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...