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    Do older consumers purchase differently? : the effect of age on brand awareness, consideration, and purchase : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Marketing at Massey University, Albany, New Zealand
    (Massey University, 2022) Mecredy, Philip
    The spending power of older consumers is rapidly rising as global populations continue to age. Yet, little is known about how ageing and its underlying mechanisms impact consumer behaviour. Without knowing whether the purchase patterns of older consumers differ from younger consumers, marketers may be unwisely neglecting or ineffectively targeting older consumers. Thus, across four studies, this thesis investigates whether, how, and why brand awareness, consideration, and purchase differ between older and younger consumers. This research finds that older and younger consumers display similar patterns of double jeopardy and brand duplication in their awareness and consideration of competing brands. Despite these similarities, an inverse-U shape is found for brand recognition and brand recall with the number of brands recognised and recalled increasing across age before slowing down and then declining. A similar inverse-U shape is found for brand consideration in subscription markets. For brand consideration and purchase sets in repertoire markets, a linear decline is initially found across age. However, when controlling for purchase rates to reflect changes in category purchasing, older consumers are aware of and consider more brands than younger consumers. Older consumers also show small increases in purchase loyalty across age groups for supermarket store choice and toothpaste, but not for fruit juice and pharmaceutical prescribing. These results provide the first conclusive evidence of age-related loyalty in some low-involvement categories, as loyalty measures used in prior studies are confounded by category purchase rates. While no loyalty differences were found across age groups for prescribing behaviour, longitudinal analysis reveals that physicians, regardless of age, become less reliant on their core armamentarium as they age and accumulate experience. Taken together, the research indicates that age-related loyalty patterns do sometimes occur, but cannot be explained by differences in awareness and consideration or the mechanisms that would affect these metrics (e.g. cognitive decline and biological ageing). Rather, the most likely explanation is that age-related effects are primarily driven by household lifecycle and accumulated experience. The findings provide strong implications on how to transition older consumers through the brand purchase funnel and outlines a blueprint for future studies of loyalty across age.
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    Is digital advertising effective under conditions of low attention? : the impact of low attention processing on consumer brand consideration and choice : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Marketing at Massey University, Palmerston North, New Zealand
    (Massey University, 2020) Santoso, Irene Irawaty
    A crucial task for digital advertising is to influence choice despite consumers' lack of attention. Although lack of attention can reduce advertising effectiveness, recent research suggests that incidental exposure to ads while accessing digital content can lead to some outcome for the exposed ads. This evidence prompts four critical questions: (1) is digital advertising effective if processed at low attention; (2) can low attention processing increase brand consideration and choice; (3) what specific brand/product characteristics embedded in the ads are likely to influence the effect; and (4) what measures are appropriate to capture the low attention effects. To address the questions, three experimental studies (n = 1,423) were conducted in laboratory and online settings. The research manipulates two conditions for low attention processing, namely divided attention and incidental attention. The results show that, at least in the Twitter environment, advertising is effective even under conditions of low attention. Although focused attention still drives the greatest impact, low attention significantly increases the likelihood of target brands being included in the brand consideration and selected as preferred brand choice more than ‘no exposure’. The low attention effects were obtained without subsequent correct respondent recognition. This shows that brand consideration and choice measures were capable of capturing the low attention effects that the recognition measure failed to do. However, the results for source factors – factors that can moderate the effect of stimuli on the outcome – are more nuanced. Brand familiarity, utilitarian/hedonic products, rational/emotional appeals, and (mis)matching between appeals and brands affect the results in some unexpected ways when they interact with low attention. The thesis makes substantive contributions to the application of attention theory in advertising research, testing methodology for ads that are not actively processed, and design of advertising that can work at low attention. The findings are particularly relevant to address current phenomena such as multitasking, multiscreening, and ad avoidance behaviour. Unless advertisers understand how to make advertising work at low attention, the practice of bombarding consumers with attention-grabbing ads will continue to rise, and ad avoidance will accelerate, which in turn, will put advertising at a greater risk of being wasted.
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    The impact of brand switching antecedents on consideration set construction : a thesis presented in partial fulfilment of the requirements for the degree of Master of Business Studies in Marketing at Massey University
    (Massey University, 2004) Lees, Gavin
    Understanding brand switching is important to marketers because a brand switch has the potential to impact on an organisation's share of a customer's wallet. Therefore, the objective of this research was to determine what the impacts, of the antecedents to a brand switch, will be on the construction of a purchase repertoire and consideration set in a subscription market. This study, into the new area of post-switch consideration set construction, and the position of the previous main brand, shows that the construction of a consumer's consideration set is dependent on the reasons for the brand switch. Whilst consumers switch brands for a multitude of reasons, the literature shows these reasons can effectively be grouped together into three categories: stochastic reasons, expectation disconfirmation, and utility maximisation. This research confirms that where a switch occurred for stochastic reasons, the previous main brand would remain in the consumer's consideration set with the same purchase probabilities for a brand of its size. On the other hand, where the brand switch occurred for reasons of expectation disconfirmation, the previous main brand was either removed entirely from the consumer's consideration set, or if it remained in the set, had a lower ranking than prior to the switch. While a brand switch that occurred for reasons of utility maximisation resulted in a majority of the previous main brands being removed from the consumer's consideration set, those that remained were ranked one place lower than the current main brand. Overall these results supported the research's general direction that the antecedents to a brand switch will affect the previous main brand's position in a consumer's post-switch purchase repertoire and consideration set. The research concludes, while the previous main brand may be gone, it is certainly not forgotten! These findings, while being exploratory and inductive, have important implications for marketers in both their recovery marketing campaigns and the need to implement programmes to retain recent acquisitions. Coupled with the findings from Sharp et al. (2002) this study shows that subscription markets, in terms of switching, behave in a similar manner to repertoire markets, allowing for stochastic models to be used to benchmark marketing activities.
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    A systematic investigation of the estimation of the Dirichlet model : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Marketing at Massey University
    (Massey University, 1999) Kearns, Zane
    The NBD/Dirichlet is a stochastic model of purchase incidence and brand choice which parsimoniously integrates a wide range of well-established empirical regularities in fast moving consumer goods markets. More recently this work has been extended into other areas such as the prescribing of pharmaceuticals, (Stern 1994); airline aviation fuel contracts, (Uncles and Ehrenberg 1990a); and the visiting of retail store chains, (Uncles and Ehrenberg 1990b). By combining the stochastic assumptions of the model, namely Poisson purchasing of products, with mean rate distributed gamma across the population, and brand choice represented by multinomial probabilities distributed Dirichlet across consumers; a number of aspects of the aggregate behaviour of consumers can be successfully predicted successfully. This thesis examines the estimation issues in the Dirichlet model, specifically, the central Dirichlet parameter S used to represent heterogenity in brand choice.
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    Are radio markets Dirichlet? A study into the NBD/Dirichlet, its empirical generalisations and their extension to radio listening patterns : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Marketing at Massey University, Palmerston North, New Zealand
    (Massey University, 2009) Lees, Gavin
    The well recognised and parsimonious Dirichlet model of buyer behaviour (Goodhardt, Ehrenberg and Chatfield 1984) has summarised a number of empirical generalisations about market structures and buyer behaviour. These generalisations have been described by Sharp, Wright and Goodhardt (2002) as: Differences in market share can be attributed largely to differences in market penetration A double jeopardy pattern emerges, with smaller brands having a lower average purchase frequency, share of category requirements, and proportion of sole buyers A brand’s customers buy from other brands more frequently Sole buyers tend to be very rare, and are also very light buyers Heavy buyers buy more brands and are very unlikely to be sole buyers Brands share their customers in proportion to their market share (Duplication of Purchase Law). Of these empirical generalisations, double jeopardy, polygamous loyalty and the duplication of purchase law are amongst the better known. They have been observed across an increasing number of product categories, countries and differing market conditions. This thesis considers whether the Dirichlet and its accompanying empirical generalisations also hold true for radio markets. Whilst Goodhardt, Ehrenberg and Collins (1975) and Barwise and Ehrenberg (1988) have considered television and its audiences there has been very little study into radio audience patterns. Perhaps this is because many researchers consider radio to be more like television than any other media. However, Lees (2003, 2006) has started to address the issues of radio market structures and radio audience patterns. This thesis adopts an empirical generalist approach showing the Dirichlet model of consumer behaviour and its associated empirical generalizations appear to apply to radio markets in that they: Show a high correlation between market share and the brand performance measures of: cumulative audience, average time spent listening, share of category requirements and exclusive audience Reflect the double jeopardy pattern with those stations that have a higher market share also having a higher penetration or cumulative audience and a higher average weekly time spent listening. Conversely those stations with a low market share having a lower cumulative audience and a lower average weekly time spent listening Show audience duplication between radio stations that varies according to each stations’ market cumulative audience, in accordance with the Duplication of Purchase Law Have the percentage of listeners loyal to one radio station reflecting the Dirichlet’s expectation of low exclusive audience. These exclusive listeners also reflect a double jeopardy pattern with the bigger stations having more exclusive listeners than the smaller stations. The most compelling result of this thesis is the apparent ability of the Dirichlet to describe a radio market place. Thus has managerial implications – especially to what extent a manager should take the patterns as ‘normal’ or seek to ‘buck the trend’. The conclusion is that radio station managers need to carefully manage their station working with the market rather than trying to ‘buck the trend’. This is likely to involve station managers actively promoting their stations to ensure that their station remains salient to its current listeners while also trying to increase its awareness amongst non listeners. This thesis has also made several contributions to knowledge about the Dirichlet. First, it has extended knowledge about the model to a new area – that of radio listening. Second, it has shown that while some radio listening seemingly violates some of the assumptions behind the model it is still robust enough to account for variations in multivariate count data in a manner that is parsimonious. Third, it has confirmed the known boundary condition that the Dirichlet does under-predict sole loyal purchase frequency. This thesis also calls for further research into both the Dirichlet model with further extensions to differentiated product categories; and into the question of radio audience measurement. It calls for the New Zealand Radio Broadcasters Association to commission a report into the effect of introducing portable people meters as a form of audience measurement.