literature review

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BUSMGT752Q12022Week2Plenary2_Studentcopy.pptx

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Plenary 2 Learning Outcomes

LO1: Understand the consumer decision making process

LO2 Understand how the CDMP is important to market reseachers

LO3: Understand the components of CDMP

LO4: Understand the role of involvement in CDMP and its elements

LO5: Understand how marketers can influence each stage of the CDMP

LO6: Understand the nature of loyalty, post-purchase dissonance, voluntary disposal, and how dissatisfied consumers react

LO7: Learn the basics of questioning techniques for qualitative research

Qualitative

Quantitative

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Readings

Required:

Stankevich, A. (2017). Explaining the Consumer Decision-Making Process: Critical Literature Review. Journal of International Business Research and Marketing, 2(6), 7–14. https://doi.org/10.18775/jibrm.1849-8558.2015.26.3001

Zaichkowsky, Judith L. (1986). Conceptualizing involvement. Journal of Advertising, 15(2), 4–34. https://doi.org/10.1080/00913367.1986.10672999

Extra:

Beatty, S. E., Homer, P., & Kahle, L. R. (1988). The involvement-commitment model: Theory and implications. Journal of Business Research, 16(2), 149–167. https://doi.org/10.1016/0148-2963(88)90039-2

Zaichkowsky, Judith Lynne. (1985). Measuring the Involvement Construct. Journal of Consumer Research, 12(3), 341. https://doi.org/10.1086/208520

Qualitative

Quantitative

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Consumer Decision Making Process (CDMP)

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Consumer Decision Making Process (CDMP)

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Desired State

What the consumer would like (e.g., be attractive, happy, safe, not hungry)

Actual State

What the consumer perceives as already existing (e.g., unattractive, hungry)

A problem exists when there is a disparity between the actual/current state and the desired state

Any time the desired state is equal to the actual state, no problem exists

Need (Problem) Recognition

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Need (Problem) Recognition

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Factors influencing the desired vs. actual states

(Quester et al., 2014)

Actual state

Past decisions

Normal depletion

Product or brand performance

Individual development

Emotions

Consumer groups or government

Availability of products

Current situation

Desired state

Culture and social class

Reference groups

Household characteristics

Financial status or expectations

Previous decisions

Individual development

Motives Emotions

The situation

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Influenced by:

Culture (informed by media, peers etc.)

Reference groups

Emotions

Motives

Financial status

Household characteristics

Need (Problem) Recognition

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Types of consumer problems

Active problem

A problem that the consumer is aware of or will become aware of under normal circumstances.

(Quester et al., 2014)

Inactive problem

A problem that the consumer is not aware of and will not become aware of naturally.

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Internal Search

From memory

In EXTENDED DECISION MAKING, the internal search is used to produce guidelines that limit or direct the external search

External Search

‘Outside’ sources, when own knowledge is insufficient

Includes:

Marketing sources: ads, sales people

Personal sources: recommendations, attitudes and behaviours of/from friends and family

Public sources: consumer reports, online reviews, reports, shows such as Fair Go

Information Search

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(1) criteria for purchasing product (2) brands available (3) value perceptions

Evaluative criteria = what attributes a good/great product or service should have

Varies by consumer and situation

Usually more involved = more criteria

Can be objective (e.g. screen size) or subjective (e.g. prestige)

Might conduct an internal search to determine the features or attributes you want in a product or service (e.g., new phone)

If you don't know what attributes a good/great product or service should have you might carry out an external search

Alternative Evaluation

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Marketers will influence what evaluative criteria you should have and thus, match their brand with this criteria

Focus promotional material on criteria important to the target market

Advertising can be used to increase the perceptions of attribute importance

Criteria could include (& can lead to your consideration set):

Price

Quality

Country of origin

Availability

Service

Alternative Evaluation

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Evaluative criteria leads to your consideration set

Two choices

From whom to buy (seller characteristics, i.e., warranty, trust)

When to buy (sale, time pressure, assistance)

Factors:

One could be on sale

Refund policy

Store atmosphere

Sales person

Time pressure

Ease of shopping experience

And many more!

Purchase

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After purchasing, we compare with our expectations

If we are dissatisfied….

The product was deficient or were our expectations to high?

Post purchase psychological tension or anxiety = “post-purchase dissonance” (comes from original psy. theory ‘cognitive dissonance’)

Marketing tries to minimise PPD through:

effective communication

follow up

guarantees

warranties

Post -Purchase

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Types of problem solving: Involvement

Involvement is the consumer’s degree of interest in the product or service.

We can have high, medium and low involvement

Degree of involvement will dictate how consumers solve problems

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We recognise a problem, make a decision

We spend little effort seeking external information and evaluating alternatives.

The purchase process for such items is virtually a habit

Low-involvement decision making.

Typically the case for low-priced, frequently purchased grocery products e.g. milk

Examples?

Routine Problem Solving

We seek some information or rely on a friend

Several brands might be evaluated using a moderate number of attributes.

Appropriate for purchase situations that do not require a great deal of time or effort, such as choosing a restaurant for lunch

Examples?

Limited Problem Solving

Each of the five stages of the consumer purchase decision process is used

Considerable time and effort

Many brands considered, with many attributes

High involvement

Examples?

Extended Problem Solving

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After purchasing, we compare with our expectations

If we are dissatisfied….

The product was deficient or were our expectations to high?

Post purchase psychological tension or anxiety = “post-purchase dissonance” (comes from original psy. theory ‘cognitive dissonance’)

Marketing tries to minimise PPD through:

effective communication

follow up

guarantees

warranties

Involvement

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The number of “connections” - conscious bridging experiences or personal references per minute - that the subject makes between the content of the persuasive stimulus and the contents of his/her life. (Krugman, Public Opinion Quarterly, 1965, p66)

Involvement Definition

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Involvement = personal relevance. i.e. how relevant & interesting something is to you personally.

Keep in mind, that there are 2 main types:

1. Situational Involvement

2. Intrinsic Involvement

Involvement Definition

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Involvement

Involvement

Extended Problem Solving occurs during a purchase decision that calls for a lot of effort and time. It occurs with HIGH involvement

Routine Problem Solving occurs during a purchase decision that calls for a low amount of effort and time. It occurs with LOW involvement

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Four broad situations in the consumption process

(Quester et al., 2014)

The communication situation

The situation in which consumers receive product or service information.

Key is to get the consumer into a receptive communication situation.

Examples:

Alone vs. in a group

Good vs. bad mood

Life events such as an important exam or break-up

In a hurry or not

(Think about loud and funny

advertisements.)

The purchase situation

The situation in which product selection and purchase occurs.

Affects the outlet chosen, number of brands considered, and price willing to pay.

Examples:

Shopping with kids

Shopping with mum vs. dad

In a hurry or not

The weather

(When do you think hot chocolate sells better: Dark or bright cold day?)

The usage (or consumption) situation

The situation in which the purchased product will be used or consumed.

Determines the appropriateness of the product.

Examples:

Family vs. romantic holiday

Dinner alone or with guests

Gift or personal use

The disposal situation

The situation in which the product and/or packaging is discarded before or after use.

Increasingly influencing purchase decisions.

Examples:

New bed or fridge requires disposal immediately

A new phone requires engagement with the packaging before use

A bottled drink requires disposal after consumption

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Example: Influence of social situation on dessert choice

(Quester et al., 2014)

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For your literature review

Think about what influences the CDMP

Involvement

Situations (social, cultural, internal, external)

Surroundings

Environment

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Brand Loyalty Random Selection

Cognitive Spurious Loyalty

Dissonance

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Involvement and Strategy

Involvement Level

High

Low

Significant

Differences

between

Brands

Few

Differences

Between

Brands

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Qualitative Questioning Techniques

Note – these are techniques to be used within qualitative research methods, not typically methods in themselves.

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Direct and Indirect Questioning Techniques

Direct vs Indirect Techniques

When eliciting information in qualitative research, questions may be direct or indirect

Direct questions question a participant on a topic in a straightforward manner

Indirect questioning techniques somewhat disguise the question being asked, this often includes projective techniques

Let’s look first at direct questioning

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Direct Questioning Techniques

Direct Questioning

Asking respondents for information is not a simple process. Collecting accurate and reliable data requires that the moderator is careful about asking questions fairly

There are a number of things to consider when asking questions, including:

Naïve outsider role

Natural language

Composing questions (see next slide)

Reactions, acknowledgements and reinforcements

Active listening

Data validation

The specific questions stage

Moderator movement

Probing (see slide after next)

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Direct Questioning Techniques

Direct Questioning: Probing

There's always more to learn after a question has been answered. That's where probing comes in - the moderator may ask for elaboration, a definition, a comparison or a context. Some techniques for probing include:

Appropriate language

Information requests

Non-verbal probes

Reflective probes

Confrontational probes

Creative probes

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Indirect Questioning Techniques

Projective Techniques

Can you explain what they are?

Why do you think we use projective techniques?

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Indirect Questioning Techniques

Projective Techniques: Personification

Participants imagine that the brand is a person and then describe demographic or status-driven attributes associated with his or her personality

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Indirect Questioning Techniques

Projective Techniques: Picture Sorts and Collages

Visual stimuli sometimes help respondents frame their ideas or get over inhibitions experienced when thoughts have to be put into words

E.g., Products or brands pictured may represent a range of upscale vs. downscale, young vs. old or traditional vs. novel

As the appropriate images are selected to represent the brand, they may be arranged in a collage. Then, respondents may discuss why specific images were chosen

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The Dimensions of Involvement

Antecedents of

involvement

Possible results of

involvement

Person Factors

- needs

- importance

- interest

- values

Object/Stimulus

Factors

- differentiation of

alternatives

- source of

communication

- content of

communication

Situational Factors

- purchase/use

- occasion

Involvement

with ads

with products

with purchase

decisions

counter arguments

effectiveness of ad

importance of product

class

perceived differences in

attributes

preference of brand

influence of price

amount of info. search

time spent deliberating

type of decision rule