All Flashcards
Definition consumer behaviour
- Study of how people acquire, use, experience, discard and make decisions about goods and services
- Individual or in context of a group (friends influence cloth, family tradition)
- Involves use and disposal of products and how the are purchased
Application consumer behavior
- Better marketing campaigns ◦ E.g. consumers are more receptive to food advertising when they are hungry -> snack advertisement late in the afternoon ◦ Companies must stay liquid until product gets successful ◦ Please initial costumers -> influence subsequent customer brand choices
- Public policies as an result to previous reviews with the product
- Social marketing - getting ideas across consumers
Role
• Perception effects being behaviour
◦ Marketing influences perception of a brand
‣ Foster profitable consumer behaviour
• Business try to present themselves in the best possible light
Risk Perception
• Consumers can’t assess the risk involved with new companies or products
◦ Overcome by
‣ Product information e.g. advertisement
‣ Encourage product reviews
‣ In store test bench
‣ Flexible return policy
Costumer Retention
• after sale: maintain a good reputation and establish brand loyalty
◦ Superior customer service
‣ Loyalty builds up -> consistent revenue stream
Consumer Perception Theory
- what kind of perceptions exist
• Self perception
◦ Motivations behind own behaviour
◦ What drives buying behaviour
• Price perception
◦ Effected perceived quality and price comparison of similar products
• Perception of a benefit to quality of life
Learning
defenition
Definition: Learning involves “a change in the content or organization of long term memory and/or behavior.“
- What we know -> and can put to use
- Concrete behaviour
o Avoid foods that they consumed before becoming ill
- not knowledge based
- preference from experience
Classical Conditioning
- Pavlov´s early work on dogs was known as classical conditioning
-
- Meat powder -> unconditioned stimulus (US)
- Salivation -> unconditioned response (UR)
- Pairing bell with unconditioned stimulus,
o Bell became a conditioned stimulus (CS)
o Salvation in response (With no meat powder) became a conditioned response (CR)
operant conditioning - process
Behavior -> Reinforcement/ Negative reinforcement/ punishment -> Likelihood of behavior
Positive reinforcement
- Individual does something and is rewarded
- More likely to repeat the behaviour
Punishment
- Is the opposite
- Behaviour has a negative consequence thus you are unlikely to repeat it. (changed behaviour)
Negative reinforcement
- Different from punishment
- aversive stimulus (pressure into buying something you don´t want)
- changed behaviour (agree), aversive stimulus is terminated as a result of your behaviour
Operant learning effected by
- closer in time -> more effective learning
- e.g. direct pay would decrease consumption, in comparison to at the end of month
- learning is more likely when the individual can understand a relationship between behavior and consequences
- Extinction when behavior doesn´t have consequences
o e.g. when someone doesn´t gets something with force he will stop using force - Fixed interval: free products on special day
- Fixed ration: behavior is rewarded on every nth occasion
- Variable ratio: action is performed, there is a certain percentage chance that a reward will be given
- Shaping may be necessary
- May be impossible to teach the consumer
- E.g. a consumer may first get a good product for free (the product itself, if good, is a reward), then buy it with a large cents off coupon, and finally buy it at full price
o Reinforce approximations of the desired behavior - Not necessary to reward a behavior every time for learning to occur
- Behavior is only rewarded some of the time, behavior may be learned
Vicarious learning
- Consumer does not need to got through learning process himself
- learn from observing the consequences
- empathize with characters who experience results from using a product
Memory definition
- range in duration (short / very long term)
- sensory memory includes storage of stimuli one might not notice (e.g. colors)
- long term memory occurs when you rehearse something
chunking
rearranging information so fewer parts needs to be remembered
rehearsal
involves consumer repeating the indormetion
recirculation
involves repeated exposure to the same information
elaboration
consumer thinking about the object
- Numerous resons why retrieval can fail
o Decay, not frequently accessed
o Proactive interference: learned interfering with what we will buy once
o Retroactive interference learning something new blocks out something old
- Memorability can be enhanced under certain condition
o Favourable or likable stimuli are easier to remember
o Salience the extent to which something is highly emphasized or very clearly evident
o Prototypicality extent to which a stimulus is a “perfect” example of a ctegor
o Congruence fit with a situation.
o Redundancies showing the stimulus several times
o Priming typing a stimulus with something so that if “that something” is encountered the stimulus is more likely to be retrieved
o Special issue in memory are called “scripts”
Series of steps
o Positioning implementing our targeting
o Repositioning change consumer perceptions of a brand
Very difficult to accomplish
Motivation - defenition
- Motivating factors can move people short time e.g. hunger
- Others can drive a person onward for years
- Driving force that impels to action
- Energization of goal-oriented behavior
- Intrinsic or extrinsic
- Rooted in minimizing physical pain and maximuze pleasure
- Or includes needs such as eating and resting
Needs definition
- Essence of the marketing concept
- Marketers do not create needs but make consumers aware of needs
- Need is something that is necessary for humans to live a healthy life
- Distinguished from wants because deficiency cause a clear negative outcome
- Objective (physical e.g. water) or subjective/ psychological (e.g. self-esteem)
- Type of needs
o Innate needs: Physiological needs that are considered primary need or motives
o Acquired needs: learned in response to our culture or enivronment
Maslow´s hierarchy of needs
- Physiological
- Safety
- Love/ Belongings
- Esteem
- Self-actualization
Goals definition
- Projected state of affairs that a person or system plans or intends to achieve
- sought-after results of motivated behavior
- Type of goals
o Generic goals: general categories of goals that consumers see as a way to fulfill their needs
o Product-specific goals
- Selection of goals
o The goals selected by an individual depend on their: • Personal experiences
• Physical capacity
• Prevailing cultural norms and values
• Goal’s accessibility in the physical and social environment
Rational versus Emotional Motives
Rationality implies that consumers select goals based on totally objective criteria such as size, weight, price, or miles per gallon:
• A conscious, logical reason for a purchase
• A motive that can be defended by reasoning or logical argument
Emotional motives imply the selection of goals according to personal or subjective criteria:
• A feeling experienced by a customer through association with a product
The Dynamic Nature of Motivation
- Needs are never fully satisfied
- New needs emerge as old needs are satisfied
- People who achieve their goals set new and higher goals for themselves
Discovering purchase motives
Buying motives
- What consumers want to do
- How much they want to do it
Purchase motives have to be directed towards your goods
Drive has to be strong enough so that people will act on it e.g. pay, time and effort
