Consumer Behavior Topics

7/28/2019 Consumer Behavior Topics

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NTRODUCTION TO CONSUMER BEHAVIOR

Overview of Consumer Behavior Consumerism, Public Policy, and Ethics

2: INTRINSIC INFLUENCES

Consumer Information Processing Cognitive Learning and Memory Behavioral Learning

Social Influence and Compliance Techniques Motivation and Affect Personality and Psychographics Tripartite Model and Attitude Measurement Beliefs, Attitudes, and Behavior Change: the Fishbein Model

Persuasion

ELM: Involvement, Knowledge, and Persuasion Consumer Decision Processes

3: EXTRINSIC INFLUENCES

Environmental and Situational Influences Group Influences

Households and Families Cultural and International Issues

Subculture

OVERVIEW

CONSUMER BEHAVIOR

the study of exchange processes involved inacquiring, consuming, and disposing of goods, services, experiences, and ideas

The study of consumer behavior (CB) incorporates theories and concepts from all of the behavioralsciences:

cognitive, experimental, social psychology sociology anthropology economics - etc.

Acquisition: The factors that influence the product/service choices of consumers. Much of CB research has focusedon this stage. E.g., how did you decide to purchase one brand of car over another?

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Consumption: How consumers actually use a product/service. E.g., what sorts of attitudes are you forming during thetime that you own a car, and how does this affect future purchases?

Disposition: What consumers do with a product once they have completed their use of it. E.g., if you purchase a new

car several years later, do you keep the old one, trade it in, sell it yourself through the newspaper, give itto a friend, or have it towed to a junk yard?

PERSPECTIVES TOWARD THE STUDY OF CB

Marketer: How to best satisfy the wants and needs of a target market.

Consumer: How to become a better consumer by learning how people go about consumption activities and howmarketers sell products.

Public policy maker: How to make rules, regulations, or laws which influence marketers and consumers in the marketplace.

INFLUENCES ON CONSUMER BEHAVIOR

Intrinsic: Individual, internal influence factors: personality, motivation, beliefs, attitudes, etc.

Extrinsic: External factors of influence:

group influences, such as culture, family, reference groups environmental and situational factors, such as time of day, temperature, etc.

PERSPECTIVES ON ACQUISITION BEHAVIOR

Decision-making Consumers move through a series of steps when making a purchase:

problem recognition search

alternative evaluation choice

post purchase evaluation

E.g., we might go through the above steps in buying an expensive product such as a car or house. In the study of consumer behavior, we are less interested in whether or not this generic



model is the "correct" model, and are more interested in the sorts of factors that influence this asa generic model. Hence, we are interested in the intrinsic and extrinsic influences on this model.

Experiential: Pople do not always make purchases according to a rational decision-making process; they sometimesbuy products to have fun, create fantasies, and obtain emotions and feelings.

E.g., concerts, movies, camping: these are experiences that do not result in the ownership of aphysical thing, but rather result in a pleasant (or unpleasant) memory. Why would someone goout to eat at a fancy restaurant when they could make dinner at home for less cost in money andtime?

Behavioral: Environmental forces propel consumers to make purchases without necessarily first developing strongfeelings or beliefs about the product.

E.g., using a coupon, responding to a contest, feeling proud when the national song is played. If the national song is played during commercials for a political candidate, we might later associatea feeling of pride with that candidate (classical conditioning) even though we otherwise know

nothing substantial about the candidate.

EXCHANGE a transfer of something,tangible or intangibleactual or symbolicbetween two or more social actors

Exchange occurs between organizations as well as between organizations and household consumers.

Exchanges can be simple: involves two parties in a reciprocal relationship

complex : involves a set of three or more actors enmeshed in a set of mutual relations

RESOURCES OF EXCHANGE:

money goods

services information status feelings

TWO MODELS OF EXCHANGE



1) Homans' basic exchange equation:

Profit = Rewards - Costs

When would satisfaction be the result?

2) equity theory:

Outcomes of A / Inputs of A - vs.Outcomes of B / Inputs of B


PUBLIC POLICY

REGULATORY ENVIRONMENT the laws and regulations that federal, state, and local governments develop to exert control over businesspractices

e.g., in the U.S.:

Food and Drug Administration (FDA, 1906) Federal Trade Commission (FTC, 1914) National Highway Traffic Safety Administration (NHTSA 1970) Consumer Product Safety Commission (1972)

These organizations attempt to ensure that all marketers are on an even playing field, and that the market

is fair for buyers.

REGULATORY ENVIRONMENT (U.S.)

1960s-1970s: increase in government regulation 1980s: increase in government deregulation activities

1990s: increase in reregulation activities?

NOTE: Industry self-regulation is just as important as government regulation. E.g., DMA, local BBB. TheDirect Marketing Association would like to ensure as much as possible that people are not being bothered

by unscrupulous telemarketers; the local Better Business Bureau would like to ensure as much aspossible that people have trust in the local business community.

CONSUMERISM the set of activities of government, business, independent organizations, and concerned consumers thatare designed to protect the rights of consumers





Comprehension: consumers interpret the information to obtain meaning from it

THE EXPOSURE STAGE

a consumer's sensory organs are activated by a stimulus

selective exposure: consumers can actively choose whether or not to expose themselves to information

e.g., zipping and zapping through a video tape (fast forwarding through commercials or turning off the sound during commercials)

sensation: the stimulation of a person's sensory receptors and the transmission of the sensory information to thebrain

Whether or not a stimulus is actually detected depends on its intensity:

absolute threshold: the lowest level at which a stimulus can be detected 50% of the time.

Why do TV commercials seem louder than the program material?

subliminal perception: the idea that stimuli presented below the level of conscious awareness might influence behavior andfeelings

THE EXPOSURE STAGE

Just Noticeable Difference Threshold (JND) the minimum amount of difference in the intensity of a stimulus that can be detected 50% of the time

Weber's Law as the intensity of the stimulus increases, the ability of a person to detect a difference between the twolevels of the stimulus decreases

THE EXPOSURE STAGE

Consumer Adaptation: the amount or level of the stimulus to which the consumer has become accustomed

a reference point to which changes in the level of the stimulus are compared



Butterfly Curve: at the adaptation level, consumer preference for a stimulus declines because the person has becomehabituated to the stimulus

preference for a stimulus is greatest at points just higher or lower than the adaptation level

Why are fashions constantly changing?

THE ATTENTION STAGE the allocation of cognitive capacity to an object or task

Types of Attention

voluntary attention: consumers actively search out information that has personal relevance

selective attention:

consumers selectively focus attention on relevant information involuntary attention:

consumer is exposed to something surprising, novel, threatening, or unexpected- e.g.:

o surpriseo movemento unusual soundso size of stimuluso contrast effectso color

THE COMPREHENSION STAGE the process through which individuals organize and interpret information

Perceptual Organization the way people perceive shapes, forms, figures, and lines in their visual world

Gestalt Psychology: attempts to understand how people perceive patterns in the world

THE COMPREHENSION STAGE

Interpretation processes: people draw upon their experience, memory and expectations to attach meaning to a stimulus

Expectations: prior beliefs about what should happen in a given situation can influence the interpretation of information

Semiotics: how it is that people interpret meaning from signs



signs: words, gestures, pictures, products, and logos used to communicate information

CONSUMER INVOLVEMENT the process through which individuals are influenced by the

perceived personal importance and/or interest

evoked by a stimulus

Personal importance increases as perceived risk increases.

As involvement increases, consumers have greater motivation to comprehend and elaborate oninformation salient to the purchase.

Higher levels of involvement are expected to result in

a greater depth of information processing

increased arousal more extended decision making

Factors which can influence purchase involvement: situation product

personality communication

COGNITIVE LEARNING AND MEMORY

MULTIPLE STORE MODEL OF MEMORY This is a "black box" model which concentrates on external inputs and the consumer behavior outputsthat seem to ensue from them.

Sensory o preattention stageo brief analysis to determine if additional processing capacity should be devoted to stimulus

Short-Term

o where information is actively processed Long-Term

o where information is stored after encoding for later retrieval

encoding: the process of transferring information from short- to long-term memory for permanent storage



retr ieval: the process of accessing information stored in long-term memory so that it can be utilized in short-termmemory

MULTIPLE STORE MODEL OF MEMORY

Sensory Register(s) o the immediate impression caused by the firing of the sensory nerve cellso preattentive: determines if additional capacity should be allocated to processing stimulus

information Short-Term Memory (STM)

o a.k.a. working memoryo where information is temporarily stored while being processedo rehearsal can be used to refresh STM, as when silently repeating a phone number prior

to dialing Long-Term Memory (LTM)

o essentially unlimited in capacityo can store information permanently

MULTIPLE STORE MODEL OF MEMORY Sensory Register(s)

o briefly hold (fractions of seconds) information inputso very limited in capacity

Short-Term Memory (STM) o a.k.a. working memoryo can hold information for tens of seconds

o used for integrating inputs and LTM in"thinking"o limited in capacity

Long-Term Memory (LTM) o holds information for long periods of time (years)o "unlimited" capacity

MILLER'S LAW: Expanding the Limits of STM Recall:

STM seems to be capacity limited at around seven bits of information, plus or minus two

Chunking: the mental process of grouping together several pieces of information and treating them as a single set

A chunk uses about the same amount of capacity as a bit.

INFORMATION OVERLOAD: when more information is received than can be processed in short-term memory



INVOLVEMENT AND SHORT-TERM MEMORY CAPACITY

Higher involvement. . . . . ====> higher arousal

. . . . . . . . . . . . . . . . . ====>higher capacity

Lower levels of involvement suggest lower capacity for information processing.

What are the implications for advertising?

LONG TERM MEMORY

Testing LTM:

recognition task person is asked to judge if information that is presented has been seen previously

recall task person must retrieve the information from long-term memory

Consideration Set (evoked set)the set of alternative brands that a consumer regards as acceptable for further consideration; ones whichare recalled (enter STM)

LONG-TERM MEMORY

Two basic types of interest to consumer researchers:

Episodic refers to memories associated with events or episodes in our experiences

-e.g., your first date

Semantic refers to facts and other information that we store through language; verbal material

-e.g., how to do addition

(Note: Mowen also distinguishes between semantic and visual memory. The notion of an associativenetwork suggests that we do not simply store most information in a language format: the storage is in aholistic form much like a laser hologram. Mowen notes that pictorial information is recognized andrecalled more readily than verbal information.)



LONG-TERM MEMORY

Schema: a cognitive structure that represents a person's knowledge about a given object or behavior

an organized set of expectations held by a person about an object

Script: an organized sequence of behavioral events

Information salience: refers to the level of activation of a stimulus in memory

NETWORK ORGANIZATION OF LTM

Node

an LTM center that represents a word, idea, or concept

Linkage the means of association between two nodes

Activation an energy flow into particular nodes to bring them into STM

Retrieval the process of locating the proper nodes in LTM and bringing them into STM

Encoding the process of categorizing a stimulus and choosing a storage location for it in LTM

ATTENTION the momentary focusing of our information processing capacity on a particular stimulus

One school of thought is that attention lies on a continuum, anchored by processes that are:

controlled o effortfulo consume much capacity

automatic o "effortless"; "mindless"o consume little capacityo occur without conscious controlo a.k.a. preconscious attention

STRENGTH OF LEARNING



Importance (effort) Reinforcement (consequences) Repetition (refresh) Imagery (multiple memories)

COGNITIVE PROCESSING TERMS

Activation Stored cognitive representations are made available for retrieval from memory for processing.

Spreading Activation Activation of one representation will spread to and activate other representations with which it isassociated.

Capacity Limits The cognitive processing system has a finite limit in the amount of information that can beprocessed at one time.

Automatism As cognitive processes are practiced (i.e., the limited capacity system is used), they eventuallyrequire less conscious control and less capacity.

FORGETTING

retroactive interference after old material has been learned, new material interferes with the retrieval of old material frommemory

proactive interference material learned prior to the new material interferes with the learning of the new material

advertising pulsing

forgetting occurs rapidly at first, and then levels off: why do advertisers often use a pulsingstrategy?

BEHAVIORAL LEARNING

TWO SCHOOLS OF THOUGHT

Cognitive

"learning is knowledge" focuses on internal characteristics

emphasizes the role of memory and thinking

Behavioral

"learning as behavior"

focuses on changes in behavior that occur as a result of experience emphasizes stimuli and response behaviors



SUMMARY OF LEARNING THEORIES

Reasoning individuals use thinking to restructure and recombine existing information and new information to form

new associations and concepts

Iconic rote learning two or more concepts become associated without conditioning and without reasoning

Vicarious learning (modeling) behaviors are learned by watching the outcomes of others' behaviors or by imagining the outcome of potential behavior

Operant (instrumental) conditioning a response that is given reinforcement is more likely to be repeated when the same situation arises in thefuture

Classical conditioning a response elicited by one object will be elicited by the second object if both objects frequently occur together

BEHAVIORAL LEARNING a process in which experience with the environment leads to a relatively permanent change in behavior or the potential for a change in behavior

Three major approaches:

classical conditioning

operant conditioning vicarious learning

CLASSICAL CONDITIONING

stimulus =======> response

behavior is 'elicited'

OPERANT CONDITIONING

behavior =======> reward (or punishment) [or positive/negative reinforcement]

behavioral response is 'emitted' behavior is caused by altering the consequences that follow the behavior



CLASSICAL CONDITIONING

unconditioned stimulus (UCS) any stimulus capable of eliciting autonomically an unconditioned response (note that it can be possible for an unconditioned or 'unconditional' stimulus to have previously been conditioned)

unconditioned response (UCR) the reflexive, involuntary response elicited by an unconditioned stimulus

conditioned stimulus (CS) a previously neutral stimulus that, when paired with an unconditioned stimulus, may elicit a conditionedresponse

conditioned response (CR) the response elicited by the conditioned stimulus when classical conditioning occurs

OPERANT CONDITIONING

operant naturally occurring actions of an organism in the environment

reinforcements stimuli that occur after the behavior, affecting the likelihood that the behavior will be emitted again by anorganism

extinction the disappearance of a response due to lack of reinforcement

shaping

a process through which a new operant behavior is created by reinforcing successive approximations of the desired behavior

SOCIAL INFLUENCE - COMPLIANCE TECHNIQUES

RECIPROCITY

Guilt o feel guilty====>action to reduce guilt

Door in the Face Effect (DITF)o large request====>moderate request

COGNITIVE CONSISTENCY

Imagining an Event o imagine an event====>commitment compliance



Foot in the Door Effect (FITD)o small request====>moderate request

Low Ball Procedure o decision====>increase in "cost"

VICARIOUS LEARNING

Overt Modeling consumer observes modeled behavior and consequences

e.g., commercial shows how to apply cosmetic and consequences of usage

Covert Modeling consumer is told to imagine a model (or self) performing behavior and consequences

e.g., travel agency ad: ""imagine you're on the warm, sunny beaches of Florida"

Verbal Modeling consumer is given a description of how others similar to her/him self behave in purchase or usagesituation

e.g., door-door volunteer collecting for worthy cause: "others on this street have been giving fivedollars on average"

MOTIVATION

MOTIVATION an activated state within a person that leads to goal-directed behavior

motive:a construct representing an unobservable force that stimulates and compels a behavioral response andprovides specific direction to that response

Needs occur when a perceived discrepancy exists between an actual and a desired state of being

Note that there are many theories of motivation:

Don't look at these as "right" or "wrong"; they are just theories. None are validated, but seem intuitively logical.

MULTIPLE MOTIVES

Consumers usually have multiple motives for particular behaviors. These can be a combination of:

Manifest known to the person and freely admitted



Latent unknown to the person or the person is very reluctant to admit

Note: different motives can lead to the same behavior; observing behavior is not sufficient to determinemotives.

A model of motivation might look like:

unsatisfied need===>. . . . . . . . . .tension===>. . . . . . . . . . . . . . drives===>. . . . . . . . . . . . search behavior===>. . . . . . . . . . . . . . . . . satisfied need===>. . . . . . . . . . . . . . . . . . . . reduction of tension

MASLOW'S HIERARCHY OF NEEDS hypothesized that within every human being there exists a hierarchy of five needs:

1. Physiological2. Safety3. Social4. Esteem5. Self actualization

You may use this theory as a conceptual guide; it is intuitively appealing. However, there is no realevidence to support it!

(E.g., why would a person like Dr. Bob spend a few years in a doctoral program, attempting to raise afamily of four on $725 per month, if "self actualization" shouldn't occur without first meeting lower order needs?)

Nonetheless, one point that can be made from looking at Maslow's theory and from others is that we canexpect different people in different situations to be motivated in different ways and toward different goalsdepending on what needs have been met. That is, while the specific factors of Maslow's idea are not validin all situations, the idea that motivation can work in a hierarchical fashion is a valid concept.

McCLELLAND'S THREE NEEDS THEORY

nACH:need for achievement: drive to excel: drive to achieve in relation to a set of standards; to strive tosucceed.

nPOW:need for power: the need to make others behave in a way that they would not have behavedotherwise.

nAFF:need for affiliation: the desire for friendly and close interpersonal relationships.



High nACH:Some people like goals, some do not. These people are high achieves.

they are not gamblers they avoid very easy or very difficult tasks low odds of losing present no challenge to their skills high odds of losing offer no rewards from happenstance success get most satisfaction from "50-50 odds

High nPOW:

these people like being "in charge"

more interested in the prestige of power than in effective performance

High nAFF:

these people strive for friendship prefer cooperative rather than competitive situations desire relationships with a high degree of mutual understanding

McClelland's idea suggests why it is that different people behave in different ways. We all have more or less of a need on some of these factors, making each of us motivated toward different personal goals.People who have a higher nACH would probably make better entrepreneurs or salespeople and be lousyteam players. People who have a higher nPOW would probably make better leaders but could beobnoxious "armtwisters" as salespeople. People who have a higher nAFF would probably make the bestteam players but would lack the "self drive" to be salespeople running their own territory.

The point of this is to note that different people have different personalities.

PERSONALITY reflects the common responses (behavior) that individuals make to a variety of recurring situations

Personality deals with relatively long lasting personal qualities that allow us to respond to the worldaround us.

has to do with traits

has to do with individual differences

PERCEIVED RISK

Financial - might the used car cost me too much to maintain? Performance - might the car break down and leave me unable to get to school? Physical - what if I get into an accident in a car without air bags?



Social - what will my friends think if I buy the pink car? Time - what if I have to drive 100 miles each month to that dealer for warranty service on a new

car? Psychological - what if I attend the more rigorous college but flunk out? Opportunity loss - if I go to college now, how much will I lose by not working a "real" job?

PERSONALITY AND PSYCHOGRAPHICS

PERSONALITY patterns of behavior that characterize each individual's adaptation to particular situations

Personality deals with relatively long-lasting personal qualities that allow us to respond to the worldaround us.

Two common assumptions:

1. That all individuals have internal characteristics or traits.2. That there are consistent and measurable differences between individuals on those traits.

CONSUMER DEMOGRAPHIC PROFILE

age gender occupation

education marital status

expenditures income

location - etc.

CONSUMER SOCIAL PROFILE

culture/subculture

social class reference groups

stage in family life cycle - etc.

CONSUMER PSYCHOLOGICAL PROFILE

innovativeness



perceived risk motivation attitudes/opinions class consciousness

personality - etc.

AIO INVENTORY

Activities

work

hobbies

social events vacation

entertainment

community shopping sports club membership

Interests

family

home job community

recreation

fashion food media

achievement

Opinions

themselves

social issues politics

business economics education

products future

culture

LIFESTYLE how one lives



Lifestyle is a function of inherent individual characteristics that have been shaped through socialinteraction as one moves through the lifecycle.

Influenced by:

values

demographics social class reference groups

family individual characteristics

o motiveso emotionso personality

PSYCHOGRAPHICS

quantitative investigation of consumers' life-styles and personality characteristics

a way of describing the psychological makeup or lifestyle of consumers by assessing such dimensionsas:

attitudes values

activities and interests demographics

media patterns usage rates

PROBLEMS WITH SOCIAL AND PSYCHOLOGICAL MEASURES:

difficult to measure

somewhat subjective based on self-reports from consumers

sometimes hidden from view

There are disputes over terms, misuse of data, and problems with reliability.

- - "TOUCHY FEELY" - -

Demographic data alone, however, are inadequate.

ATTITIDE FORMATION AND MEASUREMENT:THE TRIPARTITE MODEL



Affect a class of mental phenomena uniquely characterized by a consciously experienced subjective feelingstate commonly accompanying emotions and moods Moods are temporary feeling states

Emotions include stronger feelings such as anger, distress, fear, interest, joy, surprise Hedonism refers to gaining pleasure through the senses

AFFECT

Affective responses range on a continuum of higher levels of arousal and activation to lower levels of

arousal and activation.

This equates to a continuum from stronger levels of intensity or strength to lower levels of intensity or strength.

This equates to a continuum from emotions to feelings and moods to evaluations and attitudes.

Emotions are strong, relatively uncontrolled feelings that affect behavior:- e.g.,

anger joy fear sadness grief

jealousy

Emotions are accompanied by physiological changes:- e.g.

eye pupil dilation increased perspiration

more rapid breathing enhanced blood sugar level increased heart rate and blood pressure

Note: some social scientists distinguish between affect and emotion; I don't.



ATTITUDE a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to agiven object

ATTITUDE OBJECTS An evaluation is always made with respect to some entity or thing that is the object of evaluation. Entities

that are evaluated are known as attitude objects.

- e.g.: a professor (Bob Owen) a presidential candidate (Perot)

a car (is yours a clunker or a cream puff?) a brand of shoes (those swoosh ones)

an environmental issue (offshore oil drilling)

Evaluative responses are those that express:

approval or disapprovalfavor or disfavor liking or disliking

approach or avoidanceattraction or aversion

- etc.

Direction

Such evaluative responses are regarded as differing in valence or direction because they can beclassified into positive and negative evaluations.

Magnitude In addition, evaluations of a given valence differ in intensity or extremity. E.g., slightly positive vs. verypositive.

MEASURING ATTITUDE

One-item Rating Scale

Compared to other brands, how much do youlike this product?

dislike it :__:__:__:__:__:__:__: like itvery much very much



Likert Scale (short i)

1. This product is high priced.

___ strongly agree

___ agree

___ neutral

___ disagree

___ strongly disagree

2. This product provides good value for the moneythat I would spend to buy it.

___ strongly agree

___ agree

___ neutral

___ disagree


3. Overall, I like this product a lot.

___ strongly agree

___ agree

___ neutral

___ disagree


What might be wrong with this set of questions?

MEASURING ATTITUDE

Likert Scale

assemble a large number of opinion statements relevant to the attitude issue



a large number of people express the extent of their own agreement or disagreement with each of the statements

the scale assumes that each of the items measures the same underlying attitude

the responses to each individual item are summed to obtain a total test score any items that do not correlate highly with the total test score are eliminated from the scale

a new (shorter) scale is constructed from the remaining items

a person's overall attitude is taken to be the sum of the individual items, or the average of theitems

MEASURING ATTITUDE

Semantic Differential Scale

Rate how you feel about this producton each of the scales below.

high priced :___:___:___:___:___: low priced

good value :___:___:___:___:___: poor value

dislike it :___:___:___:___:___: like it

What might be wrong with this set of questions?

Why is an uneven number of rating values used?

When would an even number be better?

MEASURING ATTITUDE

Semantic Differential Scale

assemble bipolar adjective pairs that represent the evaluative dimension of interest the person's attitude score would be the sum of the numbers corresponding to the positions

checked on the individual subscales (or average)

ATTITUDE AS AN INFERRED STATE

Social scientists often have assumed that certain kinds of responses reveal peoples' attitudes.

observable=======>inferred=======>observable



stimuli that evaluativedenote atd.=======>attitude=======>responses

object

ATTITUDE AS AN OBSERVED STATE, WITH EVALUATIVE RESPONSES DIVIDED INTO THREE

CLASSES:

Social scientists often have assumed that responses that express evaluation, and therefore revealpeoples' attitudes, can be or should be divided into three classes:

cognition (beliefs) affect (feelings)

conation (behavior or intentions)

observable=======>inferred=======>observable

cognitive/=======>responses

/stimuli that / affectivedenote atd.=======>attitude=======>responsesobject \

\\=======>behavioral

responses

TRIPARTITE MODEL

Cognitive thoughts that people have about the attitude object

Affective feelings or emotions that people have in relation to the attitude object

Behavioral peoples' actions with respect to the attitude object

Cognitive, affective, and behavioral responses to a stumulus are taken to suggest an overall attitude

about some object.

NOTE: an assumption is that these components tend to be consistent.

BELIEFS AND ATTITUDE MEASUREMENT:THE FISHBEIN MODEL



BELIEFS, ATTITUDES, AND BEHAVIORS

beliefs the knowledge that a consumer has about objects, their attributes, and their benefits

objects

products, people, companies, and things about which people hold beliefs and attitudes

attributes characteristics or features than an object might or might not have

benefits the positive outcomes that attributes might provide to the consumer

Note: people buy a bundle of benefits, not product attributes; hence, benefit segmentation as a basis for segmentation beliefs can differ between people beliefs and attitudes are directed toward some specificobject of those beliefs and attitudes

BELIEFS

Three types of beliefs:

1. object-attribute beliefs 2. attribute-benefit beliefs 3. object-benefit beliefs

A person's attitude about an object can be a function of the beliefs that a person holds with regard theattitudinal object, but can also be a function of the importance of the individual attributes about which aperson has beliefs.

BEHAVIORS AND BEHAVIORAL INTENTIONS

behaviors everything that consumers do related to acquiring, using, and disposing of products

behavioral intentions the intentions of consumers to behave in a particular way with regard to the acquisition, use, anddisposition of products

Note: behavioral intentions are presumed to precede behaviors. We therefore assume that measures of behavioral intentions are suggestive of future consumer actions (behaviors).

CREATING BELIEFS DIRECTLY This can be done via cognitive learning and information processing. Recall: the basic objective of promotion is to inform as well as to persuade and remind.



FORMING ATTITUDES DIRECTLY Attitudes can be formed through:

classical conditioning o e.g., patriotic music during a TV commercial for a political candidate

operant conditioning

o e.g., friends make positive or negative responses to your comments about a particular car model

vicarious learning o e.g., a celebrity model is seen using a particular brand of cosmetics

mere exposure o e.g., Ace-Finderhol Ltd. is briefly mentioned as a TV show's sponsor each week

MULTIATTRIBUTE MODEL OF ATTITUDE

The cognitive component of the tripartite model is generally assessed by using a version of themultiattribute or Fishbein model:

Ao =[SUM]Bi Ei

where:

Ao = the overall attitude toward object o

Bi = the strength of the belief that object o has some particular attribute i

Ei = the evaluation of the goodness or badness of attribute i

Note that the evaluative component serves as something of a weight.

1. How likely is it that Mountain Dew has no caffeine?

. . . . . . . . . . .1 2 3 4 5 6 7 8 9 10extremely unlikely . . . . . . . . . . . extremely likely

2. How likely is it that Mountain Dew is made from all natural ingredients?


3. How likely is it that Mountain Dew has lemon-lime flavor?


4. Mountain Dew has no caffeine.



. . . . .-3 -2 -1 0 +1 +2 +3very bad . . . . . . . . . . . very good

5. Mountain Dew has all natural ingredients.

. . . . .-3 -2 -1 0 +1 +2 +3

very bad . . . . . . . . . . . very good

6. Mountain Dew has lemon-lime flavor.

. . . . .-3 -2 -1 0 +1 +2 +3very bad . . . . . . . . . . . very good

The first three questions measure beliefs; the last three indicate an associated evaluation or weight.

PERSUASION

PERSUASION the explicit attempt to influence beliefs and attitudes

Communication all aspects of a message, including the source of the message, the type of message, and through whatchannel it moved

Message information about some topic

Message Source

an individual or character who is presenting information about some topic

Channel of Communication media through which information flows

Boomerang Effect attitude changes in direction opposite to what was intended

Cognitive Responses the thoughts that a person might develop in response to a message

SOURCE CHARACTERISTICS our interest here is in source effects on persuasion

Source Credibility the extent to which a source is perceived to have expertise and trustworthiness



Source Expertise the extent of knowledge that the source is perceived to have about the subject on which s/he iscommunicating

Source Trustworthiness the extent to which the source is perceived to provide information in an unbiased, honest manner

Source Physical Attractiveness Source Likability positive or negative feelings that people have toward a source of information

MESSAGE CHARACTERISTICS our interest here is on the effects of the content and construction of the message on persuasion

Message Content

Message Construction

Some Factors:

message complexity comparative message

one-sided, two-sided message fear humor

vividness primacy vs. recency

repetition (cf., wearout)

Some Other Terms

Need for Cognition measures the extent to which people have a tendency to engage in effortful cognitive activities

Attitude Toward the Advertisement a person's general liking or disliking for the ad itself

Imagery the extent to which an ad causes consumers to imagine their use of the product and to connect the ad totheir own feelings

PERSUASION AND THEELABORATION LIKELIHOOD MODEL



INVOLVEMENT a state if energy (arousal) that a person experiences in regard to a consumption-related activity

Involvement is often thought of as a

continuum of personal relevance

continuum of a willingness to expend effort

This continuum is anchored by HIGH involvement LOW involvement

HIGH INVOLVEMENT

high levels of energy are aroused within the consumer this energy is directed toward some particular consumer activity

A person under conditions of high involvement is likely to be thinking more or feeling more strongly.

LOW INVOLVEMENT

lower levels of energy are aroused within the consumer the consumer will invest less energy into their thoughts or feelings

ELABORATION LIKELIHOOD MODEL

Central Route<============>Peripheral Route

"thoughtful"<============> "mindless"

proposes that people are neither universally "thoughtful" in evaluating a persuasive message nor universally "mindless"

central and peripheral routes represent positions on a continuous dimension ranging from high tolow elaboration likelihood

CENTRAL ROUTE

When the person has the motivation and ability to engage in issue-relevant thinking:

elaboration likelihood is said to be high person is likely to scrutinize and elaborate upon the message, draw inferences



person will tend to engage in effortful thinking about the issue

Outcome:this is expected to result in an attitude change that is more enduring, more temporally stable, moreaccessible in memory

PERIPHERAL ROUTE

As various factors in the situation reduce a person's motivation or ability to think about an issue:

the elaboration likelihood is said to be low person will tend to avoid effortful thinking about the issue

person will conserve cognitive resources or expend them on some other irrelevant task person will tend to engage in a superficial analysis of the issue, drawing a "reasonable" attitude

based on non-issue-relevant cues

Outcome:this is expected to result in an attitude change that is less enduring, less temporally stable, lessaccessible in memory

When a message is on an issue of HIGH involvement or prior knowledge:

the message content will become a more important determinant of persuasion

it will be more difficult to find any effects of source credibility more thinking will occur in response to a source of high credibility than of low credibility thinking will be guided primarily by the quality of the arguments presented in the communication

highly credible speakers will be more persuasive than speakers of low credibility primarily for appeals with strong arguments

the credibility effect should be attenuated or reversed for appeals with weak arguments or noarguments

When a message is on an issue of LOW involvement or prior knowledge:

more thinking will occur in response to a source of low credibility than of high credibility this thinking will be guided primarily by the person's preexisting attitude on the issue highly credible speakers will be more persuasive than speakers of low credibility primarily for

counterattitudinal appeals this credibility effect should be attenuated or reversed for pro attitudinal appeals

use a high credibility source to change attitude use a low or high credibility source to reinforce existing attitude

One sided messages reinforce existing points of view.



Two sided messages (both points of view) are more effective than one-sided messages in terms of changing a strongly held attitude.

Which is better?

High involvement situation:

emphasize the message content guide thinking by using high quality, strong arguments

stimulate thinking with a source of high credibility

note: use two sided message to stimulate thinking if supportive of your view

Low involvement situation:

stimulate thinking with a source of low credibility (i.e., don't stimulate with high credibility) emphasize the recipient's preexisting attitude on the issue using a source of low credibility

and/or

use a source of high credibility to counter a preexisting attitude

note: peripheral cues might be more important

note: use one sided message to reinforce existing attitude

CONSUMER DECISION MAKING

THE GENERIC MODEL REVISITED

problem recognition=====>search

=====>alternative evaluation=====>choice

=====>postacquisition processes

Recall: we noted that our interest is in various influencers or moderators on this generic model. Theseinfluencers can be loosely classified as:

intrinsic extrinsic

environmental/situational



PROBLEM RECOGNITION occurs when there is a difference between a desired state and an actual state.

The desire to resolve a particular problem depends on two factors:

the magnitude of the discrepancy between the desired and actual states

the relative importance of the problem

SEARCH

internal search external search

Internal Search

awareness set

brands about which the person is aware evoked set

brands which come to mind in a particular situationo "top of mind awareness"

consideration set brands which are considered acceptable for further consideration

o inert set brands about which the person is indifferent

o inept set brands considered unacceptable

SEARCH

Sources of Information:

Memory of past searches, personal experiences, and low-involvement learning Personal sources such as friends and family

Independent sources such as consumer groups and government agencies Marketing sources such as sales personnel and advertising

Experiential sources such as inspection or product trial

ALTERNATIVE EVALUATION associated with the formation of beliefs and evaluations

Perceived risk can be an important influence in how people evaluate potential outcomes.

Measurement of Evaluative Criteria:

direct methods:



o ask consumers what information they use in a particular purchaseo observe what consumers say about products and their attributes;

e.g., focus groups indirect methods:

o projective techniques:allow a person to indicate what criteria someone else might use

o perceptual mapping:consumers judge the similarity of alternative brands (often by ranking), which is

processed by a computer to derive a spatial configuration

PRODUCT POSITIONING refers to the place an offering occupies in consumers' minds on important attributes relative to competitiveofferings

E.g., which is more sporty, Porsche, Mercedes, or Cadillac? More prestigious? Expensive? Escort, Miata,Neon, Viper?

What are some dimensions, or characteristics, that you might use to assess business schools?

On each of these dimensions, where would you position several schools relative to each other? E.G.,Harvard University, Michigan State, Podunk College, Branfield Community Tech.

PERCEPTUAL MAP:a means of displaying or graphing on two dimensions the location of products or brands in the minds of consumers

REPOSITIONING:changing the place an offering occupies in consumers' minds relative to competitive offerings.

QUALITATIVE RESEARCH Uses nonstatistical, unstructured research methods in which consumers are enticed to reveal what theycan about their innermost thoughts, feelings, and motivations.

focus group in-depth personal interviews projective tests

PROJECTIVE TESTS

sentence completion "People buy a Porsche _________________."

story completion Respondents complete a story.

cartoon techniques



Respondents fill in the words or thoughts of a character in a cartoon drawing

picture Respondents tell a story about a person shown in some situation.

ALTERNATIVE EVALUATION

Surrogate indicator :readily observable attribute of a product used to represent the performance level of a less observableattribute

e.g., price and brand name are often used by consumers as surrogate indicators of quality

Framing:how a person perceives the value of something in relation to something else

e.g., "mfgr's. suggested retail price"

CHOICE

Note that some people are satisficers and some people are optimizers in specific situational contexts.

Heuristics are the "rules of thumb" that people use to make judgments and decisions.

- e.g.,

choice heuristic: never buy a car in the first model year

search heuristic: if buying a computer, go to Wong's for the best deal

POSTACQUISITION the consumption, disposition, and postchoice evaluation of goods, services, and ideas

consumption use and depletion of the product

Consumer satisfaction is the overall attitude associated with a good or service after itsacquisition and use.

Satisfaction or dissatisfaction is the difference between what was what is experienced andwhat was expected.

o Also, recall equity theory:o outcomes of A outcomes of B

o ------------- ~ -------------

o inputs of A inputs of B

o




o Also, recall attribution theory, which is concerned with how people identify the causesfor action.

o Also, recall the notion of cognitive dissonance, where a person experiences doubtsabout the wisdom of a decision.

POSTACQUISITION

A consumer has low-performance expectations for a product, and after use, performance is perceived asworse than expected. This consumer will be dissatisfied.

A consumer has low-performance expectations for a product, and after use, performance is perceived asbetter than expected. This consumer will be satisfied.

PURCHASE BEHAVIOR

impulse purchases occur when a consumer experiences a sudden urge to buy something immediately without a buyingintention formed prior to entering a store

compulsive consumption a response to an uncontrollable drive to use or experience something that leads to a repetitive behavior that will ultimately cause harm to the person or others

variety-seeking purchases associated with the tendency of consumers to buy a new brand of product even though satisfied with thepreviously purchased brand

PURCHASE INVOLVEMENT level of concern for, or interest in, the purchase process relevant to a particular purchase

Habitual decision making: a problem is recognized

long term memory provides a single preferred brand that brand is purchased only limited postpurchase evaluation occurs associated with low involvement associated with repeat purchases and brand loyalty

Limited decision making

Extended decision making:



increased information search more extensive and complex alternative evaluation more thorough postpurchase evaluation associated with high involvement

ENVIRONMENTAL AND SITUATIONAL INFLUENCES

CONSUMER ENVIRONMENT those factors existing independently of individual consumers and firms that influence the exchangeprocess

MARKETING SITUATIONS information acquisition shopping

purchasing consumption/usage disposition

PERSON, SITUATION, PRODUCT INTERACTIONS

Do you like grapes? Peas?

on your morning cereal?

Do you like oatmeal?

as a desert after dinner?

When are grapes most likely to be consumed and enjoyed? Peas? Oatmeal?

EXAMPLES OF SITUATIONS / SITUATIONAL INFLUENCES

Information acquisition:

Watching a TV commercial during a football broadcast at a party in a dorm room at 1:00 p.m.Saturday afternoon Watching a TV commercial alone during a zombie movie at 1:00 a.m. Tuesday morning.

Consumption: Eating at an expensive restaurant with date at 6:30 p.m. Saturday evening Eating at McDonald's at 6:30 a.m. Tuesday morning on the way to work.



Shopping: Shopping at the mall for an interview suit.

Shopping at Salvation Army for a dorm room sofa.

SITUATIONAL INFLUENCES temporary environmental factors that form the context within which a consumer activity occurs at aparticular time and place

a set of factors outside of and removed from the individual consumer

GROUP INFLUENCES

GROUP two or more individuals who share a set of norms, values, or beliefs

a set of individuals who interact with one another and who share some common need or goal; their behaviors are interdependent

Note: almost all consumer behavior takes place in a group setting of some sort.

REFERENCE GROUP a group whose values, norms, attitudes, or beliefs are used as a guide for behavior by an individual

a group whose presumed perspectives or values are being used by an individual as the basis for her/hiscurrent behavior in a specific situation

Note: as the situation changes, so do reference groups and so does out behavior.

E.g.:

colleagues at work friends at school roommates members of clubs, church, fraternities/sororities, etc.

GROUP INFLUENCE

aspiration group: a group to which an individual would like to belong

o What is the attraction of a Harley to different age groups?Does a Harley have a Forbes or Hell's Angels image?

o What is the attraction of a "gold card" or an American Express card?What are the long term strategic implications?



dissociative group: a group with which a person does not wish to be associated

o Does a Harley have a Forbes or Hell's Angel's image?

Conformity: the tendency to want to be like relevant and significant others

a change in behavior or belief toward a group as a result of real or imagined group pressure

Conformity is often viewed as following the crowd, not acting and thinking as an individual.

compliance: the person merely conforms to the wishes of the group without really accepting the group'sdictates

private acceptance: the person actually changes his/her beliefs in the direction of the group

Group norms: general expectations about behaviors that are deemed appropriate

Violation of norms can result in sanctions.

Conformity: the Asch experiment Eight subjects are asked which of three unequal lines is closest in length to a fourth line.

Seven subjects (who actually are 'cohorts') announce incorrect answers. These subjects are actuallyworking for the experimenter, but this is unknown to the eight subject.

If the eighth subject makes a decision without prior knowledge of the other's choices, then the eighthsubject is likely to make a correct choice.

If the eighth subject makes a decision after hearing the incorrect choices of the other seven subjects, thenthe eighth subject is very likely to make an incorrect response that is in agreement with the group.

C.f., Latane's social loafing experiments.

SOCIAL COMPARISON the process through which people evaluate the 'correctness' of their opinions, the extent of their abilities,and the appropriateness of their possessions

GROUP INFLUENCE



Role prescribed pattern of behavior expected of a person in a given situation by virtue of the person's positionin that situation

Sanctions punishments imposed on individuals for violating role parameters

Role parameters range of behavior acceptable within a given role

Role overload results when a person attempts to fill more roles than the available time, energy, or money allows

Role conflict results when a person faces incompatible role demands in which roles demand different behaviors

Role stereotype a shared visualization of the ideal performer of a given role

What sorts of products might a 'supermom' buy? How do product choices differ between a traditionalmom of the 1950s and a working mom, going to college, in the 1990s?

Word of Mouth (WOM) communications refer to exchanges of comments, thoughts, or ideas between two or more consumers, none of whomrepresent a marketing source

Joe Girrard: we each have about 250 friends, relatives, and acquaintances and will tell themabout good or bad experiences

OPINION LEADERS those consumers who influence the purchase decisions of others

a group member who consistently filters, interprets, or provides information for others

direct flow of information: a marketing communication flows directly from the marketing organization to a relevant marketsegment

multistep flow of information: a marketing communication is processed by opinion leaders and others as it flows to a relevant

market segment

Opinion leaders are likely to be used under conditions where an individual has low knowledge but is in ahigh involvement situation. E.g., interview outfit.

DIFFUSION OF INNOVATION



continuous innovation

usually modifications of existing products to improve performance, taste, reliability, etc.

requires little change of behavior requires little learning

low perceived risk

dynamic continuous innovation

discontinuous innovation

innovations that produce major changes in the lifestyles of consumers requires great change in behavior

requires much new learning much perceived risk

Turning a discontinuous innovation into a continuous innovation, or, the best marketing move that I'veever seen:

George Eastman couldn't sell his new strippable film to even photography amateurs of the day: it was toodifficult to develop and print.

His solution: the world's first 'disposable' camera. A box camera came loaded with enough strippable filmfor 100 pictures. The user paid $25 for the preloaded box and sent the whole box back to the factorywhen all of the pictures had been taken. The promotion: "You press the button; we do the rest ."

Teletronix has just introduced a new wristwatch which contains a "personal communicator." It will transmitand receive picture and voice signals with another wristwatch on the same frequency code within a half-mile distance.

Picture and voice clarity is constrained due to the small physical size of the device. In size, the wristwatchis a little larger and about twice as thick as a standard wristwatch. Price: $999; not discounted due tolimited distribution channels.

1. Would you buy one of these?2. Do you know anyone who would?

CATEGORIES OF PRODUCT ADOPTERS

innovators

early adopters early majority late majority

laggards



HOUSEHOLD AND FAMILY DECISION MAKING

household all people who occupy a living unit

family nonfamily

family household in which at least two people are related

What are some changes in the "typical" American family?

nuclear family two adults of opposite sex living in a socially approved relationship with their own or adopted children

extended family the nuclear family plus other relatives, such as the parents of the husband or wife

FAMILY LIFE CYCLE the idea that families move through a series of stages in a developmental fashion

Stages in the traditional family lifecycle:

young/single==>young/married==>married/children==>empty nester

Each stage presents people with different problems to solve.

Each stage presents the marketer with different opportunities.

How typical is this traditional family life cycle?

Recall the notion of the Buying Center or Decision Making Unit:

Users Influencers Deciders

Buyers Gatekeepers

What are some similarities in the roles of these constituents in organizational decision making and inhousehold and family decision making?



Recall the notion of organizational buy classes (straight rebuy/new buy). How does this relate to thenotion of routinized vs. extended decision making in household buying behavior?

CULTURAL INFLUENCES

CULTURE refers to the learned meanings, values, and behavior patterns that are shared by a society

includes the knowledge, beliefs, art, law, morals, customs, and habits acquired by a person as a member of society

e.g.:

different perceptions of time, poly. vs. monochronic different perceptions of the role of women, men different perceptions of right vs. wrong, as in "lubrication"

CULTURE

Culture is comprehensive: it includes almost everything that influences an individual's thoughtprocesses and behaviors

Culture is acquired or learned: it does not include inherited responses or predispositions. Valuesand behaviors are learned from cultural influences.

Culture supplies boundaries within which individuals think and act. We are seldom aware of cultural influences; we generally take these influences for granted.

CULTURE

Culture provides loose boundaries for individual behavior.

These boundaries are called norms.

norms rules that specify or prohibit certain behaviors in specific situations; expectations of behaviors regardlessof position

cultural values what is right, good, and important; widely held beliefs that affirm what is desirable

customs basic actions such as what ceremonies are held and the roles played by the sexes

mores customs that emphasize the moral aspects of behavior



NORMS: Nonverbal Communication

Time polychronic vs. monochronic promptness lead time

Space office size and location

personal space

Friendship fast vs. slow

Agreements verbal vs. written

Things terminal materialism:

acquisition of goods as an end in itself instrumental materialism:

acquisition of goods to enable one to do something

Symbols pink vs. blue identifiers

Etiquette generally accepted ways of behaving in social situations

SOME CULTURAL VALUE ORIENTATIONS

individual vs. collective the extent to which a culture values more - the individual or the group

masculinity/femininity the extent to which the characteristics of one sex are valued over those of another

time orientation the extent to which the members of the society are oriented to the past, present, or future



uncertainty avoidance the extent to which members of the society are willing to tolerate ambiguity and unusual behavior

activity orientation the extent to which the society values action versus reflection

relationship to nature the extent to which the society lives in harmony with nature or attempts to dominate nature

PROBLEMS IN TRANSLATION The following are "urban legends" which, for the most part, probably have no basis in fact. Nonetheless,these are repeated here because they help to make an important point.

US: "Body by Fisher"Japan: "Corpse by Fisher"

US: Chevrolet "Nova" = "Star"Puerto Rico: "No Va" = "it doesn't go"

U.S.: Pepsi "come alive"Germany: "come out of the grave" Asia: "bring your ancestors back from the death"

LESSON: translate back and forth a few times!

If people can't read your English labels and rely on the picture to indicate what is the contents of a jar,would you attempt to distribute baby food with the picture of a baby on the jar?

SUBCULTURAL INFLUENCES

SUBCULTURE segment of a culture which shares distinguishing patterns of behavior and values different from theoverall culture

Subcultures can be identified on the basis of:

race nationality

religion age geographic location

gender social class

- etc.



e.g.,baby boomers: people in the U.S. born between 1946 and 1964mature market : increasing in size in the U.S.

Note that many characteristics of subculture can be measured with demographics.

DEMOGRAPHICS

How would you estimate the number of potential consumers for a new type of diaper?

demographics the study of human populations on the basis of age, gender, geographic location, etc.

Using demographics, we are interested in estimating:

market size - how many potential consumers?

market composition - who buys and who doesn't? market location - where are the buyers? market trends - what will the future bring?

Demographic Profile a listing of the characteristics of the audience for a particular television show, magazine, or other medium

CAUSES OF POPULATION GROWTH

Birth rate: fertility; number of births

Death rate: mortality; number of deaths Net immigration: the number of people moving into or out of a country

What was the single most significant factor contributing to U.S. population growth prior to the baby boomera?

What are some public policy changes in different countries that affect these factors?

AGE SUBCULTURES

American baby boom 1946-1964; high birth rate

American baby bust 1965-1980; low birth rate. A.k.a. "generation X".

"Because of the group's relatively small size, employers must compete for them in the jobmarket." Do you agree or disagree with the claim that is made by several baby-boomer textbookwriters?



Mature consumer Woopies?

SOCIAL CLASS SYSTEM

a hierarchical division of society into relatively distinct and homogeneous groups with respect to status,wealth, education, possessions, and values

social class distinguished in terms of esteem and prestige

Most frequently used measures:

education occupation

income

These make up the U.S. Bureau of Census Index of Socioeconomic Status (SES)

The average of these scores results in an index with four classifications:

upper class upper-middle class

lower-middle class lower class

PROBLEMS IN THE USE OF SOCIAL CLASS

problem of definition choice-behavior fallacy husband-only fallacy

present social class fallacy effect of aspirations and disdain

status crystallization how consistent an individual is on various status dimensions

In the U.S.: which job has more prestige, a plumber or a professor? Which has higher education? Education? Which pays a higher "occupational privilege" tax in Pennsylvania?



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