Consumer Behaviour

Front 1

Definition of consumer behaviour

Back 1

the study of the processes involved when individuals or groups select, purchase or use or dispose of products to satisfy needs and desires

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Three stages of consumer behaviour.

Back 2

1) Consumers are actors on the marketplace stage.
2) is a process (stages)
3)involves many different roles.

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Types of segmentation.
(behavioural, demographic or geographic, psychographic)

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B - usage rate or occasion
D - population statistics such as age, income, gender ect.
P - values, activities, and the ways people see themselves

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Consumers often buys product for what they . . .

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. . . mean, not just what they do.

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Positivism vs Interpretivism

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P - emphasizes that the human reason is supreme and that there is a single, objective truth that can be discovered by science. Stress the function of objects, rational.
I - questions the positivist assumptions. The ordered rational view denies culture and social aspects. Symbolic, subjective.

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Consumer behaviour is . . . .

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Multidisciplinary.

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Definition of perception.

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process by which sensations are selected, organized, and interpreted. What we add or take take away from these raw sensations.

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Perception is a three stage process:

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1)Exposure - a stimulus must be presented at a certain level of intensity
2)Attention - the extent to which processing is devoted
3)Interpretation.- only if the message had gained the persons attention. Our minds tend to organize stimuli into patterns and cohesive unit (Gestalt)

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Sensation

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the immediate response of our sensory receptors - the raw data.

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Hedonic consumption vs Utilitarian consumption.

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HC - people prefer additional experiences to additional possessions as income rises.
UC -

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Vision

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Color is key when considering marketing design. Some color combinations form a companies trade dress.

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Smell

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Direct line to feeling of happiness, hunger, and memories.

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Hearing

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Music can be used to stimulate activity. Words made up of phonemes.

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Touch

Back 14

modes can be determined by touch

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Kanesi engineering

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a philosophy that translates into customers feelings into design elements.

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Haptic Senses

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appear to moderate the relationship between product experience and judgment confidence.

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Exposure

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occurs when stimulus comes within the range of someones sensory receptors.

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Psychophysics

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the science that focuses on how the physical environment is integrated into our personal subjective world

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Absolute Threshold

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minimum amount of stimulation that can be detected on a sensory channel.

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Just Noticeable difference

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ability for your sensory system to detect change between to stimuli.

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Webers Law

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demostrates that the stronger the initial stimuli, the greater the change must be for it to be noticed. 20% discounts are noticed

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Attention

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refers to the extent to which processing activity is devoted to a particular stimulus. information overload, multitask

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Perceptual selection

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people attend to only a small portion of stimuli to which they are exposed

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Perceptual Vigilance

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consumers are more aware of stimuli that relate to their current needs

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Perceptual defense

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people see what they want to see.

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Adaption and what it affects

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degree to which consumers notice stimuli over time.
1. intensity
2. Duration
3. discrimination
4. exposure
5. Relevance

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Interpretation

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the meaning to what we assign to sensory stimuli. two people can see that same event different.

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Schema

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the set of beliefs to which the stimulus is assigned

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Priming

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process which certain properties of a stimulus typically will evoke a schema that leads us to evaluate the stimulus

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Gestalt psychology

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derived from the totality of a set of stimuli
1. the closer principle - perceive an incomplete picture as complete
2. principle of similarity - group similar objects together
3. figure ground principle - one part of the stimulus will dominate.

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Semiotics

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object - focus of the message
sign - sensory image of the intended meanings
interpretant - meaning derived

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Signs

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Icon - sign that resembles the product in some way
Index - sign that is connected to the product because they share some property
Symbol - sign that is related to the product through associations.

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Positioning

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- attribute or feature
- benefit
- use or application
- user
- against a competitor
- product category

Front 34

Definition of learning

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relatively permanent change in behaviour that is caused by experience.

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Theories of learning

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- simple associations btw stimulus and response.
- complex series of thinking activities.

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Behavioural learning Theories +++ important

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learning occurs as a result of response to external stimulus

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BL - Classical Conditioning

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(Pavlovs dogs)
- Read notes

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BL - Unconditioned Stimulus

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occurs when an unconditioned stimulus is paired with another stimulus that does not elicit a response.

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BL - Conditioned stimulus

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over time the second stimulus come to elicit the response as well

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BL - Stimulus response

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conditioned response can also extend to other, similar stimuli

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Halo Effect

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a consumers positive associations with a product are transferred to other contexts

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Masked Branding

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manufacturer wishes to disguise the products true origin

Front 43

Stimulus generalization examples

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- me too products
- manufacturers try to make their product match the national brand
- create a product line, form and category extensions.

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Stimulus discrimination

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opposite of stimulus generalization and results in the selection of specific stimulus from among other similar stimuli

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Instrumental or operant conditioning

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occurs as a person learns to perform behaviours that produce positive outcomes and avoid those that result in negative outcomes.
- occurs when reinforcement is delivered following a response to a stimulus
- reinforcement is part of the process

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Positive reinforcement

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a reward is delivered following a response

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Negative reinforcement

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negative outcome is avoided by not performing a response

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Punishment

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response is followed by unpleasant events

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Extinction

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the behaviour will decline if reinforcement is no longer applied

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3 types of reinforcement schedules

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total - or continuous reinforcement
systematic - fixed ratio reinforcement
random - variable reinforcement (optimal)

Front 51

Marketing examples for classical conditioning and operant.

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?

Front 52

Cognitive learning theory

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states that learning is the result of thinking and problem solving

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Modeling

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process through which individuals learn behaviour by observing the behaviour of others and the consquences of such behaviour. (role models)

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Sensory Store

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all data comes through our senses. pieces of information

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Short term store

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if data survives the store it is moved to short term memory. if rehearsal takes place the data is long term

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long term memory

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data store by repetition. store for days, weeks, years.

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rehearsal

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amount of information that can be deliver btw short term and long term depends on rehearsal.
- learning visually takes less time

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encoding

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assign a word or image to represent an object.

Front 59

retention

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information is organized by linking chunks of information.

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schema

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total package of associations brought to mind when a cue if activated

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chunking

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consumers recode when they have already encoded to include larger amounts of information

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information is stored in two ways

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episodiaclly - by the order at which it is acquired
semantically - according to significant concepts.

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involvement theory
high involvement

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- purchases are very important to the consumer in terms of perceived risk
- find fewer brands acceptable
- central route to persuasion

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involvement theory
low involvement

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- purchases are not very important to the consumer, hold low relevance
- broad categorizers
- peripheral route to persuasion

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involvement theory
right brain

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- nonverbal, timeless, pictorial and holistic
- passively process and store right brain
- consistent with classical conditioning or visual component

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involvement theory
left brain

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- high involvement cognitive activities such as reading, speaking, information processing
- print media
- verbal cues trigger cognitive functions

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Elaboration likelihood model

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suggests that a persons level of involvement during message processing is critical factor in determining effective persuasion
- high invol. - arguement, information advertising, print and internet media
- low invol - strong visuals, humor, sex, celebrity.

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Motivation def.

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processes that cause people to think the way they do
- differs btw indiv
- state of tension to satisfy need

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Needs

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- is different from a want
- utilitarian - desire to achieve some fucntional or practical benefit
- hedonic - experiential nee, involving emotional repsonse

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Goal

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the end state desired by the customer

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drive

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the degree of arousal present due to the discrepancy btw the consumers present state and some ideal state.

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want

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the form a need takes as it is shaped by culture, personality, peers, time,

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Drive theory

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biological needs produce unpleasant states of arousal.

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Homeostatis

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a balance of arousal

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Expectancy theory

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behaviour is pulled by expectations of acieving desired outcomes, positive incentives, rather than pushed from within

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types of needs

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biogenic - necessary to maintain life
psychogenic - mental or emotional
hedonic - subjective or experiential
utilitarian - objective or tangible aspects

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motivation is dynamic

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- needs are never satisfied
- new needs emerge as old ones are satisfied
- success and failure influence goals
- substitute one goal for another

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Classification of motives

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- primary - activity itself
- secondary - outside activity
- acquired - not inborn
- rational
- emotional
- dormant - theoretical state
- conscious - aware of driving behaviour

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Positive goal

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one that a consumer directs his behaviour towards

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negative goal

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one that a consumer directs his behaviour away

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motivational conflict

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situations where different motives positive and negative, conflict w one another

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approach - approach conflict

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person must choose btw 2 desirable alternative
- opportunity cost based on limited resources
- theory of cognitive dissonance

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approach - avoidance conflict

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the goal has positive and negative aspects
- marketer may try to minimize the neg and max pos

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avoidance - avoidance conflict

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choice btw 2 undesirable alternatives
- marketers may try to emphasize other benefits.

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cognitive dissonance

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process by which people are motivated to reduce tension btw beliefs or behaviours

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Defense mechanisms

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- aggression
- rationalization
- regression
- withdrawal
- projection
- repression

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Value def

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- is a belief that some condition is preferable to its opposite
- two people can believe in the same behaviour but having different beliefs
- seek to have similar belief systems

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Core beliefs

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common to culture

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value system

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ranked set of values in a culture

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enculturation

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learning the beliefs and behaviours endorsed by ones own culture

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acculturation

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process of learning the value system and behaviours

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Rokeach value survey

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two sets of values
- terminal values - desired end states that apply to many different cultures
- instrumental values - composed of actions needed to achieve these terminal values

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List of Value LOV

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identifies nine consumer segments based on the values they endorse and than relates to these consumptions

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Means end chain model

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specific product attributes