CONSUMER BEHAVIOR AND MARKETING
STRATEGY
by
J. Paul Peter & Jerry C. Olson
Fifth Edition
Irwin McGrawhill Companies
Copyright 1999
United States
Buying a Set of
Dishes
In mid september Barbara decided to
host a dinner party for 10 people on October 17. She immediately called and
invited all the guests. But now she had a problem: She didn’t have enough
dishes to serve 10 people. Actually Barbara had two sets of dishes Wedgwood
stoneware and Lenox china but several pieces of the stoneware had broken over
the years and she had only seven place settings of the china. Barbara decided
she had to buy some new dishes. Given her budget restrictions, Barbara decided
to replace the missing pieces of stoneware would be less expensive than the
china.
That Friday Barbara called several
department stores, only to discover that none of them had her pattern in stock.
In fact, they said it would take from two to six months to get the dishes and
the Wedgwood would probably discontinue the pattern soon. Barbara decided to
order the someware and borrow dishes for the party. First, though she would
check with her husband.
Barbara’s husband was not very
enthuastic. He thought replacing the stoneware might be more expensive than
buying a complete set of new dishes, especially with the sales at the
department stores: and he noted that a six month wait was also a high cost.
Besides, their old stoneware was chipped and scratched. But Barbara argued that
at the sale prices, it might be better to replace the missing stoneware or to
add three place setting to the china. Barbara developed a complex plan to take
all of these factors into consideration. She decided that if finishing her set
of china cost $200 or less than the stoneware replacements, she would buy three
place settings of china. If a new set of stoneware cost $100 or less than
replacing the missing stoneware, she would buy the new set of stoneware dishes.
But if these two alternative actions were more expensive, she would order the
replacement pieces for her Wedgwood stoneware.
When she called stores to check sale
prices, Barbara learned that the sales offered 25 percent off all dishes in
stock. She also learned that one store was selling a service for eight of Chinese
porcelain for $100. At that price, she could buy two sets (a service for 16)
for less than any of her other options would cost. She decided to buy the
Chinese porcelain if she liked it.
On Saturday morning Barbara’s mother in
law called, and Barbara reviewed the situation with her. Barbara’s mother in
law said to forget the Chinese porcelain because it is too fragile either bone
china or stoneware is much stronger. She also told Barbara about a factory
outlet that had a large inventory and very low prices, but she had forgotten
the name. Barbara decided to go back to her previous plan but to check out the
factory outlet too.
Barbara began to visit department
stores. She learned from one salesperson that porcelain and bone china are
equally strong and both are stronger than stoneware. She also discovered that
ordering the replacement Wedgwood would cost several hundred dollars and could
take up to 12 months.
Barbara saw an Imari stoneware pattern
she liked that was on sale and within her budget. She decided to check with the
factory outlet to see whether it had the Imari pattern because she might be
able to save a lot of money buying at the outlet. If the price was low enough,
it might be worth the hour and a half round trip drive.
Barbara found the number of the outlet
and called it. She learned it did not have the Imari pattern in stock and an
order would take two months. However it did have many other patterns. Although
the outlet could not quote prices over the phone, Barbara was told that many
people drive a considerable distance to shop there. Now Barbara was in a
quandary. She could probably save considerable money by going to the outlet,
but it was a long drive and she couldn’t go until the weekend. But by then the
department store might be sold out of the Imari pattern she liked. And there
was a chance that she wouldn’t find anything she liked at the outlet. However
the outlet did have a large inventory, so she probably would find an acceptable
pattern. Barbara decided to check out the Chinese porcelain and buy it if she
liked it. Otherwise, she would drive to the outlet on the weekend and buy
something.
On Wednesday Barbara went to the
department store to examine the Chinese porcelain. Although it was pretty, it
came only in a delicate flower pattern, which she did not like. She decided to
drive to the outlet right away. If it didn’t have anything she liked, she could
go back to the department store and buy the Imari Pattern.
Barbara drove 45 minutes to the outlet.
It had a huge inventory at much lower prices than the department store.
However, none of the stoneware had the oriental pattern she wanted. So she
telephoned the department store to see whether it still had the Imari pattern.
It did, but it didn’t have the 10 place settings left. Perhaps this
disappointment led Barbara to ask once again if the outlet had the Imari
pattern. She was surprised to find that it did have the pattern in stock, and
even better, it was on sale for 25 percent off the already low price.
Unfortunately, the dishes were at the warehouse and couldn’t be picked up for 7
to 10 days. Barbara was pleased to find a complete set of the dishes she liked
best at an acceptable price. Her only worry was that the dinner party was
exactly 10 days away. She decided to order the Imari dishes and take the chance
that they would be there on time (They were…and the dinner party was a great
success.)
Source: Adapted from Barbara
Hayes-Roth, “Opportunities in Consumer Behavior, “In Advances in Consumer
Research, vol.9, ed. Andrew A. Mitchell (Ann Arbor, MI: Association for
Consumer Research, 1982) pp.132-35.
This example describes a complex
npurchase process that involves making several decisions. A decision involves a
choice “between two or more alternative actions [or behaviors]. “Decisions
always require choices between different behaviors. For instance, after
examining the products in a vending machine, Joe chooses a Snickers candy bar
instead of a package Reese’s Pieces. His choice was between the alternative
actions of buying Snickers versus buying Reese’s Pieces. Jill is trying
to decide whether to see a particular movie. Her choice is really between
the set of behaviors involved in attending the movie versus the behaviors
involved in staying home (or going bowling, or whether behavioral alternatives
she was considering). In sum, even though marketers often refer to choices
between objects (products, brand, stores), consumers actually are choosing
between alternative behaviors that concern those objects.
Marketers are particularly interested
in consumers purchase behaviors, especially their choices of which brands to
buy. Given the marketing orientation of this text, we emphasize consumers
purchase choices (“Should I buy Levi’s or Wrangler jeans?”). It must be
recognized, however, that consumers also make many decisions about non-purchase
behaviors, especially their choices of which brands to buy. Given the marketing
orientation of this text, we emphasize consumer purchase choices (“Should I buy
Levi’s or Wrangler jeans?). It must be recognized however that consumers also
make many decisions about non-purchase behaviors. Sometimes these nonpurchase
choices can influence consumers purchase decisions (deciding to go for a walk
or watch TV may expose consumers to marketing information about products).
Sometimes these other behaviors are the targets of marketing strategies “ Core
down to our store this afternoon for free coffee and doughnuts.” Our analyses
of purchase decisions can be generalized to these non-purchase choices.
As shown in our model of consumer
decision making in Exhibit 7.1, all aspects of affect and cognition are
involved in consumer decision making, including the knowledge, meanings, and
beliefs activated from memory and the attention and comprehension processes
involved in interpreting new information in the environment. The key process
involved in interpreting new information in the environment. The key process in
consumer decision making, however is the integration process by which knowledge
is combined to evaluate two or more alternative behaviors and select one. The
outcome of this integration process is a choice represented cognitively as a
behavioral intention (BI). As you learned in the previous chapter, a behavioral
intention is a plan (sometimes called a decision plan) to engage in some
behavior.
We assume all voluntary behaviors are
based on the intentions produced when consumers consciously choose from among
alternative actions. Thus decision making processes occur even for impulsive
purchases that seem to underlie fads (see Highlight 7.1). This does not mean
however that a conscious decision making processes necessarily occurs each time
a purchase behavior is performed. Some voluntary behaviors become habitual.
They are based on intentions stored in memory that were formed by a past
decision making process. When activated these previously formed intentions or
decision plans automatically influence behavior; additional decision making
processes may not be necessary. Finally some behaviors are not voluntary and
are affected largely by environmental factors. For instance, product displays
and aisle placements dictate how consumers move through stores. Decision making
is not relevant in such cases.
Exhibit 7.1
A Cognitive
Processing Model of Consumer Decision Making
Exposure to environmental information
|
|
Interpretation processes
|
|
Attention Comprehension
|
|
New knowledge, meanings and beliefs
|
Memory
|
Integration Processes
|
Stored knowledge, meanings, and
beliefs
|
Attitudes and intentions Decision
making
|
|
Behavior
|
In this chapter we view consumer
decision making as a problem solving process. We begin with a general
discussion of this perspective. Then we identify and describe the key elements
in a problem solving approach. Next we discuss the problem solving processes
involved in purchase decisions. We identify three levels of problem solving
effort and describe several influences on problem solving activities. We
conclude by identifying several implications of consumer problem solving for
marketing strategy.
Highlight 7.1
Decision Making
Processes In Fads
Why do so many people suddenly buy lava
lamps, take melatonin, or get their eyebrows pierced seemingly all the same
time? Understanding how fads start up and end requires an understanding of
consumers decisions underlying fad behavior.
Economists are bothered by fads, given
their assumption that consumer behavior is basically rational. The rationality
assumption is hard to reconcile with the herd behavior that drives the inflated
stock prices for favored companies of the moment or the popularity of some pop
singing groups (the Spice Girls were widly popular in 1997).
The world of fashion is a good place to
find faddish behavior: What are the latest fashion fads on your college campus?
Fads occur even in medicine: For many years doctors did tonsillectomies almost
routinely, but now that operation is out favor. Fadlike behavior even occurs in
the animal kingdom. Consider how territorial creatures such as birds flock
together in nesting or feeding grounds as latecomers copy the actions of early
arrivals. The females of some species seem to select mates by imitation. A male
that has mated with one or two females may find himself in high demand by other
females.
A theory of fads proposed in 1992
suggests that people tend to imitate the actions of others when forced to make
choices based on limited information about what is best, or what is
appropriate. These uncertain situations may spawn a “chain reaction or cascade
of imitation” among consumers that fuels the fad. Many purchase situations do
involve a lot of uncertainty, such as new styles of clothing, music, furniture
or automobiles. Consumers seem to decide whether to buy such products by
integrating their knowledge about the value of certain choice alternative
(which may be minimal), with their observations of what other consumers are
choosing. Even if some consumers feel like saying “no” to a new product, a few
“yes” responses by others may be enough to override their personal feelings and
induce them to purchase and use the product. In turn, their “yes” behaviors can
influence others to do the same, thus contributing to the cascade of imitation
that fuels of a fad.
Although fads are very difficult to
predict, they can create major marketing opportunities for a company. Consider
the popularity of sports utility vehicles among suburban car buyers. However
fads tend to be fragile, so if a number of people begin to say “no”, the fad
may end rather quickly (this may be occuring with sports utility
vehicles). What fads currently are prevalent (or dying) in your area?
Source: David, “Why People
Often Act Like Sheep: The Theory of Fads, “Fortune, October 14, 1996, pp.49,
52.
Decision Making as
Problem Solving
In treating consumer decision making as
problem solving, we assume consumers have goals (desired consequences or values
in a means end chain) that they seek to achieve or satisfy. A consumer
perceives a “problem” because the desired consequences have not been attained
(“I’am hungry. I need a reliable car. I want to lose weight.”). Consumers make
decisions about which behaviors to perform to achieve their goals and thus
“solve the problem.” In this sense, then, consumer decision making is a goal
directed, problem solving process.
As the opening example illustrates,
consumer problem solving is actually a continous stream of interactions among
environmental factors, cognitive and affective processes and behavioral
actions. Researchers can divide this stream into separate stages and
subprocesses to simplify analysis and facilitate understanding. Exhibit 7.2
presents one such model of problem solving that identifies five basic stages or
subprocesses. The first stage involves problem recognition. In the opening
example, Barbara’s plan to host a dinner party made her aware of a problem she
needed a set of dishes for 10 people. The next stage of the problem solving
processes involve searching alternative solutions. (Barbara called and visited
stores, talked to sales people and discussed the purchase with her mother in
law). At the next stage alternatives are evaluated and the most desirable
action is chosen. (Barbara evaluated dishes as she found them during her
search. In the end she decided formed a behavioral intention to buy the Imari
pattern at the factory outlet). In the next stage purchase the choice/intention
is carried out. (Barbara ordered the dishes and then returned a few days
later to pay for them and pick them up.) Finally, the purchased product is used
and the consumer may reevaluate the wisdom of the decision. (Apparantly Barbara
was quite satisfied with the dishes and with her problem solving process.)
Exhibit 7.2
A Generic Model of Problem
Solving
Problem recognition
|
Perceived difference between ideal
and actual state of affairs.
|
Search for
alternative solutions
|
Seek relevant information about
potential solutions to the problem for external environment, or activate
knowledge from memory.
|
Evaluations of
alternatives
|
Evaluate or judge competing
alternatives in terms of salient beliefs about relevant consequences and
combine this knowledge to make a choice.
|
Purchase
|
Buy the chosen alternative.
|
Post-purchase use
and reevaluation of chosen alternative
|
Use the chosen alternative and
evaluate it again in light of its performance.
|
Source: There are many
sources for this general model. See James Engel and Roger D. Blackwell,
Consumer Behavior, 4th ed. (Hinsdale, IL:Dryden Press, 1982).
In summary this basic model identifies
severalimportant activities involved in problem solving, beginning with problem
recognition which activates of the initial motivation to engage in problem
solving. Other activities include searching for information relevant to the
problem, evaluating alternative actions and choosing an action.
However, for several reasons, the
generic model often provides an imperfect account of actual problem solving
processes such as those in the opening example. One reason is that actual
Consumer problem solving seldom proceeds in the linier sequence portrayed in
the generic model. For instance, Barbara evaluated alternative dishes as soon
as she found them; she did not wait until she found all the alternatives.
Second, as emphasized in Our Wheel of
Consumer Analysis (refer to Exhibit 2.3), actual problem solving processes
involve multiple, continuous interactions among consumers cognitive processes,
their behaviors and aspects of the physical and social environment. Such
interactions occurred throughout Barbara‘s problem solving process. For
instance, her cognition (beliefs) changed as a function of environmental
information her behaviors led her to: First her mother in Law said Chinese
porcelain is fragile but later a salesperson is said it is quite strong. These
complex interactions are not easily handled by the generic model.
Third, most problem solving processes
actually involve multiple problems and multiple decisions. Consider the number
of separate decisions. Barbara made during the two weeks of her problem solving
process: Should I go to the department store? Should I drive to the factory
outlet? When should I go? Should I get the Chinese porcelain? Actual problem
solving processes ussually involve several choices that produce multiple
behavioral intentions. Each intention is a step in an overall decision plan.
The decision plan produces a sequence of purposive behaviors that consumers
perform to achieve their desired goals (go to the department store, find the
dishes section, look at Chinese porcelain). The generic model implies that
consumer problem solving involves one decision, typically brand choices, but
this is seldom the case.
Our cognitive processing model of
consumer decision making shown in Exhibit 7.1, is flexible enough to account
for the nonlinier, continuous flow of interactions among behaviors,
environments and cognition's; and for the multiple decisions that occur in
actual consumer problem solving episodes. Moreover, it can help us understand
how consumer process information during the important problem solving stages of
problem recognition, search information and evaluation of alternatives. Before
using this model to analyze actual consumer decisions, however, we must discuss
several elements of problem solving.
Elements of Problem
Solving
In this section we describe three basic
elements of problem solving problem representation, integration processes and
decision plans. Later we discuss how they operate In consumer decision making.
Problem
Representation
When faced with a choice, consumers
must interpret or represent various aspects of the decision problem. This
problem representation may include (1) an end goal, (2) a set of sub goals
organized into a goal hierarchy (3) relevant product knowledge and (4) a set of
simple rules or heuristics by which consumers search for, evaluate and
integrate this knowledge to make a choice. A problem representation serves as a
decision frame a perspective or frame of reference through which the decision
maker views the problem and the alternatives to be evaluated.
Often consumers initial problem
representations are not clear or well developed (Barbara’s wasn’t). Neither are
they fixed. In fact, the components of a problem representation often change
during the decision making process, as was true in the opening example.
Marketers sometimes try to influence how consumers represent or frame a
purchase choice. For instance, consumers might be portrayed in advertisements
as representing and then trying to solve a purchase problem in a particular
way. Salespeople also try to influence consumers problem representations by
suggesting end goals (buy life insurance to assure your children’s college
education), imparting product knowledge (this special flash eliminates red eyes
in the pictures), or suggesting choice rules (the more expensive coat is of
higher quality).
The basic consequences, needs, or
values that consumers want to achieve or satisfy are called end goals. They
provide the focus for the entire problem solving process. Some end goals
represent more concrete, tangible consequences; other end goals are more
abstract. For instance, a purchase decision to replace a bulb for a flashlight
probably involves the simple end goal of obtaining a bulb that lights up a
simple functional consequence. Other product choices involve more abstract end
goals such as desired psychosocial consequences of a product some consumers
want to serve a wine that indicate their good taste to their guests.
Finally, end goals such as instrumental and terminal values are even more
abstract and general consumer might choose a car that makes them feel powerful
or enhances their self esteem. End goals also vary in evaluation. Some consumer
decisions are oriented toward positive, desirable end goals, while others are
focused on negative end goals aversive consequences the consumer wishes to
avoid.
Some end goals (e.g, being happy) are
so general and broad that they cannot be directly acted on by consumers. For
instance, most consumers cannot specify the decision plan of specific actions
that will yield the best restaurant or avoid a “lemon” of a car. When consumers
try to solve problems involving abstract end goals, they break down the general
goal into several more specific subgoals. The end goal and its subgoals are a
goal hierarchy. Forming a goal hierarchy is analogous to decomposing a complex
problem into a series of rimpler subproblems, each of which can be dealt with
separately. For instance, buying a new car requires at least one trip to a
showroom, which generates the subproblems of which dealer(s) to visit and when
to go shopping. Usually the consumer can generate a solution to the overall
problem by solving the simpler subproblems in order.
Consumer’s relevant knowledge in memory
about the choice domain is an important element in problem solving. Some
knowledge may be acquired by interpreting information encountered in the
environment during the problem solving process. For instance, in the opening
example, Barbara learned a lot about porcelain, factory locations, and price
rangers for dishes. Other relevant knowledge may be activated from memory for
use in integration processes. The relevance of knowledge is determined by its
means end linkages to the currently active and goal. Parts of the activated
knowledge may be combined in the integration processes by which consumers
evaluate alternative behaviors (form A act) and choose among them (form BI).
Two types of knowledge are particularly important in problem solving choice
alternatives and choice criteria.
Exhibit 7.3
Forming a
Consideration Set of Brand Choice Alternatives
All brands in product
class
|
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Unknown brands
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Familiar brands
|
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Brands found
|
Evoked set
|
||
Brands found
|
through
|
(brands activated
|
Uncalled
|
accidentally
|
Intentional search
|
from memory)
|
Brands
|
Consideration set
|
|||
of brand choice
|
|||
alternatives
|
Choice alternatives are the alternative
behaviors that consumers consider in the problem solving process. For purchase
decisions, the choice alternatives are the different product classes, product
forms, brands, or models the consumer considers buying. For other types of
decisions, the choice alternatives might be different stores to visit, times of
the day or week to go shopping, or methods of payment (cash, check, or credit
card). Given their limited time, energy and cognitive capacity, consumers
seldom consider every possible choice alternative. Usually only a subset of all
possible alternatives called the consideration set is evaluated.
Exhibit 7.3 illustrates how manageable
consideration set of brands can be constructed during the problem solving
process. Some of the brands in the consideration set may be activated directly
from memory; this group is called the evoked set. For highly familiar
decisions, consumers may not consider any brands beyond those in the evoked
set. If consumers are confident they already know the important choice
alternatives, they are not likely to search for additional ones. In other
decisions, choice alternatives may be found through intentional search
activities such as reading Consumer Reports, talking to knowledgeable friends,
or finding brands while shopping. Finally consumers may learn of still other
choice alternatives through accidental exposure to information in the
environment, such as overhearing a conversation about a new brand, new store,
or sale. In the opening case, Barbara learned about the factory outlet from her
mother in law, essentially by accident. However the choice alternatives are
generated, consumers form a consideration set of possible purchase options to
be evaluated in the decision making process.
To be successful, a brand must be
included in the consideration sets of at least some consumers. Consider that
Kali Klena, marketing manager at Kellogg, flew from Milwankee to Chicago even
through a one way flight costs between $34 and $186 and can take as long as
three hours, including checkin time and transportation to and from the
airports. Another choice alternative, the Amtrak train, takes half that time
and costs only $19. Ms Klena didn’t take the rain because…well… she never
thanks of taking the train. The train never entered her consideration
set.
Marketers therefore develop strategies
to increase the likelihood that a brand will be activated from consumer
memories and included in their evoked sets of choice alternatives. The
activation potential of a brand will be activated from consumers memories and
included in their evoked sets of choice alternatives. The activation potential
of a brand, sometimes called its top of mind awareness, is influenced by many
factors. One is the amount of past experience consumers have had in
purchasing and using the brand. Consumers are much more likely to think of
(activate) brands that they have used before. For this reason, popular brands
with higher market shares have a distinct advantage. Because they are used by
more consumers, these brands are more likely to be activated from memory
and included in more consumers consideration sets. This increase the brands
probability of purchase, which in turn increases their activation potential and
so on. In contrast, unfamiliar and low market share brands are at a
disadvantage because they are much less likely to be activated in consumers
evoked sets and thereby be considered as choice alternatives.
One marketing strategy to increase the
activation potential of brand is the repetitive and costly advertising
campaigns devised by marketers of cigarettes, beer, soft drinks, and toothpaste
(among others). The heavy expenditures may be worthwhile because brands with
high top of mind awareness are more likely to be included in the evoked set of
choice alternatives that “come to mind” during problem solving processes.
Finally a company’s distribution
strategy can influence whether a brand is in consumers consideration sets.
Consider food products, for which an estimated 65 percent of decisions are made
in the store. A key for marketing strategy for such products is making sure the
product is always on the shelf. This enhances the likelihood that consumers
will encounter the brand at the time of the decision, which increases its
chances of entering consumers consideration sets and thus the probability of
purchase.
Package design can influence both the
consideration set and the choice decision. Package design can catch the
consumers attention in the store and increase the probability of considering
the product further. Packaging also communicate important information such as
ingredients, the products ease of use, and overall value which may be
integrated in the consumers decision process.
As we described in Chapter 6, consumers
evaluations of the choice alternatives in the consideration set are based on
their beliefs about the consequences of buying those products or brands. The
specific consequences that are used to evaluate and choose among choice
alternatives are called choice criteria. Virtually any type of product related
consequence can become a choice criterion in a brand choice decision, including
salient beliefs about functional consequences (product performance),
psychosocial consequences (admiration of friends) or value consequences (a
sense of achievement or self-esteem). For most decisions, consumers probably
have beliefs stored in memory about some of the choice alternatives in their
consideration sets. If additional knowledge is desired consumers may form a
subgoal of obtaining information about those choice alternatives. In the
opening case, Barbara engaged in a substantial amount of intentional search to
identify possible choice alternatives and form beliefs about appropriate choice
criteria.
The probability that product knowledge
is activated and used in the evaluation process is influenced strongly by the
means and relevance of that knowledge to the goal or subgoal being considered.
For instance, if the dominant end goal is self esteem, then beliefs about
product consequences that are perceived as helping to achieve self-esteem are
most likely to be used as choice criteria. Differences in the purchase context
such as buying a sweater for your self versus buying one as gift may activate
different end goals (being perceived as stylish versus being perceived as
generous). These end goals (being perceived as stylish versus being perceived
as generous). These end goals, in turn, may activate different choice criteria
(fashionable design versus looks like it cost a lot).
As we discussed in earlier chapters,
marketers often place prominent stimuli in the immediate decision environment
to activate certain choice criteria from consumers memories. For instance,
special price tags activate beliefs about price consequences (saving money). Prominent
labels on food packages, such as “sugar-free” or “low sodium,”enhance the
likelihood that the consequences associated with those attributes (good health)
will be used as choice criteria. Finally salespeople often emphasize certain
product benefits in their sales pitches,which increases the likelihood that
beliefs about those consequences will be used as choice criteria.
Not every activated belief about
product or brand consequences is necessarily used as a choice criterion. Only
discriminant consequences-consequences that are perceived to differ across
choice alternatives can be used as choice criteria. Beliefs about common or
very similar consequences of the choice alternatives do not discriminate
between alternative actions. To present an obvious example, if all the soft
drinks in a vending machine contain caffeine, the consequences of caffeine
(stimulation) cannot be used as a choice criterion for deciding which brand to
buy. However, if a different set of choice alternatives (brands that vary in caffeine
content) is being considered, caffeine content might be a choice criterion.
This is an important point. The choice criteria that are relevant (activated)
for a decision depend, in part, on the particular set of choice alternatives
under consideration. Highlight 7.2 discusses other influences on choice
criteria that are used in the decision making process.
Highlight 7.2
Choice Criteria for
“Gross Shoppers” and “Swing Shoppers”
Consumers do not always appear to be
consistent in their use of choice criteria to make purchase decisions. For
instance, an executive who owns a fancy BMW automobile might buy gas at a
discount service station. A person might buy an expensive sweater at a boutique
but purchase jeans Kmart. This polarization between buying some items at high
priced, status oriented stores and other items at mass volume, discount
merchandisers is called “cross shopping“ or “swing shopping.” Cross shopping
means a confident career woman would think nothing of pairing an inexpensive
Lands End blouse with a $225 Hermes scarf.
Cross shoppers treat price and quality
differently in making their purchase decisions. Many people developed a taste
for quality in the 1980s and even though price became a more important choice
criterion in the 1990s, they were unwilling to completely give up the quality
they wanted. Thus consumers who cut back on dining at expensive restaurants
might indulge them selves at the grocery store with a high quality, expensive
jam, mustard, or olive oil. According to consultant Judith Langer, “Consumers
have cut back on so many big things that they feel a need for small treats.”
During the 1980s, consumers became more
knowledgeable, savvy and discerning in their judgments about product quality,
price, and value. More of them wonder why they should pay $25 for a turtleneck
at Banana Republic that they could buy at Lands End for $15. Cross shopping
consumers look to value as the key choice criterion, which they interpret as
the desired level of quality at the best price. Often, the level of desired
level of quality at the best price. Often the level of desired quality varies
from one product to another the cross shopping sweater buyer does not feel
compelled to wear the highers quality jeans. Cross shoppers may vary their
choice criteria from one product to another as they make purchase decisions.
Thus, a cross shopper might buy the inexpensive store brand of paper towel and
the expensive national brand of orange juice. In part, cross shopping has
contributed to the growing demand for private or store label brands, which had
a 19.7 percent market share of grocery products in 1993 up from 15,3 percent
1988.
As the cross shopping phenomenon grows,
marketers must remember that consumers use choice criteria in ways that make
sense to them. The problem for marketers is to understand the various meanings
of choice criteria from one purchase decision to another.
Source: Kathleen Deveny and
Eben Shapiro, “Stingy When Selecting Grocery Basics, Consumers Still Splurge on
Fancy Foods,” The Wall Street Journal, August 10, 1933, pp. B1, B8; Gretchen
Morgenson, “Here Come the Cross-Shoppers, “Forbes, December 7, 1992, pp.90-101;
Chad Rubel, “Price, Quality Important for Private Label Goods,”Marketing News,
January 2 1995, p.24.
Consumers choice criteria also vary in
evaluation. Some choice criteria are perceived as positive, desireable
consequences and elicit positive affective responses. Other choice criteria,
such as price, may be thought about in negative terms as unpleasant
consequences or perceived risks to be avoided. To avoid rejection, marketers
may try to reduce perceived risk by assuring consumers of product quality or by
offering warranties and guarantees. Consumers tend to reject choice
alternatives perceived to have negative consequences unless they also have
several positive consequences. For example, many Americans treat caffeine as a
negative choice criterion. The popularity of this choice criterion was
influenced by basic changes in societal values about health and by 7Ups no
caffeine marketing strategy “Never had it, never will.”Other soift drink
manufacturers responded to consumers increasing use of this negative choice
criterion by introducing their own brands of caffeine free soft drinks.
Consumers who perceive that a choice involves both positive and negative
consequences may be motivated to search for information to resolve the conflict
between the benefits and risks of the decision.
Integration Processes
The integration processes involved in
problem solving perform two essential tasks: The choice alternatives must be
evaluated in terms of the choice criteria and then one of the alternatives must
be chosen. Two types of integration procedures can account for these evaluation
and choice processes: formal integration strategies and simpler procedures
called heuristics.
Exhibit 7.4 presents several formal
models of the integration processes involved in evaluating and choosing among
choice alternatives. The key distinction is between compensatory and
noncomponensatory approaches.
Compensatory integration processes
combine all the salient beliefs about the consequences of the choice
alternatives to form an overall evaluation or attitude (A act) toward each
behavioral alternative. The multiattribute attitude model (A act= A bi ei) is a
compensatory model, so called because a negative consequence (expensive) can be
compensated for or balanced by a positive consequence (high status). It is
important to recognize that consumers do not necessarily integrate large
numbers of beliefs in their evaluation processes. In fact, given their limited
cognitive capacity, the number of choice criteria consumers can consider at one
time may be quite restricted, perhaps as few as one or two. Although the
multiattribute attitude model accounts for how the choice alternatives are
evaluated, it does not specify how the consumer chooses which behavior to
perform. Most marketers assume consumers select the alternative with the most
positive A act. Other choice rules are possible, however. For instance,
consumers might choose the first alternative they find with a positive A act.
Several types of noncompensatory
integration processes are also described in Exhibit 7.4 They are
noncompensatory because the salient beliefs about the positive and negative
consequences of the choice alternatives do not balance or compensate for each
other. For example, applying the conjunctive choice rule requires that an
alternative be rejected if any one of its consquences does not surpass a
minimum threshold level of acceptability. Thus, Edie might reject a particular
model of Reebok aerobic shoe if it has one negative consequence (too
expensive), even though it has several other positive consequences (good
support, comfortable, stylish colors). As another example, applying a
lexicographic integration strategy might require a consideration of only one
choice criterion, which makes a compensatory process impossible. Tina might
evaluate a pair of dress shoes favorably and buy them because they are superior
to the other alternatives on the most important consequence (the color matches
her outfit exactly), whereas other, even unfavorable consequences are not
considered (not desirable and slightly uncomfortable).
Research suggests consumers do not seem
to follow any single rule or strategy in evaluating and choosing from among
alternatives. For one thing, they probably do not have sufficient cognitive
capacity to simultinously integrate several beliefs about many alternatives.
Compensatory integration processes are especially likely to exceed cognitive capacity
limits. Moreover many problem solving tasks do not involve a single choice to
which a single integration rule could be applied. Instead, consumers make
multiple choices in most purchase situations (choices of information sources to
examine, stores to visit, product forms or brands to buy, methods of payment).
Each choice is a separate subproblem that requires separate integration
processes.
Exhibit 7.4
Formal Models of
Information Integration Processes in Choice
Compensatory
processes
|
|
Multiattribute model
|
A perceived weakness or negative
evaluation on one criterion can be compensated for by a positive evaluation
on another criterion. Separate evaluations for each choice criterion are
combined (added or averaged) to form an overall evaluation of each
alternative. Then the highest rated alternative is chosen.
|
Noncompensatory
processes
|
|
Conjunctive
|
Consumer establishes a minimum
acceptable level for each choice criterion. Accept an alternative only if
every criterion equals or esceeds the minimum cutoff level.
|
Disjunctive
|
Consumer establishes acceptable
standards for each criterion. Accept an alternative only if every criterion
equals or exceeds the minimun cutoff level.
|
Lexicographic
|
Consumer ranks choice criteria from
most to least important. Choose the best alternative on the most important
criterion. If tie occurs, select best alternative on second most important
criterion and so on.
|
Elimination by aspects
|
Consumer establishes minimum cutoffs
for each choice criterion. Select one criterion and eliminate all
alternatives that do not exceed the cutoff level. Continue eliminating
alternatives until one alternative remains. Choose it.
|
Combination
processes
|
Mix of compensatory and
noncompensatory processes combined or “constructed” on the spot to adapt to
environmental factors.
|
Source: Adapted from James R.
Bettman, An Information Processing Theory of Consumer Choice, copy right 1979,
Addison Wesley Publishing Co., Inc. Reading, Massachussetts. Reprinted with
permission of the publisher.
Rather than a single integration
strategy, consumers are likely to use a combination of processes in many
problem solving situations. A noncompensatory strategy might be used to quickly
reduce the choice alternativee to manageable number by rejecting those that
lack one or two key criteria (a conjunctive strategy). For example, Bill might
reject all restaurants that do not have a salad bar. Then the remaining brands
in his consideration set (perhaps only two or three restaurants) could be
evaluated on several choice criteria (price level, variety, atmosphere) using a
more sterenous compensatory strategy.
Another issue is whether consumers have
complete integration rules stored in memory ready to be activated and applied
to the relevant product beliefs. Current research suggests instead that most
integration processes are constructed at the time they are needed to fit the
current situation. This suggests that rather than following fixed strategies,
consumers integration processes are relatively simple, very flexible and easily
adapted to varying decision situations. These simple integration “rules” are
called heuristics.
Basically, heuristics are simple “if
….,then…..” productions that connect an event with an appropriate action.
Because they are applied to only a few bits and pieces of knowledge at a time,
heuristics are highly adaptive to specific environmental situations and are not
likely to exceed cognitive capacity limits. Heuristics may be stored in memory
like miniature scripts that are applied fairly automatically to information
encountered in the environment. Or they may be constructed on the spot in
response to the immediate environment.
Exhibit 7.5 presents examples of three
types of heuristics that are particularly important in problem solving. Search
heuristics are simple procedures for seeking information relevant to a
goal.Some consumers have a simple search rule for buying any small durable
product such as a radio or a kitchen appliance read the product tests in
Consumer Reports. Evaluation heuristics are procedures for evaluating and
weighting beliefs in terms of the current goal being addressed in the problem
solving process. Dieting consumers may have a heuristics that identifies the
most important choice criteria for food few calories and the resulting
consequences of losing weight. Choice heuristics are simple procedures for
comparing evaluations of alternative you bought last time if it was satisfactory;
another is to rely on an experts advice.
Decision Plan
The process of identifying, evaluating
and choosing among alternatives during problem solving produces a decision plan
made up of one or more behavioral intentions. Decision plans vary in their specificity
and complexity. Specific decision plans concern intentions to perform
particular behaviors in highly defined situations: “This afternoon Jim intends
to go to Penney’s and buy a blue cotton sweater to go with his new slacks.
“Other decision plans involve rather general intentions: “Paula intends to shop
for a new car sometime soon. “Some decision plans contain a simple intention to
perform a single behavior: “Andy intends to buy a large tube of Aim toothpaste.
“In contrast, more complex decision plans involve a set of intentions to
perform a series of behaviors. “Val intends to go Bloomingdale’s and Macy’s,
browse through their sportswear departments and look for a lightweight jacket.”
Exhibit 7.5
Example of Consumer
Heuristics
Search heuristics
|
Examples
|
Store selection
|
If you are buying stereo equipment
always go to Sam’s Hi-fi
|
Sources of information
|
If you want to know which
alternatives are worth searching for read the test reports in Consumer
Reports
|
Source credibility
|
If a magazine accepts advertisements
from the tested products don’t believe its product tests.
|
Evaluation
heuristics
|
Examples
|
Key criteria
|
If comparing processed foods, Examine
sodium contest
|
Negative criteria
|
If a salient consequence is negative
(high sodium content), give this choice criterion extra weight in the
integration process.
|
Significant differences
|
If alternatives are similar on a
salient consequence (all low sodium), ignore that choice criterion.
|
Choice heuristics
|
Examples
|
For familiar,
frequently purchased products:
|
If choosing among
familiar products,,,,
|
Work best
|
Choose the product that you think
work best that provides the best level of performance on the most relevant
functional consequences.
|
Affect referral
|
Choose the alternative you like the
best (select the alternative with most favorable attitude).
|
Bought last
|
Select the alternative you used last,
if was satisfactory.
|
Important person
|
Choose the alternative that some
“important” person (spouse, child, friend) likes
|
Price-based rule
|
Buy the least expensive alternative
(or buy the most expensive, depending on your beliefs about the relationship
of price to product quality).
|
Promotion rule
|
Choose an alternative for which you
have a coupon or that you can get at a price reduction (seasonal sale,
promotional rebate, special price reduction).
|
For new, unfamiliar
products:
|
If choosing among
unfamiliar products…
|
Wait and see
|
Don’t buy any software until someone
you know has used it for at least a month and recommends it. Don’t buy a new
car (computer etc.) until the second model year.
|
Expert consultant
|
Find an expert or more knowledgable
person, have him or her evaluate the alternatives in terms of your goals,
then buy the alternative the expert selects.
|
Source: Adapted from “An
Examination of Consumer Decision Making for a Common Repeat Purchase
Product,”by Wayne D. Hoyer, in Journal of Consumer Research, December 1984, pp.
822-29. Reprinted by permission of the publisher, University of Chicago.
Having a decision plan increases the
likelihood that the intended behaviors will be performed. However, as we
discussed in Chapter 6, behavioral intentions are not always carried out. For
instance, a purchase intention may be blocked or modified if environmental
circumtances make it difficult for the decision plan to be accomplished.
Perhaps the problem solving process will recycle and a new decision plan might
be developed. “Andy found that the store was sold out of large tubes of Aim, so
he decided to buy two medium sized tubes. “Sometimes unaticipated events
identify additional choice alternatives or change consumers beliefs about appropriate
choice criteria; this could lead to a revised decision plan: “While reading the
paper, Val learned that Saks was having a 25 percent off sale on light weight
jackets, so she decided to shop there first instead of Bloomingdale’s.
Problem-Solving
Processes in Purchase Decisions
The amount of cognitive and behavioral
effort consumers put into their problem solving processes is highly variable.
Problem solving effort varies from virtually none (a decision plan is activated
from memory and is carried out automatically) to very extensive. For
convenience, marketers have divided this continum into three levels of problem
solving activity: extensive, limited, and routine or habitual.
Relatively few consumer choice problems
require extensive decision making, Extensive decision making usually involves a
substantial amount of search behavior required to identify choice alternatives
and learn the appropriate choice criteria with which to evaluate them.
Extensive decision making also involves multiple choice decisions and
substantial cognitive and behavioral effort. Finally it is likely to take
rather long periods such as Barbara’s decision to buy new dishes in the opening
exampler or purchasing your first stereo system.
Many consumers choice problems require
limited decision making. The amount of Problem Solvinf effort in limited
decision making ranges from low to moderate. Compared to extensive decision
making, limited decision making involves less search for information. Fewer
choice alternatives are considered and less integration processing is required.
Choices involving limited decision making usually are carried out fairly
quickly, with moderate levels of cognitive and behavioral effort.
For still other problems, consumer
choice behavior is habitual or routine, Routinized choice behavior such as
buying another Pepsi from the vending machine down the hall or purchasing a
package of gum at the checkout counter occurs relatively automatically with
little or no apparent cognitive processing. Compared to the other levels,
routinized choice behavior requires very little cognitive capacity or conscious
control. Basically a previously learned decision plan is activated from memory
and is carried out relatively automatically to produce behavior.
The amount effort consumers exert in
problem solving tends to decrease over times as they learn more about a product
and gain experience in making decisions. With repeated decisions, product and
brand knowledge becomes organized into means end structures and becomes more
clearly related to consumers goals. Consumers also learn new productions and
heuristics, which become organized into scripts or decision plans stored in
memory. When activated, these heuristics and decision scripts automatically
affect purchase related behaviors. Running down to the convenience store for a
loaf of bread or stopping to fill upp the car’s tank at a favorite gas station
are well developed decision plans that require little cognitive effort.
As another example of routinized choice
behavior, consider the study of 120 consumers who were observed shopping and
buying laundry detergent in three chain grocery stores. Most consumers examined
very few packages of detergent. In fact, 72 percent of the consumers looked at
only one package and only 11 percent looked at more than two. An even lower
number of packages were physically picked up 83 percent of the consumers picked
up only one package and only 4 percent picked up more than two. Obviously most
of these consumers were not engaged in much in store problem solving activity
for this product.
Finally consumers took an average of 13
seconds after they entered the aisle to make their detergent choices. Given
that the detergent section spans an entire aisle and that several seconds were
required to walk to the appropriate area, it is obvious the typical consumer is
making an extremely quick choice that involves minimal cognitive and behavioral
effort. The majority of consumers in this study were engaged in routinized
choice behavior. They were merely carrying out a simple decision plan, for
example, find the large size of Tide and buy it.
Influences on
Consumers Problem Solving Activities
The level of consumers problem solving
effort in making brand purchase decisions is influenced by environmental
factors as well as the cognitive (knowledge) and affective responses activated
during the problem solving process. We discuss three aspects of this activated
knowledge and affect that have direct effects on problem solving: (1) consumers
goals: (2) their knowledge about choice alternatives and choice criteria, as
well as heuristics for using this knowledge; and (3) their level of
involvement. Following the discussion of these affective and cognitive factors,
we examine several environmental influences on consumer problem solving.
Effects of End Goals
The particular end goals consumers are
striving to achieve have a powerful effect on the problem solving processes.
Exhibit 7.6 presents five broad end goals that lead to quite different problem
solving processes. For instance, consumers who have an optimizing end goal are
likely to expend substantial effort searching for the best possible
alternative. In contrast, consumers with a satisfaction/maintenance end goal
are likely to engage in minimal search behavior. In yet other decisions,
consumers may have conflicting end goals that must be resolved in the problem
solving processes.
In general marketers have relatively
little direct influence over consumers abstract end goals, such as basic
values. However, marketers can try to influence less abstract end goals, such
as desired functional or psychosocial consequences, through promotional
strategies. Perhaps the major implication for marketers is to identify the
dominant goals in consumers problem representations and design product and
promotion strategies that link product attributes to those goals.
Effects of Goal
Hierarchies
Consumers goal hierarchies for a
problem have a powerful influence on problem solving processes. If consumers
have a well defined goal hierarchy stored in memory, it may be activated and
the associated decision plan carried out automatically. Even if a complete
decision plan is not available, a general goal hierarchy provides a useful
structure for developing an effective decision plan without a great deal of
problem solving effort.
Exhibit 7.6
Types of Purchase End
Goals and Related Problem Solving Processes
Dominant End Goal
|
Basic Purchase
Motivation
|
Examples
|
Optimize satisfaction
|
Seek maximum positive consequences
|
Buy dinner at the best restaurant in
town
|
Prevention
|
Avoid potential unpleasant
consequences
|
Buy rust proofing for a new car
|
Resolve conflict
|
Seek satisfactory balance of positive
and negative consequences
|
Buy a moderately expensive car of
very good quality
|
Escape
|
Reduce or escape from current
aversive circumtances
|
Buy a shampoo to get rid of dandruff
|
Maintenance
|
Maintain satisfaction of basic need
with minimal effort
|
Buy bread at the nearest convenience
store
|
Sources: Adapted from
Geraldine Fennell, “Motivation Research Revisited,” Journal of Advertising
Research, June 1975, pp. 23-28; and J. Paul Peter and Lawarence X. Tarpey, Sr.,
“A Comparative Analysis of Three Consumer Decision Strategies, “Journal of
Consumer Research, June 1975, pp.29-37.
In contrast, consumers who have little
past experience will not have well developed goal hierarchies. Their problem
solving is likely to proceed haltingly, by trial and error. Consider first time
buyers of relatively important products such as stereos, sports equipmemnt,
cars, and houses. These consumers must construct a goal hierarchy (a series of
subgoals that seem related to the end goal) and develop a decision plan to
achieve each subgoal (as Barbara had to in the opening example). In these types
of decisions, marketers are likely to find confused or frustrated consumers who
use general “strategies” such as wandering around various stores in a mall
hoping to accidentally run into something that will satisfy their end goals.
Another reason for browsing without a
specific decision plan in mind is that the consumer feels involved with a
particular product class or form and likes to associate with it. Consumers who
are very interested in music may enjoy browsing in record shops. Some consumers
are involved with a particular store or set of stores in a mall or a shopping
area in town. Perhaps the atmosphere of these stores is exciting and
stimulating and this provides part of the attractions. In sum, browsing can and
usually does serve multiple goals, needs and values for different consumers.
Effects of
Involvement and Knowledge
Consumers problem solving processes are
greatly affected by the amount of product knowledge they have acquired through
their past experiences and by their level of involvement with the product
and/or the choice process. The activated knowledge about goals, choice
alternatives and choice criteria and heuristics affects consumers ability to
create an affective decision plan. Consumers involvement with the product or
decision affects their motivation to engage in the problem solving process.
Exhibit 7.7 summarize how different combinations of product knowledge and
involvement influence specific elements of consumers problem representations
and the overall problem solving process. Marketers should determine the levels
of knowledge and involvement of their target customers and develop strategies
consistent with the types of problem solving described in Exhibit 7.7.
Highlight 7.3 describes how Procter & Gamble responded to consumers who
engaged in routinized problem solving (low knowledge and involvement) because
of too many choices.
Environmental Effects
Environmental factors can affect
consumer decision making by interpreting or disrupting the ongoing flow of the
problem solving processes. Four types of disruptive events or interrupts have
been identified. First, interrupts can occur when unexpected information
(inconsistent with established knowledge structures) is encountered in the
environment. For instance, carrying out a decision plan or script may be
interrupted when you unexpectedly find that aspects of the physical or social
environment have changed a store has been remodeled and departments have been moved
around, a rejected brand now has a new attribute, or your friends now favor a
different night spot. These environmental interrupts may cause the consumer to
take conscious control of the problem solving processes, identify a new end
goal, develop a new goal hierarchy and construct a different decision plan. A
1997 strike at United Parcel Service (UPS) created a dramatic interrupt for
many businesses. As many as 90 million parcels were not picked up from small
retailers and manufacturers during the 15 day strike. Many UPS customers vowed
to diversity their shipping business in the future and the U.S. Postal Service
and Federal Express were able to capture some of UPSs customers.
Second prominent environmental stimuli
can interrupt a problem solving process. Many marketing strategies are intended
to interrupt consumers ongoing problem solving. For instance, a large in store
display for Oreo cookies, “as advertised” shelf tags, or the announcement of a
sales promotions (“Attention Kmart Shoppers. In aisle 3B we are offering…”) may
interrupt an ongoing problem solving process as well as activate new knowledge
or goals from memory.
Third, affective states such as moods
(feeling bored) and physiological events (feeling hungry, sleepy, or thirsty)
can interrupt an ongoing problem solving process. For instance, feeling tired
during a shopping trip might activate new goals and start a different problem
solving process (find a comfortable place to sit down and have a soda pop or
cup coffee). Getting into a bad mood can terminate a problem solving process.
Fourth, conflicts that arise during the
course of purchase decision making can interrupt the problem solving process.
Goal conflict occurs when consumers recognize the presence of incompatible
goals. Goal conflict may occur when consumers discover that alternatives cannot
be found to satisfy incompatible goals. For instance, Susan may experience an
approach-approach conflict in choosing between a new camera and a new stereo
receiver because each products leads to a desirable goal (creativity and
relaxation, respectively) but neither product can satisfy both goals.
Avoidance-avoidance conflicts occur when consumers choose between two
alternatives with different negative consequences. For instance, Sam is trying
to decide whether to buy a new suit. He doesn’t want to be embarrased by
continuing to wear his old suit, but he doesn’t want to spend money on a new
one, either. Finally, approach – avoidance conflicts occur when consumers
consider both the positive and negative consequences of a purchase or action.
For instance, Paul is trying to decide about a new personal cassette player
that is on sale for a very low price (positive outcome), but he is afraid the
quality may be low (negative outcome). Highlight 7.4 describes goal conflict in
a common decision.
Exhibit 7.7
Effects of
Involvement and Product Knowledge on Consumer Problem Solving Processes
Problem
representation:
|
Low involvement,
low knowledge:
|
Low involvement,
high knowledge:
|
Basic
motivation:
|
Choose
adequate product at minimum effort
|
Choose
satisfactory product with reasonable effort
|
End
Goal:
|
Obtain
desired functional consequence
|
Obtain
desired functional consequences
|
Goal
hierarchy:
|
Simple
hierarchy; Unclear, ill-defined subgoals; uncertainty about goals
|
Simple
hierarchy; Clear, well-defined subgoals; Certainty about goals
|
Consideration
set:
|
Very
few choice alternatives known or considered
|
Several
alternatives known;few considered
|
Choice
criteria:
|
A
few concrete attribute are used
|
A
few moderately abstract attributes are used
|
Decision
heuristics:
|
Use
a few simple search and decision heuristics
|
Use
a few search and decision heuristics
|
Decision
process:
|
Routinized
or very limited problem solving
|
Limited
(low) problem solving
|
Problem
representation:
|
High involvement,
high knowledge:
|
High involvement,
low knowledge:
|
Basic
motivation:
|
Choose
“best” product; “optimize” satisfaction
|
Choose
“best” product
|
End
Goal:
|
Obtain
desired value satisfaction
|
Obtain
psychological consequences or value
|
Goal
hierarchy:
|
More
complex hierarchy; Clear, well-defined subgoals; Certainty about goals
|
Unclear-ill
defined subgoals; construct hierarchy
|
Consideration
set:
|
Several
alternatives known and considered
|
Few
choice alternatives known initially; several considered
|
Choice
criteria:
|
Wide
range of relevant product knowledge is available for use
|
Unclear
about important choice criteria
|
Decision
heuristics:
|
Use
many search and decisions heuristics
|
Use
many search and decision heuristics
|
Decision
process:
|
Limited
(moderate) problem solving
|
Extensive
(or very limited) problem solving
|
Highlight 7.3
P&G’s Simplifying
Solutions to the Proliferation of Consumer Choice
Years ago more people took their time
while shopping, browsing among the merchandise and deliberating about their
choices; but consumer decision making changed. Browsing time in 1996 was down
by 25 percent over 1991. On an average grocery shopping trip in 1996, consumers
spent an average of just 21 minutes to buy 18 of the approximinately 30,000
items available in a supermarket. Many consumers do not bother to check the
prices they just want to buy the same products at the same prices each week.
Perhaps
these habitual decision making processes are reactions to the proliferation of
choices they face in the supermarkets and elsewhere. In addition to the many
brands in each product category, it seems that each brand comes in dozens of
model variations and sizes. Each of these choice alternatives is being marketed
with promotions, advertising, package design and so forth. In the late 1980s,
Procter and Gamble perhaps the top consumer goods company in the world made as
many as 50 price changes per day across 110 brands offered 440 sales promotions
each year and constantly tinkered with the package size, color and content. “We
were [consumers],”admitted P&G president and COO, Durk Jager.
With
this recognition, P&G began to overhaul many of its sales and marketing
activities. By 1997 P&G had eliminated 25 percent of its products by
selling off some brands (Lava soap and Aleve pain reliever) and cutting the
number of alternatives in its other products lines. For instance, P&G
halved the variations of Head & Shoulders shampoo from 30 to 15. When
P&G learned that most mothers did not want boy and girl diapers, it began
selling only unisex diapers. The simplification process will continue. By 2000
P&G intends to cut another 20 percent of its products.
Why
did P&G take such seemingly drastic action? According to Jager. “Consumers
were drowning in far too many products.” Although consumers may like variety,
“too much meaningless variety” is not good. Offering too many choices
complicates consumer decision making and might backfire on a company. A company
that simplifies consumers decision making may create substantial goodwill and
greater sales.
Sources: Raju
Narisetti, “P&G. Seeing Shoppers Were Being Confused, Overhauls
Marketing,”The Wall Street Journal, January 15, 1997, pp. A1, A8. Reprinted by
permission of The Wall Street Journal, copyright 1997 Dow Jones & Company,
Inc. All Rights Reserved Worldwide.
Fifth, the
effects of interrupts on consumers problem solving processes depend on how
consumers interpret (comprehend) the interrupting event. In general, consumers
tend to resume an interrupted problem solving task, especially if it is
important or involoving. In other cases, however an interrupting event can
change the problem solving process. For instance, an interrupt events (such as
learning about a new product attribute) might activate knowledge structures
that suggest new decision criteria. In other cases, a choice heuristic might be
activated by the interrupt (a friend recommends a brand and you decide to take
her advice.) Finally, an especially strong interrupt, such as losing your job,
might block the current problem solving process (choosing a new car) and the
process might not resume again. In sum, the effects of interrupts depend on how
they are interpreted by the consumer. For instance, is your hunger severe enough
to stop shopping for a new suit, or can you skip lunch today? Does this new
brand of styling mousse seem worth trying, or should you ignore it? Do you care
that your friend thinks these shoes are ridiculcus?
Highlight 7.4
Goal Conflict during Decision Making
Lots of American
consumers will not put up a real Christmas tree, even if given a free one. Many
consumers cite the convenience of artificial trees, whereas some claim to like fake
trees better. Others worry about fire with a real tree, or the mess of needles
dropping onto the carpet, or the problems created by disposing of the tree in
the landfill. Such consumers are now the majority in the United States. Gallup
estimated that 38.8 million consumers put up artificial trees in 1993, compared
to 35.4 million who bought real trees.
During the
decision process a considerable number of consumers experience conflict in
trying to balance the reasons for and against using a fake tree as compared to
a real tree. In one household the husband felt a strong aversion to cutting
down a tree for only a week or two of enjoyment, but his wife fondly remembered
her childhood when her family went out to cut a real Christmas tree. As a
compromise, they now own an expensive, realistics artificial trees and
experience no conflict. Singer John Prine leaves one up year round in his
Nashiville home.
In some cases,
the conflict over what to buy is so severe it leads to decision gridlock. About
one third of Americans did not put up a tree in 1993, at least some because they could not make a satisfactory
decision. One woman always bought real trees when she was young, but now that
she is an environmental activist, she feels decision conflict. She agrees “there’s
room for agricultural production of Christmas trees, “but she is worried about
cluttering the landfills with discarded trees. At the same time, she has “hard
time with fake things.” It is easier to have no tree at all.
Other consumers
resolve their decision conflict by buying a live Christmas tree with root ball
wrapped in burlap. But live trees can he kept indoors for only a few days and
are tricky to plant successfully. After several years of losing trees, one
consumer gave up and now puts lights on a six foot tall houseplant.
The conflict
some consumers experience is deciding to buy a real or artificial Christmas
tree is not unique. Many other consumer decisions involve similar conflicts and
uncertainties.
Source: Bob Ortega, “In Christmas Trees, Vinyl
Wins Out over Pine, “The Wall Street Journal, December 21, 1993, pp. B1, B8.
Reprinted by permission of The Wall Street Journal, copyright 1993 Dow Jones
& Company, Inc. All Rights Reserved Worldwide.
Implications for Marketing Strategy
To develop
effective marketing strategies, marketers need to know the type of problem
solving processes their customers use to make purchase decisions. As shown in
Exhibit 7.7, these processes can vary widely. Marketers that target several consumer segments, each with different problem solving
processes, may have to develop multiple strategies to influence the different
decision outcomes. In the following sections we consider some general
implications for marketing strategies for routinized choice behavior and
limited and extensive decision making.
Routinized
Choice Behavior
Much consumer choice
behavior is routinized. When consumers think they know all they need to know
about a product category, they are not motivated to search for new information.
Their choice behavior is based on a learned decision plan stored in memory. In
such cases, the appropriate market strategy depends on the strength of the
brands position in the market.
Marketers established
brands with substantial market shares must maintain their brands in the evoked
sets of a significant segment of consumers. Because consumers in this situation
engage in little or no search, marketers have minimal opportunities to
interject their brands into consumers consideration sets during problem
solving. Thus it is important that a brand be included in the choice alternatives
activated at the beginning of the problem solving process. In general, the more
automatic the choice behavior becomes, the more difficult it is for marketers
to interrupt and influence the choice.
Marketers of new brands
or brands with a low market share must somehow interrupt consumers automatic
problem solving processes. They may develop strategies of producing prominent
environmental stimuli such as large or unusual store displays, create strong
package graphiccs that stand out on the shelf, give away free samples, or run
sales promotions (buy one, get one free). Such strategies are intended to catch
consumers attention and interrupt their routine choice behaviors. The goal is
to jolt consumers into a more conscious and controlled level of limited
decision making that includes the new brand in the consideration set.
Finally, maketers of
leading brands such as Doritos snack chips, Snickers candy bars, Budweiser
beer, and IBM computers may want consumers to follow a routine choice process.
Because these brands already have a high market share, they are in the evoked
sets of many buyers. It is important for these marketers to avoid marketing
related environmental interrupts such as stockouts, which could jolt consumners
into a limited decision making process and lead them to try a competitors
brand. One critical aspect of the overall marketing strategy for such brands is
an efficient distribution system to keep the brands fullly stocked and available
(in a prominent shelf/display position) whenever consumers are in a choice
situation. Frito Lay manufactirer of Fritos, Ruffles potato chips and many
other snacks products, has developed a superb distribution system partly for
this reason. Marketers of industrial products attempt to make their buyers
decision making processes more routine by computerizing and automating the
order process.
Limited Decision Making
Most consumer
decisions involve limited problem solving effort. Because most consumers
already have a lot of information about the product from previous experiences,
the basic marketing strategy here is to make additional pieces of information
available to consumers when and where they need them. Advertisements to
increase top of mind awareness may help get a brand into the evoked set of
choice alternatives at the beginning of the decision process. This is important
because most consumers are not likely to search extensively for other
alternatives. Moreover, it is critical that the brand is perceived to prosses
the few key choice criteria used in the evaluation process. Advertisements that
capture the attention of the consumer and communicate favorable beliefs about
salient attributes and consequences of the brand may be able to create that
knowledge. Finally, because consumers
are giving some conscious thought to the decision, successful interrupts are
not as difficult as they are with routinized problem solving. Marketing may try
to design a store environment that stimulates impulsive purchases, a type of
limited decision making.
Extensive Decision Making
Compared to more
common routinized choices and limited decision making, relatively few consumer
decisions involve extensive problem solving. However, when consumers do engage
in extensive decision making, marketers must recognize and satisfy their
special needs for information. In extensive decision making situations where
their knowledge is low, consumers need information about everything including
which end goals are important, how to organize goal hierarchies, which choice
alternatives are relevant, what choice criteria are appropriate and soo on.
Motivated consumers may seek such information from many sources. For instance,
a 1997 survey by Wirthlin Worldwide, a marketing research firm, found that over
two thirds of consumers who were planning variations sought advice from family
and friends about one third consulted travel guide books and 27 percent spoke
with travel agents. About 11 percent got information from travel channels on
spoke with travel agents. About 11 percent got information from travel channels
on TV and 17 percent found relevant information through the Internet. Marketers
should strive to make the necessary information available in a format and at a
level that consumers can understand and use in the problem solving process.
Highlight 7.5 describes how some companies provide special information to
consumers who are buying new cars.
Because
consumers intentionally seek product information during extensive decision
making, interrupting their problem solving processes with a brand promotion is
relatively easy. Informational displays at the point of purchase for instance, displays
of mattresses that are cut apart to show construction details or presentations
by salespeople can be effective sources of information. Complex sales materials
such as brochures and product specifications may be effective, along with high
information advertisements. Consumers in extensive problem solving situations
will attend to relevant information and they are motivated to comprehend it.
Marketers may take advantage of the information receptivity of consumers by
offering free samples, coupons, or easy trial (take it home and try it for a
couple of days) to help consumers gain knowledge about their brands.
Highlight 7.5
Simplifying the Car Buying Process
Buying a new car
usually involves haggling with a salesperson over prices and options. Many consumers
find this process uncomfortable, even offensive. Fortunately, there are
alternatives that reduce or eliminate the aversive consequences of negotiating
with an auto dealer. For example, Car Bargains will solicit blind price bids
from five dealerships in the consumers area. Within two weeks, the consumer
receives a packet with price quotes from each dealer including a detailed print
out outlining the prices compared to the dealers invoice price. Armed with this
information, the consumer can visit the dealers and arrange for the purchase of
the car. Consumers still must do some negotiation, but they are better prepared
for the haggling process.
Another service
eliminates all the negative consequences of negotiating with the dealer. AutoAdvisor
in Seattle will negotiate the lowest price with a local dealer on the consumers
behalf and will order the car. The consumers has only to pickup that car at the
local dealer. The fee depends on how quickly the consumer needs the car. The
cost is around $600 to get the car within a week and about $350 if the consumer
can wait six to eight weeks for a car from the factory.
Consumers who
use the services of Consumers Automotive can avoid all contact with a dealer.
Consumers Automotive consults with each customer about the detailed
specifications of the car desired, including colors and interrior options. This
firm promises to deliver that exact vehicle to tho consumers doorstep for a
free ranging from $195 to $395 depending on the price of the car.
Or you could buy
a new or usedcar entirely through the Internet. You can dial up Dealer Net (http://www.dealernet.com/) and check your
car of choice say, a Ford Explorer. Perhaps you would want to compare it to a Jeep Cherokee or a Nissan Pathfinder on
fuel economy, price and safety. You could check the current price by ongoing to
Edmund Publication (http://edmund.com/edweb/).
When you are ready to order, contact Auto By Tel is a free service; other
buying services are available, but they may charge a fee. You place your order
and a few days later a dealer will call offering you the car you specified at a
fixed amount over the invoice price. Wasn’t that easy?
By removing some
of the vfrustating aspects of car buying, especially negotiating about price,
these services are becoming more popular. By one estimate, 11 percent of new
car buyers in 1992 used such a service, accounting for more than 500,000 cars.
Could this approach spread to other typs of purchases?
Sources: Amy Dunkin, “Car Buying for Those Who Hate
to Haggle,”Business Week, August 30, 1993, pp.86-87; Alex Taylor III, “How to
Buy a Car on the Internet,”Fortune , March 4, 1996, pp.164-68.
Back To
Buying a Set of Dishes
In this chapter
we examined a number of concepts that can help us understand Barbara’s problem
solving process. Her decision to buy dishes involved fairly extensive problem
solving activities, including a substantial amount of search behavior and quite
a bit of cognitive activity in evaluating alternative actions. As you review her
decisions note that her choice alternatives and choice criteria were greatly
influenced by the information she came across in the environment because she
had relatively little knowledge about dishes stored in memory. Her goal
hierarchy and decision plan were constructed through trial and error during the
problem solving process. This example was shows the importance of the continuous,
reciprocal interactions among affect and cognitioan, behavior, environment and
marketing strategy. Many limiteda decision making processes are also like this,
although less complex. In contrast, habitual choice behavior involves little or
no problem solving. Because the decisions were made in the past and stored in
memory purchase behaviors are generated automatically when the decision plan is
activated. Thus environmental factors have less chance to interrupt and
influence the purchase process.
Summary
In this chapter
we examined consumers decision making processes as they choose between
alternative behaviors. Our primary focus was on purchase choices of products
and brands. We treated decision making as a problem solving process in which
the consumers cognitive representation of the problem is key to understanding
the process. Problem representation involves end goals, a goal hierarchy,
activated product knowledge and choice rules and heuristics. For many consumer
decisions the problem representation involves several interrelated subproblems,
each with its own set of subgoals, organized as a goal hierarchy. Consumers use
simple decision rules called heuristics for finding, evaluating and integrating
beliefs about the alternatives relevant for each subgoal in a goal hierarchy.
The entire set of decisions procedures a series of behavioral intentions or
decision plan.
We also saw that
consumers problem solving processes vary widely. Some purchase choices require
very extensive problem solving efforts, while other purchases are made
virtually automatically in a highly routinized manner. Many purchases involve
limited decision making that falls somewhere between these two extremes. We
described how consumers end goals, goal hierarchies, product knowledge and
involvement affect the problem solving process. And we discussed how various
aspects of the decision environment affect the problem solving process. We
concluded by drawing implications of these concepts for marketing strategy.
Key Terms and Concepts
Choice 150 Goal
hierarchy 155
Choice
alternatives 156 Heuristics
162
Choice criteria
157 Interrupts
167
Compensatory
integration processes 160 Limited
decision making 164
Consideration
set 156 Noncompensatory
integration processes 160
Consumer
decision making 150 Problem
representation 154
Decision 150 Problem
solving 152
Decision plan
162 Relevant
knowledge 155
End goals 155 Routinized
choice behavior 164
Extensive
decision making 164
Review and Discussion Questions
1.
Give
two examples to illustrate the idea that decision choices are always between
alternative behaviors.
2.
Describe
the problem solving approach to consumer decision making and discuss why it is
a useful perspective.
3.
Identify
three ways that choice alternatives can enter the consideration set. Describe a
marketing strategy that could be used to get your brand into consumer
consideration sets for each situation. Why do products or brands not in the
consideration set have a low probbability of being purchased?
4.
Describe
the components of a problem representation. Give an example of how marketers
can influence consumers problem representations?
5.
Give
an example of how two different “frames” for the same purchase decision could
lead to different problem solving processes. Can you relate these differences
to consumer product relationships discussed earlier?
6.
Think
of a purchase decision from your own experience in which you had a well
developed goal hierarchy. Describe how that affected your problem solving
process. Then select a decision in which you did not have a well developed goal
hierarchy and describe how it affected your problem solving processes.
7.
Assume
the role of a product manager (product management team) for a product about
which target consumers have a fairly high level of product knowledge. Consider
how each of the formal integration processes would result in different
responses to your product and how you could adjust marketing strategy to deal
bwith these differences.
8.
Give
at least two examples of how a marketing manager could use the various types of
interrupts discussed in this chapter to increase the likelihood of purchase of
his or her product.
9.
Discuss
how consumers involvement and their activated product knowledge affect the
problem solving processes during purchase decisions for products like new
automobiles, an oil change, cold remedies and health insurance.
10.
Relate
the examples of decision heuristivcs shown in Exhibit 7.5 to the concept of
involvement. When are these heuristics likely to be useful to the consumer?
Under what conditions might they be dysfunctional?
Marketing
Strategy in Action
Hallmark
Cards
It is one of the least
likely businesses ever inverted. However, Hallmark and its main competitors
American Greetings and Gibson Greetings plus an assortment of so called
alternative card companies make a good living selling sentiment to American
consumers. In fact, a greeting card is one of the most profitable things that
can be made with paper ink. Consider the “Three Little Angels” card, Hallmarks’
best selling Christmas card ever, which has sold over 36 million units and
brought in as much as $22 million during the 19 years it has been produced.
Messages of
congratulations and good cheer have been exchanged for centuries, but not until
recent times have they taken the form of greeting cards. The fisrt greeting
cards were Chrismast cards, invented in 1843 by a British businessman too busy
to write his traditional Christmas letter. By the 1870s expensive Christmas
cards were quite popular among wealthy Americans. Joyce C. Hall and Jacob
Sapirstein (founders of Hallmark and American Greetings, respectively) are
regarded as the architects of the modern day greeting card industry. (You can
review the history of Hallmark at http://www.americangreetings.com/.)
Hall and Sapirstein transformed a turn of the century fad for picture postcards
into a social custom where consumers buy and send cards to convey their
feelings and sentiments about birthdays, weddings births and deaths graduations
and so on. Today’s consumer can buy a greeting card to signify virtually any
situation and circumtance you can imagine (and some you can’t imagine). Sending
greetings card is so popular in the United States that greeting cards
constitute as much as 50 percent of the volume of first class mail.
The business
Joyce Hall started in 1910 has grown into Hallmark Cards, Inc., a $3 billion
worldwide organization head-quatered in Kansas City, Missouri. Hallmark
publishes greeting cards in over 30 languages and distributes them in more than
100 countries and creates thousands of related items such as gift wrap, party
goods, Christmas ornaments, jigsaw puzzles, ribbon and writing paper. Hallmark
also owns Binney & Smith maker of Crayola crayons; Revell Monogram, the
world’s largest maker of plastic model kits; and Hallmark Entertainment,
producer of family oriented television programming.
Hallmark
Products and Brands
Hallmark market
greeting cards under several brand names. Including Hallmark Gold Crown,
Shoebox, Ambassador and Expressions from Hallmark, as well as the flagship
Hallmark brand. Hallmark brand. Hallmark’s other brands include Hallmark
Connections (technology-based-products), Hallmark Keepsake Ornaments and Party
Express party products. The Hallmark brand name is consistently ranked by
consumers among the top 10 quality brands nationwide in any category.
The Hallmark
brand is closely identified with more than 7500 independently owned card
specialty stores that specialize in personal expression products, gifts and
services. Hallmark branded products also are available through an additional
33000 outlets, including drugstore and grocery stores, discount stores and
department and bookstores. The Hallmark and Shoebox brands, along with wrapping
paper and exclusive Hallmark Keepsake Ornaments are exclusively available at
approximately 4500 Hallmark Gold Crown Stores nationwide. The Hallmark Gold
Crown stores must meet certain criteria for retailing excellence in all phases
of operations.
The brands
marketed by Hallmark include the following:
·
Ambassador.
Hallmark’s trade brand for mass merchandise retailers such as grocery stores,
drugstores and discount stores is sold in more than 22000 stores
·
Party
Express. A line of party ware products faeturing matching printed plates,
napkins, table covers, and decorations appropriate for special occasions.
·
Shoebox
greetings. A collection of witty, irrevent greeting cards designed to compete
with the so called alternative cards. The cards reflect todays lifestyles with
topics ranging from male-female relationships to pregnancy and from stress in
the workplace to congratulating a co worker on a promotion. Maxine a cynical
and sarcasstic yet lovable old lady has emerged as Shoebox’s most popular
character.
·
Mahogany.
A greating card line created specifically for African-American heritage,
tradition and culture. Introduced in 1987 as a 16 card offering today the brand
includes more than 800 designs.
·
Prior.
A card line for Hispanic consumers with bilingual (Spanish and English)
messages and culturally specific captions that contains cards for dates
important to Hispanic consumers such as Quinceahera (15th birthday),
Siant’s Day celebrated in addition to or in lieu of birthdays, coparent (the
close relationship between parent and godparent); and First Communion and
Confirmation.
·
The
Tree of Life. A line of cards for Jewish consumers that offers nearly 300 cards
for holidays such as Passover, Rosh Hashanas (Jewish New Year) and Hanukkah.
·
Hallmark
Business Expressions. Customized cards created to help business clients from
lasting relationships with their customers and employers. It has designed
custom cards for the New York Yankees, Dallas Cowboys, Radio Shack, State Farm
Insurance and Blue Cross and Blue Shield of Massachussetts.
·
Shop
online Allows consumers to shop for Hallmark products through the Internet.
·
Greetings
Workshop. A desktop publishing program that enables consumers to create
greeting cards at home using their personal computers. The cards can be printed
and mailed as usual or sent electronically via email. (You can make a sample
card at http://www.greetingsworkshop.msn.com/)
·
Reminder
Service. Available through the Internet; will email you a reminder of
forthcoming holidays, birthdays, anniversaries and so forth. This notice is
intended to stimulate problem recognition and a subsequent problem solving
session to select and buy a grreting card (hopefully a Hallmark card).
The Marketing Problem
Distribution is
a key element of Hallmarks marketing strategy putting into products where
consumers can access them easily and make purchase decision choices.
Nationwide, Hallmark personal expression products are found in over retail outlets,
including about 7500 independently owned card specialty stores 4800 of which
are certified Hallmark Gold Crown stores. Another 33000 outlets are mass
merchandisers including discount stores, drug stores, food stores and
bookstores. The company uses a sophisticated computerized distrinution system
to keep track of how the approximately 13 million cards it produces each day
are distributed to these outlets.
In the mid 1980s
Hallmark emphasized the Hallmark Gold Crown stores as the place to buy quality
greeting cards and receive specia service. To buy the exclusive high end
Hallmark cards and other products, consumers first had to decide to go a
Hallmark card shop. This strategy of dedicated Hallmark stores seemed to work
well for many years by the mid 1990s it was in serious question. Between 1990
and 1995, Hallmark overall market share had declined from nearly 50 percent to
about 45% return on equity; historically in the 15 to 20 percent range had
slipped to the 8 to 10 percent range.
Historically
approximately 75 percent of Hallmark’s top of the line cards were sold in the
specialty shops. But as distribution of greeting cards increased to mass
merchandisers and other locations (airports and bus stations) consumers
shopping behaviors changed. Fewer consumers were deciding to go to a card
specialty store first, let alone a Hallmark store to shop for cards. Many time
starved consumers found it easier to buy cards at stores they already
frequented (grocery stores, discount stores, and drug stores) rather than make
a special trip to a Hallmark store. Specialty cards shop once accounted for
nearly 65 percent of greeting card sales, but that figure was less than 33
percent by the mid 1990s. Mass merchandisers (grocery chains, drugstores, and
national discount chains such as Wal-Mart or target) were selling increasing
numbers of cards Although Hallmark produced the Ambassador line of cards for
sale in 22000 of these mass outlets, it does not sell its top of the line cards
(Hallmark and Shoebox) there.
How should
Hallmark distribute its many brands if sales at dedicated card stores continue
to fall? Should Hallmark develop distribution deals to begin selling its more
upscale cards to the mass marchandisers even at the risk of alienating the owner
or operators of the Hallmark Gold Crown shops? Solving this difficult marketing
problem requires understanding many aspects of consumer decision making and
problem solving. But Hallmark has a major asset the Hallmark name has
considerable equity and a strong reputation for quality and integrity
particularly among older consumers.
Discussion Questions
1.
What
is it about greeting cards? People have pointed out that it takes more effort,
time and hassle to travel to store and shop for a card than it does to write a
letter or make a phone call. If so why do so many consumers continue to buy and
send greeting cards instead of choosing these alternative behaviors? Discuss
your answer in terms of the means end framework.
2.
The
typical decision making process for buying a Hallmark card is likely to vary in
different situations: Think about buying a greeting card for a birthday versus
buying a card for someone’s graduation from college versus buying a wedding
card. Would consumer knowledge and involvement vary across these situations?
Discuss how problem recognition, search and evaluation processes might differ across
these three situations. What types of decision making would you expect for each
situation?
3.
Consumers
are able to buy Hallmark brands in various retail locations, for example, a
Hallmark Gold Crown store versus a Supermarket. Thus understanding how and why
consumers make store choices is particularly important to Hallmark. Discuss how
store choice interacts with and influences choices of Hallmark products and
brands, for example Hallmark brand versus the Ambassador brand.
4.
Do
you think that Hallmark should modify its distribution strategy? What is your
understanding of consumer decision making that leads you to make this
recommendation?
5.
Marketing
research estimates that women buy as much as 80 to 85 percent of greeting cards
sold in the United States. Does the card purchase decision process for greeting
cards differ for women and men? Explain your answer.
Sources: Susan Chandle, “Can Hallmark Get Well
Soon?” Business Week, June 19, 1995, pp.62-63; Kate Fitzgerald, “Hallmark
Alters Focus as Lifestyles Change, “Advertising Age, October 31,1994, p.4;
Kevin Helliker,”Sweet Sells Year of Hallmark,”The Wall Street Journal, December
20, 1996, pp. B1 B3; the Hallmark company Website http://www.hallmark.com.
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