Consumer Behavior Exam 1 Chapter 1-4

Classical Conditioning

a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own.

Associative network

according to activation models of memory, an incoming piece of information gets stored in an associative network that contains many bits of related information. We each have organized systems of concepts that relate to brands, manufacturers, and stores stored in our memories; the contents, of course, depend on our own unique experiences

Elaborative rehearsal

allows information to move from STM into LTM. This involved thinking about the meaning of a stimulus and relating it to other information already in memory. Marketers assist in the process when they devise catchy slogans of jingles that consumers repeat on their own

Spreading Activation:

allows us to shift back and forth among levels of meaning

Short-Term memory (STM)

also stores information for a limited period of time, and it has limited capacity. Similar to a computer, this system is working memory; it holds the information we are currently processing.

Cognitive learning Theory

approaches stress the importance of internal mental processes. This perspective views people as problem- solvers who actively use information from the world around them to master their environments

Consumed consumers:

are people who are used or exploited, willingly or not, for commercial gain in the marketplace. Examples - prostitutes, selling babies, blood, organ and hair donors.

Business Ethics

are rules of conduct that guide actions in the marketplace

interference

as we learn additional information, it displaces the previous information.

Behavioral Learning Theories

assume that learning takes place as the result of responses to external events

Spreading Activation memory types

-Brand-specific -Ad-specific -Brand identification -Product category -Evaluative reactions

Perceptual Process- Stage 1

-Sensory Threshold: Sensory threshold is the point at and above which a stimuli is strong enough for a person to be aware of or differentiate between two stimuli. -Absolute Threshold: It is the minimum amount of stimulation a person can detect on a given sensory channel. E.g. a highway billboard with very small print for passing motorists to see it. -Subliminal Perception: Is the stimulus below the threshold of consumers' awareness.

Dark Side of Consumer Behavior

1. Consumer Terrorism: Is the use of computers and information technology to cause severe disruption or widespread fear in society. 2. Addictive Consumption: Physiological or psychological dependency on products or services. Compulsive Consumption: Repetitive and often excessive shopping performed as an antidote to tension, anxiety, depression, or boredom. 3. Illegal Acquisition and Product Use: Counterfeiting: When companies or individuals sell fake versions of real products to customers. Serial wardrobers: customers who change price tags on items, then return one item for the higher amount; and shoppers who use fake or old receipts when they return a product Shrinkage: Inventory and cash losses from shoplifting and employee theft. 4. Consumed consumers: Consumed consumers are people who are used or exploited, willingly or not, for commercial gain in the marketplace. Examples - prostitutes, selling babies, blood, organ and hair donors.

80/20 rule

20 percent of users account for 80 percent of sales

Creating and Manipulating Consumer Needs

Advertisers simply do not know enough about people to manipulate them. It is not possible for Advertisers to create needs. Marketing creates awareness that needs exist, not to create needs

Observational Learning: Learning by observation other people

Attention, Retention, Production Processes, Motivation, Observational Learning Social default: Mimicking others' behavior when preoccupied.

Hearing (sound)

Brands can use audio watermarking to encourage the retention of the message.

Memory process

Encoding: In the encoding stage, information enters in a way the system will recognize. Storage: In the storage stage, we integrate this knowledge with what is already in memory and "warehouse" it Retrieval: During retrieval, we access the desired information.

Shrinkage:

Inventory and cash losses from shoplifting and employee theft.

Subliminal Perception

Is the stimulus below the threshold of consumers' awareness.

Consumer Terrorism:

Is the use of computers and information technology to cause severe disruption or widespread fear in society.

Absolute Threshold

It is the minimum amount of stimulation a person can detect on a given sensory channel. E.g. a highway billboard with very small print for passing motorists to see it.

Consumer Rights and Product Satisfaction

Marketers have an obligation to provide safe and functional products as part of their business. If that doesn't happen Market Regulation Corrective advertising: The company must inform consumers that previous messages were wrong or misleading. E.g. Bayer Heath

Market Segmentation

Marketers often use different traits like demographics, lifestyle, habits etc. to determine target markets for products Marketers may depend on database marketing in order to track consumers' buying habits Demographic Geographic Behavioral Psychographic

Evaluative reactions (Activation Model and Associative Networks)

Memories stored as positive or negative emotions.

Product category (Activation Model and Associative Networks)

Memories stored in terms of how the product works or where it should be used.

Brand identification (Activation Model and Associative Networks)

Memories stored in terms of the brand name.

Ad-specific (Activation Model and Associative Networks)

Memories stored in terms of the medium or content of the ad itself.

Brand-Specific (Activation Model and Associative Networks)

Memory is stored in terms of claims the brand makes

Motivation to consume

Motivation is the processes that lead people to behave as they do. It occurs when a need is is aroused that the consumer wishes to satisfy. Needs can be utilitarian(i.e., a desire to achieve some functional or practical benefit, like consuming green vegetables for nutritional reasons) Needs can also be hedonic (i.e., an experiential need, involving emotional responses or fantasies)

Needs and Wants

Need: something a person must have to live or achieve a goal Want: is a specific manifestation of a need that personal and cultural factors determine

Perception

Perception is the process by which people select, organize and interpret these sensations.

Addictive Consumption:

Physiological or psychological dependency on products or services.

Consumer Behavior as a process: Marketer's Perspective

Prepurchase Issues: How are consumer attitudes toward products formed and/or changed? What cues do consumers use to infer which product are superior to others? Purchase Issues: How do situational factors, such as time pressure or store displays, affect the consumer's purchase decision? Postpurchase Issues: What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and influence their purchase decisions?

Consumer Behavior as a process: Consumer's Perspective

Prepurchase Issues: how does a consumer decide that he/she needs a product? What are the best sources of information to learn more about the alternative choices? Purchase Issues: Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer? Postpurchase Issues: Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this act?

Smell (scent)

Processed by the limbic system odors can also stir emotions and memory.

Compulsive Consumption:

Repetitive and often excessive shopping performed as an antidote to tension, anxiety, depression, or boredom.

Consumer-Product Relationships

Self-concept attachment: Products which help to establish the user identity Nostalgic Attachment: Products which serve a connection with the past self Interdependence: the product is a part of the user's daily routine Love: The product elicits emotional bonds of warmth, passion or other strong emotions

Memory Systems

Sensory Memory Attention Short-term Memory Elaborative Rehearsal Long-term Memory

Perceptual Process

Stage 1- Sensory Threshold, Weber Law, Subliminal Perception Stage 2- Personal Selection Factors, Stimuli selection factor Stage 3- Stimulus Organization + Interpretation Biases, Semiotics, Hyperreality, Perceptual Positioning

Taste

Taste influences consumer choices. There are also cultural differences

Differential threshold

The ability of a sensory system to detect changes in or differences between two stimuli

Just Noticeable Difference (JND):

The minimum difference we can detect between two stimuli.

Weber's Law

The perceived change is judged in reference to the original starting stimuli

Sensory Marketing: The Five Senses

Vision Taste Hearing Touch Smell

Vision

Visual Elements like color, size and packaging are crucial for product identity.

Consumer Course of Action

Voice: Appealing directly to the retailer Private: Sharing your dissatisfaction with your immediate social circle Third-Party Response: Taking legal action or going through an organization like the Better Business Bureau.

Counterfeiting:

When companies or individuals sell fake versions of real products to customers.

Touch

When consumers touch a product, they then have a higher level of attachment to the product.

Serial wardrobers:

customers who change price tags on items, then return one item for the higher amount; and shoppers who use fake or old receipts when they return a product

activation models of memory

depending on the nature of the processing task different levels of processing occur that activate some aspects of memory rather than others

Corporate Social Responsibility (CSR)

describes processes that encourage the organization to make a positive impact on the various stakeholders in its community including consumers, employees, and the environment

Learning

is a change in behavior caused by direct (by participating) or indirect experience (by observing and often unintentional)

Schema

is a cognitive framework we develop through experience and use for processing new information

Memory

is a process of acquiring information and storing it over time so that it will be available when we need it.

Script

is a very well developed type of schema and include a set of events

Sensation

is the immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers &skin) to basic stimuli such as light, color, sound, odor and texture

Sensory Threshold

is the point at and above which a stimuli is strong enough for a person to be aware of or differentiate between two stimuli.

Long-term memory (LTM)

is the system that allows us to retain information for a long period of time.

Instrumental Conditioning

occurs when we learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes. This process of learning is called shaping

Observational Learning

occurs when we watch the actions of others and note the reinforcements they receive for their behaviors. In these situations, learning occurs as a result of vicarious rather than direct experience.

Materialism

refers to the importance people attach to worldly possessions

Sensory Memory

stores the information we receive from our senses. This storage is temporary; it lasts a couple of seconds at most EX: a man who walks past a donut shop gets a quick, enticing whiff of something baking inside. Although this sensation lasts only a few seconds, it is sufficient to allow him to consider whether he should investigate further.

Forgetting

the inability to retrieve memory from long-term storage

decay

the structural changes that learning produces in the brain simply go away

Consumer Behavior

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

Sensory Marketing

where companies think carefully about the impact of sensations on our product experiences. From hotels to car makers to brewers, companies recognize that our senses help us decide which products appeal to us- and which ones stand out from a host of similar offerings in the marketplace.

Provenance

willing to pay more for products which include information about where it comes from, and consumers are assured that "real people" have thoughtfully selected the things from which they choose.