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Consumer behavior

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the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products/services so as to satisfy their needs and desires

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Stages in the consumer decision-making process

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• Problem recognition • Information search • Alternative evaluation • Purchase decision • Post purchase evaluation

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First step in the consumer decision-making process

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Problem recognition

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Second step in the consumer decision-making process

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Information search

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Third step in the consumer decision-making process

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Alternative evaluation

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Fourth step in the consumer decision-making process

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Purchase decision

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Fifth step in the consumer decision-making process

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Post purchase evaluation

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Problem recognition

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Occurs when the consumer perceives a need and becomes motivated to solve the problem; Caused by a difference between the customer's ideal state and actual state

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Sources of problem recognition

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• Out of stock • Dissatisfaction • New needs/wants • Related products/purchases • Marketer-induced problem recognition (novelty seeking behavior) • New products

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Hierarchy of needs

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the five basic levels of human needs: physiological, safety, social, esteem, self actualization

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Psychoanalytic theory

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Sigmund Freud; strong influence on the development of modern psychology; studied underlying motivations for human behavior as well as structure and development of personality; MOTIVATION LIVES IN THE SUBCONSCIOUS

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Internal search

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Scan of information stored in memory to recall the past

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External search

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consumer will seek addition info from other sources (personal, marketer controlled, public sources, personal experience)

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Perception

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sensation, selecting info, interpreting info

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Selective perception process

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Selective exposure → selective attention→ selective comprehension → selective retention

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Mnemonics

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symbols, rhymes, associations, and images that assist in the learning and memory processes are helpful

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Alternative evaluation

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the process by which consumer attitudes are created, reinforced and changed; the decision rules or integration strategies consumers use to compare brands and make purchase decisions

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Evoked set

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only a subset of all brands in which the consumer is aware; marketers try to create top-of-mind awareness, and reminder advertising

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Heuristics

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consumers make their purchase decisions using more simplified decision rules

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Affect referral decision rule

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consumers make a selection based on the basis of overall impression or summary evaluation of the various alternatives under consideration

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Purchase intention

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predisposition to buy a certain brand; based on matching of purchase motives with attributes or characteristics of brands under consideration

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Behavioral learning theory

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Emphasizes the role of external, environmental stimuli in causing behavior; Based on stimulus-response orientation (S-R)

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Classical conditioning

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assumes that learning is an associative process with an already existing relationship between a stimulus and a response; passive participant

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Operant conditioning

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The individual must actively operate or act on some aspect of the environment for learning to occur

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Cognitive learning theory

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pays attention to internal psychological processes such as motivation, thinking and perception

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Communication

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the passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of through between a sender and a receiver

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Communication Process Steps:

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Source/sender -> encoding -> channel/message -> decoding -> receiver

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Sender/source

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the person that has all the information to share with another person; direct or indirect

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encoding

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putting thoughts, ideas, or information into a symbolic form

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Marketers must be careful to select a sender the receiver believes to be:

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knowledgeable and trustworthy

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Message

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Contains the info or meaning the source hopes to convey; Verbal or nonverbal, written or oral, or symbolic

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Semiotics

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study of the nature of meaning and asks how our reality: words, gestures, myths, signs, symbols, products, services, theories: acquire meaning

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Counter arguments

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thoughts that the recipient has that are opposed to the position taken in the message

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Channel

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the message is delivered in; method by which the communication travels from the source or sender to the receiver

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Receiver/decoding

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dissecting the message

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Recevier

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person with whom the sender shares thoughts or information

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Decoding

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Process of transformation the sender's message back into

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Noise

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Unplanned distortion or interference; problems that occur in the encoding of a message

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Response

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receivers set of reactions after seeing, hearing, or reading the message

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Feedback

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receiver's response that is communicated back to the sender

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AIDA model

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developed to represent the stages a sales person must take a consumer through in the personal selling process; attention, interest, desire, action

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Hierarchy of effects

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shows the process in which advertising works; It assumes that consumer passes through a series of sequential steps from initial awareness to actual purchase

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Innovation adoption model

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represents the stages a consumer passes through in adopting a new product or service; Awareness, interest, evaluation, and trial

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Information processing model

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assumes that the receiver is in a persuasive communication situation like advertising is an information processor or problem solver

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Cognitive stage

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what the receiver knows or perceives about the particular brand

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Affective stage

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receiver's feelings or affect level (like or dislike) for the particular brand

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Behavioral stage

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the consumer's action toward the brand: trial, purchase, adoption or rejection

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The Standard Learning Hierarchy:

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• Learn → feel → do • Information and knowledge are learned about the various brands are the basis for developing feelings, that will guide what the consumer will do • Likely when the consumer is highly involved in purchase process

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The Dissonance/Attribution Hierarchy:

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• First consumers purchase, then develop attitudes or feelings as a result • Do → feel → learn • Occurs when consumers must choose between two alternatives that are similar but have hidden attributes • Reduces post purchase dissonance • Low involvement purchases

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The Low-Involvement Hierarchy:

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• Learn → do → feel • Happens in low consumer involvement

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The FCB Planning Model: • Informative strategy:

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o highly involved purchases o rational thinking o standard learning hierarchy

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The FCB Planning Model: • Affective strategy:

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o Highly involving/feeling purchases o Advertising should stress psychological and emotional motives

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The FCB Planning Model: • Habit formation strategy:

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o Low involvement thinking o Learning by doing model o Everyday purchases, etc.

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The FCB Planning Model: • Self-satisfaction strategy:

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o Low involvement/feeling products o Appeals to sensory pleasures and social motives

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Cognitive responses

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the thoughts that occur while reading, viewing or hearing communication

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Source derogations

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negative thoughts about the spokesperson or company claims

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Source bolsters

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receivers who act favorably

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Central route to persuasion:

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o receiver is viewed as very active o ability and motivation to attend, comprehend, and evaluate message are high

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Peripheral route to persuasion:

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o Receiver is viewed as lacking the motivation or ability to process info o Not likely to engage

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Persuasion matrix

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helps marketers see how each controllable element interacts with the consumer's response process

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Direct source

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spokesperson who delivers a message and/or demonstrates a product or service

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Indirect source

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doesn't deliver a message but draws attention to or enhances the appearance of the ad

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In order for a source to be credible they must have

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trust and expertise

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internalization

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occurs when the receiver adopts the opinion of the credible communicator since he or she believes information from this source is accurate

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Sleeper effect

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the persuasiveness of a message increases with the passage of time

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In order for a source to be attractive they must

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be similar and familiar

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Similarity

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supposed resemblance between the source and receiver

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Familiarity

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knowledge of the source through exposure

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Primacy effect

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presenting the strongest message at the beginning of the message

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Recency effect:

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the last argument is the most persuasive

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Refutation appeal

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the communicator presents both sides of an issue and then refutes the opposing view

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Comparative advertising

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Comparative advertising: the practice of directly/indirectly naming competitors in an ad and comparing one or more attributes, 1972

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Message appeals

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comparative, fear, humor

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Clutter

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the amount of advertising in a medium

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How do marketers break through clutter?

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Use message appeals

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Self paced channels

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example: magazine

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Externally paced channels

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example: tv commercial

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Qualitative media effect

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influence the medium has on the message

Marketing 330: Exam 1 (Set 2) – Flashcards

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