Marketing Learning Guide

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Marketing Learning Guideby Gilbert D. Harrell

FIRST NAME: ______________________

LAST NAME: _______________________

MSU EMAIL ADDRESS: _______________________________

COURSE NUMBER (i.e. MKT327, MKT300, etc.): __________________

NEED HELP? [email protected]

Consumer Behavior (B2C)

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START OF SESSION 5 – (Part 1 of 3)

TOPICS:

• High and low involvement in consumer decision making.

• Psychological factors in consumer behavior. –Motivation –Perception –Learning –Attitudes –Information processing

• Social factors in consumer behavior. –Sub-culture –Social Class –Reference group –Family


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I. CONSUMER BEHAVIOR OVERVIEW

A. CONSUMER BEHAVIOR is “the Action and Decision Processes of Individuals and Organizations Involved in Discovery, Evaluation, Acquiring, Consuming, and Disposing of Products and Services.”

1. Actions

2. Decision Processes

3. Individuals and Organizations

4. Involved in Discovery, Evaluation, Acquiring, Consuming, and Disposing of Goods and Services

Consumer behavior begins with (1)______________ and extends through (2)_______________ of goods and services. It deals with how individuals and organizations make (3)_________________ to accomplish actions.

B. SPHERES OF INFLUENCE 1. Culture

2. Mini-Culture 3. Social Class

4. Reference Group

5. Family and Organizations

6. Individual

Individual


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C. CONSUMER INVOLVEMENT 1. Involvement and Decision Making

2. Involvement and Ego

Routine decisions have (6)___________ self-ego (ego involvement). In low-involvement situations purchase occurs (7)___________ brand evaluation. This is called (8)___________ decision making. In high involvement decisions purchase occurs (9)__________ brand evaluation. (10)______________ decisions have (11)___________ self-ego. This is called (12)_____________ decision making.

II. MOTIVATION

Motivation is an internal force that directs behavior toward the fulfillment of needs. A. EARLY MOTIVATION RESEARCHERS!

1. Suspenders & Convertibles 2. Freud 3. Measurement Problems

A large amount of the research in consumer behavior is about the (4)__________________. Culture, mini-culture, social class, reference group and families (are social processes) that influence the behavior of (5)________________.


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(13)____________researchers began the interest in understanding consumer behavior. Motivation is an internal force that directs behavior toward the fulfillment of (14)__________. Most early studies by motivational researchers had a (15)_____________________ interpretation.

B. FAMOUS LIST OF NEEDS

MURRAY'S LIST OF MOTIVES STARCH'S LIST OF MOTIVES

DOMINANCE - TO CONTRO LOVE OF OFFSPRING

EXHIBITION - TO EXCITE HEALTH

PLAY - TO HAVE FUN GREGARIOUSNESS

SEX - TO FORM RELATIONSHIP CLEANLINESS REJECTION - TO SNUB OTHERS CURIOSITY

UNDERSTANDING - TO SPECULATE COMPETITION

PLUS OTHERS HUMOR

PLUS OTHERS

From time to time companies use (one of more motives on Murray’s list) of (16)_________________ as ways to position. Starch’s list has been used as a backdrop (environment) for the presentation of (17)______________. This occurs without saying anything specifically about the (18)________________ itself. One early example is Coca-Cola!

C. MASLOW'S HIERARCHY

1. Categories

2. Needs Vs. Wants

Maslow’s hierarchy indicates that as needs are satisfied people move up the hierarchy. Today we have a complex world where most (19)________ exist for people (20)_______ of the time. Safety – we need security and protection! In an automobile we (21)___________ anti-lock breaks. Needs are always there! Wants are (22)_____________ often based on what marketers do.


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C. MOTIVATIONAL CONFLICT 1. Approach – Approach 2. Avoidance – Avoidance

3. Approach -- Avoidance

Provide messages about both benefits with (23)____________- ____________ conflict. Stress unpleasantness of one aspect with (24)___________ - _____________ conflict. Emphasize positive benefits with (25)______________ - ________________ conflict.

III. PERCEPTION

(26)____________________ is the process of recognizing, selecting, organizing and interpreting stimuli in order to make sense of the world.

A. PERCEPTION - OBJECTIVE VS. SUBJECTIVE REALITIES

The (27)__________________ reality is what is actually going on. The (28)______________________ reality is our perception of what’s happening.

1. Sensory Receptors

2. Cognitive Anchors

Sensory receptors include (29)___________, (30)____________, (31)____________, (32)______________, (33)______________. Cognitive anchors have been (34)_______________ and allow us to (35)__________________ and understand the world around us. Cognitive anchors help determine what we see, how we interpret, and what we (36)________________.


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B. SELECTIVITY

• List Experiment

Much of what we recall is taking elements from our subjective reality and (37)_________________ it to give a “memory” of what previously happened.

1. Selective Attention a. Democrats See Democrats b. Marketing and Brand Strategy

People tend to screen in brands they have already (38)_________________. Comparison ads work by drawing (39)______________ to brands in the ad.

2. Selective Comprehension a. Assimilation b. Contrast

c. Message and Program Positioning

We don’t comprehend the world based on its objective reality. We comprehend it according to our (40)____________________ reality. This is called (41)__________________ comprehension. Selective (42)_____________________ is the tendency to interpret products and messages according to current beliefs. When a neutral statement is made about an issue, people for and people against the issue will (43)_____________ the statement. When a consumer contrasts a statement, he or she perceives is as being (44)_____________ from their point of view than was intended.

AssimilatePro Statement

ANTI PRO

Neutral Statement

ANTI PROANTI PROANTI PRO

Neutral Statement

Contrast


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3. Selective Retention Smoking Experiment and Fear Appeal

Regarding the smoking and cancer communication research, how did smokers and non-smokers react to information? (45)________________ tended to hear the message. (46)___________________ tended to screen out the message or believe it didn’t pertain. (47)_________________ tended to recall the ad at a later time.


IV. LEARNING

Three Types of Learning: Cognitive, Classical Conditioning & Operant Conditioning

(48)__________________ is a change in consumer tendency (behavior) caused by experience. There are (49)___________________ (how many?) types of learning. With classical conditioning (50)______________ are presented together: generalization and (51)___________________ develop. Cognitive learning involves (52)________________ . Operant conditioning involves (53)________________ or punishment.

Learning: Change in consumer tendency caused by

experience.

Classical Conditioning

Cognitive (Thinking) Operant

Conditioning


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A. COGNITIVE LEARNING

1. Key Elements

• Problem Recognition • Information Search – Knowledge • Alternative Evaluation – Insights and Attitude • Purchase • Purchase Evaluation

2. Examples

Very seldom does the consumer actually use (54)__________________ learning.

B. CLASSICAL CONDITIONING - CONTIGUITY LEARNING

1. Key Elements

• Unconditioned Stimulus – Meat

• Unconditioned Response – Hunger

• Conditioned Stimulus – Bell

• Conditioned Response - Hunger

2. Examples

A couple on a sunny beach is the unconditioned stimulus. Fun is the unconditioned response. A brand is shown. The brand is the (55)______________ stimulus and the conditioned response to the brand is (56)_________.

UnconditionedStimulus

UnconditionedResponse

ConditionedStimulus

ConditionedResponse

Classical Conditioning


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C. REINFORCEMENT LEARNING

1. See something

3. Want something

4. Do something

5. Get something

Get reinforcement or punishment

Reinforcement gets the consumer to (57)______ _____ ____________. Punishment gets the consumer to (58)____________. See something = (59)______________. Want something = (60)_____________. Do something = (61)_______________. Get something = (62)_______________ or ____________________.

V. ATTITUDES A. KEY ELEMENTS

1. "Social psychology is the study of attitudes"

2. Sociology and psychology

3. Key to Survey Research

• Theory

• Measurement

Operant Conditioning


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• Statistics

• Strategy - Attitude Change

Sociology is the study of (63)___________________ . Psychology is the study of (64)___________________.

B. DEFINITION OF ATTITUDE

1. Mental and neural state

2. Organized through experience

3. Exerts a directive influence upon individuals’ responses

4. To all objects and situations

C. ATTITUDES AND BELIEFS

1. Belief seeking vs. fact seeking

"Spartans Will Win This Weekend"

People really don’t seek the (65)_____________ ; they seek (66)_____________.

D. COMPONENTS OF ATTITUDES

1. Affective

2. Cognitive

3. Behavioral

What you think/believe is the (67)_______________ component of attitude.


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How you feel (what you like) is the (68)______________ component of attitude. Your preferred actions is the (69)_________________ component of attitude. NOTE: Make sure to know all elements of the diagram with the inverted triangle because it describes very important content that will be used again to identify ways to improve customer loyalty.

E. ATTITUDE – BEHAVIOR

1. Central – processing of information

2. Peripheral – processing associated with a pre-existing attitude

Attitudes (70)_______________ behavior in high involvement situations. Attitudes (71)_______________ behavior in low involvement situations.

E. Changing Attitudes

1 . Central Processing of Information

2 . Peripheral Processing of information


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If a product is highly involving, (72)_____________ processing of information occurs; get people to think about the subject. If a product is low involving, (73)_________________ processing of information occurs; get people to associate the product with something/somebody they already have a favorable attitude regarding (for example: Snoop Dogg).

VI. INFORMATION PROCESSING

A. LEFT AND RIGHT BRAIN PROCESSING

1. It’s a useful interpretation

2. Cup example and early research

According to theory, the (74)_______________ brain is analytical and uses heuristics (rules). According to theory, the (75)_______________ brain is fast and episodic (like a moving picture). The (76)_____________ brain and the (77)_____________ brain work together to give more complete understanding. (78)__________________ processing is the process of converting information into knowledge.

RIGHT brain I am the right brain. I am creativity. A free spirit. I am passion. Yearning. Sensuality. I am the sound of roaring laughter. I am taste. The feeling of sand beneath bare feet. I am movement. Vivid colors. I am the urge to paint on an empty canvas. I am boundless imagination. Art Poetry. I see. I feel. I am everything I want to be.

LEFT brain I am the left brain. I am a scientist. A mathematician. I love the familiar. I categorize. I am accurate. Linear. Analytical. Strategic. I am practical. Always in control. A master of words and language. Realistic. I calculate equations and play with numbers. I am order. I am logic. I know exactly who I am.

B. ENCODING MESSAGES

1. Imagery - Episodic


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2. Verbal - Semantic

(79)____________________ is the process of converting information into knowledge. (80)________________ occurs when the consumer remembers an ad without anything to jog the memory. (81)___________________ occurs when a consumer is prompted by something that reminds him or her.

C. TYPES OF MEMORY

1. Sensory (1/1,000 Sec.)

2. Short Term (16 Sec.) 3. Long Term (¥)

(82)______________ stores and recalls encoded information. Information that is rehearsed in (83)_______ term memory and put in (84)______ - term memory basically remains forever.

The Power of Vision --- How many images did you recognize?


VII. SOCIAL FACTORS IN CONSUMER BEHAVIOR

A. CULTURE

1. The learned values, beliefs, language, symbols, and patterns of behavior shared by people in society- passed on by generation to generation!


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B. SUB-CULTURE (MINI-CULTURE)

1. A culture within a culture

2. Norms and mores to be emulated and followed.

America has (85)______________ sub-cultures.

B. SOCIAL CLASS

1. Upper

2. Upper middle

3. Middle

4. Working

5. Lower

Social class is often measured by (86)___________________, (87)______________________, and

(88)_____________________. Members of a (89)____________ _____________ tend to have similar

interests, values, behaviors and wealth.

C. REFERENCE GROUPS

1. Types of reference groups

a. Associative

b. Dis-associative

2. Spokespersons as influencers

(90)_____________________ for brands are seen as being like the reference group members because of unique behaviors such as a strong “work” ethic and outstanding performance.

F. FAMILY


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1. Decision making Roles

a. Initiator

b. Influencers

c. Decision maker

d. Purchaser

e. User

Autonomous decisions are carried out by one family member with (91)_____________ influence from others. For joint decisions, each family member has a different purchasing (92)__________ .

2. Family life cycles

- 66 -© 2019 – All Rights Reserved. Do NOT Copy or Reproduce.

Family Life Cycles


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Session 5 Answer Key:

1. DISCOVERY2. DISPOSAL3. DECISIONS4. INDIVIDUAL5. INDIVIDUALS6. LOW7. BEFORE8. PASSIVE9. AFTER10. COMPLEX11. HIGH12. ACTIVE13. MOTIVATION14. NEEDS15. FREUDIAN16. MOTIVES17. BRANDS18. PRODUCT19. NEEDS20. ALL21. WANT22. LEARNED23. APPROACH-

APPROACH24. AVOIDANCE-

AVOIDANCE25. APPROACH-

AVOIDANCE26. PERCEPTION27. OBJECTIVE28. SUBJECTIVE29. SMELL30. TASTE31. TOUCH32. SIGHT33. HEARING34. LEARNED35. CATEGORIZE36. RECALL37. RECONSTRUCTING38. PURCHASED39. ATTENTION40. SUBJECTIVE41. SELECTIVE42. COMPREHENSION43. ASSIMILATE

44. FURTHER45. NON-SMOKERS46. SMOKERS47. NON-SMOKERS48. LEARNING49. THREE50. STIMULI51. DISCRIMINATION52. THINKING53. REINFORCEMENT54. COGNITIVE55. CONDITIONED56. FUN57. DO IT AGAIN58. STOP59. STIMULI60. MOTIVES61. BEHAVIORS62. REINFORCEMENT OR

PUNISHMENT63. GROUPS64. INDIVIDUALS65. FACTS66. BELIEFS67. COGNITIVE68. AFFECTIVE69. BEHAVIORAL70. PRECEDES71. FOLLOW72. CENTRAL73. PERIPHERAL74. LEFT75. RIGHT76. LEFT77. RIGHT78. INFORMATION79. ENCODING80. RECALL81. RECOGNITION82. MEMORY83. SHORT84. LONG85. MANY86. OCCUPATION87. EDUCATION88. INCOME89. SOCIAL CLASS90. SPOKESPERSONS

91. LITTLE92. ROLE

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Marketing Learning Guide

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