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
