Consumer Behaviour Flashcards
What is consumer behaviour?
SOR model: stimulus, organism, response
What are the two key principles of consumer behaviour?
1) individuals react on the basis of perception - not on the basis of objective reality
2) objective product features does not equal consumer benefits
Consumer decision process model
Need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation, disposal
Need recognition: key driver of consumer behaviour
Change in desired state: life stage, new tastes, technologies
Change in actual state: stock depletion, problem removal, problem avoidance
What is needed for someone to engage in high effort information processing and decision making?
Motivation: an inner state of arousal that denotes energy to achieve a goal (2 types)
Ability: financial resources, cognitive ability, physical ability, education and age
Opportunity: time, distraction, amount of information, complexity of information, repetition of information
What affects motivation?
1) goals and needs
2) values, personal relevance
3) perceived risk
Consumer behaviour definition
Reflects the totality of consumer’s decisions with respect to the acquisition, consumption and disposition of goods, services, activities, experiences, and ideas by (human) decision-making units (over time)
When is motivation high?
Intentional
Unintentional
How can consumer goals be defined?
Maslow’s hierarchy of needs
Lower-level needs to higher-level: physiological needs, safety and security, love and belonging, self-esteem, self actualisation
How can marketers appeal to higher order goals?
The consumer connection bridge: product feature, functional benefit, emotional benefit, goal
Goal-based positioning and means-end chain
Deepens consumers’ understanding of a brand by showing how brand helps to achieve goals
Features>benefits>emotions>essence>goal
Connect to higher order goals=brand loyalty
Perceptual process
[ojective]Stimuli: sight,smell,sound, texture, taste
[subjective]Sensation: sensory receptors, attention
[subjective]Meaning: interpretation, response
Biases in the perceptual process
- two forms of attention: pre conscious, focal
- stimulus related factors
- context related factors
- consumer related factors: beliefs, motivation
Attention-drawing techniques
1) self-relevant
2) pleasant stimuli
3) surprising stimuli
4) easy to process
Gestalt laws: innate laws of organisation
- proximity
- similarity
- closure
- continuity
- symmetry
Memory
Sensory input> short-term memory> long-term memory
Short term: positive habituation, negative habituation, elaboration
Long term: spreading activation, what fires together wires together, activation/retrieval
Brand definition
Name,term,sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers to differentiate them from those of the competition
Types of associations
1) product performance expectations (classical Pavlovian conditioning)
2) referential associations (evaluative conditioning-indirect)
3) emotions ( evaluative conditioning-direct)
What is an attitude?
A person’s favourable and/or unfavourable evaluations of the object in question (thing, action, concept, person)
Functional theory of attitudes
Utilitarian function, value expressive function, ego-defensive function, knowledge function
Components of attitudes: ABC model
Affect (feelings), beliefs (cognitions), conation (behaviour)
ABC model: hierarchy of effects
1) think, like, buy
2) think, buy, like
3) like, buy, think
4) buy, feel, think
Fighting negative associations/ improve customers’ attitude
1) strengthening positive associations
2) creating new associations
3) increase the importance of positive associations
4) changing meaning of negative association
5) Decrease competitor’s ratings of an association
Dual attitudes model
Implicit attitude, explicit attitude
Theory of planned behaviour
Beliefs and evaluation> attitude> intention> behaviour
Elaboration likelihood model
Central route, peripheral route
Reference group
A group which presumed values or perspectives are used by N individual as the basis for behaviour.
Types of reference groups
Aspirational groups, associate groups, dissociative groups
Why do people make referrals?
1) helping other consumers feel better/make better decisions
2) helping the company/reciprocity
3) sharing enthusiasm/positive feelings
4) self related: attention/recognition/appreciation by others
Why are people influenced by WOM?
Relevance, reliable, vivid information
Managing WOM
Observe, facilitate, moderate, initiate
Likelihood of ulterior motive inferences decreases when
1) WON is sent by friends
2) conversation is initiated by receiver
3) reward is shared between sender and receiver
4) symbolic incentives are used
Rational choice theory principles
- people maximise benefits and minimise costs
- people compare the potential outcomes of all considered actions, and choose an action that yields maximum utility or value
The rational decision maker
1) define the problem
2) identify the attributes
3) weight the attributes
4) generate alternatives
5) rate each alternative on each criterion
6) compute the optimal decision
7 principles of the irrational decision maker
1) people prefer the status quo
2) losses loom larger than gains
3) people are influenced by sunk costs
4) people are influenced by the consideration set
5) people are influenced by reference points
6) people a are influenced by ease of informational retrieval - availability heuristic
7) visceral cues influence preferences and decisions
Identity
A person’s mental model of him/herself
-individual, rational, collective
Brands as an identity tool
Self-expression, social connection, symbol of personal achievement, provide self-esteem
Hofstede’s four dimensions of national culture
Power distance, individualism vs collectivism, masculinity vs femininity, uncertainty avoidance
Satisfaction and dissatisfaction definition
A positive or negative feeling based on the experience of purchasing, consuming or using a product
3 dimensions to judge covariant ion
Distinctiveness, consistency, consensus
Principles in making attributions
Discounting,augmentation
How to respond to complaints
Respond, thank for complaint, recommend better alternatives, route complaints within company, provide refunds coupons apologies, email
