Other Influences

1
Other Influences

• Marketer Influences
• Communications
• Consumer Influences (background)
• Personality and Lifestyle
• Environmental Influences
• Family
• Important others (Reference groups)
• Culture

2
In general, personality research is interesting.
But difficult to relate personality to routine,
unimportant issues (like products)
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Lifestyle

• Lifestyle mode of living identified by
• Activities (work, hobbies etc.)
• Interests (family, home, job etc.)
• Opinions (personal, political, social, etc.)
• Related to personality, but different
• more external (less deep) easier to measure
• fewer differences at individual level easier to
  pool, so segmentation easier

4
Lifestyle Measured through AIO scales
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AIO measures (agree/disagree)

• I always shop for discounts (A)
• I always check prices of even small items (A)
• In my opinion, saving money is better than
  spending it (O)
  
• When I buy clothes, I look for fashion, not
  comfort (I)
  
• I like parties with a lot of music and talk (I)
• I like to be part of the latest trends (I)
• People who give similar responses to a set of
  similar scales are in the same segment can be
  targeted

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Important note about lifestyle

• Lifestyle trends change
• Marketers need to keep track of lifestyle
  trends
  
• Because product needs are closely related to
  lifestyles
  
• Some examples of lifestyle changes over last
  10-20 years, and marketing applications
  
• Working at home instead of office?

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Other Influences

• Marketer Influences
• Communications
• Consumer Influences (background)
• Personality and Lifestyle
• Environmental Influences
• Family
• Important others (Reference groups)
• Culture

8
Family Influences

• Joint decision making
• Different roles for different family members
• Husband-Wife Influences

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Joint Decision Making

• High perceived risk of purchase
• High risk more or less joint decision making?
• Reverse phenomenon risky shift
• High importance of purchase decision to entire
  family
  
• stereo system for music loving family
• Low time pressure
• planning a vacation for next year vs. next week
• Demographics
• younger families no children

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Different Roles
Information Acquisition
Information Processing
Problem Recognition/Need Arousal
Comparative Evaluation/ Purchase
Post-Purchase Evaluations
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Different roles

• Information gatherer (gatekeeper)
• maybe teenage children for buying a new car
• Influencer which criteria are important in
  evaluating alternatives
  
• wife safety feature in cars
• Decision maker
• Purchasing agent
• Consumer
• Note purchaser and consumer may be different
  (example? whom should marketer target?)

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Husband-Wife Influences

• Husband dominated
• Wife dominated
• Either husband or wife (autonomous)
• Joint (both contribute)
• Marketing implications whom to target?
  advertising media etc.
  
• Measure Influence joint or separate
  interviews??
  

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Other Influences

• Marketer Influences
• Communications
• Consumer Influences (background)
• Personality and Lifestyle
• Environmental Influences
• Family
• Important others (Reference groups)
• Culture

14
Reference Groups

• Reference groups (or referent person) provide
  roles, standards and norms that directly
  influence attitudes and behavior (e.g, friends,
  neighbours)
• less broad than culture
• New professors buying plasma TV
• 2 major types of reference groups
• membership group (to which you actually belong
  example??)
  
• aspiration group (to which you want to belong
  example??)

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Reference Group Influence (RGI) often important
in our choice of products
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Major reason for RGI Power

• Expert power the group/person is perceived to be
  an expert
  
• salesperson for technically complex product where
  you lack knowledge (type of influence
  informational)
  
• Referent power you want to be similar to the
  person
  
• buying the same clothes as your friend (type of
  influence comparative)
  
• Reward power Product used to get reward/ avoid
  punishment from referent
  
• wearing a tie to office because your boss wants
  you to (type of influence normative)
  
• note for normative influence to be exercised
  the product must be visible to the referent
  group/person
  

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Reference Group InfluenceProduct Category or
Brand Choice?

• When you want to impress someone with a product,
  do you impress them by ownership of a particular
  brand or of a product category?
  
• E.g., will you impress people with the fact that
  you own a TV set (product category) or a
  particular brand of TV set (brand choice)?
  
• Any exceptions?
• I.e., are there times when you can just impress
  people with your ownership of the product
  category (it doesnt matter which brand you
  own)?

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Role of Exclusivity (Exclusive owned by very
few people)

• Reference Group Influence At Product Category
  Level

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But Most Product Categories Not Exclusive (E.g.,
Clothes)

• In these cases, reference group influence is felt
  at brand level (I.e., everyone owns the product
  category, but you can impress people with your
  choice of brand)

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Reference Group InfluenceBrand Choice

• When are you more likely to try and buy more
  fashionable brand names for clothes?
  
• Clothes you wear at home or outside?
• Role of Visibility

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Overall Reference Group Influence Product
Category/Brand

• Product category exclusivity (product is owned by
  very few)
  
• for exclusive product categories, RGI can have an
  effect even at the level of the product category
  
• Product category visibility (seen by others used
  in public)
  
• Usually, RGI will have an effect on brand choice
  (what brand you buy) as long as the product
  category is visible (does not have to be
  exclusive)

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Assignment
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Quiz 4

• May 6th
• LTD, 7 to 8 pm
• Materials
• Communications (Chapter 11 350-367)
• Lifestyle and Personality (Chapter 13 pg.
  421-449)
  
• Family Influences (Chapter 17 pg. 565-582)
• Reference Group Influences (Chapter 16)
• Culture (Chapter 14 pg. 457-473) and
  Cross-Cultural Issues (Chapter 15 pg. 492-508)
  
• No need to learn facts (e.g., American lifestyle
  trends -- just skim them for interest)
  

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Project Presentations

• Pick Lots!
• May 8th, 13th 15th
• 3 groups per day

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Project Presentations

• 15 minutes each 5 min q/a
• Will give guidelines for presentation in next
  class

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Project Report

• Page limit 7 (not 8!!) double spaced pages in
  Times Roman 12 point font (including tables)
  
• Due date May 19th, 5 pm
• Very strict on page limit and due date!

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Presentation Guidelines 15 mts

• Introduction (3 minutes)
• product category 2 brands attributes selected
  from depth interviews who was interviewed
  
• Major Findings (6 minutes use tables)
• Average bi, ei and attitudes about the 2 brands
  on various attributes
  
• any other measures you have taken (optional)
• what did you conclude about your brands current
  position (why is it doing badly?)
  
• Marketing Recommendations Overall Strategy (6
  minutes)

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Criteria for Presentations

• Keeping to time limit Most Important!!
• Clarity
• Slides
• speaking
• Structure
• should have good organization of slides
• Answering questions
• questions to be asked at end one group will be
  assigned to ask questions (5 minutes kept for
  this)
  
• Content

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Other Points

• Attendance compulsory
• contribute to other groups will lose marks if
  absent
  
• learn from their presentations
• Relax!
• Dont just read out
• Walk around a bit while talking
• Not compulsory for everyone to speak (but good if
  you can)
  
• Informal dress is fine!

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(No Transcript)
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Project Report

• 2 major issues
• WHAT YOU FOUND comparisons of your brand with
  competing brand (bi, ei, other measures)
  
• Include tables in body of report
• Discuss some possible reasons for your findings
• RECOMMENDATIONS strategy based on your findings
  special focus on advertising strategy
  

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Project ReportFirst, tell me what you found

• One key component Fishbein tables

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Attitude Measurement Brand A
Salient Beliefs
Belief Strength (bi)
Eval Score (ei)
biei
Overall attitude 7
Attitude Measurement Brand B
Salient Beliefs
Belief Strength (bi)
Eval Score (ei)
biei
Overall attitude 5
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Describing your Findings

• Present your tables in the body of the report
• Just describe what you think are the major
  interesting findings from these tables
  
• E.g., very poor performance on one attribute.
• differences between segments
• Talk about why youre getting some of these
  findingsfor example, why is your brand doing
  badly on some attribute? (e.g,. if Bi on
  Fashionable styling is low)
• What are the marketing reasons that have led to
  this?

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Next step Recommendations

• For each recommendation
• Identify which number (or numbers) in the tables
  that you want to change
  
• Identify whether you are changing b or e
• Identify which P or Ps you will need to use to
  change that number or numbers
  
• Do this for each recommendation you make
• Make sure the different recommendations are
  internally consistent (not high price but
  lo-market store)
  
• Make sure its realistic (shouldnt change 3 to
  3 shouldnt act as if unlimited budget)
  

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Recommendations

• Not compulsory, but would be good if you included
  at least some advertising-based recommendations
  (since we have talked a lot about advertising
  issues)
• E.g., a rough draft of an ad that you might
  create to implement your desired changes
  
• The rationale for such an ad (what kind of
  advertising tactic what media, repetition
  required?, etc.)
  

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General Points

• Appropriate use of CB concepts ( other marketing
  classes) will be rewarded!
  
• Attitude change classical conditioning
  peripheral cues
  
• How to increase memory?
• What type of decision making would you encourage
  (e.g., CDM, habit) and how? (maybe involvement
  scores will help here)
  
• In general, think about role of involvement
• Price can be a crucial variable -- changing
  ei/bi. Can build a coherent strategy around
  price
  
• Do not try to address all weaknesses!
• But dont just make one recommendation!