L2 Consumer Behavior Flashcards
Consumer behavior:
- Related to
- counterintuitive example
- psychology
- sometimes consumer buy more of some products, while in blind tests they prefer others
Why research CB, aside from direct sales of own products?
2+2 reasons
from narrow to broad:
2 broad commercial reasons:
- attitudes (add info esp when behaviors not directly observable)
- research new disruptive trends, eg AirBnB n hotels
2 research reasons:
- to assess general state of economy
- psy academia: just coz interesting
How many decisions does a person take each day on avg, according to decision science?
How most (95%) of it? …instead of what, n why?
2 factors influencing decision method
- From 3k to 10k, depending on defs.
- mostly based on heuristics, eg brands, habits, emotions… instead of carefully maximising utility.
This makes life simpler n ultimately bearable!
Depends on investment size n frequency of decision type.
involvement: def
a person’s perceived relevance of the object based on their inherent needs, values, and interests
involvement
3 possible objects
- product
- message
- purchase decision
Decision INVOLVEMENT def=
+3 determinants
A person’s perceived relevance of an object based on their inherent INVs = interests, needs n values.
depends on POS:
- person
- object
- situation
low to high involvement purchase decisions:
3 levels
from low to high:
hile
- habitual (toilet paper) OR impulsive (chocolate)
- limited decisions (restaurant)
- extensive decisions (holiday booking)
Elaboration Likelihood Model: def=
Elaboration Likelihood Model: message characteristics and consumer level of involvement determine the cognitive processes that are activated following the reception of the message by the consumer, and which aspects are processed,
through the central or the peripheral route
Rookie marketer typical of mistake on own product:
Exaggerate customer’s involvement
Sources of involvement:
2+3
2 financial:
- high financial n opportunity costs
- money tightness
3 experiential:
- 1st decision of that type
- decision frequency
- personal interest s
Conseqs of high involvement
BEFORE n AFTER purchase
BEFORE research info
AFTER rationalization, selectively ignoring contrary sources
Marketing for high- Vs low-involvement products
n how they are processed
- w arguments, renewed from campaign to c. -> processed actively, w attention n maybe interest. Sometimes even 2-sided (comparing to competitor)
- > central route f (active) processing -> may aim at attitude change eg establish new attrib
- w repetition (coz ppl are not listening anyway!) Never changing coz processed passively -> peripheral route f (passive) processing
Daniel Kahneman’s homo realisticus Vs homo oeconomicus
Aims to simplify rather than optimise
Cognitive choice overload: conseq for option Nr
Best satisfaction w eg 3 to 5 options
Fewer : we feel cheated
Too many : we feel overwhelmed
The 5 stages of the buyer’s decision process
niepp!
- need recognition
- information search
- evaluation of alternatives
- purchase decision
- post purchase cognitions (dissonance, regret…) n behaviors (word of mouth, complaints…)
For every stage there’s a marketing activity!
Info search 2 types
§ Internal search = a passive approach to gathering information in which the consumer’s own memory is the main source of information about a product
-> When interest in the product is relatively low, or when enough information is available for making a decision
§ External search = a proactive approach to gathering information in which the consumer collects new information from sources outside the consumer’s own experience
-> When the decision maker believes that more information is necessary to make a decision
Cognitive algebra def=
Choose relevant attributes among the many dimensions f the decision: weigh them against each other
Attitude = in 3 elements
ABC model
- Affect
- (intention to enact) Behavior
- Cognition
Attitude - hierarchy f effects =
Standard
Vs
Low-involvement
Vs
experiential (hedonic consumption)
C > A > B
vs
B > C > A
vs
A > B > C
hindsight sensemaking
aka
self-perceptual consistency:
not only attitudes determine behaviors, but also
behaviors determine attitudes
(instance of low-involvement hierarchy of effects)
–> ask customers to list product benefits!
M research questionnaire w individual attribute eval:
Problem & Solution:
- inability to identify important aspects, wo penalty
- conjoint measurement: Ranking prios, to measure attitude to product
1 attitudes vs 2 behaviour
+ Where studied
+ 3 components
1 often does not translate into 2.
+ Studied by psy ‘theory of planned control’
3 components: attitude, subjective norms, perceived behavioural control
Technology Acceptance Model
Sometimes we use sthg inferior (ex n why)
Solution
Key factors: Perceived ease f use > perceived usefulness
Eg using old MS Office version coz difficult to upgrade!
Add simple, technically unneeded features just for psy
Attitude measurement:
2 Typical Qs n dims
1- how do you like…? Performance
2- how important…? Importance
Attitude models specify…
For complex attitudes: must use… w 3 parts:
- … specify elements influencing evaluation of ‘attitude objects’.
- ..multiattribute attitude models, w:
- attributes
- beliefs (relative to other objects in the comparison set)
- importance weights
What sets in after important purchase decision? Name. Why? Consequently.
Unpleasant feelings of uncertainty, called cognitive dissonance, due to impossibility of sampling all info + new info > We weight new info so as to justify our decision.
Customer (dis)satisfaction:
2 factors, effects & typical dynamic
- Gap bw expectations n perceptions (exceeded or missed)
- (P>E / P<e></e> –> positive/negative (dis)confirmation of E;
- Satisfaction judgment will first drop and then go up again due to dissonance & dissonance reduction effects
Conjoint analysis:
def
+ 3 advantages - 2 disadvantages
Decompositional Statistical technique for transforming rankings into utility, according to an Experimental design
+ Advantages
- Trade-off between characteristics
- Trade-off for price vs. quality
- Attitudes for each customer, good information for benefit segmentation
- Disadvantages
- Expertise needed in designing and analyzing research project
- Cost-intensive
Buying Behavior across 2 dimensions
high involvement low involvement
high brand diff. complex BB variety seeking BB
low brand diff. cogdis reducing BB habitual BB
Performance(adequacy)-importance models:
2 components
Performance(adequacy)-importance models
- 1st component: How do you like … ?
- 2nd component: How important do you find … ?
consumer behavior def=
Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose products, services, ideas, or experiences to satisfy needs and desires.
Elaboration likelihood Model (ELM) def=
§ Elaboration likelihood Model (ELM) assumes that consumers process information either through the central route with high level involvement (important information) or through the peripheral route with low level involvement (less important information, more focus on secondary factors)
Attitude def=
3 components
- An attitude is a lasting, general evaluation of people (including oneself), objects, advertisements, or issues
- An attitude has typically 3 components:
- Affect
- Behavior
- Cognition
Theory of Planned Behavior:
3+2 elements and goal
§ Theory of Planned Behavior (TPB):
- Attitude toward behavior
- subjective norms
- perceived behavioral control and
together shape and individual’s
- behavioral intentions and
- behaviors.
=> TPB addresses why attitude are not always consistent with behavior.
Attitude models def=
Attitude models specify the different elements that might work together to influence people’s evaluations of attitude objects (=anything towards one has an attitude)
Multiattribute Attitude Models:
def
+ 3 advantages
- 3 disadvantages
Compositional method, based on Psychological theory, using a descriptive research design, where importance of attributes could either be inferred by using statistical techniques, or directly asked for
+ Advantages
• Simple, easy to use
• A lot of information can be collected
• Relatively easy to analyze
- Disadvantages
• No trade-offs made
• Relative importance, if directly asked for, likely to be inflated (does not cost)
• cannot ask about price
Post purchase cognitive dissonance def=
+ task in 5 examples
- Post purchase dissonance expresses the decision maker’s concern about the “goodness” or “correctness” of the choice.
+ It is a manager’s task to reinforce buyer’s decision.
- After-Sales Marketing
- “Congratulation” letter
- Keep contact with the customer
- Reinforce with positive news
- Bring new buyers (and potential customers) together
multi-attribute attitude models VS conjoint analysis:
5 diffs
- psychological VS statistical
- compositional VS decompositional
- ask about importance VS calculate it
- don’t ask about price VS price as an attribute
- easy & cheap descriptive research VS complex & costly experimental design
Conjoint analysis:
4 positives and 2 negatives
+ Identification of important attributes
+ Evaluation/ trade-off of choice alternatives using these attributes
+ works around subjects’ lack of introspection
+ works around subjects’ desirability bias & impression mgmt
- Not extendable to choice processes with image/ brand name
- Complexity and choice overload
how to persuade through the central VS peripheral route
- central:
Advertising message needs to be convincing, strong arguments, can be more complex and have more content
-
peripheral:
Message must be short, repetitive, easy to memorize; substance of arguments rather unimportant
