Need to understand consumer at the psychological level to make good marketing decisions – this model helps
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Discrepancy between actual state and desired state that is sufficient enough for consumer to create a need
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Promise performance
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Create fashion
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Create a desired state
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Explaining the difficulty of using old product
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Prosocial & gov campaigns
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Suggest the dangers of current behaviour (over-eating)
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Discount/define the actual state
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Marketing implications
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Overarching consumer visions and ideas
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Apple can show people with their life together in their advertising
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E.g. New computer will help you be organised and efficient
○ Meta-goals
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E.g. Get a computer within 2 weeks from Apple
○ Goals
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E.g. Get a computer
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Objectives –baseline level
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Hierarchy of goals
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Predicting behaviour requires understanding goals
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Problem recognition
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Impacts what kind of content to show
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Online search is increasing
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E.g. Google Maps information about business a few taps away
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Consumers are more demanding of info being presented fast and succinctly
• Fast-paced
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Aus spend 10 hrs a day on internet connected devices
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But people can compare brands online before going into story or use phones
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Consumers do not search in 70% of physical shopping trips due to high search costs when comparing physical shops (Seiler, 2013)
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Need good design so consumers feel they are getting more with less time
▪ Trends
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Key words which align with what consumers are searching for
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Search engine optimisation (SEO)
• Internet
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People are going there to stay and experience the brand
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They don't value the functionality of ordinary brands or shopping websites
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E.g. Supreme website is a destination website
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E.g. Compare functions
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Let customer feel in control of filtering the information
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No excessive clicks
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User experience (UX) –website/app needs to flow
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Within a site
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Three levels of online search
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Information search
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Consumer buying process
Consumer Behaviour in the Digital Era
Saturday, March 13, 2021 9:44 AM
No excessive clicks
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Difficult to navigate
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Help them understand where they have been, where they are now, and how to get to where they want to go
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Make sure search function works
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We click out of the page when we encounter a bad experience
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Consumers visually search within web pages to find the info they seek
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Design the page based on objective and knowing customer problem
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E.g. A common problem is "What do I wear with this?" And they offer carousels for "People also bought"
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On a particular page
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About to make a purchase'
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Show specs, specific info
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Purchase related
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Based off interest e.g. hobby
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Ongoing search
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Based off memory
▪ Internal
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Environment
▪ External
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Deliberate
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E.g. Go and ask salesperson
▪ Active
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Incidentally see information
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E.g. Billboard
▪ Passive
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Evaluate product attributes to determine the attractiveness and utility of a product
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One negative compensates for the other
•
E.g. It is 1.8lb but it is cheaper
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E.g. It's okay if it's not blue because it's on sale
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Compensatory
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Has to have both attributes
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Several criteria
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Non-compensatory
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A decision rule
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One criteria
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E.g. I will buy this TV because it has the biggest screen
• Heuristics
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Decide by being either
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Help consumers evaluate the brands by personalising the display of product information
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To highlight that their own product is better than the previous one
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Remind them of previous choice ("this is what you purchased last time")
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Price, service, quality, pixels, colour, size, ratings, popularity
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E.g. Highest margins
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Sometimes omit sort function so they can prioritise products to sell first
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Allow consumers to sort the brands by any attribute:
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We select if lazy
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Think it's middle option
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Default options sway our assumptions
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Provide organisational structure by grouping brands, organising them into classification schemes or emphasising patterns among competing choices
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Marketers need to know which product attributes are important to the consumer
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Alternative evaluation
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Think it's middle option
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Usually has biggest margin on this
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Products you see first on landing page are strategically placed there
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If we think that consumers might want to use an elimination heuristic, we can provide filtering options
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Free shipping
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10% off the item you left behind
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Next time, prompt them to act
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Websites use first party cookies to track who started cart and left it
▪
Especially low-cost items with high shipping costs
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High-turnover brands like Apple embed shipping cost into item cost so they can overcome that hurdle
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Shipping costs are the biggest reason for abandonment
▪
Faster they can make the purchase = less time for people to decide not to buy
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Embed the payment option into the app or website
▪
Reminder next time you visit so they finalise the purchase
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E.g. Item on your wish list is on sale
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A wish list lets people save what they left in their cart
▪
For ecom, shopping cart abandonment is a major issue
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Purchase behaviour
•
Satisfaction
▪
Buyer's remorse is more rampant because we buy more
•
Offer chat/phone/contact details so people can ask questions about product they just received
•
Steers more positive attitude to product after it's purchased
○
Discourage you from refunding product
○
Post-purchase, send follow-up email
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E.g. This laptop is better because it's better than all the others in the market
○
Change attitude about the relation of alternative by devaluing the alternative
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Increase desirability of the chosen product
•
Refund it
○
Reverse choice
• Dissonance
▪
Loyalty
▪
Three potential impacts
○
Post-purchase evaluation
•
A facet of why we make decisions
•
Helps target advertising to target market
•
Everyone acknowledges
○
Socialise with peer's friends
▪
Refreshment/thirst
▪
Quality of ingredients
▪ Examples
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Manifest motives
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Ones people don't like to admit/aren't aware of
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Fitting in
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Sex appeal
▪
Popularity/masculinity
▪ Examples
○
Latent motives
• Motivation
Popularity/masculinity
▪
Prod latent motives through interview
○
Aim promotional content to all levels of the pyramid
○
Social recognition i.
Feeling of power ii.
Performance iii.
Duel Acceleration iv.
Large engine v.
E.g. Buying a car
○
Pyramid –from manifest to latent
•
Mostly have search attributes
○
Novak et al 2003
▪
Involve cognitive effort
○
Consumers engage in goal directed search and maximise efficiency of search
○
Don't want to make an error
▪
Things we need
○
E.g. Chewable tablets
○ Utilitarian
•
Categories like lifestyle, entertainment, etc
○
Hirschman and Holbrook 1982
▪
Provide for more experiential consumption enduring involvement, pleasure, excitement
○
Novak et al 2003
▪
Consumers seek variety or enjoyment, have a greater promotion focus, and indulge in impulse buying and variety seeking
○
E.g. Perfume
○
Hedonic products
•
Does the type of product affect the search?
Consumers use multiple devices to search and make purchases
•
Reduce search and consideration time because digital devices substitute for time spent at dealers or in print
○
Increasing efficiency of time utilisation
○
Devices shorten the purchase journey
•
Reduce cognitive burden of product evaluation and choosing efficiently using ranking and filtering tools
○
Devices support journey
• Takeaways
Yes –on phone you get notifications which distracts you
•
Tutorial activity: Are shopping experiences on phone vs computer different?
Challenge for multichannel retailers is that online sales have lower margins –this is where attention needs to be focused
○
Online retailer Ocado believes things will never revert
○
38% did more online shopping
•
80% of outpatient examinations
○
Telehealth is likely to become a central feature in the future of health
○
14% had more remote health appointments
•
45% say they will continue at a similar level
○
Healthy streaming budgets for content creation
○
1/3 streamed films/TV on SVOD
•
62% intend to continue increased online banking
○
22% use online banking more than they normally do
•
Key indicator of how well businesses perform post-pandemic is the degree to which they
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Reading: Lasting lockdown habits: a new digital consumer?
Key indicator of how well businesses perform post-pandemic is the degree to which they embrace digital tools as a way to run their business and interact with customers
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Fast and reliability connectivity is more important for consumers
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Still 5.4m internet non-users in UK (those without tools will struggle to engage in crucial activities, such as online grocery shopping)
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