Limited purchase time often limits search Internet shopping is growing rapidly as a result of the time pressures felt by consumers.

2-29

Examples of temporal influences

Whether the product is seasonal Whether the product is urgently required

(snack between lectures) Time available for shopping limited/excess (the product may be an excuse for shopping) How long the previous product lasted or was expected to last

2-30

Temporal perspective of purchase decisions

2-31

Situational Characteristics and Consumption Behavior

Task Definition
Task definition 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
2-32

Examples of task influences

Is the product utilitarian or used as a status

symbol? Is it a gift or for oneself? Must the product be long-lasting/tough? (e.g. an everyday watch) or decorative? (e.g. a dress watch) Is the product intended for several uses? (e.g. a family computer for study and internet access)
2-33

Buying factors in gift-giving purchase situations

2-34

Situational Characteristics and Consumption Behavior

Antecedent States

Antecedent states are features of the individual person that are not lasting characteristics

2-35

Examples of antecedent states

Moods Feeling sad triggers buying sweets or seeing a funny movie Feeling rejected triggers buying games software Momentary conditions Cant eat ice cream because teeth hurt Cant buy a book because the credit card was left at home Buy more groceries because hungry before shopping

2-36

Situational Characteristics and Consumption Behavior

Moods Moods tend to be less intense than emotions and may operate without the individuals awareness. Although moods may affect all aspects of a persons behavior, they generally do not completely interrupt ongoing behavior as an emotion might. Consumers actively manager their mood states, often seeking situations, activities, or objects that will alleviate negative moods or enhance positive ones.
2-37

Situational Characteristics and Consumption Behavior

Momentary Conditions As with moods, individuals attempt to manage their momentary conditions, often through the purchase or conditions consumption of products and services. Thus, a great deal of marketing activity is directed toward momentary conditions.

2-38

Using positive mood influences in marketing

2-39

Ritual situations
A ritual situation can be described as a set

of interrelated behaviours that occur in a structured format, which have symbolic meaning, and that occur in response to socially-defined occasions Important to marketers as they define consumption, e.g. anniversaries, seasonal gifts Traditions and rituals being continued and developed, e.g. Valentine's Day
2-40

Applications in Consumer Behavior

The Bigelow tea ad is a great example of presenting a product as a ritual.

Courtesy R.C. Bigelow: Agency: Mason, Inc.

2-41

Situational influences and marketing strategy

Developing a situational influence matrix Positioning the product based on situation Segmenting the market based on usage

situation

alone in combination with other segmentation variable person/situation segmentation

2-42

Situational influence matrix

2-43

Usage situations and product positioning

2-44

Situational Influences and Marketing Strategy

Identify the different situations that might involve the consumption of a product Determine which products or brands are most likely to be purchased or consumed across those situations. One method of dealing with this question is to jointly scale situations and products.

2-45

Situational Influences and Marketing Strategy

Five Steps for Developing Situation-Based Marketing Strategies

1.

Use observational studies, focus group discussions, depth interviews, and secondary data to discover the various usage satiations that influence the consumption of the product. Survey a larger sample of consumers to better understand and quantify how the product is used and the benefits sought in the usage situation by the market segment. Construct a person-situation segmentation matrix. Evaluate each cell in terms of potential. Develop and implement a marketing strategy for those cells that offer sufficient profit potential given your capabilities.
2-46

2.

3. 4. 5.

Situational Influences and Marketing Strategy

2-47

Topics covered in this chapter

There are four types of situational influence The nature of situational influence Dimensions of situation Physical Social Time (temporal) Task Antecedent Situational influences and marketing

strategy
2-48