Sunday, August 1, 2010

Why is it important for a marketer to pay attention to the context in which consumer decisions are made?

The context in which consumer decisions are made is quite important in marketing. Context in this context means the physical environment and mental state the consumer is at the time the decision is made, as well as the nature of the decision. 


Let's begin with a simple and classic example of a marketing strategy that shows this, the candies, toys, soft drinks, and scandal rags in a supermarket, situated right at the point at which the consumer is waiting in line to check out.  The consumer is likely to be tired, hungry, distracted by young children, or running late to get home to make dinner.  The consumer is also waiting and has nothing better to do than look at these "offerings" or try to placate his or her children. This situates the products offered in a context in which the consumer's decision-making skills are perhaps not non-existent, but certainly at a very low ebb, leading to impulsive purchases that the consumer will not have time to reconsider before checking out.  The children may beg for a toy or a candy.  The consumer may begin to read an article and be tempted into purchasing the paper or magazine in order to finish it.  The consumer may want a candy bar or soft drink, too, a quick sugar fix to get him or her through until dinner. Within this physical context and the consumer's mental context, this is a very shrewd marketing strategy.


Another aspect of the decision-making context to consider is at what point the consumer is likely to actually decide on a purchase. This might be sitting at the computer or only after arriving at a bricks and mortar establishment. Marketing strategies need to differ, depending upon the context.  All other things being equal, pricing strategy, which is central to marketing, may require undercutting all of one's competitors, so that the advantage is clear to the consumer sitting at the computer making this decision.  In other situations, the consumer is not likely to make a decision until reaching a store, for example, to buy a prom dress or a wedding gown.  The time of day, the ambiance of the store, whether or not the shopper has a companion along - all are part of the context in which this consumer is deciding.  People may, perhaps, may spend more money after dinner and are feeling happy and expansive.  People, may, perhaps, decide to purchase or not because of the urgings of a friend or spouse who is there, too.  All of that is context.  If there is pleasant music playing, deep carpets, a roomy dressing room, and coffee on tap, that is going to be an important aspect of context, since this consumer is more likely to decide on the spot. If it's a luxurious spot, that will certainly help. 


There are in between points, between home and a store or between the workplace and a store, certainly, but these are more difficult contexts to address. We know people make buying decisions at home and when they get to a store.  I am not sure we have all that great a handle on when decisions occur in between those points.We can assume that during particular retail seasons, for example, right before school starts, or right after Thanksgiving, that people are in a decision-making frame of mind for these seasons, so we try to reach them in as many contexts as possible, on radio, on television, on-line, by mail, and with billboards, while they are reading, while they are driving, while they are working, hoping that the context in which they are being informed persuades them to make a decision exactly then. I will admit that once I saw a dress in the New York Times Magazine and decided on the spot to buy it! I am ordinarily not a particularly impulsive buyer, but that advertisement in a reputable publication, as I sat comfortably in a cafe waiting for someone, got me at a time I didn't have an inkling I was going to make any decision at all.  


Perhaps context is not everything in marketing. But it certainly is an important part of formulating strategies that encourage the consumer in decision-making mode. 

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