Consumer Behavior Lecture 2 (cognitive psychology)
Models of High-Involvement Decision-Making
- Choice based on evaluative criteria // relevant attributes - Compensatory models - Non-Compensatory Models
Considerations of the Means-End Chain
- One product may satisfy more than one need - One need may be satisfied by more than one product (substitutes and competition) Generally consumers desire to obtain benefits or satisfy needs
Choice Alternatives
- Total Set - Awareness Set (what you are aware of vs. unaware of) - Evoked Set - Choice (Set)
Cognitive Psychology supports ads where
- Viewers "figure out" the "meaning" - Creation of intrigue and viewer involvement
Role of Expectations in Customer Satisfaction
According to the Cognitive Perspective, it is not good to give people expectations which are TOO HIGH - Extremely high expectations will often lead to DISAPPOINTMENT even when customers have a "good" experience It is better to give people high but REASONABLE expectations. Then people will be very satisfied with the same "good" outcome - Satisfaction will make repeat sales easier (From a Cognitive Psychology perspective: building excessive customer expectation is dangerous)
Compensatory Models
Allow highly positive brand attributes to compensate for poor attributes EX: Personal computer (price, processor speed, HD capacity) Automobile Tires (price, performance, tread life)
Re-positioning
An attempt to re-position a product out of consumers' inept sets and into their evoked sets
Permission Structures
Arguments, Endorsements or "Authentication" Methods that "allow" a consumer to overcome discomfort or uncertainty regarding a purchase decision (from politics) Alternatively, permission structures can also create uncertainty or discomfort regarding an opposing alternative (a competitors product) Permission Structures are especially important when trying to challenge consumer's non-compensatory criteria
Cognitive Psychology
Attempts to explain human behavior as the outcome of rational thought
Mental Associations in Cognition
Brand X - Looks like? - Tastes like? - Smells like? - Sounds like? - Feels like? - Is similar to which other brands?
Goal of Marketing within the paradigm of cognitive psychology
Clarify and demonstrate the logical and direct relationship between product attributes and consumer benefits - Need x can be most effectively or efficiently satisfied with product y
Cognitive Dissonance
Cognitive Dissonance is psychological distress caused by INCONGRUITY BETWEEN BELIEFS AND BEHAVIOR or between 2 sets of beliefs - Fear of "buyers remorse"
Theory of Reasoned Action
Cognitive Psychology promotes the theory of reasoned action: Consumers consciously consider the consequences of alternative choices and then choose the option that leads to the MOST DESIRABLE CONSEQUENCES
Assumption of Cognitive Psychology in Marketing and Consumer Behavior
Consumers are rational, and seek to maximize benefits (satisfaction of needs) while minimizing risk and costs
Brand- Base Processing
Consumers compare brands based largely on brand names Ex: Apple vs. PC BMW vs. Mercedes Benz
Attribute-Based Processing
Consumers compare brands or models based upon product attributes Ex: Comparison of economy cars, comparison of Hi-Def TVs
Consumers are complex and information is critical
Even when information is correctly interpreted, strategic implications are not always clear To correctly understand consumers you need to understand the totality of their thinking (Ex: appliance manufacturers in the 1970's with washers/dryers)
The Means-End Chain (Products as Need Satisfiers)
Every product has many attributes but only SOME of these attributes provide benefits to consumers - Benefits are methods of satisfying needs different consumers (even those buying the same product) have different needs Thus, each consumer might focus on different product attributes/benefits
Satisfaction =
Expectations - Actual Experience if actual experience is better than the expectations you will be satisfied and happy
Dissatisfaction =
Expectations - Actual Experiences when expectations are high and the actual experiences is not good
High-Involvement Decision Making
High involvement consumer decision making Brand Loyalty
Permission Structures in Marketing
If consumer feel uncertain or uncomfortable with a consumption decision, marketers can help them overcome this discomfort EX: show how an expensive product can represent a prudent economic decision
Compensatory vs. Non-Compensatory
Many consumers decisions require a "mixed" model with both compensatory and non-compensatory elements Ex: Dating
Consumers' Awareness Sets
Marketers attempt to earn a position in consumers' awareness set
Consumer Mental Association and Brand Categorization
Much of consumer mental processing occurs in the form of categorization "Where does this brand/product fit within my exisiting mental categorization of brands/products? - The greater the similarity between brands, the more likely consumers will conceptualize these brands as being the same category - the greater the dissimilarity between brands the more likely consumers will conceptualize these brands as being in different categories
Cognitive Model of the Consumer Decision-Making Process
Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Evaluation
Means-End Chain
Product --> Attributes --> Benefits --> Needs
Influences on Consumer behavior
Psychological, Cultural, and Situational influence consumer behavior in all steps of the decision making process
How are purchase decisions made?
Purchase decisions are made through a rational process of careful evaluation, feature and benefit comparison and logical elimination - Decision making is a process of value or benefit maximization
Factors that can increase the likelihood of intensity of Cognitive Dissonance
Risk of Purchase - Financial Risk - Social Risk Attractiveness of other alternatives Similarity of alternatives
Non-Compensatory Models
Set absolute criteria or requirements on attributes EX: Camera (Price, close-up ability, interchangeable lenses) HMO (choice of doctor, deductibles, location, reputation)
Human brain response to brands using MRI
Some market research now attempts to map human brain response to brands using MRI (doesn't really tell you anything)
The Key to understanding consumers
Under Cognitive Perspectives the key to understanding consumers is in past behavior (choices) and stated preferences
Low-Involvement Decision Making
Variety-Seeking Behavior Routine Problem Solving
Associative Networks
what you associate with the brand