Page 197 - Marketing Management

174 PART 3 CONNECTING WITH CUSTOMERS

involvement. First, they can link the product to an engaging issue, as when Crest linked its tooth-
paste to avoiding cavities. Second, they can link the product to a personal situation—for example,
fruit juice makers began to include vitamins such as calcium to fortify their drinks. Third, they
might design advertising to trigger strong emotions related to personal values or ego defense, as
when cereal makers began to advertise to adults the heart-healthy nature of cereals and the impor-
tance of living a long time to enjoy family life. Fourth, they might add an important feature—for
example, when GE lightbulbs introduced “Soft White” versions. These strategies at best raise con-
sumer involvement from a low to a moderate level; they do not necessarily propel the consumer
into highly involved buying behavior.
If consumers will have low involvement with a purchase decision regardless of what the mar-
keter can do, they are likely to follow the peripheral route. Marketers must give consumers one
or more positive cues to justify their brand choice, such as frequent ad repetition, visible spon-
sorships, and vigorous PR to enhance brand familiarity. Other peripheral cues that can tip the
balance in favor of the brand include a beloved celebrity endorser, attractive packaging, and an
appealing promotion.

VARIETY-SEEKING BUYING BEHAVIOR Some buying situations are characterized by low
involvement but significant brand differences. Here consumers often do a lot of brand switching.
Think about cookies. The consumer has some beliefs about cookies, chooses a brand without much
evaluation, and evaluates the product during consumption. Next time, the consumer may reach for
another brand out of a desire for a different taste. Brand switching occurs for the sake of variety,
rather than dissatisfaction.
The market leader and the minor brands in this product category have different marketing
strategies. The market leader will try to encourage habitual buying behavior by dominating the
shelf space with a variety of related but different product versions, avoiding out-of-stock condi-
tions, and sponsoring frequent reminder advertising. Challenger firms will encourage variety seek-
ing by offering lower prices, deals, coupons, free samples, and advertising that tries to break the
consumer’s purchase and consumption cycle and presents reasons for trying something new.

Behavioral Decision Theory

and Behavioral Economics

As you might guess from low-involvement decision making and variety-seeking, consumers don’t
always process information or make decisions in a deliberate, rational manner. One of the most ac-
tive academic research areas in marketing over the past three decades has been behavioral decision
theory (BDT). Behavioral decision theorists have identified many situations in which consumers
make seemingly irrational choices. Table 6.5 summarizes some provocative findings from this
research. 74
What all these and other studies reinforce is that consumer behavior is very constructive and the
context of decisions really matters. Understanding how these effects show up in the marketplace
can be crucial for marketers.
The work of these and other academics has also challenged predictions from economic theory
and assumptions about rationality, leading to the emergence of the field of behavioral economics. 75
Here, we review some of the issues in three broad areas—decision heuristics, framing, and other
contextual effects. “Marketing Insight: Predictably Irrational” summarizes one in-depth treatment
of the topic.

Decision Heuristics
Previously we reviewed some common heuristics that occur with noncompensatory decision making.
Other heuristics similarly come into play in everyday decision making when consumers forecast the
likelihood of future outcomes or events. 76
1. The availability heuristic—Consumers base their predictions on the quickness and ease with
which a particular example of an outcome comes to mind. If an example comes to mind too
easily, consumers might overestimate the likelihood of its happening. For example, a recent