BB Chapter Two: Situational Influences

1. Chapter Two:
Situational Influences
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2. 2-2
Chapter 2:
Situational influences
Part 1: Consumer decision process

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The next six chapters
discuss the
consumer decision process

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Chapter 2:
Situational influences
Objectives –after studying this chapter you
should understand:
1.
Situations
influence decisions
2.
There are
four main types
of situations
3.
The nature of situational influences
4.
Situational influences can be categorised
into
five classes
5.
Situational influences have
implications for
marketing strategy
6.
The usefulness of the person-situation
segmentation procedure

5. The Nature of Situational Influence The Nature of Situational Influence Situational influence Situational influenceincludes
all those factors particular to a
time and place that do not
follow from a knowledge of the
stable attributes of the
consumer and the stimulus
and that have an effect on
current behavior.
Consumers often behave very
differently depending on
situation.
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Situational influences
•
Situations influence consumer behavior
–
Four main types
of situations
–
Can be categorized according to
five
main dimensions
–
Implications
for marketing strategy

7. The Nature of Situational Influence The Nature of Situational Influence
--
a General Model a General Model
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Four situations
•
Communication situation
–
Where? Alone or with others? Surrounding noise?
•
Purchase situation
–
Where? Alone or with others? In a hurry?
•
Usage situation
–
With guests or alone? For pleasure or for work?
•
Disposal situation
–
Before the next purchase? Trade-ins?
–
After the purchase, e.g. packaging

9. The Nature of Situational Influences The Nature of Situational Influences The situation in which consumers receive informatio n has
an impact on their behavior.
The The
Communications Communications
Situation Situation
Marketers attempt to place
ads in appropriate media
contexts to enhance
effectiveness.
Movie ads are strategically place so that Movie ads are strategically place so that consumers see them on their way to consumers see them on their way to and from work and from work
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10. The Nature of Situational Influences The Nature of Situational Influences
The situation in which a purchase is made can influ ence
consumer behavior.
The The
Purchase Purchase
Situation Situation
Marketers must adapt
strategies to the purchase
situation.
Home purchases occur in a
unique social situation.
To succeed, realtors must take
the opportunity to develop
interpersonal relationships.
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Consumer behaviour is
Product–Person–Situation specific

12. The Nature of Situational Influences The Nature of Situational Influences Marketers need to understand the usage situations f or
which their products are, or may become, appropriat e.
The The
Usage Usage
Situation Situation

Research indicates that expanded usage situation
strategies can produce major sales gains.

Classic: Arm and Hammer baking soda, where
many uses have been found and marketed resulting
in increased sales.
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13. The Nature of Situational Influences The Nature of Situational Influences Consumers must frequently dispose of products or pr oduct
packages.
The The
Disposition Disposition
Situation Situation
Disposal can create significant
social problems as well as
opportunities for marketers.
Some consumers consider ease
of disposition an important
product attribute.
Appliances at a dump in the Appliances at a dump in the United Kingdom United Kingdom
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Role of situationin consumer
behaviour

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Five dimensionsof
situational influence
1.
Physical surroundings
2.
Social surroundings
3.
Temporal perspectives
4.
Task definition
5.
Antecedent states

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Examples of
physical surrounds
•
Store location
•
Interior decor
•
Music
•
Smell/aromas
•
Temperature (air-conditioningor heating)
•
Choice provided
(by product category or across the
categories)

17. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Physical Surroundings Physical Surroundings
Atmospherics Atmospherics
is the sum of all the physical features of
a retail environment.

Atmospherics Atmosphericsinfluences consumer judgments of
the quality of the store and the store’s image.

Atmosphere Atmosphereis referred to as
servicescape servicescape
when
describing a service business such as a hospital,
bank or restaurant.
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Typology of service environments

19. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Physical Surroundings Physical Surroundings
Colors Colors Certain colors and color characteristics create fee lings of
excitement and arousal which are related to attenti on.
Brighter colors are more
arousing than dull ones.
Warm colors such as
reds and yellows are
more arousing than cool
colors such as blues and
grays.
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20. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Physical Surroundings Physical Surroundings
Aromas Aromas There is increasing evidence that odors can affect consumer
shopping. Several aroma studies have found the foll owing:
1. A scented environment produced a greater intent t o revisit
the store, higher purchase intention for some items , and a
reduced sense of time spent shopping.
2. A pleasantly scented environment enhanced brand recall
and evaluations particularly for unfamiliar brands.
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21. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Physical Surroundings Physical Surroundings
Music Music Music influences consumers’ moods, and in turn, infl uences a
variety of consumption behaviors.
Firms exist to develop music programs to meet the
unique needs of specific retailers.
An emerging trend is having music more in the
foreground so it becomes part of the shopping exper ience
and drives store image.
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Impact of background music
on restaurant patrons

23. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Physical Surroundings Physical Surroundings
Crowding Crowding Most consumers find feelings of crowding to be unpl easant
resulting in:
•Less time in the store and less buying
•Faster decisions and less use of information
Crowding can lead to less satisfactory purchases, u npleasant
shopping, and reduced likelihood of returning to th e store.
Marketers need to design outlets to reduce crowding
perceptions.
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Impact of
physical density (crowding)
on shopper
perceptions

25. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior Social surroundings Social surroundingsare the other individuals presen t in the
particular situation.

Social influence is a significant force.

Individuals tend to comply with group expectations,
particularly when the behavior is visible.

Shopping is a highly visible activity.

The use of many publicly consumed brands are
subject to social influences.
Social Surroundings Social Surroundings
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Examples of
social surroundings
•
Types of customers in the store
•
Queues and crowding
•
Whether the consumer is likely to be known
byothers/recognised
•
Whether there are high-profile
people/celebrities shopping at that store
•
Whether the product will be consumed
privately or in the presence of others

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Effect of social situation on desired
dessert attributes

28. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior Embarrassment Embarrassment
is a negative emotion influenced both by the
product and the situation.
Social Surroundings Social Surroundings
Certain products are more
embarrassing than others, and
Embarrassment is driven by the
presence of others.
For extremely sensitive products,
strategies include home delivery
options.
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29. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Temporal Perspectives Temporal Perspectives
Limited purchase time often
limits search
Internet shopping is growing
rapidly as a result of the time
pressures felt by consumers.
Temporal perspectives Temporal perspectivesdeal with the effect of time o n
consumer behavior.
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Examples of
temporal influences
•
Whether the product is seasonal
•
Whether the product is urgently required
(snack between lectures)
•
Time available for shopping limited/excess
(the product may be an excuse for shopping)
•
How long the previous product lasted or was
expected to last

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Temporal perspective of purchase
decisions

32. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Task Definition Task Definition
Task definition Task definitionis the reason the
consumption activity is occurring.
Major distinction between
purchases for self versus gift.
Consumers give gifts for many
reasons:
•social expectations
•ritualized situations
•to elicit return favors
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Examplesof
task influences
•
Is the product utilitarian or used as a status
symbol?
•
Is it a gift or for oneself?
•
Must the product be long-lasting/tough?
(e.g. an everyday watch)
or decorative?
(e.g. a dress watch)
•
Is the product intended for several uses?
(e.g. a family computer for study and internet
access)

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Buying factors in gift-giving purchase
situations

35. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Antecedent States Antecedent States
Antecedent states Antecedent statesare
features of the individual
person that are not lasting
characteristics
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Examples of
antecedent states
•
Moods
–
Feeling sad triggers buying sweets or seeing a
funny movie
–
Feeling rejected triggers buying games’software
•
Momentary conditions
–
Can’t eat ice cream because teeth hurt
–
Can’t buy a book because the credit card was left
at home
–
Buy more groceries because hungry before
shopping

37. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Moods Moods
Moods Moods tend to be less intense than emotions and may
operate without the individual’s awareness.

Although
moods moodsmay affect all aspects of a person’s
behavior, they generally do not completely interrup t
ongoing behavior as an emotion might.

Consumers actively manager their
moodmoodstates,
often seeking situations, activities, or objects th at will
alleviate negative
moods moodsor enhance positive ones.
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38. Situational Characteristics and Situational Characteristics and Consumption Behavior Consumption Behavior
Momentary Conditions Momentary Conditions
Thus, a great deal of
marketing activity is directed
toward momentary
conditions.
As with moods, individuals attempt to manage their momentary conditions momentary conditions, often through the purchase or
consumption of products and services.
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Using positive mood influences in
marketing

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Ritual situations
•
A ritual situation can be described as a set
of interrelated behaviours that occur in a
structured format, which have symbolic
meaning, and that occur in response to
socially-defined occasions
•
Important to marketers as they define
consumption, e.g. anniversaries, seasonal
gifts
•
Traditions and rituals being continued and
developed, e.g. Valentine's Day

41. Applications in Consumer Behavior Applications in Consumer Behavior
Courtesy R.C. Bigelow: Agency: Mason, Inc. Courtesy R.C. Bigelow: Agency: Mason, Inc.
The Bigelow tea ad
is a great example of
presenting a product
as a ritual.
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Situational influences and
marketing strategy
•
Developing a situational influence matrix
•
Positioning the product based on situation
•
Segmenting the market based on usage
situation
–
alone
–
in combination with other segmentation variable
–
person/situation segmentation

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Situational influence matrix

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Usage situations and product positioning

45. Situational Influences and Marketing Situational Influences and Marketing Strategy Strategy Identify the different situations that might involv e the
consumption of a product
Determine which products or brands are most likely to be
purchased or consumed across those situations.

One method of dealing with this question is to join tly
scale situations and products.
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46. Situational Influences and Marketing Situational Influences and Marketing Strategy Strategy
Five Steps for Developing Situation Five Steps for Developing Situation
--
Based Marketing Strategies Based Marketing Strategies
1.1.
Use observational studies, focus group discussions, depth Use observational studies, focus group discussions, depth interviews, and secondary data to discover the vari ous usage interviews, and secondary data to discover the vari ous usage satiations that influence the consumption of the pr oduct. satiations that influence the consumption of the pr oduct.
2.2.
Survey a larger sample of consumers to better under stand and Survey a larger sample of consumers to better under stand and quantify how the product is used and the benefits s ought in the quantify how the product is used and the benefits s ought in the usage situation by the market segment. usage situation by the market segment.
3.3.
Construct a person Construct a person
--
situation segmentation matrix. situation segmentation matrix.
4.4.
Evaluate each cell in terms of potential. Evaluate each cell in terms of potential.
5.5.
Develop and implement a marketing strategy for thos e cells Develop and implement a marketing strategy for thos e cells that offer sufficient profit potential given your c apabilities. that offer sufficient profit potential given your c apabilities.
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47. Situational Influences and Marketing Situational Influences and Marketing Strategy Strategy
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48. Topics covered in this chapter
•
There are four types of situational influence
•
The nature of situational influence
•
Dimensions of situation
–
Physical
–
Social
–
Time (temporal)
–
Task
–
Antecedent
•
Situational influences and marketing
strategy
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