Consumer Behaviour Report

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1. Introduction

This assignment discusses and analyses some of the most important theories in consumer behaviour for instance the perceptual theory, learning, motivation and consumer lifestyle and applies these theories through messages appeals and segmentation based on products from two different categories. Based on the level of risk are classified into low involvement and high involvement products. The low cost products frequently purchased which tend to solve a habitual problem (ie.thurst) while on the other side more expensive products that need more time, thought and search to solve an extensive problem exist (ie. Car). The "Schweppes" and BMW products have chosen to complete this assignment (see appendix I,II).

Released advertisements of both category products will be evaluated using the perceptual theory and from which the perceptual process have been used to show how marketers employ perceptual attention, symbolism and interpretation in constructing their messages. Furthermore, learning theory will be defined and via stimulus-‐response models such as classical conditioning, instrumental conditioning in addition to the cognitive learning theory will be applied to illustrate how the first-‐mentioned theory supports communication and branding theory.

Moreover, the second part of the main body will adopt the same ads to illustrate how both companies have used consumer behaviour theory in marketing their product. More focus will be given upon motivation theory. In order to show how companies has targeted various segments with their products Maslow’s Hierarchy of Needs and McCelland’s ‘Three Needs Theory’ will be used. This will be followed by a psychographic lifestyle model to demonstrate the use of psychographics and lifestyle as a segmentation tool to companies. Finally, a conclusion will be made by summing up the most important points.

2. Task one – Perceptual Theory 2.1. Perceptual Theory – Low involvement

Exposure is a stimulus of the degree of attention in which a consumer focuses on that is within their range (Solomon et al, 2006). Advertising is a stimulus in which marketers have become very creative with to gain consumers attention to their products (Solomon et al, 2006). The low involvement product, which has been chosen, is "Schweppes" (see appendix I). The ad posted in ‘The Times’ newspaper in UK make fun of actual problems and to try to make people smile in a time that is field with gloom to grab consumer’s attention, and to refresh memories about the product (Janssen, 2010).

According to Solomon (2006) colours used in advertising play an important role. These visual elements used within advertisements are receptive by visual channels then communicate through a product size, styling, brightness and distinctiveness compared to competitors. In "Schweppes" commercial (see appendix I) black and white colours have been used while the company’s trademark can easily identified at the right side bottom with its distinctive colours. Black colour stands for authority, power and symbolize stylishness and timeless, while White colour stands for innocence and purity (Johnson, 2012).

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The company’s established trade dress colours such are yellow, black, red, silver and a red circle as a logo with a symbol in the middle which looks like a water fountain with 1783 year of establishment underneath (Janssen, 2010). Yellow colour signifies cheerfulness and is considered as a colour for grabbing viewers’ attention (Johnson, 2012). In addition red symbolizes emotion and silver sleek, glamorous and rich (Howard, 2012).

When it comes to interpretation of symbolism every marketing message has three basic components: the object which is the product that is focus of the message, the sign is the sensory image that represents the intended meanings to object and the interpretant the meaning derived (Solomon, 2009). From the selected ads (shown in Appendices I,ll) Schweppes itself is the main focus on the message and people-‐cartoons stand for the sign last for the interpretant this would be the meaning which is “experience matters” at any case, that experience is crucial and that it is best to stick to something that you already know and had positive past experience like the product -‐ Schweppes. The company’s logo would be the icon as it associates with the product, from these two advertisements it is showing as it is stating that Schweppes is a timeless brand. Moreover, what Schweppes is trying to do with the brand and packaging is to inject emotions from consumers such as life and love for the brand and to create better engagement with the consumer (Wearebulletproof, 2012). As the company’s marketing director state that this satiric point of view will constantly engage customers by creating a dialogue with the customers and will bring the product’s unique brand personality and heritage (CampaingLive, 2008).

2.2. Perceptual Theory -‐ High Involvement

BMW is considered one of the top brands when it comes to brand perception. BMW uses visual identity within their ads by always showing the logo or their vehicles. BMW uses a sexy lady to grab attention of maybe young male professionals or women who want to be like her. Become a person who have style and seems to like to take their time when it comes to finding the right product or service, as they want something that is right for them.

White and blue calm colours have been used mostly in the ad while the endorser’s dress is red a colour symbolizing emotional intense as well as power (Johnson, 2012). The colour blue commonly used in the corporate world, signify importance and confidence (Howard, 2012), while white colour which was stated before for the low involvement product symbolizes innocence and purity and is used because it is light, neutral, and goes with everything (Johnson, 2012). The company’s trade dress are the logo on the car which is the icon within the ad show colours of white, blue and black, which blue is used for corporate colour which suggests that people who drive BMW are professionals and black symbolizes conservative, mysterious, sexy, and sophisticated in which the car in the print ad shown in Appendices I is a very sexy, sleek style (Howard, 2012).

Regarding the basic components that play the role of symbolism of interpretation, the BMW Z4 at the background of the ad stands for the object advertised while the best financial services have to be picked for this. The sign would be the lady endorsing the brand, who tries the best fit -‐ right shoe (financial service) and the interpretant would be that one does not have to make a quick decision but that with company’s financial services can take his/her time and maybe try around to see which service best fits the interested.

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3. Task one -‐ Learning Theory 3.1. Behavioural learning theory

Both ads from Schweppes have been satiric of the actual problems in today’s agenda the first is related with the economic-‐financial global bad situation and the lack of experience to overcome these problems while the whole world is threatened by the meltdown. The marketers make use of negative reinforcement. Indeed, negative reinforcement is when a campaign or an ad is showing people in a negative situation because they did not use the product the marketer want to sell. In classical conditioning response are involuntary and simple, in instrumental conditioning the marketers are using it to achieve a goal (Solomon 2009). Instrumental conditioning is about learning behaviour in order to avoid negative outcomes (Solomon, 2009).

What is been shown is the financial problem resulted by the global crisis. These men are fired because they did not have enough experience and did not learn from the last historic crisis to avoid the financial crisis. This is exactly the same for the global warming none of them had enough experience to avoid it.

Lot of people can give different meanings to the message by Schweppes because individuals perceive things differently. One interpretation could be that if politicians had an experience as Schweppes do they could avoid the financial crisis and the global warming! Thanks to the ad Schweppes is trying to put forward its own experience in order to promote the quality of its product since the date of establishment. Regarding to the consumer, the purpose of the ad is to make theme laugh about something serious in order to promote the Schweppes drink. Moreover, thanks to the ad the consumer will understand that experience matter and is one of the issues of the big economic crisis. Indeed, the consumer will feel more comfortable with the fact of drinking Schweppes, which have a huge experience of 229 years. In addition, the logo “Sch...You know who?” shows again how much they are famous and how much they have experience in drinks. In fact, they imply that the consumer knows the rest of the brand name because there is previous, old experience.

To conclude in this ad the experience was the main point to understand. However, the fact of making fun about actual news is also important because Schweppes managed to combine serious, funny and promotion in one creative and innovative advert. In addition, behavioural learning is more suitable for low involvement products. In fact, we have seen that the ad was more emotional rather than rational and consumers tend to be more active than they are in a cognitive learning ad.

3.2. Cognitive learning theory

In a cognitive learning theory the company needs to attract the consumer who will focus on a model’s behaviour thanks to the advert. Then, the consumer will need to retain the model’s behaviour in memory and be able to perform it in a real situation. Finally the consumer needs to meet a real situation in which he will be motivate and think it is useful. At the end of the process the consumer acquires and performs the model’s behaviour earlier demonstrated: we call that the observational learning. (Solomon, 2009)

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Diagram A: The Learning Process Theory

Adopted by: Solomon, 2009

The observational learning is the purpose of the cognitive learning theory and so the advert proposed by the company. In reference to the BMW advert, the modelling process the consumer will follow is the woman who is obviously the owner of a BMW-‐Z4 convertible. For that, the consumer needs to be able to understand the advert and the complexity of the information to be processed, we call that the information processing. In other words the company depends on the consumer cognitive ability.

Regarding to the information processing there are three possibility of retaining in memory. There are the sensory store, the working memory and the long-‐term store (Schiffman and Kanuk, 2011). The last one is the only one in which the information will not be lost. So the advert needs to be good enough to take the attention of the consumer in order to in his long-‐term store memory.

If the consumer performs to understand the advert and learn the modelling process the job of the advert has been successfully done. However, as we said before the consumer needs to remember it and be motivated in order to perform the modelling process in a real situation. Here the real situation might be a woman who buys a BMW car or a man who buy a BMW car for a woman. Without this as the more obvious behaviour might be a professional man who is buying a car for himself. Here thanks to the modelling process the woman is buying a car for herself. We can deduce that in addition to sell its car for men they want to sell it for women as well.

To conclude, cognitive learning is more suitable for high involvement product because the process is more rational rather than emotional. Indeed, in cognitive learning the consumer will do some research on Internet or will talk with friend about it for instance before making a

Attention

The consumer focuses on a model’s behaviour

Retention

The consumer retain this behaviour in

memory

Production processes

The consumer has the ability to perform the behaviour

Motivation

A situation arises wherein the

behaviour is useful to the consumer

Observational learning

The consumer acquires and performs the behaviour earlier demonstrated by a mode

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purchase choice whereas on a behavioural learning the consumer will follow his emotions.

4. Task Two – Motivation Theory 4.1. Motivation theory

Consumer behaviour focuses on how individuals make decisions to spend their available resources such as time, money or effort on consumption-‐related items (Kanuk & Shiffman, 2010). Motivation consist an essential part in the consumer decision-‐making process and it refers to the process that leads people to behave as they do (Solomon, 200). Schiffman and Kanuk simpler define motivation as "the driving force within individuals that impels them to action" (Schiffman and Kanuk 2007, p.83) in order to satisfy a need either this is a physiological this also referred as biogenic or is a psychological need. Our needs and goals change due to life experience therefore motivation is affected.

Is appreciated that the way each individual choose a product depends upon the degree of involvement with the product, the marketing message or the purchase situation (Solomon, 200). Most of individuals’ needs are inactive most of the time but an internal stimulus found in the person’s physiological condition by emotional or cognitive processes or stimuli in the outside environment can awake potential need. This arousal can be physiological, emotional, cognitive, environmental or situational (Schiffman and Kanuk, 2010).

A wide acceptable framework used by marketers is Maslow’s Hierarchy of Needs (see graph B). Regarding to Dr Abraham Maslow there is five basic needs starting from the basic biogenic needs to the higher psychogenic needs. The hierarchical structure implies that the order of development is fixed meaning that individuals must first satisfy basic needs before progressing up the latter (Solomon, 2009).

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Diagram B: Maslow’s Hierarchy of Needs

UPPER-‐LEVEL NEEDS

LOWER-‐LEVEL NEEDS

Adopted from: M.R. Solomon, 2009

The model is characterised as very general and does not have empirical evidence on how one level is precisely satisfied before you move to the next one (Schiffman and Kanuk, 2007). An additional model is McClelland’s three needs theory consisted of the need for power, affiliation and achievement, which are included in Maslow’s hierarchy (Schiffman and Kanuk, 2007). However, the hierarchy of needs is a highly practical and useful framework adopted by many marketers by focusing their advertising appeals on a need that is widely shared by a huge segment of people (Schiffman and Kanuk, 2007).

When it comes to the selected ad of low involvement, Schweppes made use of the political-‐economic and environmental arousal to motivate viewers to think about it and ‘at the end of the day there’s always a Schweppes’ to enjoy. Insecurity and instability at every level of economic and social has been shown sarcastically through the company’s cartoon ads. Therefore it stresses the need of security and safety, since people are afraid of what is going to happen next but when it comes to the brand they feel confident and safe from their previous positive experience with the product, which can lead to the purchase of the product because a need has aroused. This so called situational arousal can trigger business people to have refreshment ‘Schweppes’ drink after a tired long day at work when they go home.

The BMW ad in reference to Maslow’s Hierarchy of Needs appeals in more than one need segment, the safety and security need and the ego, self-‐esteem needs. The high quality brand reflects status and prestige is clearly targeted at independent or even professional

PHYSIOLOGICAL

Water, food, Shelter, Warmth, Sleep

EGO NEEDS /(SELF-‐ESTEEM)

Status,Accomplishment,Recognition,Respect

BELONGING

Love, friendship, Family, Acceptance by others

SAFETY

Security, stability, Protection, Freedom from fear

SELF-‐ACTUALIZATION

Self-‐fulfilment

S

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people, urban customers aged 39 years and younger with a high disposable income. It stresses also the power and self-‐confidence (BMWeducation, 2012). Also, according to the message "Guilty pleasures are bought. The finer pleasures can be leased" the first refers to shoes which you have to pay in order to have them but greater satisfaction referring to the BMW-‐Z4 car, can be experience securely with a fixed payment every agreed date. At this point the safety and security needs is applied communicating that the company can ensure people and provide financial support, provided by its financial department from which this ad was established.

5. Consumer Lifestyle theory

Marketers have always been accustomed to using demographic and psychographic profiling when it comes to advertising their products (Solomon, 2008). However in today’s market there is now more of a need to narrow down adverts and messages when it comes to questions such as whom they are targeting and what they are going to say and where they should say it (Solomon, 2008).

This brought forward the revelation of Lifestyles and psychographic theory. Solomon (2008) describes this theory as looking into where people spend most of their time and money and how they elect to allocate it. The VALS2 model helps in sorting people into groups on the basis of the things they like and what they do and also how they spend their disposable income (Solomon, 2008). Below is a diagram of what the VALS2 diagram is broken down.

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Diagram C : VALS2 Framework

Adopted by: Solomon, 2008 (p. 268)

Psychographics breakdowns use a mixture of psychological, sociological and anthropological factors to help marketers determine various factors (Schiffman and Kanuk, 2007). Psychographic segmentation has also got various uses for marketers. It helps them in defining new target markets and helps them create new views of the market (Solomon, 2008). They also hep them in positioning new products and also better communicate a products attributes. Psychographic segmentation also helps marketers determine and develop a product strategy and also their social and political issue.

Innovators

Thinkers

Believers

Achievers

Strives

Experience

Makers

Strugglers

High Resource

High Innovation

Low Resource

Low Innovation

Ideals Achievement Self-‐expression

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5.1. Low involvement product – Shcwepps

Shcwepps is regarded as a low involvement product, as there is no great financial risk in buying the product. There are many copycat and piggyback products in the market that are sold alongside Shcwepps for a much cheaper price. Shcwepps seeks to attract people from various psychographic groups.

1. Innovators – These consumers are at the leading edge of change and have the highest forms of incomes (Blythe, 2008). I think this is reflected well in the advertisement as the men and characters in the advert seem all to be people from a good background of jobs and those that may have a say in leading the edge of change (Blyhte, 2008). As we can see in the cartoons “G20 The London Summit 2008” and also the second advert of the polar ice caps melting. These consumers also base a great importance on image and they have and expression of taste, independence and character. They are also directed towards the finer things in life. Shcwepps also fits into this category because the types of consumers that purchase the Shcwepps brand have a particular taste and image as not everyone buys this brand.

2. Believers – These consumers also fit into this category as they have preferences for American and well established brands (StrategicBusinessInsights, 2012). Although they are from a low resource group they are highly motivated by ideals. They are also regarded as very predictable consumers (StrategicBsuinessInisights, 2012). These individuals are also centred on family, community and the nation. This is evident in this advert as the cartoon characters are talking and looking at things that matter to the community and nation, referencing things such as global warming and also the “G20 London Summit”.

5.2. High involvement product – BMW

BMW is regarded as one of the most luxurious road cars being manufactured, making it a high involvement product as there is great financial risk involved in making this type of purchase. BMW seeks to attract people from two possible psychographic groups.

1. Experiencers – These consumers are generally aged around the median age of 25, and come from a high-‐resource group that is motivated by self-‐expression. This group also tends to be into physical exercise and also social activities, spending heavily on clothing, fast food, music and other youthful activities. This can be seen reflected in the advert, as the woman in the advert is getting ready and dressed to possibly go out to social event (StrategicBusinessInisights, 2012). The woman is also young in the picture, which means she also fits into the median age of this category. It is clear that image and self expression are important to the woman in the picture simple by what is photographed alongside her, i.e. the three pairs of shoes and also most importantly the car.

2. Innovators – These consumers are on the leading edge of change, and have the highest forms of incomes (StrategicBusinessInsights, 2012). They like to indulge in the “finer or finest things in life”. Image is most important thing in their life, alongside their expression of taste, independence and character. This again is also evident in the advertisement, with what is written on the advert, “guilty pleasure are bought, and the finer pleasures in life can be leased”. It also evident that image is important as the women in the advert is choosing between three different types of heels and not just one.

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6. CONCLUSION

To sum up,

Learning theory can be both behavioural or cognitive marketers are using different types of involvements according to what they want to say. In fact, a low involvement advertisement is more suitable for a behavioural learning and high involvement is contrary more suitable for cognitive learning. It is all about rational or emotional. Behavioural learning is emotional whereas cognitive learning is rational.

Marketers generally use motivation to encourage consumption. Indeed, they construct their advertising messages in reflection to personal needs in order to target and reach a large number of people who usually share the same need or goals. A common and flexible to different needs framework exploited by, is the Maslow’s Hierarchy of Needs. Meaning that an ad can appeal to more than one of human’s need, which could be physiological, safety, belonging, self-‐esteem or self-‐fulfilment.

It is also fair to say that consumer lifestyles are also a main target to marketers; it is evident that these types of sectors are forevermore being targeted now. Marketers need now more than ever to focus on consumer lifestyles in order to ensure that they are going after the correct consumers and that they are reaching out to their target audience.

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7. Appendix

Appendix A

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Appendix B

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Appendix C: Group Working Log

Meeting Date Activity Agreed Action 02/03/12 09/03/12 16/03/12 21/03/12 22/03/12

• Divide the work into 4 parts and share our

personal details

• Define which advertise will used in the assignment

• Talking about what each person of the group will write in his part in order to be agree on each point

• Combine the work all together

• Print and submit the work

1 question each Schweppes and BMW ad

Group Signatures below:

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Appendix D:

Individual Working Log (Member 1)

Task Number Contribution 1 2 3 4

• Going throw all the theories I need to understand before doing my job. I

read several books and use the presentation I have done in class.

• Understand the advertisement clearly in order to do not make a confusion. I also agreed with everyone about the understanding of the ads.

• Write my part of the group assignment using my understanding of the ads

and the theory.

• Write the introduction in collaboration with on of the group person.

Name: Hugo Barbier Date: 22/03/2012


Task Number Contribution 1 2 3 4

I was responsible for completing the consumer lifestyles theory in relation to both advertisements I was also in charge of the final layout and how it has all been displayed Created the contents page and also the reference layouts. Reading over other people work and also ensuring that it flowed and helped out anyone else who needed help

Name: Rodrigue Eid Date: 22/03/12

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Task Number Contribution 1 2 3 4 5 6

• With another member of the group search to find the advertisements

appropriate for this assignment

• Email everyone the ads and share personal details and keep others updated about what is going on

• Complete my part –Task two Motivation theory

• Do introduction part in collaboration with another member

• Check the layout and grammar and do the final changes

• Responsible with two members of the group to print out the coursework

and submit it at the Faculty Office

Name: Lia Christodoulou Date: 22/03/12


Task Number Contribution 1 2 3 4 5

• With another member of the group search to find the advertisements

appropriate for this assignment

• Email to keep others updated and responsible to arrange the meetings

• Complete my part –Task one Perception theory

• I did conclusion in collaboration with another member

• Submit the work

Name: Natasha Williams Date: 22/03/12

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8. Reference:

Blythe J. 2008, Consumer Behaviour, Thomson Learning London

CampaignLive (2012) Schwepps experience matters by mother. [Online], Available from: http://www.campaignlive.co.uk/thework/892736/Schweppes-‐experience-‐matters-‐Mother/?DCMP=ILC-‐SEARCH [Accessed: March 15, 2012]

Charles G. 2009, Schweppes unveils Hogarthian-‐style satiric cartoons, Marketingmagazine.co.uk [Online] Available from: http://www.campaignlive.co.uk/news/892818/Schweppes-‐unveils-‐Hogarthian-‐style-‐satirical-‐cartoons/?DCMP=ILC-‐SEARCH [Accessed by: 13 March, 2012]

Consumerreports (2012) Top five in brand perception by category. [Online], Available from: http://www.consumerreports.org/cro/cars/new-‐cars/news/2008/01/brand-‐perceptions/top-‐five-‐in-‐brand-‐perception/brand-‐perceptions-‐top-‐5.htm [Accessed: March 15, 2012]

ConsumerReports (2008) Top five in brand perception by category. [Online], available from: http://www.consumerreports.org/cro/cars/new-‐cars/news/2008/01/brand-‐perceptions/top-‐five-‐in-‐brand-‐perception/brand-‐perceptions-‐top-‐5.htm [Accessed: March 15, 2012]

Howard, J (2012) The meaning of color. [Online], Available from: http://desktoppub.about.com/cs/colorselection/p/blue.htm [Accessed: March 15, 2012]

Janssen, S (2010) Schweppes: Experience matters. [Online], Available from: http://creativecriminals.com/print/experience-matters/ [Accessed: March 15, 2012]

Johnson, D (2012) Color Psychology. [Online], Available from: http://www.infoplease.com/spot/colors1.html [Accessed: March 15, 2012]

Schiffman L.G. and Kanuk L.L. 2007, Consumer Behaviour, 9th edn, Pearson Education, Inc., Upper Saddle River, New Jersey.

Schiffman L.G. and Kanuk L.L. 2011, Consumeur Behaviour: an european outlook 2nd ed

Solomon M.R. 2009, Consumer behaviour: Buying Having and Being 8th edn, Pearson Education, Inc., Upper Saddle River, New Jersey.

StrategicBusinessInsight (2012) US Framework and VALS Types, [Online] Available from: http://www.strategicbusinessinsights.com/vals/ustypes.shtml [Accessed by: 18 March, 2012]

Subby (2010) Schweppes core range. [Online], Available from: http://www.packagingoftheworld.com/2010/10/schweppes.html [Accessed: March 15, 2012]

Wearebulletproof (2012) We are luvly bubbly. [Online], Available from: http://www.wearebulletproof.com/our-‐work/schweppes/ [Accessed: March 15, 2012]

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Consumer Behaviour Report