Consumer Behavior Exam #1

Qualitative Research

- Dsicover ideas, exploratory, with general - Observe & Interpret - Unstructured, Free-Forms - Researcher is intimately involved. Results are subjective - Small samples (natural settings) - Exploratory research designs

Quantitative Research

- Test hypothesis of specific research questions - Measure & test - Structured response - Researcher un-involved observer. Results = objective - Larger samples to produce generalized results - Descriptive & casual research designs

Workbench/Short-term Memory

- limited capacity - limited duration - coding takes place here where bits of info are worked on to create knowledge

Long-term Memory

- unlimited capacity - unlimited duration - semantic meaning - semantic/associative network

Sensory Memory

-unlimited capacity - very limited duration - iconic memory - echoic storage

2 Learning Theories

1. Behaviorism 2. Information Processing

Elements of Consumer Perception

1. Exposure: - stimulus w/in proximity of a consumer so that consumers can sense it w/ one of the 5 senses 2. Attention - immediate response to a stimulus 3. Comprehension - Attempt to derive meaning from information

Why Study Consumer Behavior (CB)?

1. Input to business/marketing strategy 2. Force that shapes society 3. Input to making responsible decisions as a consumer

Consumer Value Framework (CVF)

1. Internal Influences 2. External Influences 3. Consumption Process - Is affected by both internal and external influences

3 Approaches to Studying CB

1. Interpretive Research 2. Quantitative Research 3. Qualitative Research

Factors Affecting Comprehension

1. Message Characteristics - physical, simple/complex, figure/ground, etc.. 2. Message Receiver Characteristics - intelligence, ability, involvement, familiarity/habituation, expectations, physical limits, etc... 3. Environmental Characteristics - info intensity, framing, timing, etc...

Mental Processes Assisting Learning (4)

1. Repetition 2. Dual Coding 3. Meaningful Encoding - making associations 4. Chunking - making associations

3 Different Ways of Doing Business

1. Undifferentiated Marketing 2. Differentiated Marketing 3. Niche Marketing

2 Types of Value

1. Utilitarian 2. Hedonic

Learning

A change in behavior resulting from the interaction between a person and a stimulus Value involves learning, & consumer learning begins with perception can be intentional or unintentional

Classical Conditioning

A change in behavior that occurs simply through associating some stimulus with another stimulus that naturally causes a reaction ex: Pavlov

Exemplar

A concept w/in a schema that is the single best representation of some category ex: The category is "fastfood" and the best example that I can think of - or the exemplar - would be McDonalds

Perception

A consumer's awareness and interpretation of reality

Consumer Value

A personal assessment of the net worth obtained from an activity

Schema

A type of associative network that works as a cognitive representation of a phenomenon that provides meaning to that entity

Psychology of the Consumer: Affect

Affect - refers to the feelings experienced during consumption activities or associated with specific objects

Organizing Reactions

Assimilation - Readily recognize as an example of a specific category Accommodation - Share some characteristics to fit a specific category Contrast - Does not share characteristics to allow categorization

Instrumental Conditioning

Behavior is conditioned through reinforcement

Prototype

Charcteristics more associated with a concept

Psychology of the Consumer: Cognition

Cognition - the thinking or mental processes that go on as we process and store things that can become knowledge

Internal Influences (CVF)

Consumer Psychology: - learning - perception - implicit memory - information processing - memory - categorization - attitudes Personality of Consumer: - motivation - personal values - personality - lifestyles - emotional expressiveness

Intentional Learning

Consumers set out to specifically learn information devoted to a certain subject

Unintentional Learning

Consumers simply sense and react (or respond) to the environment

Utilitarian Value

Derived from a product that helps a consumer solve a problem & accomplish a task

Hedonistic Value

Derived from immediate gratification that comes from some activity

Total Value Concept

Every product's value is made up of the basic benefits + the augmented product + the "feel" benefits - the obvious, physical, & non-tangible

Consumer Information Processing Memory

Exposure ---> Attention ---> Comprehension ---> Elaboration ---> Memory (Sensory, Short-Term, Long-Term)

Habituation

Getting used to something even though its different than usual

Perceptual Map

How the consumers map things/ how they view or perceive products

Environmental Chracteristics

Information Intensity Framing Timing

Physical Characteristics of the Message

Intensity Color Font Numbers Spacing

Ways to Enhance Attention

Intensity Contrast Movement Surprise Size Involvement

Vicary Subliminal "Persuasion" Study

Movie plays, "EAT POPCORN" shows for 1/2000 of a second, movie continues Subliminal = below the threshold of consciousness to provoke a discrete sensation

The Basic Consumption Process

Need Want Exchange Costs & Benefits Reaction Value

Consumption Process (CVF)

Needs, wants, exchange, costs & benefits, reactions ---> Value (Utilitarian vs Hedonic) ---> Relationship Quality: - switching behavior - customer share - customer commitment

JND Marketing Strategy

Pricing Quantity Quality Add-On Purchases If the change is good, then make the change in product noticeable! If the change is bad, then make the change gradually, or just below the JND threshold

Consumption

Process by which goods, services, or ideas are used and transformed into value

Undifferentiated Marketing

Product ---> 1 Segment

Niche Marketing

Product 1 ---> Segment 1

Differentiated Marketing

Product 1 ---> Segment 1 Product 2 ---> Segment 2 Product 3 ---> Segment 3

Comprehension

Refers to the interpretation or understanding that a consumer develops about some attended stimulus in order to assign meaning

Consumer Value Framework (CVF) Definition

Represents consumer behavior theory illustrating factors that shape consumption related behaviors and ultimately determine the value associated with consumption

Just Noticeable Difference (JND)

Represents how much stronger one stimulus has to be relative to another so that someone can notice that the two are not the same

Selective Perception

Selective Exposure Selective Attention (catch your eye) Selective Distortion (Yankees win more, but you are Red Sox fan)

Consumer Perception Process

Sensing ---> Organizing ---> Reacting

Simple/Complex

Simple phrases such as "fat free" often communicate more clearly than more detailed info

External Influences

Social Environment Situational Influences

External Influences (CVF)

Social Environment: - acculturation/enculturation - culture & cultural values - reference groups - social class - family influence

Weber's Law

The ability to detect differences b/w two levels of a stimulus is affected by the original intensity of the stimulus

Attenion

The purposeful allocation of cognitive capacity toward understanding some stimulus

Consumer Behavior

The set of value seeking activities that take place as people go about addressing realized needs

The Value Equation

Value = What you get - What you give What you get/Benefits: - quality, convenience, emotions, prestige, experience, scarcity, nostalgia, etc... What you give/Sacrifices: - time, money, effort, opportunity, emotions, image, etc...

Multiple Store Theory of Memory

Views the memory process as utilizing three different storage within the human brain 1. Sensory Memory 2. Workbench/Short-term Memory 3. Long-term Memory

Message Source Factors

Where/Who the message is coming from Likability Expertise Trustworthiness Attractiveness

Product Differentiation

a marketplace condition in which consumers do not view all competing products as identical to one another

Behaviorism

ex: buy something --> dont like it --> dont buy again

Information Processing

ex: when consumers are buying more complex items such as a car - a lot more research is needed

Market Segmentation

the separation of a market into groups based on different demand curves associated with each group

Trends That Affect Consumers

1. Internationalization 2. Technological advances 3. Changing demographics

Associative Network

A network of mental pathways linking knowledge within memory ex: A consumer links a Mercedes car with...luxurious ---> expensive ---> money --->big--->German---> etc...