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CONSUMER BEHAVIOR MIDTERM
Consumer Behavior - the totality of consumers' thoughts, feelings, and decisions about the acquisition, consumption, and disposition of goods, services, activities, and ideas Challenges to understanding consumer behavior - People don't know why they do what they do, people don't want to tell you why they do what they do, asking them may change their behavior, or consumers may not know what is possible Cognitions (thoughts) - Product-related knowledge, beliefs, opinions, intentions, and memories Affect (feelings) - product-related attitudes, emotions, and visceral states Why do we study consumer behavior? - o For consumers' sakes- To understand their preferences, desires, and needs and to help them make the best choices o For society's sake- To enable policy makers design effective policies o For marketers' sakes: To learn how to influence consumers and to understand consumers, marketers must learn not only what consumers want, but why they want it Basic research - answers question independent of specific questions Applied research - answers specific questions about a product or brand Primary data - collected specifically for current purpose What are examples of qualitative data collection methods? - projective techniques, focus groups, in-depth interview, observation via ethnographic methods Projective techniques + examples - an unstructured and indirect form of questioning which encourage the respondents to project their underlying motivations, beliefs, attitudes, or feelings regarding the issues of concern
- E.g. sentence completion, story-telling, role-playing Focus groups - interview with moderator and 8-12 people discussing a marketing stimulus Focus groups pros and cons - Pro: Uncover negative perceptions before a product is launched Con: Small samples, self-monitoring, and biased answers ZMET - use a collection of pictures to represent thoughts/feelings Observation via ethnographic methods - in-depth qualitative research using observation and interviews (natural, artificial, or
netnography/online) What are examples of quantitative data collection? - Surveys, quantitative analysis, and experiments Survey - collecting info from a sample using questions Cons to surveys - Cons: self-selection, self-reporting, and sensitivity to wording & order Experiments and quasi-experiments - test hypothesis about the causal relationship between 2 variables (IV/DV) Correlation - relationship between 2 variables Causation - one variable producing an effect in another variable 3 factors necessary for causation - 1) correlation, (2) temporal antecedence, and (3) no third factor driving both AKA (1) Control/manipulate the IV with everything else constant, (2) cause has to precede the effect/DV, and (3) random assignment makes groups statistically equivalent Secondary data - collected for some other purpose Bias - Dependent variable is contaminated by the participant/experimenter Hawthorne effect - people act differently when watched Demand characteristics - people act as they think experimenter wants them to Placebo effect - people feel better if they think they are being treated Confounds - anything that can affect the DVs other than the IVs Spurious correlation - artificial/fake (e.g. data mining) motivation - an inner state of arousal that provides energy needed to achieve a goal What affects motivation? - Personal relevance, perceived risk, consistency with prior attitudes, and consistency with values, needs, goals, emotions, and self-control Consumers have greater motivation when... - (1) consistent with their needs and goals, (2) high perceived risk and/or (3) moderately inconsistent with their attitudes
Limiters and enhancers to opportunity - Limiters include time, distraction, and complexity/amount of info. Enhancers are repetition and control of info. Exposure - contact with marketing stimulus Types of exposure - intentional, accidental, and selective Marketing stimuli - information about offerings communication either by the marketer or by non-marketing sources Mere exposure - Positive evaluation may result merely from prior exposure Habituation - wear-out in which the stimulus loses attention-getting abilities because of familiarity Attention - the processes by which we devote mental activity to a stimulus Properties of attention - (1) Divided, (2) limited, and (3) selective Selective attention - we focus on one or more stimuli and tune out others Inattentional blindness - failure to notice something that is completely visible because of lack of attention Change blindness - failure to notice an obvious change Preattentive processing - the non-conscious processing of stimulus such as in peripheral vision Hemispheric lateralization - each hemisphere is responsible for different functions 6 sticky principles - (1) simplicity, (2) unexpectedness, (3) concreteness, (4) credibility, (5) emotions, and (6) stories [+ (7) Self-relevant] Perception - recognizing and interpreting stimuli using the senses Naïve realism - perception is an active, constructive process that uses prior experience, as well as current goals and expectations when interpreting incoming information Figure and ground - people interpret stimuli in the context of a background Closure - Perceive shapes as being whole, even when they are not complete Grouping - group stimuli to form a unified picture or impression
Absolute threshold - minimum amount of stimulation that can be detected Differential threshold - the intensity difference needed between two stimuli before they are perceived to be different Weber's law - he stronger the initial stimulus, the greater the different additional intensity needed for the second stimulus to be perceived as different (As you increase intensity of the stimulus, the differential threshold will also go up) Realism - We see the world as it is. We simply register sensory inputs and report Categorization - when consumers use their prior knowledge to label, identify, and classify something new Graded structure - some members represent a category better than others Prototype - best example of a category Describe experts vs novices in categorization - Experts have more developed category structures, have more categories/association and a better understanding of associations, and have more subordinate-level categories than novices Taxonomic categories - similar objects in same category. 3 levels are (1) superordinate (broad), (2) basic, and (3) subordinate (fine) Goal-derived (ad hoc) categories - Grouped by if they are relevant to a goal Schemas - set of associations linked to a concept. Dimensions of schemas - favorability, uniqueness. salience Favorability - valence - negative to positive Uniqueness - how particular are these association to a given brand Salience - how easily they come to mind/stands our from its larger context Brand image - subset of associations that reflect what something stands for and how favorable it is viewed; just the most salient and differentiating associations Aaker's 5 dimensions of brand personality - sincerity, excitement, competence, sophistication, ruggedness Comprehension - the process of understanding and giving meaning to what we perceive
Associative network - Concepts, feelings, and events are stored in "nodes" which are connected by associate links. When one node is activated, this activation spreads along associative links toward related concepts. Sleeper effect - source decays faster then the message Explicit memory - memory achieved by active attempts to remember Free recall - reconstruct from memory with no cues (e.g. essay test) Cued recall - reconstruct from cues (e.g. fill in the blanks) Recognition - Identify stimulus we have seen before (e.g. MC test) Implicit memory - memory for things without conscious awareness Day after recall (DAR): - a marketing strategy to measure ad effectiveness Enhance retrieval through... - salience (prototypicality and redundant cues) and retrieval cues Retrieval cues - a stimulus that facilitates a node's activation of memory Attitude - Overall evaluation that expressed how much we like/dislike something Characteristics of attitudes - favorability, accessibility, confidence, persistence, resistance Favorability - how much we like/dislike something Accessibility - how easily an attitude can be remembered Confidence - how strongly we hold an attitude Persistence - how long our attitude lasts Resistance - how easily attitudes change 3 functions of attitudes - cognitive, affective, conative Cognitive function - Attitudes can guide our thoughts Affective function - Attitudes can influence our feelings Conative function - Attitudes can influence our behavior
Behavior - a combination of dispositional (internal) and situational (external) factors Elaboration likelihood model - how does MAO effect attitude formation and change? --> Elaboration based on MAO follows either high-effort central route processing or low- effort peripheral route processing, in which attitudes are based on cognitions and/or affect Central-route processing - high effort/elaboration; careful scrutiny of a persuasive communication determines the merits of the arguments Peripheral route - low effort/elaboration; aspects other than key message arguments that are used to influence attitudes Uses judgmental heuristics/surface features, number of arguments, and source attractiveness Processing route is determined by - elaboration likelihood, the chance of consciously deliberating about the communication High-effort central route processing + cognitions - Cognitive response and expectancy- value models; Direct or imagined experience, reasoning by analogy or category, values- driven attitudes, social identity based attitude generation, analytical attitude construction Low-effort peripheral route processing + cognitions - Simple beliefs, including simple inferences, attributions, and heuristics as well as unconscious influences and the environment High-effort central route processing + Affect - Emotional processing, affective response, attitude toward the ad Low-effort peripheral route processing + Affect - Mere exposure effect, classical and evaluative conditioning, attitude toward the ad, mood Expectancy-value models - how attitudes form and change based on a consumers beliefs/knowledge and evaluation of those beliefs Types of expectancy-value models - Multi-attribute (EV) attitude model and Theory of reasoned action (TORA) Multi-attribute (EV) attitude model: - Theory of reasoned action (TORA) - BI = A + SN where, BI = Behavioral intention, A = Attitude = S biei (b=belief, e=evaluation), SN = Subjective Norms = S NBjMCj (NB=normative beliefs, MC=motivation to comply)àBI = S biei + S NBjMCj
Thin-slice judgements - evaluation after brief observation; People can make surprisingly accurate judgements quickly and automatically Are low effort attitudes easier or harder to change? - Easier How can you Influence low-effort attitudes cognitively by source? - Simple inferences, heuristics, and credible sources as peripheral cues Simple inferences - beliefs based on peripheral cues (e.g. brand names, packaging) Heuristics - simple rules of thumb used to make judgements Frequency heuristic - belief based on number of supporting arguments or repetition (length = strength) Truth effect - "I've heard it before so it's true" How can you Influence low-effort attitudes cognitively by message? - Category and schema consistent information, many arguments, simple and involving messages, repetition/incidental learning Self-referencing - relating a message to one's own experience or self-image Incidental learning - Learning even with no effort How can you Influence low-effort attitudes affectively by source? - Attractive & likable sources are more effective under low effort whether arguments are strong or weak and regardless of product/endorser match How can you Influence low-effort attitudes affectively by message? - Pleasant visuals, music, humor, emotional content, and sex. Also mere exposure effect. Mere exposure effect - When familiarity leads to liking of an object Wear-out - becoming bored with a stimulus Classical conditioning - Unconditional stimulus (e.g. meat) leads to an unconditioned response (saliva). When paired with the conditioned stimulus (bell), it leads to the conditioned response (saliva). Operant conditioning - Altering the probability of a behavior being emitted by changing the consequences of the behavior; use outcomes of behaviors to create positive or negative associations Reinforcer - any event that increases the frequency of the preceding event
Positive reinforcement - reward; action, positive consequence, then increased behavior Negative reinforcement - remove a negative feelings or experience to encourage a behavior Punishment - opposite to reinforcer, attempts to decrease behavior; Punishment = action, neg consequence, decreased behavior How is operant behavior different than classical conditioning? - Classically conditioned behaviors are elicited by stimuli that occur before the response Operant behaviors are emitted because of consequences that occur after the behavior Classical conditioning behaviors are involuntary while operant behaviors are voluntary (that is, people are aware that they are doing them). Positive reinforcement - Adds something to increase behavior Positive punishment - Adds something to decrease behavior Negative reinforcement - Takes away something to decrease behavior Negative punishment - Takes away something to decrease a behavior
