Behavior

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BUYING BEHAVIOUR BUYING BEHAVIOUR

description

Marketing and consumers.

Transcript of Behavior

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BUYING BUYING BEHAVIOURBEHAVIOUR

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Introduction Introduction

What makes buyers buy? This What makes buyers buy? This question has troubled marketing question has troubled marketing scholars for over a century. What is scholars for over a century. What is certain is that the answer is not certain is that the answer is not straightforward. straightforward.

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Every consumer is different as a Every consumer is different as a result of their own unique result of their own unique characteristics and the effect society characteristics and the effect society has upon them. Marketing has upon them. Marketing communicators, whilst recognizing communicators, whilst recognizing this complexity, need to be aware of this complexity, need to be aware of what stimulates audiences and what what stimulates audiences and what does not. does not.

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This is very far from being an exact This is very far from being an exact science. Theories of decision making science. Theories of decision making generally fall into two schools of generally fall into two schools of thought: the cognitive paradigm and thought: the cognitive paradigm and the behavioral paradigm.the behavioral paradigm.

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The Cognitive ParadigmThe Cognitive Paradigm

The cognitive paradigm is co-called The cognitive paradigm is co-called because it focuses on an individual’s because it focuses on an individual’s thought processed and sees consumer thought processed and sees consumer choice as a problem-solving and choice as a problem-solving and decision-making series of activities the decision-making series of activities the outcome of which is determined outcome of which is determined principally by the buyer’s intellectual principally by the buyer’s intellectual functioning and rational goal-orientated functioning and rational goal-orientated processing of information (Pickton and processing of information (Pickton and Broderick 2001). Broderick 2001).

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This makes the rather rash judgment This makes the rather rash judgment that consumers are highly rational, that consumers are highly rational, willing to put themselves Out of their willing to put themselves Out of their way, problem solvers. It also makes the way, problem solvers. It also makes the assumption that most product choices assumption that most product choices are routinized problem solving are routinized problem solving characterized by habitual behaviors characterized by habitual behaviors buying experience. The simple buying buying experience. The simple buying model is an example of this perceived model is an example of this perceived rational process.rational process.

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Simple Buying ModelSimple Buying Model

Post-Purchase EvaluationPost-Purchase Evaluation PurchasePurchase DecisionDecision

EvaluationEvaluation Information SearchInformation Search

Problem RecognitionProblem Recognition

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The Behavioural The Behavioural ParadigmParadigm

The behavioral paradigm is derived The behavioral paradigm is derived from operant behaviorism research from operant behaviorism research by Skinner. Proponents of this by Skinner. Proponents of this paradigm believe it is not possible to paradigm believe it is not possible to study what goes on in the study what goes on in the consumer’s mind because it is so consumer’s mind because it is so complex. Instead, it is proposed, complex. Instead, it is proposed, output is measured following a given output is measured following a given stimulus.stimulus.

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In effect the consumer is a ‘black In effect the consumer is a ‘black box’ into which stimuli flow and out box’ into which stimuli flow and out of which behavior occurs, with the of which behavior occurs, with the consequence that this behavior consequence that this behavior might then influence or reinforce might then influence or reinforce future behavior and thus increase its future behavior and thus increase its occurrence.occurrence.

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Behavioral theories believe that Behavioral theories believe that marketing communications activity marketing communications activity should be based on creating the should be based on creating the correct environmental cues for the correct environmental cues for the individual and monitoring the individual and monitoring the responses to these cues as a guide responses to these cues as a guide to future activity.to future activity.

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According to Foxall (1993), for example, the According to Foxall (1993), for example, the behavioral paradigm makes two assumptions. behavioral paradigm makes two assumptions.

These are that:These are that:

The frequency with which the behavior is The frequency with which the behavior is performed is a function of the consequences of performed is a function of the consequences of such behavior in the past. That is the success of such behavior in the past. That is the success of previous outcomes are likely to determine the previous outcomes are likely to determine the number of times that the stimulus is repeatednumber of times that the stimulus is repeated

The determinant of behaviors must, therefore, be The determinant of behaviors must, therefore, be found in the environment rather than the found in the environment rather than the individual. The triggers to that behavior can, individual. The triggers to that behavior can, therefore, be applied by the marketer.therefore, be applied by the marketer.

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Cognitive DissonanceCognitive Dissonance

The theory was developed by The theory was developed by Festinger (1957) and remains Festinger (1957) and remains somewhat controversial. It is based somewhat controversial. It is based on the presumption that is an on the presumption that is an individual holds two conflicting individual holds two conflicting cognitions (or views) he or she will cognitions (or views) he or she will experience mental discomfort experience mental discomfort (cognitive dissonance). (cognitive dissonance).

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In this event individuals will seek to reduce or In this event individuals will seek to reduce or eliminate this dissonance by either changing eliminate this dissonance by either changing one or the other viewpoint or by introducing one or the other viewpoint or by introducing a third view that will account for and reduce a third view that will account for and reduce the dissonance. In marketing terms this the dissonance. In marketing terms this cognitive dissonance is most likely to shows cognitive dissonance is most likely to shows up after a purchase (post-purchase up after a purchase (post-purchase dissonance) because any purchase involves dissonance) because any purchase involves some form of self-justification particularly if some form of self-justification particularly if high costs (momentary or emotional) are high costs (momentary or emotional) are involved in the purchase. involved in the purchase.

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Blythe (2000) suggests that there are four general Blythe (2000) suggests that there are four general approaches to reducing dissonance and these are:approaches to reducing dissonance and these are:

1.1. Ignore the dissonant information (e.g. accept a Ignore the dissonant information (e.g. accept a car’s poor performance as one of those things!) car’s poor performance as one of those things!)

2.2. Distort the dissonant information (pretend the Distort the dissonant information (pretend the car works well in certain circumstances such as car works well in certain circumstances such as in the rain)in the rain)

3.3. Play down the importance of the issue (e.g. look Play down the importance of the issue (e.g. look for the positive features and benefits such as for the positive features and benefits such as comfort). comfort).

4.4. Change the behavior or situation (e.g. get rid of Change the behavior or situation (e.g. get rid of the car). the car).

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Factors Affecting Buying Factors Affecting Buying BehaviorBehavior

Basic demographic factors (age, sex, Basic demographic factors (age, sex, income etc.) are traditional income etc.) are traditional discriminators as they are seen to discriminators as they are seen to have an effect on purchase have an effect on purchase decisions. Other aspects decisions. Other aspects (employment, motivation, etc.) are (employment, motivation, etc.) are used as the traditional basis for used as the traditional basis for creating ‘groupings’ of consumers.creating ‘groupings’ of consumers.

  

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Trait theory it is where an individual is viewed as Trait theory it is where an individual is viewed as a composite of several behavior traits or a composite of several behavior traits or characteristics (Sheth characteristics (Sheth et al. et al. 1999). 1999).

These traits are of particular interest to marketing These traits are of particular interest to marketing communicators who are interested in the communicators who are interested in the relationship between broad personality traits and relationship between broad personality traits and general types of behavior. general types of behavior.

There are very many examples of this consumer There are very many examples of this consumer typology indeed some major brands have their typology indeed some major brands have their own typologies describing in some detail the own typologies describing in some detail the types of consumer of their product or service.types of consumer of their product or service.

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AttitudesAttitudes

Personal attitude plays a central part Personal attitude plays a central part in consumer behavior. Attitudes are in consumer behavior. Attitudes are what drives a human being to act in a what drives a human being to act in a certain way. Attitudes form an certain way. Attitudes form an important part of consumer theory important part of consumer theory because it is believed to be ‘the because it is believed to be ‘the crucial link between what consumers crucial link between what consumers think and what they buy in the think and what they buy in the marketplace’ (Foxall et al. 1998: 102).marketplace’ (Foxall et al. 1998: 102).

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PerceptionPerception

Effective marketing management Effective marketing management rests on two fundamentals (Foxall et rests on two fundamentals (Foxall et al. 1998: 102).al. 1998: 102).

Consumers act on their perceptions Consumers act on their perceptions and these come from the information and these come from the information they receive.they receive.

Managers need to understand the Managers need to understand the nature of the perceptions their nature of the perceptions their customers and potential customers and potential

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Behavioral LearningBehavioral Learning

Three factors are important to Three factors are important to behavioral learning: association, behavioral learning: association, reinforcement and motivation. reinforcement and motivation. Behavioral learning theory suggests Behavioral learning theory suggests that an individual develops a pattern that an individual develops a pattern of behavioral responses because of of behavioral responses because of the rewards and punishments offered the rewards and punishments offered by his/her environment (Sheth et al. by his/her environment (Sheth et al. 1999).1999).

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Classical ConditioningClassical Conditioning

Ivan Pavlov was a Russian Ivan Pavlov was a Russian psychologist who experimented on psychologist who experimented on doge. He began by presenting food doge. He began by presenting food to the animals that made them, on to the animals that made them, on sight of t the food, begin to salivate. sight of t the food, begin to salivate. He then noticed that, over time they He then noticed that, over time they began to salivate before the food began to salivate before the food was presented to them. was presented to them.

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The reaction was triggered on hearing the The reaction was triggered on hearing the footsteps of his assistants who brought the footsteps of his assistants who brought the food to them. He began to experiment with food to them. He began to experiment with a bell being run as food was presented. a bell being run as food was presented. After some time the dogs began to salivate After some time the dogs began to salivate just upon hearing the bell. The salivation just upon hearing the bell. The salivation response to the food itself did not have to response to the food itself did not have to be learned as it existed as an instinctive be learned as it existed as an instinctive response. The food, therefore, was the response. The food, therefore, was the unconditioned stimulus.unconditioned stimulus.

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Operant ConditioningOperant Conditioning

B.F. Skinner worked with rats that had learned to B.F. Skinner worked with rats that had learned to press levers in order to receiver food and who press levers in order to receiver food and who later learnt only to press the lever when a light later learnt only to press the lever when a light was switched on (discriminative stimulus). This was switched on (discriminative stimulus). This aspect of reinforcement following a specific aspect of reinforcement following a specific response is an essential feature of operant (or response is an essential feature of operant (or instrumental) conditioning. The response of the instrumental) conditioning. The response of the individual is likely to be affected by positive individual is likely to be affected by positive reinforcement (reward) or negative reinforcement reinforcement (reward) or negative reinforcement (punishment), although the affect is likely to (punishment), although the affect is likely to cease when these reinforcement are taken away.cease when these reinforcement are taken away.

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Cognitive LearningCognitive Learning

Cognitive learning theory suggests Cognitive learning theory suggests that humans store information for that humans store information for different periods of time in order to different periods of time in order to manage their memory to greatest manage their memory to greatest effect and have three basic levels of effect and have three basic levels of access:access:

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Sensory storage:Sensory storage: Information that is sensed for a split- Information that is sensed for a split-second. If an impression is made this will be transferred to second. If an impression is made this will be transferred to the short-term memory.the short-term memory.

Short-term memory: Short-term memory: Maximum number of items Maximum number of items stored(perhaps four or five) for short periods of time stored(perhaps four or five) for short periods of time (perhaps 8 seconds)(perhaps 8 seconds)

Long-term memory: Long-term memory: information stored for extensive information stored for extensive periods of time although constant reorganization and re-periods of time although constant reorganization and re-categorization takes place as new information is received.categorization takes place as new information is received.

Four functions of memory increase the likelihood that Four functions of memory increase the likelihood that information will be transferred from the short-term to the information will be transferred from the short-term to the long-term memory (Foxall et al. 1998):long-term memory (Foxall et al. 1998):