MARK 202 Consumer Behaviour

Flashbulb memories

Especially vivid associations

Episodic memories

Relate to events that are personally relevant

Why study consumer behaviour?

(Picture an iceberg) the tip of the iceberg is advertising and selling - at the level just below the water is the company strategy, the product design, the value creation and the competitive analysis - at the very bottom tip of the iceberg is consumer behaviour (essentially it underlies everything else). Firms exist to satisfy consumer's needs, understanding consumer behaviour is good business, knowledge about consumers should be incorporated into every aspect, it is important for marketers to be able to identify products that reflect consumer needs, consumer trends influence behaviour and helps to avoid consumer backlash

Young & Rubicam's model

1. Magician - thought: CNN 2. Patriarch - belief: National Geographic 3. Angel - dreams: Winnie the Pooh 4. Enchantress - soul: Victoria's Secret 5. Actress - feelings: Gucci 6. Troubadour - joy: Ford Mustang 7. Jester - spirit: Energizer 8. Warrior - ego: Harley-Davidson 9. Queen - being: Best Western 10. Mother earth - body: Johnson & Johnson 11. Matriarch - order: MasterCard 12. Sage - peace: Intel

5 brand personality dimensions by Aaker

1. Sincerity: domestic, honest, genuine, cheerful 2. Excitement: daring, spirited, imaginative, up-to-date 3. Competence: trusted, reliable, dependable, efficient 4. Sophistication: glamorous, pretentious, charming, romantic 5. Ruggedness: tough, strong, outdoorsy, rugged

Perceptual mapping

A perceptual map is designed to show how the average target consumer understand the positioning of the competing markets in the market place - it is a tool that attempt to map the consumer's perceptions and understandings in a diagram

Personality

A person's unique psychological make up and how it constantly influences the way a person responds to their environments

Narrative

An effective way of persuading people to construct a mental representation of the information that they are viewing

Is brand colour important and if so why?

Because colours may influence out emotions and perceptions more directly than other forms of marketing/sensory marketing, some reactions to colour come from learned associations and some reactions to colour are due to biological and cultural differences. Colour plays an important role in brand recognition, it influences our brand perception, it can be used to improve customer satisfaction and loyalty, and it influences initial interaction with people and brands

Sensory meaning

Colour or shape

Consumer behaviour

Consumer behaviour is 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 behaviour is an ongoing process, not merely the exchange of goods or services

What are many traits linked to?

Consumer preferences

Do consumers remember product benefits or product attributes better?

Consumers typically remember product benefits over attributes, consumers aren't very good at remembering attributes

Bases for segmenting consumers into markets

Demographic (age, gender, income, family cycle), geographic (nations, states, regions, cities, neighborhoods), psychographic (personality characteristics, lifestyle), behavioural (occasion, user status, usage rate, loyalty status, buyer readiness stage)

Marketing implications (of selecting between alternatives/product choice)

Educate consumers about determinant attributes that should be used, question whether or not the product has determinant attributes, question whether or not the consumer knew about it, question whether the marketer can add a new determinant attribute, question how the marketer can help the consumer make their decision. In real life, consumers make decisions in complex ways and consumers need to be aware of consumer evoked set, evaluation of criteria and decision rules

Shaping

Encouraging a partial response, e.g. consuming a free sample, that will lead to a desired response, e.g. repurchasing a product at full price

Evaluative criteria and determinant attributes

Evaluative criteria: the dimensions used to judge different/various options Determinant attributes: used to differentiate between choices

Gestalt principles of perception

Gestalt principles ensure that the perceiver organizes a lot of separate images into a familiar image. Figure ground principle: one party of the stimulus will dominate (the figure) and other party will recede into the background (the ground). Grouping: consumers tend to group together objects that share the same characteristics, this is often linked with the principles of similarity, closure principle: people tend to perceive an incomplete picture as complete

Who is Carl Jung and what did he come up with?

He came up with archetypes - he didn't accept Freud's emphasis on the sexual aspects of personality, instead he focused on collective uncommissions that forms archetypes

Need theories and why marketers need to know about them

Hedonic needs: usually associated with fun (pleasure, entertainment, recreation shopping). Utilitarian: usually associated with work (shipping to accomplish a specific task). Marketers need to know about need theories because products can serve either or both utilitarian and hedonic needs (motives are goal oriented), a marketer needs to know their target market and needs to know their levels of needs and desires in order to market their products/services accordingly

Extended problem solving

High risk and involvement, extensive search, information processed actively, multiple sources consulted prior to store visits, strongly held beliefs, many criteria used, significant differences perceived between alternatives, compensatory strategy used, many outlets shopped at if needed, communication with store personnel desirable

Perception

How we see the world around us

Criteria for targeting selected segments effectively

Identifiable (able to identify and measure the characteristic), stable (segment is stable in terms of needs, demographics and psychological factors), congruent (with company objectives and resources), sizeable (sufficient segment size to justify differentiating strategy or product), accessible (marketers can access and reach the segment in an economical way)

Trait theory

Identify and qualify specific characteristics, multiple dimensions of personality

Weber's law/JND

Just noticeable difference - the amount of change that is necessary to be noticed is systematically related to the intensity of the original stimulus, the stronger the initial stimulus, the greater a change must be for it to be noticed. JND is the minimum difference that can be detected between 2 stimuli and the ability to detect the difference always relates to the strength of the original stimuli. Make improvements readily discernable - want to exceed JND, whereas to make negative changes not readily discernable - want to fall below JND

Laddering

Laddering is a technique that uncovers consumers' associations between attributes and consequences

Limited problem solving

Low risk and involvement, little search, information processed passively, in-store decisions likely, weakly held beliefs, only the most prominent criteria used, alternatives perceived as basically similar, non-compensatory strategy used, limited shipping time, many prefer self-service, often choice influenced by store displays

Why is market segmentation important and who uses it?

Market segmentation is important as differentiation is the cornerstone of successful marketing and businesses must differentiate or die, not all consumers are like. Businesses wanting to sell products/services to consumers use market segmentation

Sensory marketing

Marketing that relies heavily on sensory elements, meanings are communicated on the visual channel - such as colour, size, styling

Opportunity recognition vs. need recognition

Need recognition: where a person's actual state moves downwards until that need is fulfilled (the ideal state goes down to the actual state) Opportunity recognition: where consumers desire new products and services due to external stimuli (the actual stare moves upwards to the ideal state)

Marketing power of nostalgia

Nostalgia is important as it evokes memories. Can spark spontaneous recovery, which is the ability of a stimulus to evoke a response years after it is initially perceived

Maslow's hierarchy of needs

Physiological at the bottom working up to..., safety, social, esteem, self-actualization

Extended decision-making process

Problem recognition, information search, evaluation of alternatives, and purchase PLUS post-purchase which include post-purchase outcomes (consumer satisfaction: determined by the overall feelings/attitude a person has about a product after it has been purchased - buyer dissatisfaction is not ideal (influenced by degree of commitment, importance of decision, difficulty of choosing between alternatives, individuals tendency towards anxiety, consumer value: altruistic value, economic value, hedonic value, social value, brand loyalty: when a consumer prefers your brand and buys it regularly, components include attitudinal (thoughts and feelings) and behavioural (the action), without brand loyalty brand repurchase is inertia), product use and possession: increasing consumer focus on the importance of sustainability - consumers consider how they can consumer products in a way that protects resources, and disposal: keep the item, temporarily dispose of, permanently dispose of, focus at the moment on products that can be disposed of/consumed sustainably

Consumer Decision Making Process

Problem recognition, information search, evaluation of alternatives, product choice/purchase, post-purchase outcomes

Instrumental conditioning/reinforcement

Rewards to reinforce your purchasing behaviour, product trials, these are done to strengthen the likelihood of a certain response

STP

Segment: croups of consumers who are similar are identified then marketing strategies devised to appeal to 1 or more of those groups. Target: identifying a particular segment to target. Position: designing an offering so that the target segment perceive it as distinct and valuable relative to competitors

3 stage process that translates raw stimuli into meaning

Selection, organisation, interpretation

Theoretical approaches that explain human sensation and perception and how we apply them

Sensory perception/marketing: smell, sound, taste, touch Subliminal perception: occurs below the level of consumers awareness

Means-end analysis

Shows how specific product attributes are linked to desired end states. Means-end chain analysis = attribute --> functional consequences --> phycological consequences, valued end-states

Non-Freudian theory

Social relationships

Difference between subliminal perception and priming

Subliminal perception occurs when the stimulus is below the level of the consumer's awareness, whereas priming is something that we see and are aware of seeing buy may not pay attention to

Semantic meaning

Symbolic associations (e.g. rich people drink champagne)

Anthropomorphism

The attribution of human characteristics or behaviour to a god, animal, or object [in terms of marketing, more likely an object]

Selective perception

The process by which individuals perceive what they want to - individual's choose what marketing they want to pay attention to

Retrieval and the factors that influence retrieval

The process by which information is recovered from the long term memory. Factors that influence retrieval: physiological factors (age), situational factors (e.g. pioneering brand, viewing environment)

Perceptual organisation

The process of grouping stimulus together so that we can more readily determine the meaning as a whole

Perceptual interpretation

The process of interpreting stimuli according to our perception of them

Motivational process

The process that leads people to behave as they do, it occurs when a need arises that a consumer wishes to satisfy. Unfulfilled wants and needs --> tension, the drive to satisfy a specific need influenced by the learning and cognitive process (knowledge, perception, beliefs) --> behaviour to achieve a desired end state or goal

Evoked set

The set of brands the consumer has actively considered

Varying enforcement schedules

The way that we use reinforcement influences how long the behaviour stays - of reinforcement continues, the behaviour will stay around longer and vice versa

Freudian theory

Unconscious needs underpin personality - id (oriented towards immediate gratification), ego (the system that mediates between the id and the superego), and superego dimensions (a person's conscience, internalizes social rules)

Conscious and unconscious aspects of perception

Unconscious: subliminal perception and JND. Conscious: priming

Elements of guerilla marketing

Unexpected, highly visible, unconventional, often risqué

Archetypes

Universally shared ideas and behaviour pattern created by shared memories

Perceptual vigilance

Where consumers are aware of stimuli that relate to their current needs

Consumer imagery

Where images that consumers have formulated of the marketing stimuli that they are faced with, te perceived images that get formed may relate to the product/service offerings and the marketing mix

Consumer positioning

Where marketing efforts use elements of the marketing mix to influence the consumer's interpretation of its meaning