Chapter 5 Flashcards
Consumer behaviour definition
All things related to how humans operate as consumers
Involvement goods - Consumer Packaged Goods (CPG)
Trash bags, paper towels, laundry detergent - in general, CPGs are things that get used up and have to be replaced frequently, in contrast to items that people usually keep for a long time, such as cars and furniture.
Mind share concept definition
Mindshare is just a marketing term for the amount of talk or mention generated by a product within the public or media. The goal of companies is to have customers think of their products or services before competitors. For example, most consumers may think of McDonald’s when asked to name a fast food restaurant, or Nike when asked to name a company that makes running shoes.
Two perspectives that help explain consumer behaviour
- Psychological
2. Sociocultural
Psychological perspective on consumer bahavour
What happens in consumers heads? It portrays consumers as systematic (but not always rational) information seekers, processors and decision makers. This perspective is most relevant when discussing low-cost, low involvement goods.
Sociocultural perspective on consumer bahavour
Views consumers as social beings who operate in their societies and cultures and thus behave largely as a function of social circumstance and cultural forces.
Decision rules of thumb - sequence
- Need recognition
- Information search and alternative evaluation
- Purchase
- Post-purchase use and evaluation
Need state definition
A need state arises when one’s desired state of affairs differs from one’s actual state of affairs
Evoked set definition
The set of brands that come to mind when a category is mentioned.
Consideration set definition
The set of brands the consumer will consider for purchase
Evaluative criteria definition
Product attributes or performance characteristics.
Brand ambassador definition
Users who will become apostles for the brand, spreading the branding gospel.
Cognitive dissonance definition
The anxiety or regret that lingers after a difficult decision, sometimes called “buyers remorse”.
Involvement definition
The degree of perceived relevance and personal importance accompanying the choice of a certain product or service within a particular context: how much it matters to you.
Extended problem solving
In this mode, consumer go through a deliberate decision making process that begins with explicit need recognition, proceeds with careful internal and external search, continues through alternative evaluation and purchase, and ends with a lengthy post-purchase evaluation - high involvement, low experience
Limited problem solving
In this mode, a consumer is less systematic in his decision making - low involvement, low experience.
Habit definition
The most common mode, the consumer purchases the same brand over and over again in a mindless fashion - low involvement, high experience.
♠ Caveat: variety seeking
Variety seeking definition
Refers to the tendency of customers to switch their selection among various brands in a given category in a seemingly various pattern.
Pre decisional distortion definition
When consumers have an emotional connection to the brand, they actually distort information in a positive way to favour that brand and distort information in a negative way to diminish competing brands.
Semantic memory definition
The kind of memory through which names, words, and concepts are stored and retrieved from our minds.
Episodic memory definition
Memories of episodes/past-events
Culture definition
A total life ways of a people, the social legacy the individual acquires his group.
Ritual definition
often-repeated formalized behaviour involving symbols
Stratification definition
Systematic inequalities
Taste definition
Taste refers to generalized set of orientation to consumer aesthetic preferences.
Brand community
Group of consumers who feel a commonality and a shared purpose attached to a consumer good or service.
Cultural branding definition
Type of branding that leverages sociocultural forces to create and maintain great brands. For example, the Marlboro Man in 1955.
How ads transmit meaning
Advertisings job is to turn a product into a brand.
4 diverse modes of consumer decision making
- Extended problem solving
- Limited problem solving
- Habit or variety seeking
- Brand loyalty
Top of mind
The first brand you evoke in your mind when thinking about a product category.
Conversion definition
Repeated purchases
Psychological approach to consumer behavior
‣ attitudes / beliefs
‣ memories and personal experiences
‣ decision rules
‣ cognitive ability
Sociological approach to consumer behavior
‣ socioeconomic status (SES)
‣ social class
‣ living conditions
‣ cultural norms
Heuristics definition
Simple, efficient rules which people often use to form judgments and make decisions. They are mental shortcuts that usually involve focusing on one aspect of a complex problem and ignoring others.
Need recognition (decision making process)
‣ Consumption process begins with a need state (anxiety, mental anguish)
‣ ADV tries to highlight these needs to motivate purchase
‣ ADV tries to connect the product benefits with the needs
To create ads that resonate …
you have to understand what needs your consumers want filled and how to align your
product with those needs
Info Search & Evaluation (decision making process)
‣ Need recognition leads to extensive info search and alternative evaluation
‣ There are many opportunities for the advertiser to influence the final purchasing decision
Info Search (decision making process) categories
- Internal
- External
Internal Info Search (decision making process)
♠ Consumer searches their experience(s) and knowledge
♠ This search may tap information from ad exposures
‣ evoked set
‣ “top of mind”
♠ One primary function of advertising is to generate favorable brand recognition so that they’re immediately thought of when a consumer enters search mode.
External Info Search (decision making process)
♠ Consumer seeks information to aid a purchasing decision from external sources
♠ Active information-gathering mode
‣ friends & family
‣ user / professional reviews
‣ web searches
♠ Consumers may be receptive to advertising, especially functional ads
Evaluating options (decision making process)
♠ Makes comparisons
• consumer narrows options down to the consideration set
♠ Uses evaluative criteria
• characteristics & attributes of the brand
The advertiser’s work is done when it gets the consumer to purchase their brand?
FALSE!…
advertisers care greatly about what happens after the sale. they want conversion (repeat purchases), brand loyalty, and brand ambassadors.
The percentage of dissatisfied customers that will never buy from the company that disappointed them
91%
The percentage of company’s average business that comes from its present, satisfied customers
65%
Use & Evaluation (decision making process)
‣ Like a gardener, good advertisers tend consumers post-purchase
‣ Build conversion and loyalty
‣ Negate buyer’s remorse and dissatisfaction
Caveat to 4 Modes of Decision Making
Consumer behavior is not always systematic and logical. The 4 Modes of Decision Making vary by involvement: how much does this purchase matter to you?
Brand loyalty definition
Consumer repeatedly purchases a brand to fulfill a specific need; but this behavior is based on highly favorable attitudes and conscious commitment - high experience & high involvement.
Psychological Processes - how does advertising interact with consumers’ minds?
♠ Attitude
♠ Brand Attitude
♠ Salient Beliefs
Attitude in psychological process
overall evaluation of a person, object, or issue that varies along a continuum (from “like” to “dislike”)
Brand Attitude psychological process
summary evaluations that reflect preferences for various products and services
Salient Beliefs definition
Beliefs concerning specific attributes or consequences that are activated and form the basis of an attitude are referred to as salient beliefs. Marketers should identify and understand these salient beliefs. They must also recognize that the saliency of beliefs also varies among different market segments, over time, and across different consumption situations.
Multi-Attribute Attitude Models (MAAMS)
The goal is to try and improve the consumer’s attitude towards our brand by concentrating upon the attributes where our brand is perceived weaker than key competitors AND for attributes that are ALSO important to the consumer. This model breaks down the consumer’s overall attitude (that is, view of each brand) into smaller components. These components are the individual product features, functions and perceived benefits – which are collectively known as product attributes.
Consideration Set definition
The group of brands being considered by the consumer
The Importance of MAAMs
they can provide a brand with an edge over its competition; they provide a comprehensive understanding of the brand’s (potential) target
consumer market
Info Processing and Perceptual Defense - message must make it through a mental maze!
- Attention
- Comprehension
- Acceptance
- Retention
- Advertisers intended outcome
Psychological obstacles
‣ Ad Clutter
‣ Cognitive Consistency
Ad clutter what?
Consumers pay selective attention to ads and tune the rest out
Cognitive Consistency definition
We try to maintain our harmonious mental state and resist info that challenges our beliefs
The elaboration likelihood model (ELM) of persuasion
The model aims to explain different ways of processing stimuli, why they are used, and their outcomes on attitude change. The ELM proposes two major routes to persuasion: the central route and the peripheral route.
Central route (ELM)
persuasion will likely result from a person’s careful and thoughtful consideration of the true merits of the information presented in support of an advocacy. The central route involves a high level of message elaboration in which a great amount of cognition about the arguments are generated by the individual receiving the message. The results of attitude change will be relatively enduring, resistant, and predictive of behavior.
Peripheral route (ELM)
persuasion results from a person’s association with positive or negative cues in the stimulus or making a simple inference about the merits of the advocated position. The cues received by the individual under the peripheral route are generally unrelated to the logical quality of the stimulus. These cues will involve factors such as the credibility or attractiveness of the sources of the message, or the production quality of the message. The likelihood of elaboration will be determined by an individual’s motivation and ability to evaluate the argument being presented.
