Consumer Behavior(Lecture 2)

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    A CUSTOMER IS THE MOST IMPORTANT VISITOR ON OURPREMISES,

    HE IS NOT DEPENDENT ON US,

    WE ARE DEPENDENT ON HIM.

    HE IS NOT AN INTERRUPTION ON OUR WORK, HE IS THE

    PURPOSE OF IT.HE IS NOT AN OUTSIDER ON OUR BUSINESS

    HE IS A PART OF IT.

    WE ARE NOT DOING HIM A FAVOUR BY SERVING HIM,

    HE IS DOING US A FAVOUR BY GIVING US THEOPPORTUNITY TO DO SO.

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    PERCEPTION

    It is the process through which individuals are exposedto information, attend to the information, andcomprehend the information.

    The process by which an individual select, organize &

    interprets stimuli into a meaningful and coherentpicture of the world

    How do we see world around us

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    THREE STAGES OF PERCEPTION

    Exposure stage - consumers receive information throughtheir senses.

    Attention stage - consumers allocate processing capacityto a stimulus.

    Comprehension stage - consumers organize and interpretthe information to obtain meaning from it.

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    Stimulus-ads, products

    Response- physical/mental reaction to the stimulus

    Interviewing variables mood, knowledge, attitude,values, situations

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    Elements of perception

    Sensation

    Absoulte threshold

    Differential threshold-just noticeable difference Subliminal perception

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    Sensation

    Immediate & direct response of the sensory organ to

    the stimuliA stimulus is the single input of the sense

    Human being have sensory organ/sensory receptor

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    Nose

    SMELL

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    Eyes

    SIGHT

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    Skin

    TOUCH

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    Ear

    SOUND

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    Mouth

    TASTE

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    1) Absoulte Threshold

    Minimum level a individual can

    experience a sensation Distinguish between something &

    nothing

    Sensory adaptation-Under

    conditions of constant stimulation,the absolute threshold increases.

    Level varies from person to person

    Time-Place-Environment

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    2) Differential Threshold

    Minimal difference that can

    be detected between twosimilar stimuli

    Also known as the justnoticeable difference (the

    j.n.d.)

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    Webers Law

    The j.n.d. between two stimuli is not an absoluteamount but an amount relative to the intensity ofthe first stimulus

    Webers law states that the stronger the initialstimulus, the greater the additional intensityneeded for the second stimulus to be perceived asdifferent.

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    Marketing Applications

    of the J.N.D.

    Marketers need to determine therelevant j.n.d. for their products

    so that negative changes are notreadily discernible to the public

    so that product improvementsare very apparent to consumers

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    3) Subliminal Perception This is the example ofthreshold of consciousness

    A visual or auditory

    message that is allegedlyperceived psychologicalbut not consciously

    Stimuli that are too weakor too brief to be

    consciously seen or heardmay be strong enough tobe perceived by one ormore receptor cells.

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    Aspects of Perception

    Selection

    Organization

    Interpretation

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    Aspects of Perception

    Selection

    Organization

    Interpretation

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    Selection

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    Perceptual Selection

    Selective Exposure

    Selective Attention

    Perceptual Defense

    Perceptual Blocking

    Concepts

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    Which one you will choose?

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    Which one you will choose?

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    Selective exposure

    Consumer seek out message which

    Are pleasant

    They can sympathize

    Reassure them of good purchase

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    Perceptual Selection

    Consumers subconsciously are selective as to what theyperceive.

    Stimuli selected depends on two major factors Consumers previous experience Consumers motives

    Selection depends on the

    Nature of the stimulus Expectations

    Motives

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    Stimulus Factors

    Size and Intensityinfluence the

    probability of payingattention

    Larger stimuli aremore likely to be

    noticed than a smallone

    SIZE NO. OF

    RESPONS

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    Selective attention Heightened awareness when

    stimuli meet need

    Consumer prefer differentmessage & medium

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    Perceptual defense

    Screening out of stimuliwhich are threatening

    Eg: Tv cable terminationcampaign

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    Perceptual blocking

    Consumer avoid beingbombarded by

    Tuning out

    TiVo (Odd ads)

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    Aspects of Perception

    Selection

    Organization

    Interpretation

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    Organization

    Figure and ground

    Grouping

    Closure

    People tend to organize

    perceptions into figure-and-groundrelationships.

    The ground is usually

    hazy. Marketers usually designso the figure is thenoticed stimuli.

    Principles

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    Organization

    Figure and ground Grouping

    Closure

    People group stimuli toform a unifiedimpression or concept.

    Grouping helps memory

    and recall.

    Principles

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    Organization

    Figure and ground

    Grouping

    Closure

    People have a need for

    closure and organizeperceptions to form acomplete picture.

    Will often fill in missing

    pieces Incomplete messages

    remembered more thancomplete

    Principles

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    Aspects of Perception

    Selection

    Organization

    Interpretation

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    Interpretation

    Physical

    Appearances Stereotypes

    First Impressions

    Jumping toConclusions

    Halo Effect

    Percep tual Disto rt ion

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    Physical appearances

    Positive attributes ofpeople they know tothose who resemble

    them Important for model

    selection Attractive models are

    more persuasive forsome products

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    Stereotypes

    People hold meaningsrelated to stimuli

    Stereotypes influence

    how stimuli areperceived

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    First Impressions First impressions are

    lasting The perceiver is trying to

    determine which stimuliare relevant, important,or predictive

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    Jumping to conclusion

    People tend not to listento all the informationbefore making

    conclusion Important to put

    persuasive argumentsfirst in advertising

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    Halo effect Consumers perceive and

    evaluate multiple objectsbased on just one

    dimension Used in licensing of names Important with

    spokesperson choice

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    Issues in Consumer Imagery

    Product Positioning and Repositioning

    Positioning of Services

    Perceived Price

    Perceived Quality

    Retail Store Image Manufacturer Image

    Perceived Risk

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    Positioning

    Establishing a specific image for a brand in theconsumers mind

    Product is positioned in relation to competingbrands

    Conveys the concept, or meaning, of the product interms of how it fulfills a consumer need

    Result of successful positioning is a distinctive,positive brand image

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    Positioning Techniques

    Umbrella Positioning

    Positioning againstCompetition

    Positioning Based on aSpecific Benefit

    Finding an UnownedPosition

    Filling Several

    Positions Repositioning

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    Repositioning Changing the way a

    product is perceivedby consumer in

    relation to otherbrand or product

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    Positioning of service Umbrella positioning

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    Positioning against competition

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    Positioning with benefits

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    Perceptual mappingA research technique that enables marketers to plot

    graphically consumers perceptions concerningproduct attributes of specific brands

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    LEARNING

    Changes in an individuals behavior arising from experience.

    LEARNING DEFINED

    IT IS RELATIVELY PERMANENT CHANGE IN BEHAVIOUR

    OCCURING AS A RESULT OF EXPERIENCE.

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    Learning Taxonomy

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    Learning Theories

    Behavioral Theories:Theories based on thepremise that learning

    takes place as the resultof observable responsesto external stimuli. Alsoknown as stimulus

    response theory.

    Cognitive Theories:

    A theory of learningbased on mental

    information processing,often in response toproblem solving.

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    Learning Processes

    Intentional:

    Learning acquired as aresult of a carefulsearch for information

    Incidental:

    Learning acquired byaccident or withoutmuch effort

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    Elements of Learning Theories1. Motivation

    2. Cues

    3. Response

    4. Reinforcement

    Stimulus

    Drive

    Response

    Reinforcement

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    Reinforcement

    A positive or

    negative outcome

    that influences thelikelihood that a

    specific behavior

    will be repeated in

    the future in

    response to a

    particular cue or

    stimulus.

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    StimulusGeneralization

    The inabilityto

    perceive differences

    between slightly

    dissimilar stimuli.

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    Observational Learning

    A process by whichindividuals observe

    the behavior of

    others, and

    consequences of

    such behavior. Also

    known as modeling

    or vicarious learning.

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    COMPONENTS OF OBSERVATIONAL LEARNING

    ATTENTIONPRODUCTION

    PROCESSRETENTION MOTIVATION

    OBSERVATIONAL LEARNING

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    ClassicalConditioning

    A behavioral learning

    theory according towhich a stimulus is

    paired with another

    stimulus that elicitsa known response

    that serves to

    produce the same

    response when used

    alone.

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    Models of Classical Conditioning

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    Instrumental

    (Operant)Conditioning

    A behavioral theory of

    learning based on atrial-and-error

    process, with habits

    forced as the result of

    positive experiences

    (reinforcement)

    resulting from certain

    responses or

    behaviors.

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    Operant Conditioning . . .. . . is the process in which the frequency ofoccurrence of a bit of behavior is modified bytheconsequences of the behavior.

    If positively reinforced, the likelihood of the behaviorbeing repeated increases.

    If punished, the likelihood of the behavior being repeateddecreases.

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    Operant (or instrumental) conditioning

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    StimulusResponse

    Can you explain

    Reward habit ?

    Reinforcement

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    Vicarious Learning . . .

    . . . is thephenomenonwherepeople observe theactions of others to

    develop patterns ofbehavior.

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    Consumers

    Learn by

    Modeling

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    INFORMATION PROCESSING

    Is the process through which consumers are exposed toinformation, attend to it, comprehend it, place it in there

    memory and retrieve it when required.

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    What is Motivation?Motivation refers to an activated state of needs

    within a person that leads to goal-directedbehavior.

    Types of NeedsNeeds can be either innate or learned

    Needs can be expressive( emotional)

    Needs can be utilitarian( practical and functional).

    Needs can be hedonic

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    Consumer motivations Represents the drive to satisfy both physiological

    and psychological needs through product

    purchase and consumption .

    I t Gives insights into why people buy certain

    products. Stems from consumer needs: industries

    have been built around basic human needs

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    Types of Motivational ConflictApproach-approach: deciding between two or

    more desirable options

    Avoidance-avoidance: deciding between two or

    more undesirable options

    Approach-avoidance: behavior has both positive

    and negative consequences

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    Motivational Intensity

    Motivational intensity: how strongly consumers aremotivated to satisfy a particular need

    Depends on needs importance

    Involvement: degree to which an object or behavior ispersonally relevant

    Motivational intensity and involvement determineamount of effort consumers exert in satisfying needs

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    The Challenge of UnderstandingConsumer MotivationReasons underlying consumer motivation are not always

    obvious

    Research is necessary to discover real motivations behind

    behaviors

    People dont always want to disclose real reasons for their actions

    People dont always know why they do what they do ,unconscious motivation

    Motivations change over time

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    AttitudesGlobal evaluative judgments

    Relationships between Consumer Beliefs, Feelings,Attitudes, and Intentions

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    Consumer Attitudes

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    Properties of Attitudes

    1. Valence: Whether the attitude is positive, negative or

    neutral

    2. Extremity: The intensity of liking or disliking

    3. Resistance: Degree to which the attitude is immune

    to change

    4. Confidence: Belief that attitude is correct

    5. Accessibility: How easily the attitude can be retrieved

    from memory

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    What Is Personality

    The inner psychological characteristicsthat both determine and reflect how aperson responds to his or her environment

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    The Nature of Personality

    Personality reflects individual differences Personality is consistent and enduring

    Personality can change

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    Theories of Personality Freudian theory

    Unconscious needs or drives are at the heart of humanmotivation

    Neo-Freudian personality theory

    Social relationships are fundamental to the formation anddevelopment of personality

    Trait theory

    Quantitative approach to personality as a set ofpsychological traits

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    Freudian Theory

    Id Warehouse of primitive or instinctual needs for which

    individual seeks immediate satisfaction

    Superego Individuals internal expression of societys moral and

    ethical codes of conduct

    Ego Individuals conscious control that balances the demands

    of the id and superego

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    Brand Personality

    Personality-like traits associated with brands Examples

    Nike and athlete BMW is performance driven Levis 501 jeans are dependable and rugged

    Brand personality which is strong and favorablewill strengthen a brand but not necessarilydemand a price premium

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