Introduction to Consumer Behavior Essay

Custom Student Mr. Teacher ENG 1001-04 23 April 2016

Introduction to Consumer Behavior

The totality of an individual’s thoughts and feelings about oneself Lifestyle
How one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them

Situations and Consumer Decisions
Consumer decisions result from perceived problems and opportunities. Consumer problems arise in specific situations and the nature of the situation influences the resulting consumer behavior

The nature of Perception- pg 278-279, Figure 8-1

Information Processing is a series of activities by which stimuli are perceived, transformed into information, and stored.

Exposure- pg 279-283
Occurs when a stimulus is placed within a person’s relevant environment and comes within range of their sensory receptor nerves. Exposure provides consumers with the opportunity to pay attention to available information but in no way guarantees it. Types of Exposure

1) Selective Exposure
The highly selective nature of consumer exposure is a major concern for marketers, since failure to gain exposure results in lost of communication and sales opportunities. Responses to Selective Exposure

Product Placement:
Branded goods or services are placed in a context usually devoid of ads, such as movies, music videos, the story line of television shows or new programs. Ex) Transformers’ and LFO’s Summer girls music video. Pop-up Ads

Outdoor Display. Ex) M&M’ painted on concrete steps and money inside a security glass on the side of the street. 2) Voluntary Exposure
Although consumers often avoid commercials and other marketing stimuli, sometimes they actively seek them out for various reasons including purchase goals, entertainment, and information. Responses to Voluntary Exposure

Permission-Based Marketing
The Privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them. Banner Ads. Ex) ads that pop up on the side or top of a website Real-time Chat Service. Ex) J Crew has a chat service

Providing Highly Entertaining Materials. Ex) guy doing flips into jeans Attention- pg 283-284
Occurs when the stimulus activates one or more sensory receptor nerves, and is the resulting sensations go to the brain for processing Most consumers are bombarded by a large number of messages or stimuli Consumer attention is selective

Attention is determined by three factors:
Stimulus Factors- pg 284-290
Physical characteristics of the stimulus itself
Attractive Visuals
Color and Movement
Contrast and Expectations
Information Quantity
Color and Size
Color and Size attract attention
A brightly colored package or display is more likely to received attention Larger stimuli are more likely to be noticed than smaller ones Position
Is the placement of an object in physical space or time
In retail stores, items that are easy to find or stand out are more likely to attract attention, such as end-caps and kiosks High impact zones in print ads in the U.S. tend to be toward the top left portion of the ad. Contrast and Expectations

Consumers pay more attention to stimuli that contrast with their background Expectations drive perceptions of contrast. Ads that differ from expectations for a product category often motivate more attention Adaption Level Theory

Suggests that if a stimulus doesn’t change over time we habituate to it and begin to notice it less. Individual Factors- pg 290-291
Characteristics which distinguish one individual from another. Example: Heineken Ad
Motivation: A drive state created by consumer interest and needs Ability: The capacity of individuals to attend to and process information Situational Factors- pg 291
Include stimuli in the environment other than the focal stimulus and temporary characteristics of the individual that are induced by the environment Clutter: the density of stimuli in the environment

“Less is More”
Program Involvement: Interest in the program or editorial content surrounding the ads. Subliminal Stimuli- pg 293
Non-focused Attention
Subliminal Stimuli
A message presented so fast, softly or masked by other messages that one is aware of hearing (Progressive Ad) A subliminal as “hides” key persuasive information within the ad by making it so weak that it is difficult or impossible for someone to physically detect. Subliminal advertising has been the focus of intense study and public concern Interpretation- pg

The assignment of meaning to sensations
Three aspects of interpretation:
1) It is generally a relative process rather than absolute, referred to as perceptual relativity 2) It tends to be subjective and open to a host of psychological biases 3) It can be a cognitive “thinking” process or an affective “emotional” process. Ex) Bud light Ad Interpretation is determined by three factors:

1) Individual Characteristics
Traits: inherent physiological and psychological traits
Learning and Knowledge
The meanings attached to such “natural” things as time, space, relationships, and colors are learned and vary widely across cultures. Expectations
Expectation Bias: Interpretations tend to be consistent with expectations 2) Situational Characteristics
The situation provides a context within which the focal stimulus is interpreted The context clues present in the situation play a role in the consumer interpretation independent of the actual stimulus 3) Stimulus Characteristics

Traits: specific traits of the stimulus such as size, shape, color, etc. Organization
Sensory Discrimination
The physiological ability of an individual to distinguish between similar stimuli JND (Just Noticeable Difference)
The minimum amount that one brand can differ from another (or from its previous version) with the difference still being noticed. Figure-ground- pg 299
Involves presenting the stimulus in such a way that it is perceived as the
focal object to be attended to and all other stimuli are perceived as the background. Consumer Inferences
Inferences: Knowledge and belief that are not based on explicit information in the environment. Quality Signals- pg 300
Price-perceived quality, Advertising intensity, Warranties, Country of origin, Brand, etc. Interpreting Images
Missing Information and Ethical Concerns
Price-perceived Quality
Bottled water vs. tap water
Country of Origin
Wine, cars, TV’s, rugs, cologne
Perception and Marketing Strategy
Retail Strategy
Brand Name and Logo Development
Linguistic Consideration
Branding Strategies
Logo Design and Typographics
Media Strategy
Package Design and Labeling

Learning and Memory
Nature of Learning and Memory- pg 318-319
Any change in the content or organization of long-term memory or behavior Memory
The total accumulation of prior learning experiences
Difference between short-term and long-term memory- pg 319-321 Short-term Memory (STM) or working memory
Is that portion of total memory that is currently activated or in use Long-term memory (LTM)
Is that portion of total memory devoted to permanent information storage STM is Short Lived
Consumers must constantly refresh information through maintenance rehearsal or it will be lost STM has Limited Capacity
Consumers can only hold so much information in current memory Elaborative Activities Occur in STM
Elaborative activities serve to redefine or add new elements to memory and can involve both concepts and imagery LTM
Semantic memory (AKA Schemas)
Basic knowledge and feelings an individual has about a concept Episodic Memory
The memory of a sequence of events in which a person participated

Schematic Memory- pg 323
A pattern of such associations around a particular concept

Retrieval from long-term memory- pg 324-325
The likelihood and ease with which information can be recalled from LTM is accessibility. Learning under high and low involvement – pg 324-326, Figure 9-3

Conditioning (mechanism, classical, and operant conditioning)- pg 326-330 Conditioning Theories
Classical Conditioning
The process of using an established relationship between one stimulus (music) and response (pleasant feelings) to bring about the learning of the same response (pleasant feelings) to a different stimulus (the brand) ex) LMFAO’s Sexy & I know it for M&M Chocolate Operant Conditioning (or instrumental learning)

Rewarding desirable behaviors such as brand purchases with a positive outcome that serves to reinforce the behavior ex) free sampling, discount coupon, loyalty card Cognitive Learning (iconic rote learning, vicarious learning, and analytical reasoning)- pg 331-332 Ironic Rote Learning

Learning a concept or the association between two or more concepts in the absence of conditioning ex) Head-on ad Vicarious Learning (aka Modeling)
Observing the outcomes of others’ behaviors and adjust their own accordingly ex) Oral B Brush-ups Analytical Reasoning
Individuals engage in creative thinking to restructure and recombine existing
information as well as new information to form new associations and concepts

Memory retrieval failure and influencing factors- pg 334-342

Brand Image- pg 342-343
Brand image
Refers to the schematic memory of a brand
Perceived Product Attributes
Manufacturer Marketer Characteristics
Usage Situations
An important component of brand image is the appropriate usage situations for the product or brand Product Positioning- pg 344
Product Positioning
Is a decision by a marketer to try to achieve a defined brand image relative to competition within a market segment Perceptual Mapping- pg 345
Perceptual Mapping
Offers marketing managers a useful technique for measuring and developing a product’s position Brand Equity and brand leverage- pg 347
Brand Equity
Is the value consumers assign to a brand above and beyond the functional characteristics of the product. Strong Brand Equity enables:
1) Brand Leverage
Often termed family branding, brand extensions, or umbrella branding, refers to marketers capitalizing on brand equity by using existing brand name for new products 2) Sub-Branding
Creating a secondary brand within a main brand that can help differentiate a product line to a desired target group

Motivation, Personality, and Emotion
Motivation- pg 360
Is the reason for behavior
A motive is a construct representing an unobservable inner force that
stimulates and compels a behavioral response and provides specific direction to that response Consumers buy motive satisfaction or problem resolution

Maslow’s Hierarchy of Needs- pg 360-361, Table 10-1
Maslow’s Hierarchy of Needs
A macro theory designed to account for most human behavior in general terms

Maslow’s Hierarchy of Needs is based on four premises
1) All humans acquire a similar set of motives through genetic endowment and social interaction 2) Some motives are more basic or critical than others
3) The more basic motives must be satisfied to a minimum level before other motives are activated 4) As the basic motive becomes satisfied, more advanced motives come into play Need for expression (one of the McGuire’s Psychological Motives)-pg 365 McGuire’s Psychological Motives

A fairly detailed set of motives used to account for specific aspects of consumer behavior Need for expression (active, external)
This motive deals with the need to express one’s identity to others. Discovering purchase motives (Manifest and latent motive)- pg 367-369, Figure 10-1 Manifest Motives
Consumers recognize and will share these motives
Latent Motives
Consumers are unaware of these motives, or reluctant to admit them Substantially more complex than manifest motives
Techniques to uncover latent motives
1) Projective techniques
2) Laddering (= means-end or benefit chain)
Regulatory focus theory (Promotion and prevention-focused motives)- pg 372, figure 10-2 Promotion-focused motives
Revolve around a desire for growth and development and are related to consumers’ hopes and aspirations Prevention-focused motives
Revolve around a desire for safety and security and are related to consumers’ sense of duties and obligations Regulatory Focus Theory
Suggests that consumers will react differently depending on which broad set of motives is most salient Personality- pg 373-374
An individual’s characteristic response tendencies across similar situations Consumer ethnocentrism
Reflects an individual difference in consumers’ propensity to be biased against the purchase of foreign products Need for cognition
Reflects an individual difference in consumers’ propensity to engage in and enjoy thinking Consumer’s need for uniqueness
Reflects an individual difference in consumers’ propensity to pursue differentness relative to other through the acquisition, utilization, and disposition of consumer goods Dimensions of brand personality and communication strategies- pg 375-378 Emotion and typology of consumer coping strategies- pg 379, 381

Attitude and attitude components –pg. 392-398, Figure 11-1 Attitude
An enduring organization of motivational, emotional, perceptual, and cognitive processes with respect to some aspect of our environment Attitude Components
Cognitive component
Consists of a consumer’s beliefs about an object
Affective component
Feelings or emotional reactions to an object
Behavioral component
Is one’s tendency to respond in a certain manner toward an object or activity Attitude component consistency –pg. 398-399
All three attitude components tend to be consistent. This means that a change in one attitude component tends to produce related changes in the other components Attitude change strategy for affective component-pg. 402-403 ELM model –pg. 404, Figure 11-3

Elaboration likelihood model
A theory about how attitudes are formed and changed under varying conditions of involvement The ELM suggests that involvement is a key determinant of how information is processed and attitudes are changed

Communication strategy for attitude formation and change
Celebrity sources –pg. 408-409, Figure 11-4
Celebrity sources can be effective in enhancing attention, attitude toward the ad, trustworthiness, expertise, aspirational aspects, and meaning transfer. Effectiveness of celebrity sources enhanced when Marketer Match Endorser with Product and Target Audience Ex) Tiger Woods Comparative ads –pg. 412-413

Directly compare the features or benefits of two or more brands Value-expressive vs. Utilitarian appeals appeal-pg. 414-415
Value-expressive appeals
Attempt to build a personality for the product or create an image of the product user. Utilitarian appeals
Involve informing the consumer of one or more functional benefits that are important to the target market. Positive vs. Negative Framing-p. 415
Message framing
Refers to presenting one of two equivalent value outcomes either in positive or gain terms (positive framing) or in negative or loss terms (negative framing)

Self-Concept and Lifestyle
Defined as the totality of the individual’s thoughts and feelings having reference to himself or herself as an object. Its an individual’s perception of and feelings towards him or herself Interdependent/Independent self-concepts – pg. 428-429

Independent self-concept
Emphasizes personal goals, characteristics, achievements, and desires. Individuals with an independent self-concept tend to be individualistic, egocentric, autonomous, self-reliant, and self-contained They define themselves in terms of what they have done, what they have, and their personal characteristics Interdependent self-concept

Emphasizes family, cultural, professional, and social relationships.
Individuals with an interdependent self-concept tend to be obedient, sociocentric, holistic, connected, and relation oriented. They define themselves in terms of social roles, family relationships, and commonalities with other members of their groups. Possessions and the Extended Self – pg. 429-430

Extended self
Consists of the self plus possessions; that is, people tend to define themselves in part by their possessions. Our possessions reflect our beliefs, wants, and inner desires. Extended self = Self + Possessions

Tattoos can become a part of one’s extended self
Mere ownership effect (AKA the Endowment effect)
The tendency of an owner to evaluate an object more favorably than a non-owner Using Self-Concept to Position Products – pg. 432-433

Lifestyle – pg. 434-435, Figure 12-2
How a person lives. It is how one enacts his or her self-concept Influences all aspects of one’s consumption behavior
Is determined by the person’s past experiences, innate characteristics, and current situation Ex) Brett Favre’s Wrangler commercial and Tom Brady’s Smart Water commercial Measurement of Lifestyle – pg. 435-436

Attempts to develop quantitative measures of lifestyle
Measures include:
Attitudes- Evaluative statements about other people, places, ideas, products, etc. Values- Widely held beliefs about what is acceptable or desirable Activities and Interests- Non-occupational behaviors to which consumers devote time and effort, such as hobbies, sports, public service, and church Demographics- Age, education, income, occupation, family structure, ethnic background Media Patterns- The specific media the consumers utilize

Usage Rates- Measurements of consumption within a specified product category;
often consumers are categorized as heavy, medium, or light users or as nonusers. VALS– pg. 439, Figure 12-3
VALS (Social Value and Lifestyle)
Provides a systematic classification of U.S. adults into 8 distinct consumer segments Core premise: an individual’s primary motivation determines what in particular about the self or the world is the meaningful core that governs his or her activities. Three Primary Consumer Motivations:

1) Ideals Motivation
These consumers are guided in their choices by their beliefs and principles rather than by feelings or desire for social approval. They purchase functionality and reliability. 2) Achievement Motivation

These consumers strive for a clear social position and are strongly influenced by the actions, approval, and opinions of others. They purchase status symbols. 3) Self-Expression Motivation
These action-oriented consumers strive to express their individuality through their choices. They purchase experiences.

PRIZM – pg. 444
Define every household in the U.S. by distinct lifestyle types, called “segments”, to provide you with a comprehensive picture of who lives where and what they are like. The underlying logic:
Geo-Demographic Segmentation
People with similar cultural backgrounds, means and perspectives naturally gravitate toward one another. They choose to live amongst their peers in neighborhoods offering …compatible lifestyles. They exhibit shared patterns of consumer behavior toward products, services, media and promotions. 4 major social groups of PRIZM:

Urban- Major cities with high population density
Suburban- Moderately dense “suburban” areas surrounding metropolitan areas Second City- Smaller, less densely populated cities or satellites to major cities Town and Country- Low-density towns and rural communities

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