Consumer behaviour, learning and purchase decisions - Essay Example

? Consumer behaviour, learning and purchase decisions Susana Venegas 15/07/11 Consumer behaviour, learning and purchase decisions Introduction The method by which consumers learn and imprint stimulus or scenarios on memory have the ability to radically shift marketing premise and concept, especially as it relates to advertising and brand strategy. When considering two different products, in a very different product category, these being BMW and Kit Kat, consumer attitude and the decision-making process differ. BMW 3 Series, as an example, is a higher priced product, thus usually involving a more intensive search process. The Kit Kat candy bar, however, is convenience-priced and generally an impulsive strategy based on store position and advertising associated with the display units. This paper looks at the concepts of learning, consumer behaviour, and purchasing decisions to understand the impact of these characteristics on marketing strategy for products in radically different industries and ad strategies. The tasks completed include the production of effective marketing policies for Kit Kat and BMW based on elements of learning and memory. Learning and Memory The basis of learning as it pertains to marketing is drive and motivation. Drive is “any strong stimulus that impels action…relying on a cue in the environment to determine the nature of the consumer’s response to a drive” (Boone & Kurtz, 2007, p.173). Learning and the relevancy of environment are large predictors of motivation once a marketer understands the dynamics of their target market, usually psychographic profiles. There is a concept in psychology related to memory and learning known as the social learning theory. Under this concept, individuals have a tendency to model the behaviours of others when they witness reward for these actions (Neubert, Carlson, Kacmar, Roberts & Chonko, 2009). This type of learning only occurs when the individual being observed is both credible and attractive (Neubert et al). Understanding this concept, marketers will develop a marketing strategy utilizing reputable celebrities or individual actors with similar lifestyle preferences as a means to motivate response or model behaviours under social learning theory. Certain psychographic lifestyle groups will gravitate more to modelling behaviours when the actor or celebrity endorser is credible and attractive, thus making an imprint on memory about the substance of product or the relevancy of the campaign. “In personal and non-personal communication, the message’s impact on the target audience is affected by how the audience views the communicator” (Kotler, 2009, p.559). Kotler (2009) again identifies that messages have more persuasive value when stemming from a highly credible source of information. For certain market groups, once these values have been identified, learning about a brand occurs by the credibility and motivational value of the advertising concept or the messages being delivered in an integrated marketing campaign. Under Kolb’s experiential learning theory, adults also learn through reflective observation, a system where an individual learns from experiences and “articulating why and how they occurred whilst reflecting and critically examining their experience from all perspectives” (Akella, 2010, p.103). In this type of learning, a consumer scans the environment and considers the impact of their own needs in relation to the environment and then develops new strategies in the future based on experience. For marketers, this is important in relation to post-purchase evaluation and the systems in place for handling the by-product of this type of learning. For example, a marketer might develop a world-class customer complaint system or survey system so that consumers have a positive experience once the product has been purchased. It was previously discussed about motivational linkages to learning. Under Abraham Maslow’s Hierarchy of Needs, an individual is motivated by establishment of a sense of social affiliation. “Individuals want to feel as though they have an effect on their environment” (Gambrel & Cianci, 2003, p.145). If a brand is able to identify with the inherent needs of consumers associated with motivation, they can inspire learning and they understand this through the development of consistent marketing messages. For instance, an ad might be shaped with concept relevant to lifestyle, thus positioning the product under concepts of family and tradition if it is in-line with predicted lifestyle needs for a specific culture in requirement of affiliation. The brand will develop consistent marketing messages that reinforce family or lifestyle relevancy to create this sense of inclusion. Since the messages are then credible and have value, similar behaviours are modelled as described by social learning theory or new motivations are created and imprinted on the adult consciousness. This type of learning describes many of the positioning strategies that certain brands develop associated with drive as an element of adult learning. The price category of these products is significant in determining whether certain ad concepts can be shaped based on learning, memory and motivation. The BMW 3 Series is priced at $30,000, thus making this a more important consumer purchase with much more search process in the consumer decision-making predictive model. The Kit Kat, priced under a pound, has little in terms of connection in memory short of experience and post-purchase evaluation. The following table shows highlights of both strategies as it relates to learning and memory for marketing strategy production. BMW 3 Series There are cultural brands, such as BMW. “Cultural brands embody a sum total of a group’s cultural identity, including a surrounding myth or associations of an aspired future” (Guzman & Paswan, 2009, p.71). Much of personality is tied to learning that rests on the foundation of motivational cues and ambitions and a cultural brand like BMW relies on a brand personality scale to appeal to its desired markets. Thus, having a marketing strategy that suggests inclusion, a necessity for positive learning and shaping to occur, works for this type of brand due to the dimensions of buyer behaviour and memory. For example, in 2009 BMW invited its customers to be interactive in submitting online designs for the BMW M5 model and received over 9,000 entries in just a few days through this strategy (Elkington, 2009). BMW likely understands the tendency of buyers to seek motivational cues from the environment, in this case inclusion and affiliation, thus building more motivation to seek self-esteem. BMW serves the proverbial self-esteem engine by establishing the foundations of inclusion as a motivational strategy. Price is not so much the consideration in this case, even though consumers differ in their price sensitivity and alternative pricing instruments such as reduced monthly payments or certain cash discounting (Silva-Risso & Ionova, 2008). For BMW 3 Series, even though it is priced lower than other models, would have much less focus on pricing in its positioning, relying instead on social learning theory dimensions (using celebrities for endorsement) or building a cultural brand with a focus on cohesion and belonging with its target market groups. Appealing to the aspiration characteristics of people develops a memory system of brand recall and perhaps even loyalty because the messages chosen tangibly motivate the individual to seek more information or relationship with BMW. Kit Kat The Kit Kat bar is a latent need, “generally something that does not have high priority in the consumer’s life” (Schultz, Tannenbaum & Allison, 1996, p.28). This type of product might not even be recognized as a need until it has been called to the consumer’s attention through advertisement (Schultz, et al.). Marketers of Kit Kat recognize that consumers do not mull the relevancy of a candy bar purchase and are not generally motivated to make these purchases until in-store and near a display housing the product. However, experiential learning theory, as indicated by Akella (2010) indicates that reflective observation and critical analysis of an experience determines the level of learning that occurs. A consumer who buys a Kit Kat, does not enjoy the flavour post-purchase, will have an imprinted learning that determines their future buying strategies for this latent need-fulfilling product. In further relation to the Kit Kat, convenience products such as this require a symbol of quality in order to motivate purchase. “If the quality signalling and status symbol effects are large enough, they may negate price competition even during later stages of the product life cycle” (Aronin, Fetterman, Liu & Peng, 2004, p.3). Kit Kat is in its later stages in the product life cycle, however it is a familiar brand imprinted on many demographics. Kit Kat utilizes a similar strategy related to consumer learning and purchase characteristics in television marketing utilizing larger-than-life banner presentation and actors with a certain status symbol, such as students in university study. Social learning theory embedded into the Kit Kat advertising illustrates professional students rewarded for indulging in a Kit Kat bar and being satisfied; especially important for those consumers with similar lifestyle. The actors used in the ad thus become credible and it is a predictor that consumers will learn and adopt a motivation based on either affiliation or the use of a credible data source in the commercial. A study conducted by several experts in marketing identified that employees have physiological responses to certain brands, indicative of emotional connection with brands that are loved (Maxian, Siegrist, Wise & Freeman, 2008). Kit Kat attempts to build on this by using advertising concepts that spark a physiological response, in this case relaxation and satisfaction. Consumers are not going to pay much attention to minute price differences and price competition between chocolate bar manufacturers, thus new strategies must be developed that build on emotional awareness or through social role modelling using appropriate actors. Kit Kat is limited to its ability to position in terms of price or even quality and instead builds a personality with social dimensions to create motivation-based learning about the brand. Thus, marketing policies differ for a product like Kit Kat as compared to a higher-priced BMW 3 Series on the market. The consumers will naturally engage in more intensive searches for comparison, especially if they are price-sensitive. However, if resources are not problematic, then BMW continues with affiliation as a motivational, environmental cue thus created positive cognitive connections between the brand and their own lifestyle needs and preferences. Conclusion Learning occurs as a product of inherent and environmentally-driven stimulus or through the process of observing socially-credible role models. Products that have much different prices and function, especially if they operate in competitive markets like Kit Kat and BMW, must turn toward psychologically-based advertising in the shape that best fits market learning characteristics. BMW, because of its complexity, has more avenues related to creating affiliation and belonging as a strategy for growth whilst Kit Kat is more subtle, yet relies on social learning theory. Both brands are utilizing the appropriate strategy, based on consumer learning and memory processes, to guarantee consumer interest. Being in a position, like BMW is, to build self-esteem through valid concepts on Maslow’s Hierarchy of Needs gives BMW the image of a provider for those who aspire and thus are motivated by a cultural brand with aspiration-based messaging. References Akella, D. (2010), Learning together: Kolb’s experiential theory and its application, Journal of Management and Organization, vol.16 no1, pp.100-113. Aronin, B., Fetterman, A., Liu, X. & Peng, J. (2004), [internet] Rustic coffee: a strategy for challenging Starbucks, p.3 [accessed July 11, 2011 at http://www.mcafee.cc/classes/bem106/paper/2004/starbucks.pdf] Boone, L. & Kurtz, D. (2007), Contemporary Marketing, 13th ed. Thomson South-Western. Elkington, J. (2009), Googling the future, Director, vol.62 no.9, p.22. Gambrel, P.A. & Cianci, R. 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