MKT 310: Consumer Behavior

Information Processing Under Low Involvement Conditions

"Are consumers really this rational?" Recent research shows that consumers have limited information processing capacity, reduce "costs" of thinking, seeks small amounts of information, are susceptible to social influence. Low involvement decision making occurs when product category is unrelated to person's self-image, product is inexpensive, reference group pressure is minimal

Hierarchy of Effects Model

(Lavidge and Steiner) Stages: Awareness > Knowledge > Liking > Preference > Conviction > Purchase

Information Processing Model of Advertising Effectiveness

(McGuirre)

Elaboration Likelihood Model

(Petty and Cacioppo) Central (Thoughtful consideration) vs. Peripheral (Environmental cues) Processing

Information Processing Under High Involvement Conditions

- Value-Relevant Involvement - Outcome-Relevant Involvement - Impression-Relevant Involvement High Involvement triggers extensive problem solving; active search for and diligent processing of information, product attributes are carefully evaluated and weighed, beliefs and attitudes are formed. High involvement may occur when product category reflects person's self-image, product is costly, strong reference group pressure exists

Internal Search Processes

A memory scan for decision relevant knowledge stored in memory - Recall of brands (Evoked Set) - Recall of Attributes (Salient and diagnostic information) - Recall of Evaluations (Overall Feelings) - Recall of Experiences: Specific images effect memory

Compensatory Model

A perceived weakness in one attribute may be compensated for by strengths on others. - Expectancy-Value Models; Fishbein's original model and theory of reasoned action

Non-compensatory Model

A weakness in one attribute is not compensated by the strengths of another. - Lexicographic Model; Select the brand that is most highly rated on the most important attribute - Elimination by Aspects; consumer sets cut-offs; all brands whose attributes do not pass that are eliminated. - Conjunctive Model; minimum cut-off features are set on each dimension if any brand has below cut-off features, it is rejected. - Disjunctive Model; Minimum cut-off features are set on each dimension if any brand has above cut-off features, it is acceptable

Source Attractiveness

Attractive communicators are more persuasive than less unattractive communicators. Studies include communicator attractiveness and physical attractiveness of celebrity endorsers.

Post-Purchase Dissonance

Basic tenets of cognitive dissonance: an inconsistency among our attitudes and our behavior produces an unpleasant state known as "dissonance." Reducing this feeling leads to an attitude change. Characteristics of the dissonance situation: engage in behavior, public, freedom of choice.

Inoculation in Persuasion

Biology Analogy Makes people resist a discrepant message by inoculating their initial attitudes

Comparative vs. Non-comparative Approaches in Advertising

Comparative Advertising: #1 company does not compete in comp. advertising Direct or Indirect comparisons of products against competitive offerings. Not proven; empirical evidence is inconclusive and contradictory

Personality and Motivational Factors related to Compulsive Buying

Compulsive Buyers are unable to control overpowering impulses to buy. Buying binges can result in severe consequences (unmanageable debt and emotional conflicts). Satisfaction is in the buying process, not the purchased item.

Operant Conditioning

Definition: Instrumental learning; increasing (or decreasing) the frequency or probability of a response by following that response with a reward (or punishment) Operants: behaviors that operate on the environment to produce rewards. Use in marketing programs:

Decay (Trace Theory)

Each stimulus a person receives leaves neural trace which decays unless repetition or rehearsal occurs.

External Information Search

Environmental sources of information; retail, media, interpersonal, independent, experiential, internet - Degree of search; total amt. of search - how much? - Direction of search; specific content of search - what kind? - Sequence of search; order of activities - which order?

Need for Evaluation (NFE)

Evaluation is the assessment of the positive and/or negative qualities of an object. One of the most pervasive and dominant human responses. - judging, evaluating

Alternative evaluation (Components and Process)

Evaluative Criteria; standards and specifications consumers use to compare and contrast products. Beliefs; the perceived relationship between an attitude object and some attribute. (i.e. an alternative's performance on important evaluative criteria). Attitude; the extent to which one feels favorable or unfavorable toward some object (i.e. the overall evaluation of an alternative); structural vs. current view of attitudes Behavioral Intentions; The likelihood that a particular action will be taken

Market Mavens

General marketplace information

"Good" Salesperson

Has two essential characteristics: - Empathy: The ability to feel as the customer feels; to put oneself in another individual's shoes - Ego Drive: The desire to accomplish something independent of external incentives

Automaticity

Highly familiar, well practiced processes are often used.

Consumers' use of compensatory and non-compensatory models

How are attitudes formed? Non-Compensatory Model: A weakness in one attribute is not compensated by the strengths of another. - Lexicographic Model; Select the brand that is most highly rated on the most important attribute - Elimination by Aspects; consumer sets cut-offs; all brands whose attributes do not pass that are eliminated. - Conjunctive Model; minimum cut-off features are set on each dimension if any brand has below cut-off features, it is rejected. - Disjunctive Model; Minimum cut-off features are set on each dimension if any brand has above cut-off features, it is acceptable Compensatory Model: A perceived weakness in one attribute may be compensated for by strengths on others. - Expectancy-Value Models; Fishbein's original model and theory of reasoned action

Spreading of Activation/Activation of Knowledge

How representations stored in memory become available. The brain takes information from the environment and places them in memory in various codes. - Sensory - Semantic - Episodic

Experimental Aspects of Impulse Buying Behavior

Impulse buying is a pervasive and distinctive aspect of american consumers' lifestyles. It occurs when a consumer experiences a sudden, often powerful and persistent urge to buy something immediately. The impulse to buy is complex and may stimulate emotional conflict. Spontaneous (impulse buying) vs. Cautious (contemplative buying) Experiment: asking three open ended questions about something they previously bought and how it made them feel.

Source Credibility

In general, a high credible source is more persuasive than a moderate/low credible source. A low credibility source cues the audience that the conclusion of the message is not to be believed. Exceptions include the "Sleeper Effect" - Occurs when measurement of persuasion is delayed. Harmon & Coney study: -Moderately credible source = audience's initial attitudes are FAVORABLE - Highly credible source = UNFAVORABLE

Indirect (projective) technique

Indirect (Projective) Techniques - Present ambiguous stimulus, needs and motives projected in response - Ernest Dichter's institute for motivation research (i.e. instant cake mix, instant coffee)

Need for Uniqueness (NFU)

Individuals acquire and display material possessions and participate in consumer experiences to create a self-image that is different from others. To counter conformity Three behavioral dimensions: 1. Creative choice; something acceptable, but unique 2. Unpopular choice; something that is unacceptable/rarely chosen 3. Avoid similarity by pursuing minority choice that is acceptable/good

Need for Cognition (NFC)

Individuals have a need to understand and make reasonable sense of the experiential world. They derive intrinsic enjoyment from engaging in thoughtful information processing (intellectual conversations). They are willing to engage in prolonged episodes of effortful problem solving.

Buyer Uncertainty

Knowledge uncertainty- don't know about attributes or performance; external search LESS likely to occur Choice uncertainty- don't know which alternative to choose; external search is MORE likely to occur

Interaction and Influence

Liking as a basis for social influence People are more willing to yield to sources/ wishes when sources are liked than disliked. How do you get people to like you? - Ingratiation: To gain favor by deliberate effort, flattery, exaggerated and undeserved praise of others

Multiple Store Memory Models vs. Single Store Memory Models

Multiple-Store Theory of Memory - Memory consists of 3 different storage systems; each storage serves a different function and has unique properties. One-Store Theory of Memory - One basic memory with various levels of information processing. Information can be processed at a low sensory level or at a deeper semantic level.

Individual differences factors related to search

NFC, NFE, NFU, Centrality for Visual Product Aesthetics, Frugality, TW vs. ST

Centrality for Visual Product Aesthetics (CVPA)

Need for aesthetics

Source Derogation Thoughts

Negative thoughts about the person in the ads

Measuring motives in consumer behavior

Observation: Inferences made from patterns of behavior Direct Verbal Reports: Series of questions - Interviews (Standard 1-on-1, focus groups - Self-administered Questionnaires Indirect (Projective) Techniques - Present ambiguous stimulus, needs and motives projected in response - Ernest Dichter's institute for motivation research (i.e. instant cake mix, instant coffee)

Outcome-Relevant Involvement

One is concerned with attaining desirable outcomes (i.e. home appliances)

Impression-Relevant Involvement

One is concerned with the impression made on others; one anticipates scrutiny from others (i.e. fashion consciousness)

One and Two-sided Message Appeals

One-Sided Message: Presents arguments favoring the recommended conclusion Two-Sided Message: Present arguments opposed to the position advocated and refuting them If people are already favorable, use a one-sided approach (agree with you) If people are not favorable, use two-sided approach If people are knowledgeable, use a two-sided approach If people are not knowledgeable, use a one-sided approach

Capacity Limits/Limitations

Only so many meanings can be activated and processed at one time.

Schemata

Organized knowledge structures that guide thinking

Interference Theory

People forget a learned message if similar messages are also learned. Retroactive Inhibition: Later learned materials interferes with previously learned materials. (Retro = replaces OLD) Proactive Inhibition: Previously learned material interferes with later learned material.

Source Characteristics in Persuasion

People may accept or reject a message on the basis of source cues rather than on the content of the message. These judgement are especially likely to occur when people are not ____ or when they are low in ____.

Cognitive Processing Model of Consumer Decision Making

Peter & Olson Selective Perception: Vigilance and Defense Selective Exposure: Zipping, Zapping, and Grazing Miscomprehension of televised communications

Extended view of consumer search

Pre-Purchase vs. On-Going Search

Pre-Purchase vs. On-Going Search

Pre-Purchase: Information seeking and processing activities one engages in to facilitate decision making regarding some goal object in the marketplace On-Going Search: Search activities that are independent of specific purchase needs or decisions. No recognized need or immediate purchase problem. - Search determinants - Motives - Outcomes

Categorization (Chunking)

Putting things into groups based upon similarities and differences.

Drawing Conclusions in Messages

Questions what is the most effective way to end a persuasive message. Hot vs. Cold Conclusions Hot Conclusions: Stating the conclusion explicitly; not motivated Cold Conclusions: Lets the audience come up with the conclusion; able to draw conclusions Comprehension increases if you tell them what to do (hot) Yield and persuasiveness increases if they understand it on their own (cold)

Weapons of Influence

Reciprocation Commitment/Consistency Social Proof Liking Authority Scarcity - Less available

Extinction

Repeated conditions of non-reinforcement Memory involves three stages: -Encoding: Putting information into memory -Storage: Maintaining information in memory -Retrieval: Recovering information from memory Types of Memory: -Sensory -Short-Term -Long-Term

Classical Conditioning

Respondent Learning Respondents: Behaviors that are under the control of the stimuli which precede them; not under conscious control by the individual. Pavlov's Model: Ex. Unconditioned Stimulis (UCS) (Meat Powder) > Unconditioned Response (UCR) (Salivation) Basic Paradigm: Advertising Applications:

Role of Fear Appeals in Persuasion

Scaring people may cause them to accept reassuring recommendations Studies: - Dental Hygiene of High School Students - Adolescent Processing of Social and Physical Threats - Recipient Anxiety

Scripts

Sequences of behavior used in different situations or roles

Frugality

Short-term sacrifices in buying and using consumer goods to achieve long-term goals. Not deprivation, but more restraint in acquiring and in resourcefully using economic goods/services to achieve long term goals.

Source-Recipient Similarity

Similar sources are more persuasive than dissimilar sources Studies - Evans - Life Insurance Study (Survey) - Brock - Hardware Paint Study (Experiment)

Value-Relevant Involvement

Some object or issue is centrally related to an individual's value system (i.e. environmental concerns)

Spendthrift (ST) - Tightwad (TW)

Spendthrift: Hurts to have money on them at the end of the day Tightwad: Someone who feels a sense of pain when they spend money.

Hemispheric Lateralization

The brain is divided into two hemispheres with different functions; they are connected by the Corpus Callosum (tissue consisting of millions of nerve cells) When the inter-connection is disrupted, the specialized functioning of the hemispheres can be observed. Left Hemisphere: - Analytical thinking, systematic reasoning, processing of verbal or semantic information, traditional cognitive activities (speech, arithmetic, logic) Right Hemisphere: - Artistic or creative abilities, creative, intuitive, imaginal thinking, processing of pictorial or visual information. Split Brain Surgery, Shock therapy Rothschild's experiments: an examination of brain wave activity in the two hemispheres as viewers watch television commercials.

Basic Characteristics of Consumer Cognition

The marketplace can be an over-whelming atmosphere

Consumer Behavior

The study of acquisition, consumption, and disposition of goods, services, time and ideas by human decision-making units. (Jacoby)

Consumer Psychology

The study of psychological factors which underlie and determine consumer behavior. It uses psychology's concepts, theories, and methods to understand consumption in the marketplace. Goals include Understanding, Prediction, and Control.

Support Argumentation

Thoughts in agreement

Cognitive Response Analysis

Thoughts in your head Thoughts one has in response to some persuasive message; are critical determinants of subsequent yielding Stimulus (ads) --> Cognitive Responses (Thoughts) --> Attitude Formation/Change

Counter Arguments

Thoughts that run in opposition, contrary to ads

Humor as a Persuasion Tool

Very positive of inducing attention, but negative in respect o comprehension (you're laughing & may forget the brand) Reduces counter arguments/negative thoughts and increases persuasion (not proven) and yield. Liking for the source Humor attracts attention, but is bad for comprehension. IT distracts the audience, which reduces counter-arguments/increases persuasion. May increase liking for the source and establish a more positive mood. Persuasive, but not more efficient than serious appeals.

Knowledge Uncertainty

don't know about attributes or performance; external search LESS likely to occur

Choice Uncertainty

don't know which alternative to choose; external search is MORE likely to occur

Dogmatism

the tendency to lay down principles as incontrovertibly true, without consideration of evidence or the opinions of others.