Consumer Behavior Give people a taste of Old Crow, and tell them it’s Old Crow. Then give them...

Decision Process(Situations)

Problem Recognition

Information Search

Alternative Evaluationand Selection

Outlet Selection and Purchase

Postpurchase Processes

Internal InfluencesPerceptionLearningMemoryMotives

PersonalityEmotionsAttitudes

External InfluencesCulture

SubcultureDemographicsSocial Status

Reference GroupsFamily

Marketing Activities

Overall Model of Consumer Overall Model of Consumer BehaviorBehavior

Self-Conceptand

Lifestyle

The Consumer Decision The Consumer Decision ProcessProcess

The Consumer Decision The Consumer Decision ProcessProcess

MotivationMotivationMotivationMotivation

Stages in the Consumer Decision-Making ProcessStages in the Consumer Decision-Making Process

Relevant Internal Psychological ProcessesRelevant Internal Psychological Processes

ProblemProblemRecognitionRecognition

ProblemProblemRecognitionRecognition

InformationInformationSearchSearch

InformationInformationSearchSearch

AlternativeAlternativeEvaluationEvaluationAlternativeAlternativeEvaluationEvaluation

PurchasePurchaseDecisionDecisionPurchasePurchaseDecisionDecision

PostpurchasePostpurchaseEvaluationEvaluation

PostpurchasePostpurchaseEvaluationEvaluation

PerceptionPerceptionand Memoryand MemoryPerceptionPerception

and Memoryand Memory

AttitudeAttitudeFormationFormation

and Learningand Learning

AttitudeAttitudeFormationFormation

and Learningand LearningIntegrationIntegrationIntegrationIntegration LearningLearningLearningLearning

MotivationMotivation

Motivation is the reason for behavior. A Motivation is the reason for behavior. A motive is a construct representing an motive is a construct representing an unobservable inner force that stimulates unobservable inner force that stimulates and compels a behavioral response and and compels a behavioral response and provides specific direction to that provides specific direction to that response.response.

What does advertising do?


Physiological Needs

Safety Needs

Belongingness

Esteem

Self-Actualization

Discussion: Critique the hierarchy of needs concept

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs


Need for ConsistencyNeed for Consistency

Need to Attribute CausationNeed to Attribute Causation

Need to CategorizeNeed to Categorize

Need for CuesNeed for Cues

Need for IndependenceNeed for Independence

Need for Self-ExpressionNeed for Self-Expression

Need for Ego-DefenseNeed for Ego-Defense

Need for ReinforcementNeed for Reinforcement

Need for AffiliationNeed for Affiliation

Need for ModelingNeed for Modeling

Need for NoveltyNeed for Novelty

Need for AssertionNeed for Assertion

McGuire’s Psychological MotivesMcGuire’s Psychological Motives


Why should we care about consumers’ Why should we care about consumers’ motivations?motivations?

Discovering Purchase Motives:Discovering Purchase Motives: Manifest motivesManifest motives Latent motivesLatent motives

Projective techniquesProjective techniques AssociationAssociation CompletionCompletion ConstructionConstruction

Means-end chainsMeans-end chains

Problem RecognitionProblem RecognitionProblem RecognitionProblem Recognition

Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..

Sources of Problem Recognition:Sources of Problem Recognition:



Out of stockOut of stock






DissatisfactionDissatisfaction






Marketer-InducedDissatisfaction

Marketer-InducedDissatisfaction






Related Purchases

Related Purchases






New NeedsNew Needs






New ProductsNew Products

Information SearchInformation SearchInformation SearchInformation SearchInternal SearchInternal Search Information stored in memoryInformation stored in memory

External SearchExternal Search Marketer sources - advertising/personal selling/sales promoMarketer sources - advertising/personal selling/sales promo Personal sources - opinion leaders/WOMPersonal sources - opinion leaders/WOM Public sources - publicity/expert opinionPublic sources - publicity/expert opinion Personal experience - product design packagingPersonal experience - product design packaging

Internal SearchInternal Search Information stored in memoryInformation stored in memory

External SearchExternal Search Marketer sources - advertising/personal selling/sales promoMarketer sources - advertising/personal selling/sales promo Personal sources - opinion leaders/WOMPersonal sources - opinion leaders/WOM Public sources - publicity/expert opinionPublic sources - publicity/expert opinion Personal experience - product design packagingPersonal experience - product design packaging

MostlyInternalMostlyInternal

MostlyExternalMostly

External

RoutinizedResponseBehavior

RoutinizedResponseBehavior

ExtendedProblemSolving

ExtendedProblemSolving

Perception: An Information Perception: An Information Processing PerspectiveProcessing Perspective

ExposureRandom Deliberate

AttentionLow High

Involvement Involvement

InterpretationLow High

Involvement Involvement

MemoryShort-term Long-term

Purchase and Consumption Decisions

Per

cept

ion

PerceptionPerceptionPerceptionPerception

Selective PerceptionSelective PerceptionSelective PerceptionSelective Perception

Selective ExposureSelective Exposure

Selective AttentionSelective Attention

Selective ComprehensionSelective Comprehension

Selective RetentionSelective Retention

ExposureExposureExposure occurs when a stimulus comes within Exposure occurs when a stimulus comes within range of our sensory receptor nerves.range of our sensory receptor nerves. Reception not necessaryReception not necessary Self-selection: Generally, we seek information that Self-selection: Generally, we seek information that

we think will help us achieve our goals.we think will help us achieve our goals. However, also unsought information (billboards, However, also unsought information (billboards,

radio ads while driving,…)radio ads while driving,…)zippingzipping

zappingzapping

mutingmuting

AttentionAttentionAttention occurs when the stimulus activates Attention occurs when the stimulus activates one or more sensory receptor nerves and one or more sensory receptor nerves and the resulting sensations go to the brain for the resulting sensations go to the brain for processing.processing.

Limited cognitive resource - Flashlight Limited cognitive resource - Flashlight analogyanalogy

The same The same individualindividual may devote different may devote different levels of attention to the same levels of attention to the same stimulusstimulus in in different different situationssituations..

Stimulus FactorsStimulus FactorsStimulus factors are physical characteristics Stimulus factors are physical characteristics of the stimulus (e.g., ad) itself.of the stimulus (e.g., ad) itself. Size and intensity: Size and intensity: Reebok adReebok ad

Color and movement: Color and movement: Chrysler adChrysler ad

PositionPosition IsolationIsolation FormatFormat Contrast: Contrast: EDS adEDS ad

Information QuantityInformation Quantity

The Impact of Size on Ad The Impact of Size on Ad ReadershipReadership

0

10

20

30

40

50

60

2-page ads 1-page adsFractional ads

One page ads have almosttwice the impact of fractional-page ads

Based on an analysis of 85,000 ads

55

24

40

Color and Size Impact on AttentionColor and Size Impact on Attention

0

50

100

150

200

1-page B&W2-page B&W1-page Color2-page Color

Readership of a 1-page B&W ad was set at 100

100117

145

179

Why use this space for an ad?

Individual FactorsIndividual Factors

Individual factors are characteristics of the Individual factors are characteristics of the individualindividual InterestInterest InvolvementInvolvement NeedNeed AbilityAbility

Situational FactorsSituational Factors

Situational factors include stimuli in the Situational factors include stimuli in the environment other than the focal stimulus environment other than the focal stimulus (i.e., the ad or package) and temporary (i.e., the ad or package) and temporary characteristics of the individual that are characteristics of the individual that are induced by the environment, such as time induced by the environment, such as time pressures or a very crowded store.pressures or a very crowded store. Program/magazine involvementProgram/magazine involvement

Non-Focused AttentionNon-Focused Attention

Stimuli may be attended to without Stimuli may be attended to without deliberate or conscious focusing of deliberate or conscious focusing of attention.attention. Subliminal stimuliSubliminal stimuli

InterpretationInterpretation

Interpretation is the assignment of Interpretation is the assignment of meaning to sensations.meaning to sensations. Cognitive interpretation: Process whereby Cognitive interpretation: Process whereby

stimuli are placed into existing categories of stimuli are placed into existing categories of meaningmeaning

semantic meaningsemantic meaning

psychological meaning: psychological meaning: Budweiser AdBudweiser Ad; ; Charlie’s AngelsCharlie’s Angels

Affective interpretation: Emotional or feeling Affective interpretation: Emotional or feeling response triggered by a stimulis such as an response triggered by a stimulis such as an ad.ad.

MemoryMemory

Memory is the total accumulation of prior Memory is the total accumulation of prior learning experiences. It consists of two learning experiences. It consists of two interrelated components:interrelated components: Short-term memory: the portion of total Short-term memory: the portion of total

memory that is currently activated or in use.memory that is currently activated or in use. Long-term memory: unlimited, permanent Long-term memory: unlimited, permanent

storage.storage.

Short-term memoryShort-term memory

Analogous to Analogous to thinkingthinking. .

Active, dynamic -not staticActive, dynamic -not static

Limited capacityLimited capacity Seven “chunks” of informationSeven “chunks” of information Resource-Matching theoryResource-Matching theory

Involves both:Involves both: Concept manipulation and Concept manipulation and Imagery manipulationImagery manipulation

The Resource-Matching TheoryThe Resource-Matching Theory

ResourcesResources Resources Resources

AvailableAvailable Demanded Demanded Result Result . .

LowLow LowLow PositivePositive

HighHigh High High PositivePositive

Low Low High High OverloadOverload

High High Low Low BoredomBoredom

What is the role of Involvement/Motivation?

Example ads

Short-term memoryShort-term memory

Two types of information processing activities:Two types of information processing activities: Elaborative activitiesElaborative activities: the use of previously stored : the use of previously stored

experiences, values, attitudes, beliefs, and feelings experiences, values, attitudes, beliefs, and feelings to interpret and evaluate information in working to interpret and evaluate information in working memory as well as to add relevant previously stored memory as well as to add relevant previously stored information.information.

Maintenance rehearsalMaintenance rehearsal: the continual repetition of : the continual repetition of a piece of information in order to hold it in current a piece of information in order to hold it in current memory for use in problem solving or transferral to memory for use in problem solving or transferral to long-term memory.long-term memory.

Long-term MemoryLong-term Memory

Stores numerous types of information or Stores numerous types of information or knowledge, such as concepts, decision knowledge, such as concepts, decision rules, processes, affective states,… rules, processes, affective states,…

Types of knowledge:Types of knowledge: GeneralGeneral

SemanticSemantic

EpisodicEpisodic ProceduralProcedural

Memory StructuresMemory Structures

Associative networks organize and link Associative networks organize and link many types of knowledge together.many types of knowledge together.

Types of associative networks:Types of associative networks: Schemas (general knowledge)Schemas (general knowledge) Scripts (procedural knowledge)Scripts (procedural knowledge)

AttitudesAttitudes

Attitude is a person’s overall evaluation of Attitude is a person’s overall evaluation of a concepta concept

Evaluations are affective responses at Evaluations are affective responses at relatively low levels of intensity and relatively low levels of intensity and arousalarousal

Could be created through:Could be created through: Affective system: automatic; not consciousAffective system: automatic; not conscious Cognitive systemCognitive system

Alternative Evaluation: The Alternative Evaluation: The Affective RouteAffective Route

Alternative Evaluation: The Alternative Evaluation: The Affective RouteAffective Route

Behavioral LearningBehavioral LearningBehavioral LearningBehavioral Learning

UnconditionedUnconditionedStimulusStimulus

UnconditionedUnconditionedStimulusStimulus

UnconditionedUnconditionedResponseResponse

UnconditionedUnconditionedResponseResponse

ConditionedConditionedStimulusStimulus

ConditionedConditionedStimulusStimulus

ConditionedConditionedResponseResponse

ConditionedConditionedResponseResponse

Attitude formationAttitude formation Coca-Cola Ad

Attitude formationAttitude formation Coca-Cola Ad

Alternative Evaluation: The Alternative Evaluation: The Cognitive RouteCognitive Route


Cognitive learning: People interpret Cognitive learning: People interpret information in the environment and create information in the environment and create new knowledge or meaning.new knowledge or meaning.

Add new nodes and links to schemas, or Add new nodes and links to schemas, or steps to scripts.steps to scripts.



The Consideration SetThe Consideration Set The particular group of alternatives a consumer considers when The particular group of alternatives a consumer considers when

making a buying decision.making a buying decision.

The Consideration SetThe Consideration Set The particular group of alternatives a consumer considers when The particular group of alternatives a consumer considers when

making a buying decision.making a buying decision.

Alternative Evaluation : The Alternative Evaluation : The Cognitive RouteCognitive Route


Multiattribute Attitude Model Multiattribute Attitude Model Multiattribute Attitude Model Multiattribute Attitude Model

A =A = B x EB x EBB ii iii =1i =1

nnAttitude towarda brandAttitude towarda brand

Belief about the brand on attribute i

Belief about the brand on attribute i

Importance attached to attribute i

Importance attached to attribute i

Number of attributes

Number of attributes



Multiattribute Attitude ModelMultiattribute Attitude Model

Helps marketers understand and diagnose consumers’ attitudes. Helps marketers understand and diagnose consumers’ attitudes.

Provides insight into how attitudes can be influenced.Provides insight into how attitudes can be influenced.

Multiattribute Attitude ModelMultiattribute Attitude Model

Helps marketers understand and diagnose consumers’ attitudes. Helps marketers understand and diagnose consumers’ attitudes.

Provides insight into how attitudes can be influenced.Provides insight into how attitudes can be influenced.

A =A = B x EB x EBB ii iii =1i =1

nn

Purchase DecisionPurchase DecisionPurchase DecisionPurchase DecisionIntegration of informationIntegration of information

Intentions to purchase can predict behavior… somewhat. Depending on:Intentions to purchase can predict behavior… somewhat. Depending on: timetime unforeseen environmental eventsunforeseen environmental events unforeseen situational contextunforeseen situational context degree of voluntary controldegree of voluntary control stability of intentionsstability of intentions new informationnew information

Possible outcomes:Possible outcomes: Buy nowBuy now Buy laterBuy later Not buy at allNot buy at all

Integration of informationIntegration of information

Intentions to purchase can predict behavior… somewhat. Depending on:Intentions to purchase can predict behavior… somewhat. Depending on: timetime unforeseen environmental eventsunforeseen environmental events unforeseen situational contextunforeseen situational context degree of voluntary controldegree of voluntary control stability of intentionsstability of intentions new informationnew information

Possible outcomes:Possible outcomes: Buy nowBuy now Buy laterBuy later Not buy at allNot buy at all

Postpurchase EvaluationPostpurchase EvaluationPostpurchase EvaluationPostpurchase EvaluationPossible outcomes:Possible outcomes:

SatisfactionSatisfaction DissatisfactionDissatisfaction Cognitive dissonance - psychological tension or doubt about Cognitive dissonance - psychological tension or doubt about

the “rightness” of a decision.the “rightness” of a decision.Purchase was perceived as important or risky ANDPurchase was perceived as important or risky AND

A trade-off was necessaryA trade-off was necessary

Possible outcomes:Possible outcomes: SatisfactionSatisfaction DissatisfactionDissatisfaction Cognitive dissonance - psychological tension or doubt about Cognitive dissonance - psychological tension or doubt about

the “rightness” of a decision.the “rightness” of a decision.Purchase was perceived as important or risky ANDPurchase was perceived as important or risky AND

A trade-off was necessaryA trade-off was necessary

External Influences on CBExternal Influences on CB

Social ClassSocial Class

DemographicsDemographics

CultureCulture

Marketing ActivitiesMarketing Activities

Reference GroupsReference Groups

TrendsTrends

A combination of external influences and A combination of external influences and internal influences.internal influences.

How do marketers spot trends?How do marketers spot trends? Qualitative ResearchQualitative Research ““Cool Hunting”Cool Hunting”

Consumer Behavior Give people a taste of Old Crow, and tell them it’s Old Crow. Then give them...

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