Class Four: Customer Behaviour Flashcards
buyer/consumer =
also known as customer!
how do you understand the customer?
talk aloud protocols
Watch them: talk aloud protocols, behind the glass observation
Model them: economic model “rational model”, psychology model “stimuli mdodel”
Talk to them: the thought process may not be available to understand WHY, reports may not be accurate!
what is rational individual
logical and prudent decision based on choices that result in most optimal level of benefit or itility!
asusmptions: utility maximizaton, budget ocnstraint, ability compare bundles, perfect info
why does raitonal individual not work
poeple dont even have complete, let alone PERFECT info
what is the psychology model
there are stimuli that result in responses!!
extenal stimuli -> individual characteristic (there is a black box of deiison process we cant see into) -> behavioural response
types of external stimuli
comemrcial environment:
- significative stimuli: physical brand (price, quality,service)
- symbolic stimuli: media rep of brrands via symbols
non comerical environment:
- social influecnes (Reference group)
- situaitonal influecnes (time, finances)
what are indivudal characteris
- demographics: states of being
- psychograpics: patterns of living & personality/self concept
5 stage decision process (The black box)
- problem recogintion
- info search
- alt evaluation
- purchase deisicon
- post purchase behaviour
problem recognition
difference between an actual state and desired state (triggered by internal/external stimulis)
-> need recognition (decrease in actual state)
-> opportunity recogngito (increase in desired state)
problem recognition- involvemnet
personal importance/interest in acquiring a solution
EXTENSIVE PROBLEM SOLVING:
EXTENSIVE SERCH, COMPARING TONS OF ALTS, high risk
LIMITED PORBLEM SOLVING: limterd search and search critieria, mid risk
ROUTINEZED RESPONSE BEHAVOIUOUR: internal searach, habitual, non risky
info search
experiential: generalized form past behavuour
social: fmaily/friends peers
commercial: active or passive (looking for info that gives you info, vs commercial passive info);
issue with passive commercials
subjective PERCEPTUAL PROCESSE: selctetive epxosire/attention
selective comprehension/distrotion
selective retention/recall
what is the evoked set?
triangle upside down!
TOTAL SET (all brands in prudct category)
AWARENESS SET (potential sufficing product/brands) **This is where consumer starts
CONSIDERATION SET (set of brands considered as possible solutions to existing problemS)
-> 3 to 6 brands!
CHOICE SET (set of comepting brands with significant overlap inn salient attirbutes)
DECISION (brand selected!)
alternative evaluation
concsumers combine info about attributes, prducts, benefits to form an overall evaluation
what are attributes? the perks of the product
products have a benefit
but attributes also have beenfits
car as a product: gets from a to b
fuel efficeincy: cost savings
music system: entertainment
Xnj —-> Snj —> V(Snj)
phsyical reality, psychophysical judgement, perception or beleifs, attribute evaluation, benefit valuation
X = physical reality of what is in the product
S = subjective beliefs ocnsumer have
V(Snj) = benefit valuation
U =overall utility
P = the proability of choice
how do customers combine info?
methods:
1. weighted assessmnets: compenstory (weight average of all attributes), lexicograpihc (choose alt that is best on most important attribute)
FULLLL INFORMATION
- unweighted assesmtn: conjunctive (choose alts that meet the criteria on all attirbutes), disjunctive (choose alt that meets the crtieria on at least 1 attribute)
PARTIAL INFORMATION - inferential assesment: no care about imporatnce or attributes; heurisitics/short cuts (high price = high quality, better store=better quality)
—> examples (availaibility, buy what is easy; representativesness, comparing info to mental prototypes)
NO INFORMATION
benefit evaluation
personal value cpnsumers attach to the product attribtues, what consumers think the product can do for them
functional benefits, experitnital beenfits, symbolic benefits!
alternative evaluation -> purchase intention is NOT equal to PURCHASE
situational influence, personal influence
situaitonla influence can affect what we wanna buuy vs what we actuall buy
situational influence examples
- body-enviornment interaction
- time poverty
- task importance
- monetray mood
perosnal infleucens
people tend to buy products that are siiliar to their personality!
-> indivudal and brand
post purchase analysis
SATISFACTION: feelings of pleasure from good purchase! but there can also have buyers remorse (cognitive dissonance)
LOYALTY:
- functional loyalty: repeat purchase behaviour
- emotional loyalty: degree to which a customer holds an affective attitude (Satisfation/appeal) to a product, and a conative attitude (commitment, recommendation) toward a product
loyalty has two elements
functionla loyalty and emotional loyalty
