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M3208 CONSUMER BEHAVIOR EXAM 1
What was Howard Moskowitz's approach to M research? -don't assume C know what they want -offer variability
- HZ segmentation is better! -there is no perfect sauce; only perfect sauceS -Moskowitz worked with: Pepsi, Campbell's soup, Prego vs ragu, grey poupon ~Malcolm Gladwell was author of article What is Vertical Segmentation?
appeals to a very niche demographic usually, other businesses that operate w/in the same industry (less effective- doesn't cater to people's specific tastes) T/F Horizontal Segmentation is better than Vertical TRUE: selling a product to a wide spectrum of C; varying options people have specific tastes (more effective) Skinner vs Pavlov BEHAVIORAL Learning Theories Skinner - operant conditioning behavior rewarded or punished / voluntary PP Pavlov - classical observation behavior observed / involuntary PP pair stimuli, repeat exposure, then take away 1 stimuli drool = natural reflex meat paste & bell = drool bell only = drool 2 Types of learning theories Behavioral - observed behaviors Cognitive - can't be observed ; mental processing (Cognitive learning is solving problems based on acquired info, reflection, past experiences...) PREREQUISITES for Successful Adoption of a Product
- Compatibility - w/ C lifestyle
- Trial ability - try out
- Complexity - EZ 2 use
- Observability - s/ stands out (white apple buds)
- Relative Advantage - different iate STAGES in Adoption of a new product Awareness C 1st exposed Interest C searches for more info Evaluation Does it satisfy C need? Trial Adopt or Reject
A I E T adopt/reject Info processing model of Memory
sensory input to sensory store repeat info process in working storage (ST) encoding (relate to something) >LT storage Retrieval w/ cues sensory >>ST >> Encode >> LT >> Cues (retrieve) Dogmatism (personality trait) Degree of rigidity a personal displays towards something new Dogmatic person expresses their opinions strongly, as facts! ie Feminist High Dogs - resist change; brand loyal M s/ use expert/celebrity sources
Low Dogs - prefer to test new products (innovators) M s/ use differentiation; what makes it better Social Character (personality traits) Attitudes you have towards other ppl
- = you develop a good relationship with others
- = you're not trusted; liked Personality an individual's characteristic pattern of thinking, feeling, and responding their environment 6 factors to look for when segmenting the M? The segment should be: Sizable Stable Identifiable Reachable Responsive & match the firm's objectives Nature of Personality
reflects individual differences consistent & enduring for a period of time can change with age/perspective based on motivations & psychology M can advertise the same way to similar personalities. Hemispheral Lateralization is also called the: Split-brain theory In the split brain theory the Left side is .... The right side is.....
Hunt - material rewards (money, info on Google) Self - intrinsic awards of mastery (PC games) Investment in the Hook model (4th step) -STORED VALUE anticipation of rewards -increases odds of repeating behavior -measured in content (iTunes) , data (linkedIn) followers (Twitter), skills (pc/mac) Brain Hacking Video Summary Tech co. are inserting code in app to direct brain scrolling withhold likes on Instagram streaks on Snapchat Anxiety - constantly checking phone (notifications) Hook Model Triggers -remind user of P & Cue them to take Action -Triggers c/b external or internal Difference between external and internal Triggers. Which is better? External : paid, earned, likes, SPAM, notifications on phone, SEO... internal tell us what to do via associations;
- BETTER, forms habits
- negative emotions are powerful (lonely, bored...)
- the emotion starts the behavior; dictate our lives What is the social comparison theory (Leon Festinger)? =we have an innate drive to benchmark our abilities in relation to others. How does Upward/Downward Comparison influence confidence and motivation? Upward social comparison :
- compare ourselves against others better than us;
- we become motivated to improve our abilities Downward social comparison:
- compare ourselves against others worse than us
- their bad skills make us feel better off about our own What is the reason habits don't form enough? if they are not used enough or they don't provide enough utility (benefit) types of families: nuclear, extended, single parent Vitamins vs painkillers V - appeal to users' emotional not functional needs P - serve a specific need What did Sigmund Freud's Psychoanalytical approach tell us about the human personality? Personality results from:
- a struggle btn inner/outer motives
- societal pressures to follow rules & expectations
- unconscious mental processes influence behaviors What are Freud's 3 components of personality? Id Ego Superego Social Character Personality Trait Ranges in continuum for inner-directedness to other-directedness Inner - make own decisions ; use rational approach w/ info. The C will use worth to assess the worth of the P. outer M s/ us social appeal & approval Describe 3 parts of the personality according to Freud >Id: Devil - follows instincts/ no filter/ irrational / seeks pleasure principle >Ego: Reality principle _- moderates btn ego and superego. experience & society shapes behavior; try to control basic instincts
Superego: Angel - dev @ 3-5 yrs morals, the conscience_ When selecting a Target Market, what Economic factors should you consider? -M size & spending power -M growth -Ease of entry into the M (how competitive) -profitability -C lifetime value (CLV) What is another way to study personality (other than Freud's)? Trait Approach Focus on specific traits as motivators of C behavior What are the 4 perspectives the Trait Approach uses? Nomothetic ** q same Idiographic ** q diff Single-trait Multiple-trait ** use universal and no universal laws Nomo = universal; q same; similar traits across # of pple Idio = no universal; q diff; free will; pple are complex Consumer's Adoption of a New Product 7 factors 1 innovativeness 2 dogmatism 3 social crc 4 need for uniqueness 5 optimum stimulation level 6 Sensation seeking 7 Need for cognition IDS NO SN innovators those buyers who want to be the first to have the new product or service; often outsiders whose new ideas may be widely accepted or fail miserably
measures based on facts obtained from surveys re: Single-variable (demographics) Composite-variable
- socio-economic status score (job, family income, ed)
- status crc (job, income source, house& neighborhood) Why do Marketers care about social class? For SEGMENTATION and social approval
- influence what pple buy (relative their current SC)
- avoid "low-class" brands
- it influences where C shop
- it determines how to advertise them How does Social Class determine the types of advertising (media exposure) used? Lower Class respond to ads with solutions to practical problems and strong visuals Upper Class are more skeptical of ads, hate direct-sale approach, prefer soft-sell w/ stylish ads. social comparison evaluating your talents by comparing yourself to someone else
irrational behavior Ex. Would you rather make 70k when q else makes 50k? or $80k when q else makes 90 or $100k? Either way, $80k > $70k upward social comparison theory Comparing ourselves to pple we view as better than us -- can boost self-esteem Ex. "If she can do it, so can I" positional state respondent is better off than others ie Ur Home has rooms; other homes have 10 rooms = positional state Absolute State both parties are better off (than in the positional st) but the respondent worse off than others ** WE just want to do better than q else ** ie Ur home has 7 rooms; other homes have 3 rooms = non-positional state (absolute) downward social comparison theory comparing ourselves to pple worse off than we are -- can make you feel better about yourself Ex. "At least I can play basketball better than him" fallacy of uniqueness ********** what other fallacy Selecting a market that is untapped (there may be a good reason why it isn't (sm. pop, no growth, been tried b4) Process of Positioning -how to best communicate your P offerings to occupy a distinctive place in the C mind -use attributes, benefits, use, quality, price... i
e Wal-Mart has positioned themselves as the go-to store for the masses Elements of a great positioning ST -simple, memorable -differentiates, tailored to TM -delivers on promise -consistent w/ brand In B2C (bs to C) markets, name 3 kinds of segmentation used. -demo most popular -psycho-graphic /VAL -behavioral (usage) Demographics and psycho-graphics segments are _____________ based. While Behavioral segments are ______________ based. -consumer -consumption Types of Psycho-graphics -Values -Attitudes -Lifestyle -Activities -Political views -Interests VAL API (why your buyers buy) Types of Demographic information -Ethnicity -Gender -Geog / Location -Age, Income, & Education (often are related) (who your buyers are) 3 primary types of Behavioral/Usage segmentation
- Benefits sought (toothpaste for whitening vs flavor)
- Usage rate (frequency)
- Brand loyalty ( can determine C lifetime value)) B U B VAL, a psychographic tool used to understand C behavior, stands for which 3 crc traits? values attitudes lifestyles 4 Dimensions of the Sensation Seeking Scale are:
- thrill and adventure seeking
- experience seeking
- dis-inhibition
- boredom susceptibility In VALS, 2 critical concepts to understanding what drives consumers behavior are ___________ ____________ and _____________.
- boosts brand appeal & sales Methods used in brand developing a brand? -line extension diff flavors -brand extension diff category of P -multi-brand same category; diff Brand -new brands new / new Line Extension Example Coca-Cola expanding to Diet Coke, Cherry Coke, and Caffeine-free Coke Existing Brand / Existing P Category danger of cannibalization Brand extension Example Arm & Hammer: Cat Litter Deodorizer, toothpaste, laundry detergent Existing Brand / New or Modified P Category instant credibility but may dilute brand Multi-brand Example Pepsi also makes Mountain Dew & Slice New Brand / Existing (same) P Category danger of cannibalization New Brands Toyota , Lexus ( luxury car category ) New Brand name / New P Category may confuse brand; credibility _________________ approach to personality (Freud):-suggests personality results from a struggle between __________ motives and ____________ pressures to follow rules and expectations-highlights importance of ______________ mental processes in influencing behavior-focuses on 3 components of human personality: id, ego, superego Psychological inner societal unconscious Motivation vs Goals -driving force within impels action towards G (motivation c/b positive or negative) -sought-after results of motivated behavior Work harder at your sales job because you fear not making your quota, is an example of what type of motivation? -negative motivation -action taken to avoid pain or failure Being motivated by a commission you'll make at the end of the month, when you meet your quota, is an example of what type of motivation? -positive motivation -action is taken to experience reward & success Innate needs are _____________ states. Drives are ______________ states that are learned response to culture physiological - primary need (food, water...) psychological - secondary (self-esteem, prestige)
The Father of Motivational Research was: Ditcher Dichter created 12 categories of consumption motives. How did this help marketing? -helped identify C motives to Consume (Buy) -if you know C motives you know how to "frame" the sale! "to ladies, don't sell shoes... sell sexy feet" Why are needs never fully satisfied? -new needs emerge as old needs are satisfied -pple achieve new goals, then set higher goals Human responses that trigger consumption , arouses motivation, and certain behaviors are categorized as: -physiological -emotional -cognitive -environmental
- physiological response to hunger - mouth dry/smell bacon
- emotional response to being depressed - stress eating
- cognitive response to buying a watch - thinking about how not t/b late next time.
- environmental response to buying an umbrella - it's raining Levels of Maslow's Hierarchy of Needs
- Self-actualization ( personal growth )
- Esteem ( self-respect )
- Love/Belonging ( family )
- Safety Needs ( laws )
- Physiological ( hunger ) SELS P Generic Goals vs Specific Goals general categories of goals that C see a a way to fulfill their needs Specifically branded P or S that C select IE buying a pair of jeans IE Levi's jeans Promotion-focused Motivation: driving force towards objective Approach: + goal towards which behavior is directed Prevention-focused Motivation: driving force away from some condition Avoidance Goal : - goal from which behavior is directed away Compare Promotion - focused people vs Prevention-focused people. positive : fast, risk-taker, creative, optimistic negative : makes mistakes, no 'plan b' (motivation is based on rewards/positive feedback ) Artists, musicians positive : careful, detailed, analytical negatives : slow, not creative, risk-adverse ( based on rules & avoiding errors/criticism ) Bookkeeper
Elderly related words were hidden in a word puzzle. pple who did the puzzle with those words walked slower down the hallway than those that didn't do the puzzle 3 Factors that influence perception selection are:
- Nature
- Expectations (based on prior experiences)
- Motives (needs or wants for a P or S) Perceptual selection is driven by _________ and ________ factors. Internal (personality, motivation ) external (previous experience, repetition) Filtered consciously and sub-consciously Triggers (HOOK)
- remind users of the P
- cue them to take action External triggers (HOOK)
- tell user what to do next via placing info
- by placing info within the user’s memory External Hook Examples (Ads, Search, Press Mentions, Video, Likes, WoM, app notifications) ads , search engine optimizing Habit-forming firms don’t rely on this option for a long time favorable press mentions, viral videos Cannot be bought directly , difficult to maintain Electronic invitation, “Like”, WoM Unethical use of some companies (spam) app icon or n otification on phone Prompt repeat engagement until a habit is formed Internal triggers (HOOK)
- tell user what to do next via associations stored
- through associations already stored in the user’s memory EMOTIONS Why are INTERNAL triggers better to use? Lonely or Bored - Facebook or Twitter Emotions is enough to start behavior; dictates our lives Ultimate goal is to get C to identify w/ your brand as a source of relief! ACTION (hook) What are 3 motivators that increase motivations to t ake action? Seeking pleasure - Avoiding pain Seeking hope - Avoiding fear Seeking acceptance - Avoiding rejection Motivations determine if action occurs ACTION (hook) design simply! What are 4 elements of simplicity? Time Money Physical effort Mental effort
3 Variable REWARDS (hook) Tribe Hunt Self Experiences with finite variability become less engaging , because they eventually become predictable Examples of Variable REWARDS (hook) TRIBE: ie: post, tweet, pin, likes Search for social rewards fueled by connectedness HUNT: ie: slot machines, Google, Pinterest Search for material resources and information SELF: ie: computer games Search for intrinsic rewards of mastery , competence, completion Separate vs. Joint Evaluation Willingness to pay is how C perceives value. IE 7 oz of ice cream in 5 oz cup is overflowing 8 oz of ice cream in 10 oz cup is under-filled 7oz will ALWAYS be less than 8oz However, viewing options simultaneously makes them seem more dissimilar than when viewing and evaluating each in isolation. Retail atmospherics Retailers create a unique store experience to suit TM
- atmospheric stimuli /cues (social, design , ambient) ie Abercrombie cologne, music, dark stores.... Retail Atmospherics: AFFECT & COGNITION -impact shopping behavior -AFFECT - VISUAL Shoppers touch more items & spend more time inspecting a display with brighter lighting -COGNITION : VISUAL w/ colors BLUE = trust/security RED - urgency/buy/energy YELLOW-attn grab/young GREEN- ORANGE - cheap, aggressive BLACK - powerful PURPLE - calming/ anti-aging Embodiment deals with changing our perception of self (Amy Cuddy Ted Talk) Body positions can impact behavior Used Power-Posing Those that used PP took more risks Their testosterone Increased and Cortisol Decreased
Low NFC are Peripheral motivated, not able or not motivated give them msg w/ fun, fantasy, colors, music.... use visual stimulation self and self-image -consumers have multiple roles in life -individuals' consumption relates to self-image C are mothers, wife, athlete, woman, employe.... different self images Actual How C actually SEE self Ideal How C would LIKE to see self Social How C feel OTHERS see them Ideal Social How C would LIKE others to see them Expected How C expect to see self in the future Ought to Self - Traits an indv believes are in her duty to posses. How do people change their own self-image? they bridge the gaps by buying products to change from one level of self image to the next ie how C see themselves --> How C would like to see themselves What are different Brand Personalities? Competence & Ruggedness - John Deere Excitement - GoPro, Red Bull Sincerity - Tom's shoes donates w/ q purchase Sophistication - Rolex How does brand personality may reinforce self-image? -C buy P & brands that relate to their own self-images. -great op for firm to differentiate their P Ethnocentrism belief in the superiority of one's own ethnic group Buy Made in USA Only Cospmopolitanism Buys anything from anywhere; the world is their marketplace. 2 learning theories behavioral - classic (observe) & operant conditioning cognitive - mental processing NOT observable ie problem-solving Cassical conditioning (pavlov) INVOLUNTARY learning
- occurs when 2 stimuli are repeatedly paired
- a response that is at 1st elicited by the 2nd stimulus is eventually elicited by the 1st stimulus alone. ie meat paste & bell just bell Operant Conditioning (Skinner) VOLUNTARY method of learning
- a method of learning that occurs through rewards and punishments for behavior
- based on consequences of actions cognitive learning -how C store, retain, & retrieve info -c/b observing events, watching others, or through language
