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Copyright Atomic Dog Publishing, 2002
Chapter Spotlights
How consumers accept, retain, and retrieve market information from memory
The relationship between learning processes and marketplace behavior
How perceptions affect consumers’ buying behavior
Copyright Atomic Dog Publishing, 2002
Memory Two sources of product information:
External environment: packaging, labels, POS displays, prices, other marketing information
Memory: past experiences, word-of-mouth, family preferences
Associative network of nodes (concepts) and links (connections)
Scripts: information organized in memory around different types of events or episodes (e.g., a restaurant script)
Copyright Atomic Dog Publishing, 2002
How Information is Captured and Stored in Memory Memory processing areas:
New information is initially captured in sensory memory.
processing is shallow; capacity is limited Information is transmitted from sensory
memory to short-term (ST)memory. Analyzing and assigning meaning; limited capacity
to a finite number of chunks (units of memory); information may be rehearsed to retain its meaning
Information rehearsed in ST memory is transmitted to long-term (LT) memory for storage and retrieval as needed; LT memory capacity is unlimited
Copyright Atomic Dog Publishing, 2002
Information Retention
It refers to the amount of material previously learned that is remembered
Forgetting – the loss in retention of material previously learned
Retention affected by: Incoming information The person receiving the information
Copyright Atomic Dog Publishing, 2002
Retention: Characteristics of Incoming Information and Processing
Repetition or rehearsal Relevance Competing information (new information
competes with old; ad “clutter” issue) Completeness of information (Zeigarnik
Effect – if incomplete, info retained for later completion)
Time (lapsed time since exposure) Mood (positive mood impact)
Copyright Atomic Dog Publishing, 2002
How Retention is Influenced by the Information Recipient Consumer familiarity or experience
Being more familiar with a product category increases the chances of remembering information about new or existing brands
Affects way information is organized in memory
Consumer motivation Higher motivation to process info is positively
related to doing so at deeper levels of memory and to retain info longer and more accurately.
Copyright Atomic Dog Publishing, 2002
How Information is Retrieved from Memory Retrieval cues – “self-” or
“externally-” generated (sensory images: sounds, shapes, colors, smells,etc.)
Interference from competing cues (make cue to stand out)
Consumer’s state of mind: higher retrieval levels occur when info processing and retrieval mood and/or interest levels match
Copyright Atomic Dog Publishing, 2002
Information Storage in Memory – Processing Effects
Recall of numerically-coded information is better than verbal information
“Surface-level processing” (“sensory”) occurs when there is no analysis of meaning. Consumer judgment error rate higher.
“Meaning-level processing” (“semantic”) implies analysis of meaning. Consumer judgment error rate lower.
Copyright Atomic Dog Publishing, 2002
Learning – Probability Theory Learning formation of habits formed
and changed through experience with products or services
Strength of habit depends upon the amount of reinforcement it receives
Probability models are used to predict the formation of habits: Brand loyalty Brand acceptance Brand switching New product forecasting
Copyright Atomic Dog Publishing, 2002
Learning – Behavior Analysis
The relationship between marketers and consumers often resembles a negotiation
Several behavior modification principles (BMPs) are used by marketers to induce consumers to buy their products and services.
Copyright Atomic Dog Publishing, 2002
Learning – Behavior Analysis (continued) Classical conditioning –learning results from a
relationship between a stimulus and a response
Pavlov and his salivating dogs: a conditioned stimulus (the ringing bell before each feeding) results in a conditioned response (salivation)
Marketing applications Higher order conditioning and celebrity advertising Strength of the unconditioned stimulus Number of pairings Forward versus backward versus simultaneous
conditioning New versus existing products
Copyright Atomic Dog Publishing, 2002
Learning – Behavior Analysis (continued)
Operant conditioning – a process in which the frequency of occurrence of a bit of behavior is modified by the consequences of the behavior Especially relevant in low involvement
purchases Rewards & punishments AND
consumer behavior
Copyright Atomic Dog Publishing, 2002
Learning – Behavior Analysis (continued) Generalization – the tendency to respond in
similar ways to similar stimuli. Discrimination – the process through which
consumers restrict their range of responses and attach themselves to a particular brand.
Modeling – the process through which an individual learns a behavior by observing the behavior of others and the consequences of this behavior.
Copyright Atomic Dog Publishing, 2002
Learning – Cognitive Theory Emphasis is on thinking rather than the
doing aspects of learning. Four stages:
Formulation of hypotheses (specific testable assumptions) about products or brands
Exposure to evidence (passive or active) Encoding of the evidence Integration of earlier hypotheses with new
information into beliefs Familiarity, ambiguity, motivation
Copyright Atomic Dog Publishing, 2002
Cognitive Theory and Marketing
Strategies for market leaders (topdogs) Reinforcement Blocking Explaining
Strategies for market underdogs Disruption Facilitating trial
Copyright Atomic Dog Publishing, 2002
Perception
Perception is the way in which an individual gathers, processes, and interprets information from the environment.
Two views of consumer perception Sensory perception Gestalt theory of perception
Copyright Atomic Dog Publishing, 2002
Sensory Perception It is governed by the
five senses: sight, smell, sound, touch, and taste
It focuses on product specific sense attributes and how these are understood and evaluated by consumers.
Copyright Atomic Dog Publishing, 2002
Factors Affecting Sensory Perception Stimulus factors (examples)
Visual cues: color, shape, and size Aural cues: tempo and pitch Olfactory cues (taste + smell): sweet, bitter, salty, and
floral Tactile cues: soft, coarse, and silky
Individual Response Factors Sensory acuity: the capacity to recognize and differentiate
among certain sensory cues; the “limin” Sensory preferences: sensory product features are
perceived and evaluated based on those liked or disliked Consumer expectation: affects how product features are
likely to be perceived/evaluated. When features match expectations this yields more positive preference outcomes
Copyright Atomic Dog Publishing, 2002
Gestalt Theory of Perception Gestalt principle: the whole adds up to
more than the sum of its parts People perceive “form” above all else The form may remain constant even
though some specific features of it may change (color, tempo, etc.) – “variations on the same theme”
Applications: size, actual/illusion of motion, bordering for ads or displays while really the same
Copyright Atomic Dog Publishing, 2002
Factors Influencing Gestalt Perception
Stimulus factors: color and contrast, size, intensity, position, isolation, and unity
Individual response factors:interest, involvement, needs, values, and cognitive set
Copyright Atomic Dog Publishing, 2002
How consumers Interpret Perceptions Categorization: the psychological
process through which a consumer compares the perception of a product with a mental representation of that product in memory. Analytic versus non-analytic (meeting or
not meeting required attributes to “fit”) Marketing implications for new products
or innovations
Copyright Atomic Dog Publishing, 2002
Consumer Attributions
It refers to the process through which people connect events and behavior with causes.
Forms of attribution Product perception (a product problem) Self-perception (questioning oneself) Person perception (questioning others
motives)
Copyright Atomic Dog Publishing, 2002
Perceptions of Product/Service Quality Perceived quality – a perceptual outcome
generated from processing product or service features (benefits delivered) that leads the consumer to make inferences about the quality of that product or service
Dimensions of perceived quality for durable goods: ease of use, versatility, durability, serviceability, performance, and prestige
Perceived high quality product satisfaction
Copyright Atomic Dog Publishing, 2002
Risk Perception/Risk Reduction It refers to a perceptual process and behavior
outcomes generated from the perception of risk in the purchase or a product or service
Components of risk: Severity of consequences (how bad will it be) Uncertainty related to those consequences (what are
the chances the consequence will occur) Risk reduction strategies: behaviors to reduce
their perception of risk in purchase situations
Copyright Atomic Dog Publishing, 2002
Price Perception Consumers perceive a price as
either high or low on the basis of a comparison with an internal price (or referent price).
Price perceptions and the social judgment theory – “regions” “Assimilation” (acceptable) and “contrast” (too high or low)