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
