Overall Model of Consumer Behavior External Influences Culture

Overall Model of Consumer Behavior External Influences Culture Subculture Demographics Social Status Reference Groups Family Marketing Activities Internal Influences Perception Learning Memory Motives Personality Emotions Attitudes Decision Process (Situations) Problem Recognition Self-Concept and Lifestyle Information Search Alternative Evaluation and Selection Outlet Selection and Purchase Postpurchase Processes

The Consumer Decision Process Stages in the Consumer Decision-Making Process Problem Recognition Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation Integration Learning Relevant Internal Psychological Processes Motivation Perception and Memory Attitude Formation and Learning

Motivation is the reason for behavior. A motive is a construct representing an unobservable inner force that stimulates and compels a behavioral response and provides specific direction to that response. What does advertising do?

Motivation Maslow’s Hierarchy of Needs Self-Actualization Esteem Belongingness Safety Needs Physiological Needs Discussion: Critique the hierarchy of needs concept

Motivation Mc. Guire’s Psychological Motives Need for Consistency Need to Attribute Causation Need to Categorize Need for Cues Need for Independence Need for Self-Expression Need for Ego-Defense Need for Reinforcement Need for Affiliation Need for Modeling Need for Novelty Need for Assertion

Motivation Why should we care about consumers’ motivations? Discovering Purchase Motives: n n Manifest motives Latent motives Projective techniques n n n Association Completion Construction Means-end chains

Problem Recognition Caused by a difference between a consumer’s ideal state and actual state. Sources of Problem Recognition: Out of stock

Problem Recognition Caused by a difference between a consumer’s ideal state and actual state. Sources of Problem Recognition: Dissatisfaction

Problem Recognition Caused by a difference between a consumer’s ideal state and actual state. Sources of Problem Recognition: Marketer-Induced Dissatisfaction

Problem Recognition Caused by a difference between a consumer’s ideal state and actual state. Sources of Problem Recognition: Related Purchases

Problem Recognition Caused by a difference between a consumer’s ideal state and actual state. Sources of Problem Recognition: New Needs

Problem Recognition Caused by a difference between a consumer’s ideal state and actual state. Sources of Problem Recognition: New Products

Information Search Internal Search n Information stored in memory External Search n n Marketer sources - advertising/personal selling/sales promo Personal sources - opinion leaders/WOM Public sources - publicity/expert opinion Personal experience - product design packaging Mostly Internal Mostly External Routinized Response Behavior Extended Problem Solving

Perception: An Information Processing Perspective Exposure Perception Random Deliberate Attention Low Involvement High Involvement Interpretation Low Involvement High Involvement Memory Short-term Long-term Purchase and Consumption Decisions

Perception Selective Exposure Selective Attention Selective Comprehension Selective Retention

Exposure occurs when a stimulus comes within range of our sensory receptor nerves. n n n Reception not necessary Self-selection: Generally, we seek information that we think will help us achieve our goals. However, also unsought information (billboards, radio ads while driving, …) zipping zapping muting

Attention occurs when the stimulus activates one or more sensory receptor nerves and the resulting sensations go to the brain for processing. Limited cognitive resource - Flashlight analogy The same individual may devote different levels of attention to the same stimulus in different situations.

Stimulus Factors Stimulus factors are physical characteristics of the stimulus (e. g. , ad) itself. n n n n Size and intensity: Reebok ad Color and movement: Chrysler ad Position Isolation Format Contrast: EDS ad Information Quantity

The Impact of Size on Ad Readership One page ads have almost twice the impact of fractionalpage ads 55 40 24 Based on an analysis of 85, 000 ads

Color and Size Impact on Attention 179 145 100 117 Readership of a 1 -page B&W ad was set at 100

Why use this space for an ad?

Individual Factors Individual factors are characteristics of the individual n n Interest Involvement Need Ability

Situational Factors Situational factors include stimuli in the environment other than the focal stimulus (i. e. , the ad or package) and temporary characteristics of the individual that are induced by the environment, such as time pressures or a very crowded store. n Program/magazine involvement

Non-Focused Attention Stimuli may be attended to without deliberate or conscious focusing of attention. n Subliminal stimuli

Interpretation is the assignment of meaning to sensations. n Cognitive interpretation: Process whereby stimuli are placed into existing categories of meaning semantic meaning psychological meaning: n Budweiser Ad; Charlie’s Angels Affective interpretation: Emotional or feeling response triggered by a stimulis such as an ad.

Memory is the total accumulation of prior learning experiences. It consists of two interrelated components: n n Short-term memory: the portion of total memory that is currently activated or in use. Long-term memory: unlimited, permanent storage.

Short-term memory Analogous to thinking. Active, dynamic -not static Limited capacity n n Seven “chunks” of information Resource-Matching theory Involves both: n n Concept manipulation and Imagery manipulation

The Resource-Matching Theory Resources Available Low High Resources Demanded Low High Low Result. Positive Overload Boredom Example ads What is the role of Involvement/Motivation?

Short-term memory Two types of information processing activities: n n Elaborative activities: the use of previously stored experiences, values, attitudes, beliefs, and feelings to interpret and evaluate information in working memory as well as to add relevant previously stored information. Maintenance rehearsal: the continual repetition of a piece of information in order to hold it in current memory for use in problem solving or transferral to long-term memory.

Long-term Memory Stores numerous types of information or knowledge, such as concepts, decision rules, processes, affective states, … Types of knowledge: n General Semantic Episodic n Procedural

Memory Structures Associative networks organize and link many types of knowledge together. Types of associative networks: n n Schemas (general knowledge) Scripts (procedural knowledge)

Attitudes Attitude is a person’s overall evaluation of a concept Evaluations are affective responses at relatively low levels of intensity and arousal Could be created through: n n Affective system: automatic; not conscious Cognitive system

Alternative Evaluation: The Affective Route Behavioral Learning Unconditioned Stimulus Unconditioned Response Conditioned Stimulus Conditioned Response Attitude formation n Coca-Cola Ad

Alternative Evaluation: The Cognitive Route Cognitive learning: People interpret information in the environment and create new knowledge or meaning. Add new nodes and links to schemas, or steps to scripts.

Alternative Evaluation: The Cognitive Route The Consideration Set n The particular group of alternatives a consumer considers when making a buying decision.

Alternative Evaluation : The Cognitive Route Multiattribute Attitude Model Number of attributes Attitude toward a brand n A B = Bi x Ei i =1 Belief about the brand on attribute i Importance attached to attribute i

Alternative Evaluation : The Cognitive Route n Multiattribute Attitude Model A B = Bi x Ei i =1 n Helps marketers understand diagnose consumers’ attitudes. n Provides insight into how attitudes can be influenced.

Purchase Decision Integration of information Intentions to purchase can predict behavior… somewhat. Depending on: n n n time unforeseen environmental events unforeseen situational context degree of voluntary control stability of intentions new information Possible outcomes: n n n Buy now Buy later Not buy at all

Postpurchase Evaluation Possible outcomes: n n n Satisfaction Dissatisfaction Cognitive dissonance - psychological tension or doubt about the “rightness” of a decision. Purchase was perceived as important or risky AND A trade-off was necessary

External Influences on CB Social Class Demographics Culture Marketing Activities Reference Groups

Trends A combination of external influences and internal influences. How do marketers spot trends? n n Qualitative Research “Cool Hunting”