Riassunto Marketing for Made in Italy

Types of Consumer Buying Decisions and Consumer Involvement

Level of involvement:

• a) Routine response
• b) Limited decision
• c) Extensive decision

Time:

• b) Low
• c) Low to Moderate
• d) High

Cost:

• c) Short
• d) Short to Moderate
• e) Long

Information search:

• d) Low
• e) Low to Moderate
• f) High

Number of alternatives:

• e) Many
• f) One
• g) Few

In general, based on the level of consumer involvement, we can say that our purchasing decisions fall in three main categories:

1. Routine response behaviour - the example of the bottle of water, so products that we buy more or less every day, with a low level of involvement, we do not spend so much

1. Extensive decision making: In this situation, the time spent in the decision process is high and the price is also high. The consumer gathers a lot of information from various sources before making a purchase. They evaluate multiple alternatives and consider various factors before making a decision.
2. Routine decision making: In this case, the time spent in the decision process is low and the price is low. The consumer relies on past experience as the only source of information. They tend to buy the same product from the same place based on their previous positive experience.
3. Limited decision making: This is an intermediate situation where the time spent before deciding is moderate and the product is not expensive. The level of information search is limited. The consumer may consider their past experience with a similar product and make a decision based on that.

The same shirt or the same brand, so even in this case the source of information are mostly internal, based on my past experience and the number of alternatives that I consider is not very large;

3. Extensive decision making we are in our case of luxury goods. In the luxury goods the level of involvement is high because the product is very expensive, so before spending a lot of money of course we feel a little bit of stress. Usually we spend more time in the decision process, the price is high so we spend our time mostly looking for information in order to make sure to buy the right product for us. We have an internal source of information (which is our past experience) but we also spend time to look for external sources of information, so we go online and we try to understand the characteristics of the different products. Maybe we go outside, and we visit different stores in order to touch, to feel, to have an idea of the product. The fact that we collect so many information has also

another consequence: at the end of the information collecting, we will form a consideration set (the set of alternatives that we consider as potential options for us) and usually our choice will be one of the products that is included in the consideration set. Factors determining the level of consumption involvement (previous experience, interest, perceived risk of negative consequences, situation, social visibility) When a product is expensive and we buy it from time to time, of course we will feel more stressed and this will increase the level of involvement and will drive the kind of consequences that we know: more time for deciding, more sources of information, a larger information set and so on. However, the price is not the only element that affect the level of involvement, what are the other elements? Previous experience: with a high level of experience in buying a product or a service, usually the level of involvement decreases if I change my car once every 3 years of course, myif I perceive a high level of risk associated with the product, my level of involvement will be higher. For example, if I am considering buying a new smartphone and I have heard that there have been issues with the battery exploding, I will be more cautious and involved in the decision-making process. On the other hand, if I perceive the risk to be low, such as buying a pack of gum, my level of involvement will be much lower. Perceived importance of the decisiond. : if I consider the decision to be important, my level of involvement will be higher. For instance, if I am buying a house, which is a major investment, I will be highly involved in the process. However, if I am buying a small household item like a toothbrush, the decision is not as significant and my level of involvement will be lower. Perceived personal relevancee. : if the product is personally relevant to me, my level of involvement will be higher. For example, if I am a fitness enthusiast and I am looking to buy a new pair of running shoes, I will be highly involved in the decision-making process. On the other hand, if I am not interested in sports and I need to buy a pair of dress shoes for a formal event, my level of involvement will be lower. Overall, the level of involvement in a purchase decision can vary based on factors such as the level of stress, interest, perceived risk, importance, and personal relevance associated with the product.

As the perceived risk in purchasing a product increases, so does the consumers' level of involvement. That's one of the most relevant sources of stress when I buy an expensive product: what happens after the purchase. The risk of negative consequences is usually higher for product categories like luxury goods because luxury products are associated with a high level of social visibility. If I buy a luxury bag, it is something that will affect my external visibility. So, if I bought the wrong bag and I spent a lot of money, the risk of negative consequences on a social point of view is very high and of course, this will create stress.

This risk is very high in the case of e-commerce because I don't know who is on the other side of the website. It's a very risky situation and that's why the companies that manage e-commerce pay a lot of attention to policies connected to the possibility to change the product, to get your money back, and so on. We look for information.

because we want to understand as more as possible on the product,because that’s another way to reduce the risk of negative consequences. In general, as marketers, you have to understand that this feeling of stress is not good, because when you buy under stress, you don’t like to buy the product, it’s something that creates problems: in many cases, when the level of stress becomes too high, you decide to quit and not to buy the product,

Situationd. : sometimes the circumstances of a purchase temporarily transform a low-involvement⇨decision into a high- involvement one when we select a restaurant for dinner: of course, if our dinner is a special dinner (maybe because we have a date or it’s a special occasion that we want to share with our boyfriend or friends or family), we want to make sure to select the right restaurant so that’s an high involvement situation, so the level of stress is quite high because we want to make sure that we have selected the right

place to share that moment with the person that we have selected. Conversely, when you are making a break in your class or maybe you just have to go out with your friends, you try to select a place that is pleasant but of course you don't feel stressed to make the right choice; Social visibility: perceived involvement is higher on products and services that affect one individual's external visibility. The general lesson is that the level of involvement is for sure associated to specific kind of products, but we have to consider that the same product can be associated to a low or to a high level of involvement based on specific circumstances. So in your marketing strategy, you need to think of how to reduce this level of involvement because the feeling of stress has a negative effect in our ability and our willingness to make purchases in general. Marketing implications of involvement: the learn-feel-do hierarchy matrix It is a 2x2 matrix and it is defined based on 2 different

variables: 1- We have the level of involvement on the vertical axis: low vs high 2- We have the product type on the horizontal axis: thinking products and feeling products. thinking products a) are products, as for example the technological ones, evaluated on the basis of their intrinsic characteristics; MARKET ANALYSIS Marketing implications of involvement: feeling products b) are evaluated and associated more to a sense of emotional feeling, as luxury products; THE LEARN-FEEL-DO HIERARCHY MATRIX High need of detailed Image-based advertising informations Consumer experience Focus on factual relevance and Appealing sources Feeling Thinking source credibility MODEL: Learn-Feel-Do MODEL: Feel-Learn-Do High INVOLVEMENT (E.g. Cars, Laptops, Tablet, (E.g. Sport cars, luxury etc.) products, etc.) MODEL: Do-Learn-Feel MODEL: Do-Feel-Learn Low (E.g. Bread, soap, basic food, (E.g. Cigarette, Liquor, etc.) Movies, etc.) Focus on familiarity to Advertising based on social stimulate brand loyalty appeal and

entertainmentPOP coverage Marketing for Made in Italy

1- 1 square: purchase situation with an high level of involvement (high stress, time, costs) and we are talking of a thinking product (for example car, laptop, table, smartphones).

® ®In this case the sequence is learn feel do (detailed information, credibility). The first step is learning (understand, analyse different alternative) to understand in detail the specific characteristics of the product (features of the different cars we are considering in our consideration set, technical characteristics of the laptops and so on). Then based on this learning, we develop a feeling/attitude toward the different alternatives we are considering and that now we understand thanks to the first step (learning process). Then we develop a preference based on our feeling (more emotional, while learning process is more rational) and based on this ®feeling we buy (decide our favourite option and buy). What is the implication in terms of marketing?

arketer needs to be someone who is trusted and respected in the industry, someone who has expertise and knowledge about the product. This will help build trust and credibility with the customers. In addition to providing detailed information, it is also important to present the information in a visually appealing way. This can be done through the use of images, videos, and infographics. Visual content is more engaging and can help customers better understand the product. Furthermore, it is crucial to make the information easily accessible and navigable on the website. This can be achieved through clear and organized menus, search functions, and filters. Customers should be able to find the information they are looking for quickly and easily. Overall, providing detailed and credible information is essential in marketing. It helps customers make informed decisions and builds trust and loyalty towards the brand.