Consumer Behavior Exam 1: chapters 1-5
3 stages of perception
1. exposure 2. attention 3. interpretation
Involuntary, occurs when a stimulus that elicits a response is paired with another stimulus that does not initially elicit a response on its own
Classical conditioning
Idea that we fill in the blanks based on prior experienes
Closure principle
perspectives that regard consumers as solvers of complex problems who learn abstract rules and concepts when they observe what others say and do.
Cognitive learning theory
A person who identifies a need or desire, makes a purchase, and disposes of the product during the three stages of consumption process
Consumer
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.
Consumer Behavior
A website that shows how "green" the product is, if it can have multiple life cycles
Cradle to cradle
When marketers track specific customers buying habits very closely, and crafting products and messages tailored precisely to people's needs and wants based on this information
Database marketing
Sensory receptors include:
Eyes, ears, nose, mouth, fingers, skin
Heavy vs. Light users
Heavy- faithful customers light- inconsistent customers
The minimum difference we can detect between two stimuli
JND- Just Noticeable Difference
The importance people attach to worldly possessions.
Materialism
Set of beliefs assigned to a stimulus
Schema
factor that determines how we all interpret stimulus is the relationship we assume it has with other events, sensations, or images in memory
Stimulus organization
Represents one way society has been taught to satisfy the need
Want
In the encoding stage, these memories relate to events that are personally relavent
episodic memories
time varies, have to respond at a constant rate ex-secret shoppers, pop quiz
variable-interval reinforcement
How much does the U.S. spend on green products?
$40 billion annually
Consumer-brand attachments
- self-concept: product helps establish users identity (class ring, mizzou apparel) -Nostalgic: link with a past self (trophies) -Interdependence: part of user's daily routine (iphone) -Love: product elicits emotional bonds of warmth, passion (naming your car)
Market access issues include:
-Disabilities -food deserts -media literacy
Types of reinforcement schedules
-Fixed-interval reinforcement -variable-interval reinforcement -variable-ratio reinforcement -fixed-ratio reinforcement
Reasons for stimuli habituation
-Intensity -Discrimination -Exposure -Relevance
Marketers use these dimensions to carve out brands position:
-Lifestyle -Price leadership -Attributes -product class -competitors -occasions -users -quality
Factors of Perceptual Selection
-Perceptual vigilance -Perceptual defense -Adaption
Types of consumer theft & fraud
-Shrinkage: inventory & cash losses from shoplifting -Serial Wardrobers -Counterfeiting
Stimulus Selection Factors:
-Size -Color -position -novelty
Senses involved in sensory marketing?
-Vision: elements in advertisements, store design, and packaging -Colors: influence emotions -Smell: odors evoke memories -Sound -Touch -Taste
Types of responses for consumer complaints
-Voice response -Private response -Third party response
Views of Positivism
-assumes society has objective social facts -society exerts influence on its members -quantitative data, objectory
Can store memory trace in these ways: -Axe example
-brand-specific: terms of claims brand makes ("it's macho") -ad-specific: in terms of medium/content (macho guy using axe) -brand identification: in terms of brand name -product category: use/how it works (axe in medicine cabinet) -evaluate reactions: stored as positive or negative emotions ("looks cool")
We use instrumental conditioning when:
-deliberately want to achieve a goal, more complex -occurs when learner receives reward after desired behavior -over time, consumers associate with people who reward them and choose products that make them feel good or satisfy some need.
What are the steps in the memory process?
1. Encoding 2. Storage 3. retrieval
In order for observational learning in the form of modeling to occur, marketer must meet 4 conditions:
1. attention 2. retention 3. action 4. motivation
Instrumental Conditioning- three types of reinforcement
1. positive reinforcement 2. negative reinforcement 3.punishment
Pareto Principle (80/20)
20% Of users account for 80% of sales. -the 20% being heavy users; 20% of products are worth 80% of sales
Minimum amount of stimulation one can detect
Absolute Threshold
Degree to which consumers continue to notice stimuli over time; occurs when we no longer pay attention to the stimulus because it is so familiar ex: commuter en route to work sees same billboard everyday
Adaption
See a billboard, hear a jingle, feel softness of cashmere sweater, smell leather jacket
All sensory inputs- which are raw data that begin perceptual process
According to activation models of memory, an incoming piece of information gets stored here and contains many individual bits of related information.
Associative networks
Uses elements of marketing mix to influence consumers interpretation of product meaning in the marketplace
Brand positioning strategy
Rules of conduct that guide actions in the marketplace; these are the standard against which most people in a culture judge what is right and wrong, good or bad.
Business ethics
A firm's triple bottom line orientation
Business strategies to maximize returns 1. the financial bottom line: profit to stakeholders 2. social bottom line: returns benefits to community 3. Environmental bottom line: minimize damage to environment or even improve natural conditions
The issues that influence the consumer before, during, and after a purchase
Consumption Process
Sensations that subtly influence how we think about products -example: respondents evaluated more harshly when standing on tile rather than carpeted floor
Context effects
Many firms integrate this into business models. Describes a process that encourage the organization to make positive impact on various stakeholders in its community: consumers, employees, environment.
Corporate social responsibility
Used to refer to an expert who carefully chooses pieces to include in museum exhibit, now applies to range of consumer products such as: food, clothing, and travel
Curation
For some purposes, marketers find it useful to categorize customers in terms of age, gender, income, or occupation. These are descriptive characteristics of a population.
Demographics
A transaction in which two or more organizations or people give and receive something of value, is an integral part of marketing
Exchange
One part of stimulus will dominate (figure) others fade into background (ground)
Figure-ground principle
Explains why people crowd a store on the last day of a sale
Fixed-interval reinforcement
reinforcement after fixed responses -Nordstrom rewards, grocery store that rewards a price when reach 50 receipts
Fixed-ratio reinforcement
Strategy that involves the development and promotion of environmentally friendly products, and stressing this attribute when manufacturer communicates with its customers
Green Marketing
Multi-sensory, fantasy, and emotional aspects of consumers interactions with products.
Hedonic consumption
Sign that resembles a product
Icon (ford mustang's horse)
Learning without even trying; we recognize brand names, hum product jingles, even for products we don't use ourselves.
Incidental learning
Sign that connects to product because they share a similar property
Index (Pine tree on refresher spray)
When we learn to perform behaviors that produce positive outcomes and avoid behaviors we believe will produce negative outcomes
Instrumental conditioning
A relatively permanent change in behavior caused by experience; trying to learn
Intentional learning
Post-modernism, questions these assumptions and argues that science and technology are emphasized too much. World is culturally and socially complex, importance on symbolic, subjective experience; meanings constructed on one's individual perspectives. -qualitative data, subjective
Interpretivism
Process fragrance through this, most primitive part of the brain and experience immediate emotion
Limbic system
The ability to find and purchase goods and services
Market access
Process of acquiring information and storing it over time so it will be there when we need it
Memory
Process of imitating the behavior of others ex: copy friends perfume that she got compliments on
Modeling
description of a product is written as a story
Narrative
Basic biological motive
Need
A women is shown sitting alone, ad demonstrates this can be avoided if she were to purchase a particular perfume. Example of what?
Negative reinforcement
Based on semiotic views, every marketing message contains 3 basic components: -marlboro example
OBJECT(product)-marlboro cigs SIGN(image)-cowboy INTERPRETATION(meaning)-rugged american
When we watch others and note reinforcements they receive for their behaviors -vicarious experience, complex -people store observations in memory as they accumulate knowledge, use info at later point to guide own behavior
Observational learning
Process by which people select, organize, and interpret sensations
Perception
People only attend a small portion of the stimuli to which they're exposed
Perceptual Selection
The factor that states we see what we want to see and choose to not see what we do not want to. ex: heavy smokers may block out images of cancer scarred lungs
Perceptual defense
Factor that states we are more likely to be aware of stimuli related to a current need
Perceptual vigilance
A women gets a compliment on perfume, she is likely to keep buying this perfume. Example of what?
Positive reinforcement
Modernism, emphasizes that the human reason is supreme and that there is a single, objective truth. Celebrates the functions of objects, technology, and refers to the world as a rational, ordered place.
Positivism
Shoppers are willing to spend more on an item when they know exactly where it came from, and they're assured that "real people" have thoughtfully selected the things from which they choose.
Provenance
Our friends ridicule us when we wear a perfume that smells bad
Punishment
Marketers amount of efforts and resources devoted when they reward consumers who respond as they hoped.
Reinforcement schedules
Building relationships between brands and customers that will last a lifetime; interact with customers on regular basis and give them solid reasons to maintain the bond.
Relationship marketing -ex: happy birthday messages
Much of consumer behavior resembles actions in a play, as consumers are acting out a variety of different roles which sometimes alter their consumption decisions
Role Theory
These help marketers to understand how consumers interpret the meaning of symbols; studies the correspondence between signs and symbols and their roles in how we assign meanings.
Semiotic relationships
Refers to immediate response of our sensory receptors to basic stimuli
Sensation
The idea that we exposed to far more information than we can process, and marketers must break through this clutter.
Sensory Overload
Point at which stimuli make conscious impact on awareness
Sensory Threshold
Companies think carefully about impact of our sensations on our product experiences; they recognize that our senses help us decide which products appeal to us & stand out example= Omni hotel soft chimes on site, scent in lobby
Sensory marketing
Consumers tend to group together objects of similar physical characteristics
Similarity principle
Strategies that use the techniques that marketers normally employ to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative behaviors like drunk driving
Social Marketing
The way a word sounds influences our assumptions about what it describes, such as size.
Sound symbolism
occurs when a stimulus comes within a range of someone's sensory receptors; concentrate on some, unaware of some, and ignore others.
Stage 1: exposure
The extent to which processing activity is devoted to particular stimulus
Stage 2: Attention
Refers to meanings we assign to sensory stimuli
Stage 3: Interpretation
tendency of stimuli similar to conditioned stimulus to evoke similar conditioned responses (ex-pavlovs dogs salvating to jingle of keys)
Stimulus generation
This idea creates and maintains conditions under which humans and nature can exist in productive harmony, that permit the social and economic requirements of the current and future generations
Sustainability
Sign that relates to product by conventional or agreed upon associations
Symbol (lion provides association of fearlessness)
Why do organizations exist?
To satisfy needs.
Based on idea that amount of change required for perceiver to notice change systematically relates to the intensity of the original stimulus.
Weber's Law
Focuses on simple stimuli- response connections and assumes that learning takes place as a result of responses to external events
behavioral learning theory
Popular strategy, aligns company or brand with cause to generate business and societal benefits
cause marketing
Stimulus selection
characteristics of stimuli itself play an important role in what we pay attention to and ignore
Pavlovs dogs
classical conditioning -unconditioned stimulus: dog food -conditioned stimulus: bell -conditioned response: drooling of dogs because sound of bell linked to feeding time.
The ability to detect changes between two stimuli
differential threshold
allows information to move from short term memory to long term memory
ellaborative rehearsal
encouraging customers to touch products, encourages them to imagine if they own it
endowment effect
lack of association between the conditioned stimulus and unconditioned stimulus, happens when effects of prior conditioning diminish and disappear (too much exposure)
extinction
Our perception of a brand=
functional attributes (features, price, etc) & symbolic attributes (meaning)
React to other stimuli similar same way as original (ex-private label mouthwash very similar to national brand)
halo effect
Universal values (business ethics) include
honesty, trustworthiness, fairness, respect, justice, integrity, concern for others, accountability and loyalty
Basic stimuli includes:
light, color, sound, odor, and texture
retain information for a long time
long-term memory
An organization targets its product, service, or idea only to specific groups of consumers rather than to everybody.
market segmentation
exposures that increase strength of stimulus-response associations and prevent the decay of associations in memory
repetition
external stimuli from the external environment that we receive on a number of channels
sensory inputs
Temporary storage of sensory information; lasts only a couple of seconds at most. ex: man walks past a donut shop
sensory memory
brief storage of information currently being used. can be input acoustically (sound) or semantically (meaning)
short-term memory
Allows us to shift back and forth on levels of meaning; the way we store information in memory depends on initial meaning assigned to it.
spreading activation
Materialists are more likely to value possessions for:
status and appearance
Positive and negative reinforcement _________ future linkage between response and outcome
strengthen
Simple principle that states that everything we need for survival and well-being depends, either directly or indirectly, on our natural environment
sustainability
When you know you will eventually get reinforced, but don't know when. -ex: slot machines
variable-ratio reinforcement
punishment ________ future linkage between response and outcome
weakens