Decision Process(Situations)
Problem Recognition
Information Search
Alternative Evaluationand Selection
Outlet Selection and Purchase
Postpurchase Processes
Internal InfluencesPerceptionLearningMemoryMotives
PersonalityEmotionsAttitudes
External InfluencesCulture
SubcultureDemographicsSocial Status
Reference GroupsFamily
Marketing Activities
Overall Model of Consumer Overall Model of Consumer BehaviorBehavior
Self-Conceptand
Lifestyle
The Consumer Decision The Consumer Decision ProcessProcess
The Consumer Decision The Consumer Decision ProcessProcess
MotivationMotivationMotivationMotivation
Stages in the Consumer Decision-Making ProcessStages in the Consumer Decision-Making Process
Relevant Internal Psychological ProcessesRelevant Internal Psychological Processes
ProblemProblemRecognitionRecognition
ProblemProblemRecognitionRecognition
InformationInformationSearchSearch
InformationInformationSearchSearch
AlternativeAlternativeEvaluationEvaluationAlternativeAlternativeEvaluationEvaluation
PurchasePurchaseDecisionDecisionPurchasePurchaseDecisionDecision
PostpurchasePostpurchaseEvaluationEvaluation
PostpurchasePostpurchaseEvaluationEvaluation
PerceptionPerceptionand Memoryand MemoryPerceptionPerception
and Memoryand Memory
AttitudeAttitudeFormationFormation
and Learningand Learning
AttitudeAttitudeFormationFormation
and Learningand LearningIntegrationIntegrationIntegrationIntegration LearningLearningLearningLearning
MotivationMotivation
Motivation is the reason for behavior. A Motivation is the reason for behavior. A motive is a construct representing an motive is a construct representing an unobservable inner force that stimulates unobservable inner force that stimulates and compels a behavioral response and and compels a behavioral response and provides specific direction to that provides specific direction to that response.response.
What does advertising do?
MotivationMotivation
Physiological Needs
Safety Needs
Belongingness
Esteem
Self-Actualization
Discussion: Critique the hierarchy of needs concept
Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
MotivationMotivation
Need for ConsistencyNeed for Consistency
Need to Attribute CausationNeed to Attribute Causation
Need to CategorizeNeed to Categorize
Need for CuesNeed for Cues
Need for IndependenceNeed for Independence
Need for Self-ExpressionNeed for Self-Expression
Need for Ego-DefenseNeed for Ego-Defense
Need for ReinforcementNeed for Reinforcement
Need for AffiliationNeed for Affiliation
Need for ModelingNeed for Modeling
Need for NoveltyNeed for Novelty
Need for AssertionNeed for Assertion
McGuire’s Psychological MotivesMcGuire’s Psychological Motives
MotivationMotivation
Why should we care about consumers’ Why should we care about consumers’ motivations?motivations?
Discovering Purchase Motives:Discovering Purchase Motives: Manifest motivesManifest motives Latent motivesLatent motives
Projective techniquesProjective techniques AssociationAssociation CompletionCompletion ConstructionConstruction
Means-end chainsMeans-end chains
Problem RecognitionProblem RecognitionProblem RecognitionProblem Recognition
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Out of stockOut of stock
Problem RecognitionProblem RecognitionProblem RecognitionProblem Recognition
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
DissatisfactionDissatisfaction
Problem RecognitionProblem RecognitionProblem RecognitionProblem Recognition
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Marketer-InducedDissatisfaction
Marketer-InducedDissatisfaction
Problem RecognitionProblem RecognitionProblem RecognitionProblem Recognition
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Related Purchases
Related Purchases
Problem RecognitionProblem RecognitionProblem RecognitionProblem Recognition
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
New NeedsNew Needs
Problem RecognitionProblem RecognitionProblem RecognitionProblem Recognition
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
Caused by a difference between a consumer’s Caused by a difference between a consumer’s ideal stateideal state and and actual stateactual state..
Sources of Problem Recognition:Sources of Problem Recognition:
New ProductsNew Products
Information SearchInformation SearchInformation SearchInformation SearchInternal SearchInternal Search Information stored in memoryInformation stored in memory
External SearchExternal Search Marketer sources - advertising/personal selling/sales promoMarketer sources - advertising/personal selling/sales promo Personal sources - opinion leaders/WOMPersonal sources - opinion leaders/WOM Public sources - publicity/expert opinionPublic sources - publicity/expert opinion Personal experience - product design packagingPersonal experience - product design packaging
Internal SearchInternal Search Information stored in memoryInformation stored in memory
External SearchExternal Search Marketer sources - advertising/personal selling/sales promoMarketer sources - advertising/personal selling/sales promo Personal sources - opinion leaders/WOMPersonal sources - opinion leaders/WOM Public sources - publicity/expert opinionPublic sources - publicity/expert opinion Personal experience - product design packagingPersonal experience - product design packaging
MostlyInternalMostlyInternal
MostlyExternalMostly
External
RoutinizedResponseBehavior
RoutinizedResponseBehavior
ExtendedProblemSolving
ExtendedProblemSolving
Perception: An Information Perception: An Information Processing PerspectiveProcessing Perspective
ExposureRandom Deliberate
AttentionLow High
Involvement Involvement
InterpretationLow High
Involvement Involvement
MemoryShort-term Long-term
Purchase and Consumption Decisions
Per
cept
ion
PerceptionPerceptionPerceptionPerception
Selective PerceptionSelective PerceptionSelective PerceptionSelective Perception
Selective ExposureSelective Exposure
Selective AttentionSelective Attention
Selective ComprehensionSelective Comprehension
Selective RetentionSelective Retention
ExposureExposureExposure occurs when a stimulus comes within Exposure occurs when a stimulus comes within range of our sensory receptor nerves.range of our sensory receptor nerves. Reception not necessaryReception not necessary Self-selection: Generally, we seek information that Self-selection: Generally, we seek information that
we think will help us achieve our goals.we think will help us achieve our goals. However, also unsought information (billboards, However, also unsought information (billboards,
radio ads while driving,…)radio ads while driving,…)zippingzipping
zappingzapping
mutingmuting
AttentionAttentionAttention occurs when the stimulus activates Attention occurs when the stimulus activates one or more sensory receptor nerves and one or more sensory receptor nerves and the resulting sensations go to the brain for the resulting sensations go to the brain for processing.processing.
Limited cognitive resource - Flashlight Limited cognitive resource - Flashlight analogyanalogy
The same The same individualindividual may devote different may devote different levels of attention to the same levels of attention to the same stimulusstimulus in in different different situationssituations..
Stimulus FactorsStimulus FactorsStimulus factors are physical characteristics Stimulus factors are physical characteristics of the stimulus (e.g., ad) itself.of the stimulus (e.g., ad) itself. Size and intensity: Size and intensity: Reebok adReebok ad
Color and movement: Color and movement: Chrysler adChrysler ad
PositionPosition IsolationIsolation FormatFormat Contrast: Contrast: EDS adEDS ad
Information QuantityInformation Quantity
The Impact of Size on Ad The Impact of Size on Ad ReadershipReadership
0
10
20
30
40
50
60
2-page ads 1-page adsFractional ads
One page ads have almosttwice the impact of fractional-page ads
Based on an analysis of 85,000 ads
55
24
40
Color and Size Impact on AttentionColor and Size Impact on Attention
0
50
100
150
200
1-page B&W2-page B&W1-page Color2-page Color
Readership of a 1-page B&W ad was set at 100
100117
145
179
Individual FactorsIndividual Factors
Individual factors are characteristics of the Individual factors are characteristics of the individualindividual InterestInterest InvolvementInvolvement NeedNeed AbilityAbility
Situational FactorsSituational Factors
Situational factors include stimuli in the Situational factors include stimuli in the environment other than the focal stimulus environment other than the focal stimulus (i.e., the ad or package) and temporary (i.e., the ad or package) and temporary characteristics of the individual that are characteristics of the individual that are induced by the environment, such as time induced by the environment, such as time pressures or a very crowded store.pressures or a very crowded store. Program/magazine involvementProgram/magazine involvement
Non-Focused AttentionNon-Focused Attention
Stimuli may be attended to without Stimuli may be attended to without deliberate or conscious focusing of deliberate or conscious focusing of attention.attention. Subliminal stimuliSubliminal stimuli
InterpretationInterpretation
Interpretation is the assignment of Interpretation is the assignment of meaning to sensations.meaning to sensations. Cognitive interpretation: Process whereby Cognitive interpretation: Process whereby
stimuli are placed into existing categories of stimuli are placed into existing categories of meaningmeaning
semantic meaningsemantic meaning
psychological meaning: psychological meaning: Budweiser AdBudweiser Ad; ; Charlie’s AngelsCharlie’s Angels
Affective interpretation: Emotional or feeling Affective interpretation: Emotional or feeling response triggered by a stimulis such as an response triggered by a stimulis such as an ad.ad.
MemoryMemory
Memory is the total accumulation of prior Memory is the total accumulation of prior learning experiences. It consists of two learning experiences. It consists of two interrelated components:interrelated components: Short-term memory: the portion of total Short-term memory: the portion of total
memory that is currently activated or in use.memory that is currently activated or in use. Long-term memory: unlimited, permanent Long-term memory: unlimited, permanent
storage.storage.
Short-term memoryShort-term memory
Analogous to Analogous to thinkingthinking. .
Active, dynamic -not staticActive, dynamic -not static
Limited capacityLimited capacity Seven “chunks” of informationSeven “chunks” of information Resource-Matching theoryResource-Matching theory
Involves both:Involves both: Concept manipulation and Concept manipulation and Imagery manipulationImagery manipulation
The Resource-Matching TheoryThe Resource-Matching Theory
ResourcesResources Resources Resources
AvailableAvailable Demanded Demanded Result Result . .
LowLow LowLow PositivePositive
HighHigh High High PositivePositive
Low Low High High OverloadOverload
High High Low Low BoredomBoredom
What is the role of Involvement/Motivation?
Example ads
Short-term memoryShort-term memory
Two types of information processing activities:Two types of information processing activities: Elaborative activitiesElaborative activities: the use of previously stored : the use of previously stored
experiences, values, attitudes, beliefs, and feelings experiences, values, attitudes, beliefs, and feelings to interpret and evaluate information in working to interpret and evaluate information in working memory as well as to add relevant previously stored memory as well as to add relevant previously stored information.information.
Maintenance rehearsalMaintenance rehearsal: the continual repetition of : the continual repetition of a piece of information in order to hold it in current a piece of information in order to hold it in current memory for use in problem solving or transferral to memory for use in problem solving or transferral to long-term memory.long-term memory.
Long-term MemoryLong-term Memory
Stores numerous types of information or Stores numerous types of information or knowledge, such as concepts, decision knowledge, such as concepts, decision rules, processes, affective states,… rules, processes, affective states,…
Types of knowledge:Types of knowledge: GeneralGeneral
SemanticSemantic
EpisodicEpisodic ProceduralProcedural
Memory StructuresMemory Structures
Associative networks organize and link Associative networks organize and link many types of knowledge together.many types of knowledge together.
Types of associative networks:Types of associative networks: Schemas (general knowledge)Schemas (general knowledge) Scripts (procedural knowledge)Scripts (procedural knowledge)
AttitudesAttitudes
Attitude is a person’s overall evaluation of Attitude is a person’s overall evaluation of a concepta concept
Evaluations are affective responses at Evaluations are affective responses at relatively low levels of intensity and relatively low levels of intensity and arousalarousal
Could be created through:Could be created through: Affective system: automatic; not consciousAffective system: automatic; not conscious Cognitive systemCognitive system
Alternative Evaluation: The Alternative Evaluation: The Affective RouteAffective Route
Alternative Evaluation: The Alternative Evaluation: The Affective RouteAffective Route
Behavioral LearningBehavioral LearningBehavioral LearningBehavioral Learning
UnconditionedUnconditionedStimulusStimulus
UnconditionedUnconditionedStimulusStimulus
UnconditionedUnconditionedResponseResponse
UnconditionedUnconditionedResponseResponse
ConditionedConditionedStimulusStimulus
ConditionedConditionedStimulusStimulus
ConditionedConditionedResponseResponse
ConditionedConditionedResponseResponse
Attitude formationAttitude formation Coca-Cola Ad
Attitude formationAttitude formation Coca-Cola Ad
Alternative Evaluation: The Alternative Evaluation: The Cognitive RouteCognitive Route
Alternative Evaluation: The Alternative Evaluation: The Cognitive RouteCognitive Route
Cognitive learning: People interpret Cognitive learning: People interpret information in the environment and create information in the environment and create new knowledge or meaning.new knowledge or meaning.
Add new nodes and links to schemas, or Add new nodes and links to schemas, or steps to scripts.steps to scripts.
Alternative Evaluation: The Alternative Evaluation: The Cognitive RouteCognitive Route
Alternative Evaluation: The Alternative Evaluation: The Cognitive RouteCognitive Route
The Consideration SetThe Consideration Set The particular group of alternatives a consumer considers when The particular group of alternatives a consumer considers when
making a buying decision.making a buying decision.
The Consideration SetThe Consideration Set The particular group of alternatives a consumer considers when The particular group of alternatives a consumer considers when
making a buying decision.making a buying decision.
Alternative Evaluation : The Alternative Evaluation : The Cognitive RouteCognitive Route
Alternative Evaluation : The Alternative Evaluation : The Cognitive RouteCognitive Route
Multiattribute Attitude Model Multiattribute Attitude Model Multiattribute Attitude Model Multiattribute Attitude Model
A =A = B x EB x EBB ii iii =1i =1
nnAttitude towarda brandAttitude towarda brand
Belief about the brand on attribute i
Belief about the brand on attribute i
Importance attached to attribute i
Importance attached to attribute i
Number of attributes
Number of attributes
Alternative Evaluation : The Alternative Evaluation : The Cognitive RouteCognitive Route
Alternative Evaluation : The Alternative Evaluation : The Cognitive RouteCognitive Route
Multiattribute Attitude ModelMultiattribute Attitude Model
Helps marketers understand and diagnose consumers’ attitudes. Helps marketers understand and diagnose consumers’ attitudes.
Provides insight into how attitudes can be influenced.Provides insight into how attitudes can be influenced.
Multiattribute Attitude ModelMultiattribute Attitude Model
Helps marketers understand and diagnose consumers’ attitudes. Helps marketers understand and diagnose consumers’ attitudes.
Provides insight into how attitudes can be influenced.Provides insight into how attitudes can be influenced.
A =A = B x EB x EBB ii iii =1i =1
nn
Purchase DecisionPurchase DecisionPurchase DecisionPurchase DecisionIntegration of informationIntegration of information
Intentions to purchase can predict behavior… somewhat. Depending on:Intentions to purchase can predict behavior… somewhat. Depending on: timetime unforeseen environmental eventsunforeseen environmental events unforeseen situational contextunforeseen situational context degree of voluntary controldegree of voluntary control stability of intentionsstability of intentions new informationnew information
Possible outcomes:Possible outcomes: Buy nowBuy now Buy laterBuy later Not buy at allNot buy at all
Integration of informationIntegration of information
Intentions to purchase can predict behavior… somewhat. Depending on:Intentions to purchase can predict behavior… somewhat. Depending on: timetime unforeseen environmental eventsunforeseen environmental events unforeseen situational contextunforeseen situational context degree of voluntary controldegree of voluntary control stability of intentionsstability of intentions new informationnew information
Possible outcomes:Possible outcomes: Buy nowBuy now Buy laterBuy later Not buy at allNot buy at all
Postpurchase EvaluationPostpurchase EvaluationPostpurchase EvaluationPostpurchase EvaluationPossible outcomes:Possible outcomes:
SatisfactionSatisfaction DissatisfactionDissatisfaction Cognitive dissonance - psychological tension or doubt about Cognitive dissonance - psychological tension or doubt about
the “rightness” of a decision.the “rightness” of a decision.Purchase was perceived as important or risky ANDPurchase was perceived as important or risky AND
A trade-off was necessaryA trade-off was necessary
Possible outcomes:Possible outcomes: SatisfactionSatisfaction DissatisfactionDissatisfaction Cognitive dissonance - psychological tension or doubt about Cognitive dissonance - psychological tension or doubt about
the “rightness” of a decision.the “rightness” of a decision.Purchase was perceived as important or risky ANDPurchase was perceived as important or risky AND
A trade-off was necessaryA trade-off was necessary
External Influences on CBExternal Influences on CB
Social ClassSocial Class
DemographicsDemographics
CultureCulture
Marketing ActivitiesMarketing Activities
Reference GroupsReference Groups