Chapter 10: Influencing Consumer Behavior

CONSUMER BEHAVIOR AND MARKETING STRATEGY

by

J. Paul Peter & Jerry C. Olson

Fifth Edition

Irwin McGrawhill Companies

Copyright 1999 

United States

What Were These Marketers Trying to Do?

Rabston Purina ran a promotion for six of its children’s cereals aimed at adults. Inside 11 million because of cereal with names like Freakie and Ghostbusters. Ralston Purina included tiny models of sports cars, Ten of the boxes contained a scale model red Corvette that could be redeemed for the real thing a new Chevrolet Corvette.

Citicorp offered gifts tired to the amount charged on its credit cards. For $500 charged on its Visa card, consumers got free golf balls or a travel clocks; for $8,000 in charges, they received a round trip airline ticket to any where in the United States.

General Mills inserted a single $1 bill into every twentieth box of its Cheerios cereal. The promotion involved giving away $ 1 million.

Pepsi Cola offered chances to win cash and prizes in its “Count the Wins” baseball game. Numbers were printed inside specially marked cans and bottle caps. If the number matched the total number of wins by the Milwaukee Brewers on specific lates, the holder qualified for drawings for $10,000 and $30,000. In addition there were a number of instant prizes including $1,000, two tickets to a Brewers game and 2 liter bottles of any Pepsi product.

American TV of Madison, Wisconsin, offered 100 pounds of beefsteak to those who purchased specially marked items. Some items with prices as low as $69 still qualified for the steak bonus.

Exhibit 10.1

Approaches to Influencing Overt Consumer Behavior

Information about consumers affect, cognitions, behaviors

Marketing mix stimuli placed in the environment

Influence consumers affect and cognitions

Influence overt consumer behaviors

Consumer research data sales, market share data

What types of strategies were these marketers using? In the previous chapters in this section we discussed a variety of types of consumer behavior that marketers try to influence and suggested several types of conditioning and learning that are used to do so. In this chapter we provide an overview of strategies used to influence consumer behaviors, discuss behavior influence strategies in two areas of marketing and describe a model for developing consumer behavior influence strategies.

Consumer Behavior Influence Strategies

Exhibit 10.1 presents a model of how marketers can influence overt consumer behaviors. First, marketers obtain information on consumers affect, cognition and behavior relative to the product, service, store, brand or model of concern through consumer research. Based on this information and managerial judgment, various marketing mix stimuli are designed or changed and are implemented by placing them in the environment. These stimuli include such things as products, brand marks, packaging, advertisements and commercials, price tags, coupons, store signs and logos and many others.These stimuli are designed to influence consumers in one or more ways. Often they are designed to influence consumers affect and cognition in positive ways to increase the chances of overt behavior. In other cases, they are designed to influence behavior somewhat directly without a complete analysis of affective and cognitive responses. Measuring changes in consumers affect, cognitions and behaviors results in feedback in the form of consumer research data, as well as sales and market share information. These help marketers evaluate the success of the strategy and provide new input into the strategy development process. Based on this information, the process continous as marketing mix stimuli are reworked to further influence consumers.

The model in Exhibit 10.1 is completely consistent with the Wheel of Consumer Analysis because consumers affect, cognitions, and behaviors lead to changes in the environment (marketing strategy elements), which can lead to further changes in the environment. It again demonstrates the dynamic nature of consumer behavior and marketing strategy.

The model in Exhibit 10.1 is completely consistent with the Wheel of Consumer Analysis because consumers affect, cognitions, and behaviors lead to changes in the environment (marketing strategy elements), which can lead to further changes in the environment. It again demonstrates the dynamic nature of consumer behavior and marketing strategy.

Exhibit 10.2

Strategies Designed to Influence Overt Consumer Behaviors

Type of Strategy	Description of Strategy	Strategic Focus	Sample Strategies	Ultimate Objective of Strategy
Affective	Strategies designed to influence consumers affective responses	Consumer emotions, moods, feelings, evaluations	Classically conditioning emotions to products	Influence overt consumer behaviors
Cognitive	Strategies designed to influence consumers cognitive responses	Consumers knowledge, meanings, beliefs	Providing information highlighting competitive advantages	Influence overt consumer behaviors
Behavioral	Strategies designed to influence consumers behavioral responses	Consumers overt behaviors	Positive reinforcement; modeling desired behaviors	Influence overt consumer behaviors
Combined	Strategies designed to influence multiple consumer responses	More than one of the above	Information about product benefits with emotional tie-ins and rebates	Influence overt consumer behaviors

It is important to recognize that influencing overt consumer behavior is most critical. If consumers only change what they think and feel bat do nothing, then no exchanges occur, no sales are made and no profits are earned. Thus, although changing consumer affect and cognition are often useful and important steps in influencing overt consumer behavior, they are often only intermediate steps in the influence process. Consumers must perform one or more overt behaviors, such as store contacts, product contacts, transactions, consumptions and communication so that marketing strategies can benefit organizations. Also, products and brands can not satisfy consumer needs and wants unless some behavior occurs, such as buying and using them.

Marketers usually want to maintain a particular level of overt consumer behaviors or increase the level. If market share is at an optimal level, such that increasing it would be unprofitable, then marketers would likely try to maintain the level. However, in most cases, marketers try to increase the number of consumers who purchase an offering and/or increase the frequency of purchase by current buyers. In some cases, organizations try to decrease behavior, such as reducing the joint behaviors of driving and drinking.

Exhibit 10.2 presents four strategies designed to influence overt consumer behavior. For affective strategies, marketing mix elements are designed to influence consumers affective responses in order to influence overt consumer behaviors. For example, for many years Michelin tire ads have featured a cute baby sitting in a floating tire to generate warm feelings and attention to the importance of safe tires when driving with children.

In the second strategy, marketing mix elements are designed to influence consumers cognitions in order to influence consumer behaviors. Lands End catalogs include extensive product information to help consumers decide whether particular garments are right for them.

In the third strategy, marketing mix elements are designed to influence consumers overt behaviors somewhat directly. This does not mean that consumers do not think about or feel anything when they experience antecedents or consequences of their behaviors. However, it does suggest that, in some cases, information processing is rather automatic and little conscious information processing occurs. Many consumer behaviors are habitual and involve little decision making. Many marketing strategies are designed to influence these behaviors without a complete analysis of affect and cognition, such as coupons and other sales promotions tactics.

Finally, as is common in practice, various marketing mix stimuli are used to influence some combination of consumers affect, cognitions and behaviors in order to influence other consumer behaviors. For example, a Target ad featured a color picture of a Little Tikes Playhouse with two cute kids enjoying it, a product description, an age range of 1.5 to 4, the words “assembly required,” and a sale price of $98.88. This ad was trying to influence affect from the cute kids enjoying the playhouse, cognition in terms of product and price information and the behaviors of store contact, product contact, transaction and consumption.

In sum, marketing strategies are designed to ultimately influence overt consumer behavior. These strategies should be designed with a precise understanding of the behaviors they are designed to influence, as well as whether affect and cognition are also to be influenced in important ways. In the next sectrion, we discuss two areas of marketing sales promotion and social marketing that have focused on influencing behavior somewhat directly.

Sales Promotion

One area of consumer research that has recognized the value of analyzing overt behaviors is sales promotion. Leading experts define sales promotion as “an action focused marketing event whose purpose is to have a direct impact on the behavior of a firm’s customers. Two points are noteworthy in this definition.

First, the firm’s customers may be channel members, such as retailers, in which case the promotion is called a trade promotion. Trade promotions, such as advertising or display allowances, are used by companies to push products through the channel to consumers. Alternatively, the firm’s customers may be final consumers, in which case the promotions are called consumer promotions. Consumer promotions, such as coupons and free samples, are used by manufacturers and retailers to persuade consumers to purchase products and visit retail outlets. In one recent year, overall expenditures on promotion were divided 44.3 percent on trade promotions, 30.6 percent on advertising and 25.1 percent on consumer promotions.

Second, most consumer promotions are designed to influence the probability of purchase or other desired behaviors without necessarily changing prepurchase consumer attitudes about a brand. If the promotion is for a new brand, then purchase and use may lead to favorable postpurchase attitudes and future purchases. If purchase is for an existing brand, consumers with a neutral or slightly positive attitude may use the promotion to reduce purchase riskand try the brand. For consumers who already purchase a brand, a promotion may be an added incentive to remain loyal.

The primary concern of this text is with consumer promotions and their influence on consumer behavior. These are many types of consumer promotions. The list below covers the majority of them.

     1.Sampling. Consumers are offered regular or trial sizes of the product either free or at a nominal price. For example, Hershey Foods out 750,000 candy bars on 170 college campuses.

    2. Price Deals. Consumers are given discounts from the product’s regular price. For example, Coke and Pepsi are frequently available at discounted prices.

      3. Bonus Packs. Bonus packs consist of additional amounts of the product that a company gives to buyers of the product. For example, Gilette occasionally adds a few extra blades to its blade packs without increasing the price. Bonus packs are discussed in Highlight 10.1.

    4. Rebates and Refunds. Consumers, either at purchase or by mail, are given cash reimbursements for purchasing products. For example, consumers are often offered rebates for purchasing Chrysler or Ford automobiles.

      5. Sweeptakes and Contests. Consumers are offered chances to win cash and/or prizes through either chance selection or games of skill. For example, Marriott Hotels teamed up with Hertz Rent A Car in a scratch card sweeptakes that offered over $90 million in prizes.

    6. Premiums. A premium is a reward or gift that comes from purchasing a product. For example, Procter & Gamble offered a free package of Diaperene baby wash cloths with the purchase of any size Pampers.

     7. Coupons. Consumers are offered cents-off or added value incentives for purchasing specific products. For example, Lenscrafters offered newspaper coupons for $20 off on the purchase of on the  purchase of contacy lenses from its stores.

These basic types of consumer promotions are often used in combination to increase the probability of desired behaviors. For example, P&G offered a $1 off coupons plus a premium coupon for a free Duncan Hines cake mix for purchasing any size Folgers coffee. Recently, many consumer promotions have featured coupons plus a promise to make donations to specific charities for every coupon or refund certificate redeemed. For example, P&G offered a $-off coupon plus a premium coupon for a free Duncan Hines cake mix for purchasing any size Folgers coffee. Recently, many consumers promotions have featured coupons plus a promise to make donations to specific charities for every coupon or refund certificate redeemed. For example, Hartz Mountain offered a $1 coupon on its flea and tick repellent plus a 50 cent donation to the Better Health for Pets Program.

Consumer promotions can be used to influence behavior in a variety of ways. Next we discuss four aspects of behavior that promotions are designed to affect.

Highlight 10.1

Consumer Reactions to Bonus Packs

Bonus packs are frequently used consumer promotions. You can walk down the health andbeauty aids aisles of any discount store and see all sorts of products claiming “25% more free” or “4 ounces free.” These package labels are designed to attract shoppers’ attention and ultimately get consumers to buy the products. Some shoppers, when presented with bonus packs, will buy them rather than another brand or buy more than planned, knowing that the larger size will be offered for a limited time only. Others are rewarded for continuing to buy their regular brands when they are promoted as bonus packs.

Marketers can track bonus pack sales easily to determine the effectiveness of promotions and their impact on market share. But how do bonus packs influence consumer cognitions? A study of hair shampoo found that 43 percent of respondents said they would switch for “20% more free, ”but 90 percent said that “25% more free “would get them to switch brands.

Marketers commonly use three ways to present bonus pack information: “Units free,” percent free.” And “percent more free.”Units free,” simply tells the consumer how many extra ounces or pieces are included in the package at no additional cost. The “percent free” format presents the free amount as a percentage of bonus size, whereas “percent more free” presents the free amount as a percentage of the smaller, regular size.

Consumers apparently have a preference for how this information is presented as 91 percent of the respondents in the survey indicated a clear preference for the “percent more free” format. They believed that “more” was better and preferred the “percent more free”wording, even when the actual amount of free product was greater in the “percent free” format. In addition, 73 percent of respondents preferred the “percent more free” format to “ounces free.”

When questioned as to who they thought was paying for the “free” product, 75 percent of all respondents believed the consumer was either directly or indirectly paying for the extra amount offered in bonus packs. Interestingly, those who switched for a bonus pack believed that the manufacturer incurred the cost of the extra product, whereas those who did not switch believed the consumer paid. Nearly half the respondents surveyed said the amount of free product it would take to get them to switch depended on the type of product.

How do you react to bonus packs? Will you switch brands of shampoo, deodorant, or toothpaste to get an extra amount free? Do you make careful decisions about whether to accept a bonus pack deal versus your regular brand or do you just go for it? How much thinking do you do in the grocery store when presented a different brand of coffee with an extra “2 ounce free” before making a coffee purchase?

Source: Larry J. Seibert, “What Consumers Think about Bonus Pack Sales Promotions, “Marketing News, February 17, 1997, p.9. Reprinted by permission of the American Marketing Association.

Purchase Probability

Most consumer promotions are designed to increase the probability that consumers will purchase a particular brand or combination of products. However, a firm may hope to achieve any number of subgoals when running a promotion. The primary goal be to get consumers to try a new product. For example, Hershey offered a free package of Reese’s Crunchy Peanut Butter Cups with the purchase of any other Reese’s candy product to attempt to induce trial of the new product. Kellogg’s offered a coupon for an 18 ounce box of its popular corn flakes with the purchase of its new Kellog’s Mini Buns. Also, some car dealers offer special discounts for first time buyers.

A second subgoal of consumer promotions may be to position a brand or company in the minds of consumers to encourage them to purchase and continue to purchase the company’s brand. In this case, the promotion is designed to maintain or change consumer affect, cognitions and behaviors. One way of doing so is to use frequent promotions to obtain a  competitive price on a brand that is positioned as a high priced, high quality product. In this way, the lower price has less chance of leading consumers to believe the product is of lower quality than competitive brands. For example, Kellogg’s frequently offers coupons and premiums on its market leading cereals.

Another use of promotion for positioning purposes is to offer to make contributions to charity for each coupon or refund certificate redeemed by consumers. This tactic may increase consumer percepetions of the societal commitment of firms. Consumers who are socially and ecologically concerned may then switch to purchashing these companies brands. In addition to the Hartz Mountain example already noted, many other companies also use this type of promotion. Post Alpha Bits offered a 50 cent coupon and promised to make an unspecified donation to Hospitals for Children for each coupon redeemed. Krunchers Potato Chips offered a 25 cent coupon and promised to make a contribution to the Better Homes Foundation. Procter & Gamble offered a 50 cent refund for a number of its soap products and promised a $1 contribution to Keep America Beautiful, Inc., for each refund certificate redeemed

A third subgoal of consumer promotions is to obtain a brand switch. Consumer promotions may obtain brand switches by making the purchase of a brand more attractive than purchase of the usual brand at full price.

A final goal of consumer promotions is to develop brand loyalty. Because some consumers tend to purchase products based on coupons and other deals, frequent deals on particular brands may keep them relatively loyal in terms of purchasing the firm’s brands. Companies, such as Kellogs and P&G, that have broad product lines and a number of top selling products frequently offer a variety of forms of consumer promotions for their products. Even deal prone consumers who have preferred brands may remain loyal through a long succession of coupons and other deals.

Purchase Quantity

A number of consumer promotions are designed not only to influence purchase of a brand but also to influence the number or size of units purchased. For example, Quaker Oats offered a 70 cent coupon for purchasing two 18 ounce or larger jars of Skippy peanut butter. P&G offered $2, $5 and $8 refunds for purchasing one, two and three gallons of Tide, Cheer, Era, or Solo liquid laundry detergent. A free Mennen Speed Stick deodorant was offered with the purchase of two at the regular price. Such promotions may increase the amount of a company’s product that consumers purchase and may increase brand loyalty. However, consumers who already are loyal to particular brands may simply stock up on them during a promotion and wait until the next promotion to purchase again. Some consumers prefer to purchase products only when they can get a deal on them. U.S. car manufacturers have unintentionally conditioned many consumers to wait for rebates rather than buy a car without one.

Purchasing Timing

Consumers promotions can also be used to influence the time at which consumers purchase. For example, special discounts can be offered to encourage consumers to eat at particular restaurants on nights when business is slow. Pizza Hut often offers discounts and special family prices for Monday or Tuesday nights. Other retail stores have special sales on specific dates to encourage purchases at that time. Services such as airlines and telephone companies offer special rates to encourage consumers to use them at specific times and dates to even out demand. One trend in the use of coupons shortens the redemption period to encourage consumers to purchase sooner. Finally, most sweeptakes and contests are of relatively short duration to encourage consumers to enter the contest by purchasing the product promptly.

Highlight 10.2

Amoco’s Big Summer Fill-Up

Amoco Oil Company ran a promotion designed to build store loyalty to Amoco filling stations. The promotion required consumers to fill up (a minimum of 8 gallons) at an Amoco station 10 times and get a promotion card punched by an attendant. This all had to be done within a specified three month period. After 10 fill-ups, consumers could mail the card to the “Amoco Fill-Up” address and receive coupons for $1 off on their next five fill-ups.

Consider the possible outcomes of this promotion. If consumers complied with all of the requirements and used the five coupons, they made trips to an Amoco station and made 15 purchases of 8 gallons or more. This is a considerable amount of behavior and sales to generate for the company for a relatively small $5 reward. In addition, because Amoco gas is more expensive than gas at discount stations, the consumer may not have saved money. If a consumer averaged buyimg 10 gallons at a time and paid 5 cents more a gallon for Amaco gas, in 15 trips, he or she spent an additional $7.5 to save $5. However, Amoco gas is ofexcellent quality and may give the consumer savings in better gas mileage, and the consumers car may run better by using it. Thus, the promotion could get consumers in the habit of going to an Amoco station and lead to loyalty. The superior product could also contribute to this loyalty.

The promotion card also stated that it would take six to eight weeks to receive the coupons. If the consumer continued to use Amoco in the meantime, the cdompany continued to make full-price sales. If the consumer went to other stations during the waiting period, then receipt of the coupons could bring them back to Amoco, giving the company a second chance to develop loyalty.

If consumers did not fill up 10 times in three months, they did not qualify for the promotion. However, in making a point of trying to go to an Amoco station, the consumer might also have developed a loyalty to it. In this case, Amoco developed a loyalty to it. In this case, Amoco developed a loyal customer but did not have to pay the promotion value to do so. Overall, this promotion strategy would appear to be one that was well designed and capable of building long-term loyal to customers. To learn more about Amoco, visit its Web site at http://www.amoco.com.

Purchase Location

Consumer promotions can also be used to influence the location or vendor of particular products. Retail stores and retail chains offer their own coupons, contests and other deals to encourage consumers to shop at their outlets. For example, one grocery chain offered $20 worth of beef if a consumer was selected at a specific store and was found to have a beef product in his or her shopping cart. Some retail chains, such as Wal-Mart, have a standing offer to meet my other store’s price on a product if the Wal-Mart price is higher. Such promotions and tactics can build store traffic and encourage store loyalty as discussed in Highlight 10.2.

Exhibit 10.3

Promotions Effects on Consumer Behavior

  1.   Bought didn’t need

Coupons= 22%

Rebates= 9%

Sweeptakes=11%

Premiums=19%

  2. Bought never tried

Coupons= 69%

Rebates= 38%

Sweeptakes=18%

Premiums=39%

  3.  Bought different brand

Coupons= 71%

Rebates= 49%

Sweeptakes=19%

Premiums=39%

   4. Bought more

Coupons= 56%

Rebates= 39%

Sweeptakes=17%

Premiums=32%

   5. Bought sooner

Coupons= 69%

Rebates= 39%

Sweeptakes=18%

Premiums=39%

  6.  Bought later

Coupons = 20%

Rebates = 9%

Sweeptakes = 8%

Premiums= 9.5%

Source: “Study Some Promotion Change Consumer Behavior,”Marketing News, October 15, 1990, p.12.

Effective of Sales Promotions

There is little question that promotions effectively influence consumer behavior. However, which promotion tools are generally most effective for achieving particular behavioral changes is not fully understood. One study compared four consumer promotion tools coupons, rebates, sweeptakes and premiums for their impact on various consumer purchase behaviors. These behaviors included purchasing a product consumers said they didn’t need, purchasing a product they had never tried before, purchasing a different brand than they regularly used, purchasing more than usual, purchasing sooner than usual and purchasing later than usual.

Exhibit 10.3 presents the results of that study. In general, consumers reported that coupons were the most effective promotion for changing these behaviors. Over 70 percent of the consumers reported they purchased a product they had never tried before because of a coupon and more than 70 percent said they purchased a different brand than they regularly use because of a coupon. Of the four promotion tools, coupons are the most commonly available and easiest to use.

Rebates and premiums were both shown to be effective in changing consumer behavior in this study, but less so than coupons. The study found that the greater the rebate, the greater effort consumers would expend to obtain the product. Finally, although some consumers also reported that sweepstakes influenced them, such promotions were the least effective overall. The study also found that changes in behavior varied by the type of product and characteristics of the consumers. For example, for products such as shampoo, coffee, batteries, toothpaste and personal appliances, promotions could persuade the majority of consumers to try a different brand. However, for products such as alcoholic beverages, automobiles, motor oil, pet food and floor coverings, consumers reported that promotions would not persuade them to switch brands. In terms of consumer characteristics, consumers who are more affluent, educated and older are more likely to participate in consumer promotions, according to this study.

In sum, promotions can influence consumer behavior, although many factors alter their effectiveness. It seems likely that the greater the reward, the less effort required to obtain the reward and the sooner the reward is obtained after the behavior, the more likely the promotion will be influential. However, further reseaerch on consumer promotions is needed to better understand the affective, cognitive, behavioral and environmental factors that influence their effectiveness. 

Social Marketing

Social Marketing is “the application of commercial marketing technologies to the analysis, planning, excution and evaluation of programs designed to influence the voluntary behavior of target audiences in order to improve their personal welfare and that of their society.”Unlike commercial marketing, which benefits consumers as a means to achieving the organization’s objectives, the end goal of social marketing is to benefit the target audience or the broader society. Social marketing is typically concerned with influencing and changing consumers overt behavior, but can also be used to influence affect and cognitions as an intermediate step. For example, social marketing could be used to increase the self esteem of laid off workers or to help traumatized patients be less distressesd so that they can function more effectively in society. As with commercial marketing, social marketing can be applied at the individual, household, target market, or societal levels.

Increasing Desired Behaviors

Many type of behaviors can be increased through the use of social marketing. For example, reseaech has shown that various incentives can incease the probability that parents will take their children in for dental and health care. In addition, prompts can be used to increase parental discussion of a childs problems with health care providers. By providing feedback and chances to win prizes, seat-belt usage can be increased, which could save thousands of lives each year. Small incentives can also increase the use of car pools, which could help save natural resources and reduce air pollution. Providing information to consumers in grocery stores concerning the amount of fat and fiber in products and offering alternatives can influence the purchase of more nutrional foods.

Decreasing Undesired Behaviors

Many types of undesired consumer behaviors also can be decreased through social marketing programs. For example, various types of interventions can decrease smoking, drunken and other unsafe driving, dropping out of school, illegal drug use and teenage pregnancies. Although no program has been totally effective, the importance of these problems makes even small changes very valuable in improving individuals lives and society in general.

Some famous ad campaigns were designed to decrease undesired behaviors. These ads were developed by the Ad Council of the United States and participating ad agencies. For example, “Just Say No” was designed by DDB Needham Worldwide to decrease the use of illicit drugs; “Help stop AIDS. Use a condom “was designed by Scali, McCabe, Sloves, Inc., to decrease the frequency of unprotected sex; “Take time out. Don’t take it out on your kid” was designed by Lintas: Campbell-Ewald to decrease physical abuse of children. A stronger focus on problems such as these from a consumer behavior perspective could provide even better approaches to solving them.

A Strategic Model for Influencing Consumer Behaviors

Marketing manager develop strategies to accomplish particular objectives. Often these objectives deal with maintaining or increasing sales or market share by a particular amount or percentage, subject to a budget constraint. In order to accomplish these objectives, managers focus on influencing consumers affect, cognition and behaviors. Influencing these can involve both long-term and short term strategies. For example, building brand equity consumers beliefs about positive product attributes and favorable consequences of brand use is usually a long-term strategy designed to influence long-term sales and the ability to charge higher prices. Brands like Harley-Davidson, Titleist and Sony have developed high brand equity and market share by influencing consumers affective and cognitive responses, which had led to long term purchase and use behaviors. Stores like The Gap and Wal-Mart also develop store images and store equity to influence consumers to shop at their stores. American Express has developed a prestige image for its credit cards to influence consumers to use them.

Exhibit 10.4

Steps in Developing Consumer Behavior  Influence Strategies

Measure current levels of consumer affect, cognition and behavior

Analyze consumers and markets

Select and implement influence strategy

Measure strategic affects

Desired influence occur?

Evaluate for performance improvement

In other cases, marketing managers use strategies to influence consumers in the short run but, at the same time, they hope that these consumers will also become long-term, loyal customers. Many of the sales promotion tactics discussed in this chapter are designed to increase sales quickly for a short period of time.

Regardless of whether the strategy is for the short or long run, managers need to understand consumers affect, cognitions and behaviors to develop strategies to influence them. Exhibit 10.4 presents a general model managers can use to help develop successful influence strategies.

Measure Current Levels of Consumer Affect, Cognition and Behavior

In order to design successful strategies, marketers should first know what consumers think, feel and do about a company’s products, stores or other offerings. Marketers should also know these same things about competitive offerings. In other words, consumers affect, cognitions and behaviors should be measured to form the basis for successful strategies. Because a number of ways to measure various affective and cognitive responses were discussed in the previous section of the book, Exhibit 10.5 lists some ways of measuring overt consumer behaviors. As shown for each of the seven types of behavior identified, there are a variety of ways of measuring them. Although all of these methods are commonly used in marketing and consumer reasearch, they are not always used sequentially to investigate all of the behaviors consumers must perform to purchase and use products correctly.

Exhibit 10.5

Examples of Methods Used to Measure Overt Consumer Behaviors

Types of Behavior	Measurement
Information contact	Day after recall scores Scanner cable data Nielsen data Starch reports
Funds access	Loan application Checkbook entries Credit card debits Scanner cable data
Store contact	“Laboratory” store studies Physical count of shoppers Vidiotapes of shopping behavior Scanner cable data “Hits”on a web page
Product contact	Inventory analysis Physical count of items removed from display or other locations Consumer diaries or other verbal reports Scanner cable data
Transaction	Monitor cash register tapes Credit card receipts Consumer purchase diaries Scanner cabel data
Consumption and disposition	In home inventory and use research After purchase telephone surveys Consumer diaries Repurchase rate research Scanner cable data Garbology
Communication	Diffusion research Sociometric net research Warranty card information Consumer complaint/compliment responses

One approach that allows a number of stages in a purchase sequence to be monitored is the scanner cable method available from research companies such as Information Resources, Inc. (IRI) and Nielsen Marketing Research USA. IRI’s research system are used by many leading companies including General Foods, Procter & Gamble, General Mills and Frito-Lay. The system are designed to predict which products will be successful and which ads work best to sell them. They have been expanded from use in grocery stores to include drugstores and mass merchandisers. IRI has constructed consumer panels in a number of cities and monitors households nationwide. It monitors purchases in grocery stores in many markets ranging from big cities to small towns.

Panel members provide information about the size of their families, their income, their marital status, how many TVs they own, what types of newspapers and magazines they read and who does most of the shopping. IRI provides a special bar-coded identification card that shoppers present to the cashier when they pay for products in grocery stores, drugstores and others. By passing the card over the scanner or entering the digits manually into register, the cashier records everything each shopper has purchased.

One executive for Frito-Lay, which used IRI’s services for the introduction of Sun Chips snacks, concluded, “The beauty of scanner data is that we get a complete description of a household from the panel and can match it with purchasing patterns. We know exactly who’s out there buying our our product and that helps us design marketing and advertising plans accordingly.

A number of behaviors in the purchase sequence can be monitored and influenced using scanner methods. For example, information contact can be influenced because media habits of households are monitored and commercials can be changed until contact occurs. Funds access can be monitored on the cash register tape by recording prices and the method of payment. Because every purchase in the store is recorded, store contact, product contact and transaction information are available, as well as the dates and times of these behaviors. As such, the effectiveness of various sales promotions and other marketing strategies on specific consumer behaviors can be determined. Successful promotions can be offered again to encourage store and brand loyaty. Because the time between purchases can be determined, information is also available on consumption and usage rates.  

There are two reasons to start strategy development by measuring consumers affect, cognition and behavior. First, these measures provide baseline data for determining the effectiveness of the influence strategy after it has been implemented. A baseline is the level of consumers responses prior to implementation of a new strategy. Second, these measures help identify opportunities and threats in the market. For example, if consumer know more about a competitive retail chain, like it better, and shop there more frequently, then strategies must be developed to increase these responses for the company’s stores. Hopefully, the research also identifies the reasons why consumer shop at the competitive chain so that a strategy could be developed to increase consumers acceptance and purchases at the company’s stores.

Analyze Consumers and Markets

After baseline data have been collected, the next steps to analyze the information by evaluating consumer responses from various current and potential markets. Consumers may not purchase a product for many reasons and consumer research is designed to uncover the reasons. Perhaps they do not know about the product, do not like it, or do not know where to buy it. Perhaps they purchase a competitive product with which they are highly satisfied. The strategiesn that are appropriate depend on the levels of consumers affective, cognitive and behavioral responses to the company’s products relative to competitive products.

For existing products, marketer often seek strategies to attract consumers away from competitive products. There are many strategies for doing so, including developing advertising to highlight superior benefits of competitive offerings, developing more convinient packaging, lowering prices through sales promotions, or expanding distribution outlets. Strategies for existing products may also focus on increasing purchases by current users. These strategies involve finding new uses for a product, new occasions for its use, or decreasing the cost of using it. Finally, strategies for existing products involve expanding markets geographically, such as seeking global markets where opportunities may be better because there are so many consumers who are nonusers, many American products and brands are well liked and sought out by consumers in some global markets. However, failure to analyze global consumers can lead to poor strategies, as discussed in Highlight 10.3.

For new products, strategies often focus on affect and cognition in order to create favorable behavioral responses. Consumers are informed about the nature of a new products, its benefits and where it can be purchased to increase the probability that they will buy it. Creating positive affect is part of the process. For example, when J.C. Penney developed its Diahann Carroll line of women’s clothes and its Nefertiti Collection of African prints, it sought to create positive affect for its stores with African-American women consumers. In other cases, marketers focus more on behavioral responses initially for new products. For example, free samples of a new soap or toothpaste are mailed to consumers to generate trial.

Select and Implement Influence Strategy

Based on the consumer and market analyses, a strategy to influence consumer responses is selected and implemented. The strategy may involve any or all of the marketing mix elements and may be designed to accomplish both-short term and long-term objectives. For example, many sales promotions have short-term objectives of generating sales to new customers which hopefully lead to long-term loyalty. Advertising campaigns may increase short-term sales, but are often designed to create long term brand equity and deep meanings for consumers that will also lead to long term loyalty. Most product strategies involving changes in quality, packaging or branding include long term brand equity and deep meanings for consumers that will also lead to long term loyalty. Advertising campaigns may increase short-term sales, but are often desined to create long-term brand equity and deep meanings for consumers that will also lead to long-term loyalty. Most product strategies involving changes in quality, packaging or branding include long-term objectives as do strategies involving new or different distribution methods. Pricing strategies most often incorporate short-term changes to influence sales, but long-term strategies are also used. Keeping prices high relative to competition over many years can create an image of distinctiveness or quality, whereas charging low prices for many years can cretae the perception of value for the money. For example, when Toyota introduced new models of the Camry, Celica and Paseo in 1996, it cut prices by $700 to $1,000 to positively influence consumer value perceptions.

Highlight 10.3 American Appliance Makers Misjudge European Consumers

In the late 1980s the U.S. market for refrigerators and other major appliances was mature. But in western Europe barely 20 percent of households have clothes dryers versus some 70 percent in the United States. In Europe, there are dozens of appliance makers, nearly all ripe for consolidation, whereas in the United States, there are four producers that control 90 percent of the market. Europe then should have been a golden opportunity for U.S. appliance makers, Whirlpool Corp. and Maytag.

In 1989 archivals Whirlpool Corp and Maytag leaped across the Atlantic. Maytag bought Britain’s Hoover for about $320 million and Whirlpool paid $960 million for the appliance unit of Dutch electronics giant Philips and spent another $500 million to retool its plants.

But the invasion fizzled. In 1995, Maytag sold its European operations to an Italian appliance maker, booking a $135 million loss. Whirlpool continued in the market, but experienced flat sales and declining earnings per share. Where did these companies go wrong?

In part, these companies misjudged European consumers. American consumers often want the lowest price and when appliances wear out, they buy new ones. However, manu Europeans still think of appliances as investments. They will pay more and expect to get more in finish, durability and appearance. Also, American households will often put their washer/dryer in the garage or basement or tuck it away in a closet, where noise and appearance don’t matter. However, many Europeans live in smaller houses and often put their laundry equipment in their kitchens, where noises and looks matter greatly.

Apparently the failure to properly analyze consumers in European markets led to market entry strategies that were unsuccessful. Although there were many factors that made the market an attractive opportunity, failure to understand consumers affect, cognition and behavior led to a huge loss for Maytag and a marginal position for Whirlpool in European markets. Whirlpool has designed a new strategy involving three pan European brands Bauknecht, for the affluent; Whirlpool, for the middle market; and Ingis, for the low end and only time will tell if this strategy shows a better understanding of consumers and markets. To learn more about these companies, visit their Web sites at http://www.maytag.com and http://www.whirlpool.com.

Measure Strategic Effects

After implementing the strategy, its effects must be measured to see whether and how much it influenced consumers affect, cognition and behavior and whether it did so enough to achieve objectives. If not considerable analysis and evaluation need to be done to determine why the strategy failed. This is a complicated problem because there are a number of potential reasons why influence strategies fail:

   1.      Faulty objectives. The objectives were set too high and consumers were more resistant to influence than anticipated. In this case, the objectives would have to be reconsidered.

   2.      Faulty Strategy. The objectives were appropriate but the strategy was faulty. In this case, the strategy could be improved and reimplemented or a new strategy could be developed and implemented.

   3.      Faulty Implementation. The objectives were appropriate and the strategy was appropriate but it was poorly implemented. In this case, the strategy could be implemented more effectively if it were still viable or a new strategy could be developed and implemented.

  4.      Faulty Measurement. Either the baseline or strategic effects measures were faulty. In this case, measurement would have to be improved and the same or a new strategy developed and implemented.

   5.      Unanticipated Competitive Reactions or Consumer Changes. The objectives were appropriate, the strategy was appropriate and implemented well, but competitors developed and implemented better strategies or consumers changed in unanticipated ways. In this case, a new strategy likely would be needed.

  6.      Combination. Two or more of the above occurred. In this case, a complete audit of the strategy development system islikely needed.

Sorting out thereasons why a strategy failed is obviously a difficult yet critical task if a company is to be successful. Without knowledge of why a strategy failed, managers have a difficult time improving their new strategies.

If the strategy is successful in achieving desired changes in consumer responses, this may indicate that the company did a good job of consumer analysis and strategy development and implementation. However, there could still be important problems in the process. Objectives could have been set too low, measurement could have over estimated the responses, or competition could have made a major strategic error that helped the company. Thus not only the effects, but also the process of developing consumer behaviors that influence strategies need to be frequently evaluated.

Evaluate for Performance Improvement

Regardless of how successful a particular marketing strategy is, there is often room for improvement. Developing and implementing strategies to influence consumer behavior is a dynamic process that requires constant monitoring of a company’s and the competitors ongoing strategies, developing new strategies and anticipating competitors new strategies. In additioon, other environmental changes that influence consumers should also be analyzed and evaluated.

Marketing Implications

Marketers need to ultimately influence consumers overt behavior in order to achieve organizational objectives such as sales, market shhare and profits. This is sometimes done by first influencing consumers affect and cognition. In other cases marketers focus on intermediate behaviors that lead to the desired behaviors of purchase and use or focus on the desired behaviors somewhat directly. Regardless, it is useful to follow a sequential process for developing successful strategies that allows success or failure to be measured. The model discussed in this part of the chapter is one approach to help marketers do so. Although marketers often develop  strategies with particu;ar objectives in mind, commonly used approaches are often somewhat ad hoc and do not always allow for detailed analyses and evaluations of consumers responses to a chosen strategy. The model presented here provides a general framework for overcoming this problem. Although using this approach requires considerable consumer research, such research could help develop better strategies. Even if only a few types of affective cognitive and behavioral responses are identified and analyzed, marketers could have a better system for developing and evaluating their strategies. Of course, the costs and benefits of detailed consumer analysis have to be assessed in deciding how much time and money should be expended.

What Were These Marketers Trying to Do?

What were these marketers trying to do? Clearly, they were trying to influence consumer behavior by changing the consequences of the behavior. Both Ralston-Purina and Gebneral Mills were trying to get consumers to buy their cereals and Pepsi was trying to get consumers to buy its soft drinks. Note that although consumers would have to do some amount of information processing to purchase these products, the promotions were designed to get them to buy the products not to change their attitudes or beliefs about the products. Perhaps purchase and use would then lead consumers to remember how good the products were or change their attitudes about the taste or quality of the products. However, such changes in cognition would likely come after the desired change in purchase and use behavior.

Citicorp was also trying to influence consumer behavior by getting consumers to charge more on their credit cards. American TV was trying to get consumers to come to its retail stores and make purchases, including those with free steak offer. As with the manufacturers previously discussed, this credit card company and this retailer were not trying to change what consumers thought or felt about their services or stores. Rather, they were trying to influence consumer behavior by changing the consequences. Of course this in turn might change consumers cognition about these marketers and their products and services. Further depending on the success of such promotions, these marketers and their competitors might continue to offer them or come up with new promotion approaches, which are evidenced in the environment.

Thus while the focus of this chapter and section is on behavior, analysis of the reciprocal interactions among affect and cognition, behavior and the environment is still required for complete understanding of consumer behavior. Finally after completing this section of the text, you should have new insights into the use of promotions such as those discussed.

Summary

The chapter discussed a general approach to influencing overt consumer behaviors. Marketers accomplish this by changing the environment to influence consumers affective and cognitive responses as intermediate steps or by focusing on behavioral responses somewhat directly. Two areas of marketing that have focused on overt consumer behavior sales promotion and social marketing  were discussed. Finally, a model of the steps in developing consumer behavior influence strategies was presented and details were offered as to how marketers can use it effectively.

Key Terms and Concepts

Baseline 239                            Scanner cable method 237

Consumer promotion 228       Social marketing 234

Sales promotion 227               Trade promotion 227

Review and Discussion Questions

  1.      This chapter argues that influencing overt consumer behavior is more critical for marketers than just influencing affect and cognition. Do you agree? Why or why not?

  2.      Offer one example of each of the seven types of sales promotion listed in the chapter. How many of these have influenced your consumer behavior? Which ones do you prefer?

  3.      Offer one example of a situation where a sales promotion could affect your purchase probability, purchase quantity, purchase timing or purchase location.

  4.      What factors do you think influence whether consumer respond to a social marketing campaign to donate blood to the Red Cross?

  5.      What factors do you think influence whether consumer respond to a social marketing campaign to reduce drunken or other unsafe driving?

  6.      List everything you know (cognition, feel, affect) and do behavior concerning Crest toothpaste. How could marketers identify your level of each of these?

  7.      In reviewing Exhibit 10.5 which methods do you think are best for measuring the effects of a marketing strategy?

   8.      Why is it so difficult to determine the reasons for a strategic failure to influence consumers?

   9.      If a consumer behavior influence strategy met its objectives, can the marketer conclude that everything was done as effectively as possible? Why or why not?

Marketing Strategy in Action

Cub Foods

Leslie Wells’s recent expedition to the new Cub Foods store in Melrose Park, lllinois, was no ordinary trip to the grocery store. “You go Crazy” says Wells, sounding a little shell-shocked. Overwhelmed by Cub’s vast selection, tables of samples and discounts as high as 30 percent, Wells spent $76 on groceries $36 more than she had planned. Wells tell prey to what a Cub executive calls “The wow factors” a shopping frenzy bought on by low prices and clever marketing. That’s the reaction Cub’s super warehouse stores strive for and often get.

Cub Foods has been a leader in shaking up the food industry and forcing many conventional supermarkets to lower prices, increase service, or in some cases go out of business. With Cub and other super warehouse stores springing up cross the country, shopping habits are changing, too. Some shoppers drive 50 miles or more to a Cub store instead of going to the nearest neighborhood supermarket and must bag their own groceries at Cub Foods. Their payoff is that they find almost everything they need under one roof and most of it is cheaper than at competing supermarkets. Cub’s low prices, smart marketing and sheer size encourage shoppers to spend far more than they do in the average supermarket.

The difference between Cub and most supermarkets is obvious the minute a shopper walks through Cub’s doors. The entry aisle called a “power alley” by some, is lined two stories high with specials, such as bean coffee at $2 a pound and half price apple juice. Above the ceiling joists and girders are exposed, giving “the subliminal feeling of all the spaciousness up there. It suggests there’s massive buying going on that translates in a shopper’s mind that there’s tremendous savings going on as well, “says Paul Suneson, director of marketing research for Cub’s parent, Super Valu Stores Inc., the nation’s largest food wholesaler.

Cub’s wider than usual shopping carts, which are supposed to suggest expansive buying, fit easily through  Cub’s wide aisles, which channel shoppers toward high profit impulse foods. The whole store exudes a seductive, horn of plenty feeling. Cub customers typically buy in volume and spend $40 to $50 a trip, four times the supermarket average. The average Cub stores has salesof $800,000 to $1 million per week, quadruple the volume conventional stores.

Cub Foods has a simple approach to grocery retailing: low prices, made possible by rigidly controlled costs and high volume sales; exceptionally high quality for produce and meats the items people build shopping trips around; and immense variety. Its all packaged in clean stores that are twice as big as most warehouse outlets and four times as big as most supermarkets. A Cub store stocks as many as 25,000 items, double the selection of conventional stores, mixing staples with luxury, ethnic and hard to find foods. This leads to overwhelming displays 88 kinds of hot dogs and dinner sausages, 12 brands of Mexican food, and fresh meats and produce by the ton.

The store distributes maps to guide shoppers. But without a map or a specific destination, a shopper is subliminally led around by the arrangement of the aisles. The power alley spills into the produce department. From there the aisles lead to highly profitable perimeter departments meat, fish bakery, and frozen foods. The deli comes before fresh meat because Cub wants shoppers to do their impulse buying before their budgets are depleted on essentials.

Overall, Cub’s gross margin the difference between what it pays for its goods and what it sells them for is 14 percent, six to eight points less than most conventional stores. However because Cub relies mostly on word of mouth advertising, its ad budgets are 25 percent less than those of other chains.

Discussion Questions

  1.      List at least five marketing tactics Cub Foods employs in its stores to increase the probability of purchases.

  2.      What accounts for Cub’s success in generating such large sales per customer aqnd per store?

  3.      Given Cub’s lower prices, quality merchandise excellent location, and superior assortment, offer reasons why many consumers in its trading areas refuse to shop there.

Source: Experted from Steve Weiner and Betsy Morris, “Bigger, Shrewder and Cheaper Cub Leads Food Stores into the Future,”The Wall Street Journal, August 26, 1985, p.17; also see Michael Garry,”Cub Embraces Non-Foods,”Progressive Grocer, December 1991, pp.45-48.