Consumer Behavior Quiz 3

Personal Relevance: Perceived Risk (Types of Risk)

(look these up in text book) -performance risk -physical risk -financial risk -psychological risk -time risk -social risk -how consumers handle risk: seek info; stay brand loyal; select by brand image; rely on store image; buy the most expensive model; seek reassurance

Hemispheric Lateralization

-ability to process preattentively depends on (1) whether the stimulus is a picture or a word, and, (2) whether it is on the right or left of our focal item -two halves of the brain process different pieces of info -right hemisphere: processes music and pictures; visual information processing; center for creative, imaginative thinking -left hemisphere: processes unfamiliar words and forms sentences; verbal information processing; center for logical, conceptual thinking -during focal attention, both hemispheres of the brain are working together -the right hemisphere processes information present on the left hand side of the focal field; the left hemisphere processes information present on the right hand side of the focal field

When Do We Perceive Stimuli

-absolute threshold -differential threshold -subliminal perception

Factors Affecting Exposure

-ad in back cover; ads placed in articles or within TV programs that are interesting to the consumer; ads at the beginning or end of the commercial break within a program (of interest to the consumer); commercial free TV programs -product distribution and shelf placement: greater the distribution greater the chances of exposure; products at the end of the aisle, from waist to eye level, and in places that have the maximum amount of store traffic increase the rates of exposure

Goals

-an outcome/end-state a person wants to achieve; more concrete and specific than needs -result of doing something -need something (product); know the brand (goal) -goal setting and pursuit follows a circular pattern - new goals are set based on what is/has been achieved/not achieved

Marketing Implications for Attention: Personally Relevant Stimuli

-appealing to our needs, goals, values, beliefs -emerging from individuals perceived as similar to one's self are more likely to be attended to -containing dramatic presentations/strong narratives -rhetorical questions

Goals

-concrete or abstract: how specific it is to a given behavior and depends on the situation -promotion/prevention focused: activities to achieve positive or avoid negative outcomes

Selective Exposure

-consumers actively seek and on the other hand avoid certain stimuli -zipping: fast forwarding through the commercials when viewing pre-recorded programs; one can still identify brands (think TiVo) -zapping: avoiding the stimulus altogether (think ad-blockers) -avoidance occurs because of lack of desire to process all information; lack of desire to be exposed to stimulus that are irrelevant; prior knowledge; parents also limit the exposure for their children

Why Stress Preattentive Processing

-consumers probably have an inclination to like a particular brand/product if they have preattentively processed it than if they have not processed (or been exposed to) it at all -affects consumer choices in case of an unfamiliar brand and a preattentive processed brand -right brain dominates during low involvement situations and where judgment depends on aesthetics, symbolic meaning, or sensory experience

Measuring Exposure

-determine which medium will generate maximum exposure for the given product/brand -measurement is not easy -standardization required for measurement

Motivation

-driving force within the consumer to achieve a goal -consumers are motivated to process information and make decisions -an outcome of motivation is behavior that takes considerable effort; e.g. things that one needs to do in order to lose weight, or, get a good grade in an exam 1) motivation is a driving force 2) this driving force influences info processing 3) the more you are motivated the more complex your behavior

Types of Involvement

-enduring (ongoing): ongoing and long term; exhibited for a few offerings only -situational (temporary): this is true in most cases; a kind of a temporary involvement -cognitive (rational): thinking about & processing information related to one's goal; goal includes learning about the offering -affective (emotional): expending emotional energy in or have heightened feelings about an issue, activity, or an offering

Consumer Ability: Resources to Act

-extent to which consumers have the necessary resources to make an outcome happen; motivation may not result in action unless a consumer has the ability to process information -cognitive resources & style: as seen before, moderately expert individuals seek more information than expert or non-experts; expert/non-experts process information differently; cognitive style refers to differential preferences regarding information presentation -emotional resources: ability to experience sympathy & empathy -education and age (more educated, younger) -money

Habituation

-familiarity leads to losing attention-getting ability -significant problem for marketers and hence it is tackled by altering the stimulus while keeping the basic message same

Focal and Nonfocal Attention

-focal attention: focusing on a stimulus -nonfocal (most common): focusing on a stimulus while simultaneously being exposed to other stimuli -preattentive processing: when information is being processed from peripheral vision even when one is not aware of doing so

Goals and Effort

-high motivation: important; easy visualization of goals (ex: losing weight); receive feedback in terms of progress (pounds lost); a recurring goal, as long as it is challenging -low motivation: not important; if one believes that one is failing in achieving the goal; when one gets close to attaining one's goal, effort is reduced to pursue that goal & is redirected towards other goals (especially when striving to achieve multiple goals)

High Effort Information Processing and Decision Making

-high motivation: pay more attention to info; think more about info; make greater attempts to understand and comprehend information; evaluate information more critically and remember for later use -low motivation: little effort to process information

Differential Threshold

-intensity difference needed between two stimuli in order to be judged as being different -also known as J.N.D (just noticeable difference) -weber's law: stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived to be different -relative concept: comparing two stimuli and see difference ex: before and after pics

Absolute Threshold

-lowest level at which an individual can experience a sensation; minimum level of stimulus intensity needed for a stimulus to be perceived -amount of difference between something and nothing -people have different absolute thresholds -absolute concept: tells whether something or nothing

Marketing Implications

-market segmentation: needs/goals lets you segment market -enhance motivation to process information

Marketing Implication of J.N.D.

-marketers need to determine the relevant j.n.d. for their products so that negative changes are not readily discernible to the public; so that product improvements are very apparent to consumers

Marketing Implications

-marketers should be sure the target audience has enough prior knowledge to process marketing communications -marketers should match communications with consumers' knowledge and processing styles -marketers can provide monetary aid to facilitate first time and repeat buying

Marketing Implications

-marketers should repeat marketing communications and make them easy to process -marketers should reduce time-pressured decision-making -marketers should reduce the amount of time needed to buy or make it easy to use a product -information should be made available through various sources

Objects of Involvement

-motivation to process is conceptualized in terms of consumers involvement with the info stimuli (motivation same thing as involvement; want involvement but doesn't mean you will buy) -response involvement: involved with a particular behavior (ex: shopping in a store rather than shopping online; just a behavior) -product categories; brands: brand loyalty; ads: relevant and interesting ads; medium: tv, newspapers, internet, etc.; decisions and behavior: referred to as response involvement

Marketing Implications for Attention: Surprising Stimuli

-novelty-new or unique stimulus -using unexpectedness: in terms of placement or content -puzzles or other exercises that engage the consumer attract attention because they require resolution on the part of the consumer

What Affects Motivation

-personal relevance (more motivated when have this) -consistency with needs and goals -perceived risk -moderate inconsistency with prior attitudes/knowledge

Maslow's Hierarchy of Needs

-physiological (water, sleep, food) -safety (security, shelter, protection) -belongingness (love, friendship, acceptance by others) -ego needs (prestige, status, accomplishment) -self actualization (self fulfillment, enriching experiences)

Perception

-process by which an individual understands the stimulus using one or more of the five senses (hearing, taste, touch, smell, sight) -how we see the world around us

Attention

-process of devoting mental activity to a stimulus -selective: consumers decide which items they want to focus on -divided: capable of dividing the attention span into units and allocating accordingly -limited: attention to multiple things take place when it is automatic, well practiced, and effortless

Marketing Implications for Attention: Easy to Process Stimuli

-prominent stimuli -concrete stimuli -when amount of competing information is less, messages are likely to get more attention -contrast

Social/Non Social and Functional/Symbolic/Hedonic Needs

-social: externally directed and relate to other individuals; other people to be concerned about -nonsocial: not based on other people -functional: may be social or nonsocial; motivates searching for products solving consumption related problems; searching for needs for utility -symbolic: how we perceive ourselves and how others perceive us; motivates desire for products that help in identifying such perceptions -hedonic: motivates the inherent desire for sensory pleasure

Needs

-state of tension caused by a difference between the ideal state and the actual state -Needs can be classified in various ways (what needs do consumers experience?): maslow's hierarchy social or non social; functional, hedonic, or symbolic

Personal Relevance: Perceived Risk

-stems from uncertainty -extent to which one is uncertain about the consequences of making the choice -when the result of a decision is likely to be negative, perceived risk is high - more attention to & careful processing of information -more info is collected when the result of a decision is likely to be negative -lack of info -new offering -high price -technologically complex offering -substantial difference between brands -inexperience or little confidence in one's own evaluation -social visibility of the situation - being judged by others

Exposure

-the process by which a consumer comes into physical contact with a stimulus -marketing stimuli relates to information regarding offerings communicated by marketers or by non-commercial sources -takes place at buying, using, or disposing stages; exposure ought to be favorable

Marketing Implications for Attention: Pleasant Stimuli

-visual attractiveness -familiar, pleasant, or nostalgic music can all be used to attract attention -humor

Personal Relevance: Inconsistency with Attitudes/Prior Knowledge

-when inconsistency with attitudes/knowledge occurs, we try to remove or at least understand the inconsistency -more motivated to process information that is moderately inconsistent -little/no motivation to process information highly inconsistent (confirmation bias kicks in)

Consumer Opportunity

-whether motivation & ability result in action, finally, depends on individual's opportunity to engage in a behavior -time -distraction -complexity of info -amount of info -repetition of info -control of info

Characteristics of Needs

regardless of the classification, needs share the following features: -needs are dynamic -exist in hierarchy -can be internally or externally aroused -can conflict: approach-avoidance: one wants to satisfy a need and at the same time wants to avoid it approach-approach: conflict occurs when the consumer faces the task of choosing among two or more equally desirable options that fulfill different needs avoidance-avoidance: conflict occurs when the consumer faces the task of choosing between two equally undesirable options