Professional Documents
Culture Documents
The Wheel of Consumer Behavior (Peter & Olson) is critical for developing a complete
understanding of consumers and selecting strategies to influence them. It consists of three
elements:
consumer behavior (overt actions),
consumer affect and cognition (feeling, thinking) and
consumer environment (physical and social).
Marketing strategy is positioned in the middle of the wheel, because
It is a reciprocal system, as any of the three elements can be either a cause or an effect of
a change in the other element.
Consumer analysis can be conducted at various levels:
Society (Cultural identity, Languages, Social solidarity), industries (), market segments
(), individuals
For example:
If Kraft Foods inc. were to launch their most popular product, Milka Chocolate in India,
without changing the product wrap, they would make a very big mistake. Since Cows are
considered as holy animals, and the color of purple represents grief, most Indian people
would find this new product rather offensive.
There are also examples of products launched in different countries, where the name of
the product can be quite offensive in the native language of the new country.
(A.S.S. Concert & Promotion (Hamburg, Germany), Fart (Polish juice),i.Beat blaxx
(German Mp3 player), KidsExchange consignment store)
Consumer studies are multidisciplinary, which means that depending on the point of view
(either micro or macro consumer behaviour), different sciences (psychology, sociology,
anthropology, economics, ...) can be used for investigating consumer behaviour.
Consumer behavior knowledge can be used by three groups:
Companies
Public and non-profit organizations
Consumers
The connection between marketing strategy and consumer behavior is .
For businesses understand consumer behavior is important to be able to target their
products and their marketing on the right target groups.
As a result, consumer behavior knowledge becomes a sustainable competitive advantage,
which means that
Company not pursues their own industry average profitability rather to the superior
profitability.
IN-CLASS DISCUSSION/EXAMPLES:
The story of Water
L2 Consumer research
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Consumer research
=systematic and objective process of gathering. Recording and analyzing data to
understand and predict consumer thoughts, feelings and behavior.
"All children are born artists - The problem is to remain artist as we grow up" - This
means that we have the artist and creativity in us. Children are often doing what they
want -> research is like this! We are trying to find out how you/or the people are thinking
about different things/products.
Primary vs Secondary data
Secondary data: are data that is collected for something else but we can use it for our
work, issue. For example scanner data (loyalty card; The company creates a database, so
the company knows exactly what you are buying and when. So the company can figure
out many things. Some companies create out of their database special fliers only for your
needs. But it's difficult to analyze these databases, because they are very big!), syndicated
data (more than one company make a questionnaire together and all the companies can
share the information) and databases.
Primary data:
We collect the data especially for our task, issue. The data can be quantitative or
qualitative.
Quantitative vs qualitative
Quantitative is about measure and proving. As a general rule at least 100 persons have to
participate in the survey to be reliable, but the actual threshold for reliability,
representability and validity depends on the context (research goals, methods used,
quality of data, etc.). The best way to do a quantitative survey is to do questionnaires or
e-surveys.
Qualitative is about understanding. The sampling is small and relevant. The most
common ways are interviews and focus groups.
Quantitative
Qualitative
Goal
Measurement, proving, generalization identification, understanding, description
Sampling Large representative
Small relevant
Data
Structured, numeric
Unstructured, verbal
Analysis Statistics
Substantive, interpretive
Output Prediction
Explication, definition, hypotheses
Observed behavior: It's hard to get because it demand some action and time. Observing
a person can be very hard and takes a lot of time. It depends on what the problem is. The
information you get is high quality.
Reported (told) research: It's all about reporting, a person asks questions, and another
person answer or report/respond to the person that asked the question. But the limit of
reported research is, that the people could maybe lie (they don't tell always the truth).
Reported behavior 'me' research: All questions are about 'me'. The problems with this
kind of research is social desirability addicts. People answer what they think other people
wants to hear, and because they want to impress on others. They do something that is
desired by others.
A lot of people are also self-deceit machines, they lie to themselves. People can convince
themselves how things are supposed to be and then they lie to themselves and think they
are a better person. Example from lesson, recycling.
'We' research (John Kiernon) are much more critical, objective and truthful. We are
good in observing others and it's always easier to be honest if you don't have to include
yourself in the discussion. You are more critical and trustful. It's a simple and useful
tactic.
Lab research, Out of context data collection (Making the interview or survey in a fake
environment, not close to the reality. You sitting in an office and discuss a process of
shopping) and Experimental Research (Recreating, or simulating the context or the
natural environment. Example: Coca-cola store in the head quarter in the US. A full store
built up just to observe consumer behavior. It's a fake environment but a very good
experiment.)
Field research, Go through the process where it actually happens. You are actually there
- learning by doing. If the issue is about shopping, go to the store and fulfill the shopping
to observe and ask questions during the process.
Ethnography: Costly and takes time but it's very good to get more and better information.
Go shopping by yourself just to actually be there and get the experience.
L3 Perception
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Lecture 3: Perception
(SBAH Ch.2; APZ Ch. 9, PO Ch.5)
Perception is defined as the process of attaining awareness or understanding of sensory
information (and therefore the environment) such as sights, sounds, smells. It is an internal
process.
Furthermore, the perception process consists of different stimuli (sights, sounds, smells, tastes
and textures) which are perceived by sensory receptors (eyes, ears, skin, ...). After receiving,
attention is paid to the stimuli and our brain interprets it - a meaning of the stimuli is created and
we react with a certain response which leads to the perception.
About 50-70% of stimuli are perceived by our visual organ, our eyes ( How people perceive and
think. Note: semiotics gives you important notions on this field. Concepts as sign, signified or
signifier and referent show us that the image is indeed one of the first relations to be made by
humans). But also other senses are important, but mainly having an unconscious effect, like
sounds, which are mainly perceived as background stimuli (sounds can also be perceived as
foreground stimuli; Affects mood; is an important pillar for communication). The smell is usually
the first thing we are recognizing, even if we are doing that without realizing (it is primary,
subconscious, emotional: the first and the fastest, smells activate memories). However, the way
we smell something also influences the way, we see things. Senses for tastes are strongly bound
to smell, whereas feeling textures is bound strongly to what we see. This makes those two
senses more personal and intimate (because they require presence) and - as said - they are
strongly bound to other senses. The work of the sensory receptors is followed by some kind of
attention, together being considered as sensation (culture-specific/context-dependent): There is
holistic and synesthesic sensation.
Important for consumer behaviour is to realise that usually consumers are not exposed to one
specific, isolated sensory stimuli, because senses work in unison. In connection with this fact, so
called Synesthesia should be mentioned, which describes involuntary jumps into associated
sensory or cognitive pathways. This means that one stimuli can trigger another one, concerning a
different sensory receptor.
Furthermore perception is related to the context, for example there are differences between
genders or between people with different ages.
Attention means the degree of focus on stimuli during exposure. It describes your selectivity. We
can distinguish two levels of control concerning attention:
The focal attention (-mode) with a high level of control means that we are able to decide what
we perceive. The preconscious attention (-mode) with a low level of control means that most of
the time our perception is unconscious and everything happens automatically. For sure the mode is more interesting to marketers for the simple reason that it offers more possibilities to
influence the consumers.
Sensation / Attention / Comprehension (/Response): select, organize and interpret stimuli
(SBAH).
What is changed/controlled by Marketing? 4 Ps: Product, Promotion, Price, Placement affect
our perception.
Consumers attention is limited. In a world of a trillion different ever-changing-over-lapping things
happening at the same time, people activate filters to what they pay attention to, they focus on
what they believe they need at each moment. The consumers exposure to information may
be intentional or accidental but is always selective: Marketers explore this by facilitating access to
information, maximizing accidental exposure and monitoring its levels. Most of the marketing
strategies is based on accidental exposure, which on one hand is less and less effective,
These three stages have more to do with the culture, society and psychology, while the
sensations we feel are more based on medicine and biology.
Sem_ttulo.jpg
Organization and Interpretation stimuli are not really two actions, the sensory-motoric system and
the cognitive system are not separate! We learn how to perceive. We learn by perceiving.
L4 Motivation
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Motivation is: the process of encouraging and directing the individual toward
specific activity.
Who? (it will show us the personal, group and cultural differences)
When and where? (pointing out the situational and contextual
differences)
How? (to choose cognitive and affective processes to achieve a goal)
What? (kind of consumption items and consumer behavior are we talking
about)
Asking questions: several problems related, for example, people would not be honest about it (the
problem of social desirability they say what we want them to say and what makes them look good).
Second, they migh not be aware of their true motives (subconscious motives; see Freud below)
Motivation is a general term for a group of phenomena that affect the nature of an
individual's behavior, the strength of that behavior and the persistence of that behavior
and made up from 3 components.
o Direction (what a person is trying to do)
o Effort (how hard a person is trying)
o Persistence (how long person continues trying)
In the past consumer behavior researches were more focus on the features of products
which can satisfy the utilitarian needs (rational motives of buying). Nowadays they put
more attention to hedonic motives ( e.g. the need for fun or travel). Since that time there
has been a shift from thinking about needs, towards concentrating on goals, wants and
desires.
Three basic theories of need satisfaction are:
-Drive Theory (focus on biogenic needs): Motivation as a circle where needs come back
to the same point (point of balance called homeostasis)
Drive theory is based on the principle that organisms are born with certain physiological
needs and that a negative state of tension is created when these needs are not satisfied.
When a need is satisfied, drive is reduced and the organism returns to a state of
relaxation. This states activities which help us to came back to a balanced situation is
called homeostasis. According to the theory, drive tends to increase over time and
operates on a feedback control system, much like a thermostat.
-Expectancy Theory (focus on incentives): It is each persons goals and expectations that
dirve him (the rewards he expects to get). Expectations are always higher than the
previous one; Motivation as a spiral; we always want to achieve more and more; our
expectations became so high that we need to consume more and more.
In Expectancy theory if we have a goal, we know how to get there and we believe we
can 'make the difference' then this will motivate us to act to make this future come true.
And next time we will want to do something more and better. For example in sport you
first want to be best in your own area, then in your country, after that the best in the
world, after that you want to be better than nobody before and so on
-Desire Theory (focus on the process and sociogenic needs):
In Desire theory the waiting something is the goal. Not the kill, but the hunt. For
example in movies the best love story is the one of the unfulfilled love. Its the falling in
love and feeling the desire for somebody, fantasizing about him or her thats more
exciting than actually being with that person. Consumption is often like that striving for
something you can never really get, but the wanting and fantasizing itself can be
pleasurable. When you do get it, you often feel disappointed and find a new target of
desire.
*1) Desire captures the seductive spirit of the positioning of many contemporary brands
*2) Desire has interesting relationships with control (excess and lack of control over
oneself)
*3) Desire is one way of dealing with very passionate consumers, stressing the emotional
or irrational side of consumer behavior
Other models can be pointed out briefly:
1. Classic psychology model: learning, impulses-stimuli-reactions.
2. sociological model: cb and human necessities and desires are motivated not only by
personal/individual reasons but also the ones postulated by society: culture (values,
attitudes, integration and identity), subculture, social classes, role models/groups of
reference. Marketing should take advantage and stimulate identification, creating a strong
symbolism around the products, associating it with a certain value/message.
3. Economic model: the consumer looks for information and tries to take as much
advantage as possible from his purchase.
Some consumers become compulsive, and are addicted to the shopping process
Inappropriate addictions: gambling, overeating
A key to compulsive consumption is that the focus is on the interaction between the
shopper and the salesperson the product might not ever be used at all
-Excessive Buyers (preoccupied with buying, but at times, able to resist the urge; they
can stop if they want)
-Pathological Buyers (obsessive-compulsive and impulse-control disorders; they can't
stop)
Marketing system works in an away to produce a big amount of
people they can with excessive and pathological behaviours.
Factors linked to compulsive consumption:
- Phsychological (low self esteem, depression, anxiety, perfectionism)
- Biological (drugs, neurological features)
- Cultural (gender roles, early childhood experiences, changing the social norms and
feeling of alienation.
IN-CLASS DISCUSSION:
The explanation for compulsive consumption (type consumption that is dysfunctional,
maladaptive, or abnormal consumptive behaviors exhibited by consumers who are unable
to control the overpowering impulse or urge to buy) e of can be compensatory
consumption. That means buying something in order to distract yourself from your real
problems (emotional, financial, ). You can forget your problem for a moment but most
of the time this creates new problems.
Two types of buyers:
1. Excessive buyers (preocupied with buying, but at times able to resist the
urge)
2. Pathological Buyers (Ideal for the marketeers).
Discussion of Vivians problems and the roots of her compulsive shopping disorder. Also
see the online discussion regarding the role of the force of will and related ideas.
L5 Attitudes
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Definition of attitudes
A predisposition to evaluate objects or proudcts, lasting and general; Because attitudes
are stable (which distinguishes them from beliefs), they can be measured. Unstable
phenomena ca also be measured, but the implications (how we can use them) of the
measurement are different... Furthermore an attitude has 3 components: beliefs, affect and
behavioral intentions (feeling, thinking, doing). Attitudes exist on different levels going
form very general (ex. fastfood) to very specific (ex. a specific burger from a specific
fastfood restaurant).
Why do attitudes exist?
Different theories try to explain attitudes and connected topics:
functional theory
o there are four functions who have different purpose.
Utilitarian function (reward and punishment), We develop some of our attitudes towards
products simply on the basis of whether these products provide pleasure or pain. If a
person likes the taste of a cheeseburger, that person will develop a positive attitude
toward cheeseburgers. Ads that stress straightforward product benefits (e.g., you should
drink Diet Coke "just for the taste of it") appeal to the utilitarian function.
Knowledge function (attitudes as result of a need for order, structure, meaning), Some
attitudes are formed as the result of a need for order, structure, or meaning. This need is
often present when a person is in an ambiguous situation or is confronted with a new
product (e.g., "Bayer wants you to know about pain relievers") Attitudes provide meaning
(knowledge) for life. The knowledge function refers to our need for a world which is
consistent and relatively stable. This allows us to predict what is likely to happen, and so
gives us a sense of control. Attitudes can hep us organise and structure our experience.
Knowing a persons attitude helps us predict their behaviour. For example, knowing that
a person is religious we can predict they will go to Church. To affect this function to
change an attitude, companies selling complicated products will try to simplify it for the
potential consumers (ex. the blue pill for the complicated product viagra). If a consumer
does not know or recognise a product, the chance is smaller that he will trust and buy (or
use) the product, especially if it can be confused with other products (ex. viagra pills
could be confused with many other drugs if it didn't promote itself as the "blue pill" and
was white for example).
Value expressive function (expressing values or self concept), Attitudes that perform a
value-expressive function express the consumer's central values or self-concept. A person
forms a product attitude not because of objective product benefits, but rather because of
what using the product says about him or her as a person (e.g., "What sort of man reads
Playboy?"). Value-expressive attitudes are highly relevant to life-style analyses, where
consumers cultivate a cluster of activities, interests, and opinions to express a particular
social identity.
Ego defensive function (protecting consumers from external threats or internal feelings)
Attitudes that are formed to protect the person, either from external threats or internal
feelings of insecurity, perform an ego-defensive function. Products that promise to help a
man project a "macho" image (e.g., Marlboro cigarettes) may be appealing to his
insecurities about his masculinity. Many deodorant campaigns stress the dire,
embarrassing consequences of being caught with underarm odor in public. The basic idea
is that we (generally) want to look good in front of others and we do not wish that our
ego is disturbed. For example: viagra pill producers will minimise the "embarassment" of
erection problems by stating that it is normal and that a big part of the population camps
with this kind of issues. The ego won't take a hit (or at least a smaller one) from having to
buy viagra compared to a situation where the consumer would think he was te only one
with this problem.
To change an attitude it is important to use all 4 functions, from the very basic utilitarian
function that also exists for animals to the more complicated value-expressive function
which is typical for humans.
ABC model (emphasizes the interrelationship between knowing, feeling and
doing)
o A = affect - refers to the way a consumer feels about an attitude object,
example: I am scared of spiders.
o B = behaviour - consumers intention to do something with regard to an
attitude object example: I will avoid spiders and scream if I see one
o C = cognition - the beliefs a consumer has about an attitude object.
example: I believe spiders are dangerous.
multi-attributes models (a simple response does not always tell us everything we
need to know about why the consumer has certain feelings towards a products or
about what marketers can do to change consumer's attitude; try to break down our
attitude to a product, it emphasise cognitive elements: a set of beliefs )
o attributes = characteristics that consumer consider when evaluating the
attitude object
o beliefs = cognitions about the specific attributes of the attitude object
o importance weights = reflect the relative priority of an attribute to the
consumer. Altought an attitude object can be considered on a number of
attributes, some will be more importante than others, and these weights are
likely to differ across consumers.
there are three major possibilities for the definition of the attributes:
lend them from a similar previous experiment
ask the consumers what they believe should be evaluated, which
characteristics they find important
define the attributes yourself if you believe you know much about
the matter which is being discussed
these models are popular mainly because they can quantify peoples
attitudes, although the results will not be completely reliable for different
reasons (ex. people using weights very differently, people answering rather
randomly because they don't really care, ...) still, this kind of model can be
improved and result in some acceptable calculations which can later be
compared with results from the same research at a later date, which would
show the evolution of attitudes.
While all three components of an attitude are important, their relative importance will
vary depending upon a consumer's level of motivation with regard to an attitude object.
There are three different hierarchies, hierarchy of effects:
Imagem1.png
Beliefs - Affects - Behavior - rational: high involvement
Attitude based on cognitive information processing: beliefs [thinking] is followed by
affect [feeling] resulting in behaviour [doing]
Beliefs - Behavior - Affects - behavioristic: low involvement
attitude based on behavioral learning process: beliefs [thinking] is followed by behaviour
[doing] followed by affect [feeling] (we learn after doing something)
Affects - Behavior - Beliefs - experiential
attitude based on hedonic consumtion: affect [feeling] is followed by behaviour [doing]
and by beliefs [thinking]
Forming attitudes, they can occur via:
- learning by classical conditioning: Attitude Object (Ao) name is repeated - the level of
exposure to the brand increases (repeating commercials etc.)
- learning by instrumental conditioning: an attribute is associated to the Ao - reward and
punishment (ex. McDonalds: happy meal, happy is associated with McDonalds, there is a
toy in the box which represents a reward to the child)
- learning by complex cognitive process: the persons are open to the subject and willing
to learn (more active compared to the previous ones)
Levels of commitment to an attitude
Lowest level: COMPLIANCE - an attitude is formed because it helps in gaining
rewards or avoiding punishments from others. It's very superficial. => we comply,
e.g. a person may dress in a costume to go to work because wearing other clothes
would be frowned upon at the office. (do what you are expected you to do)
IDENTIFICATION - We accept the attitude more strongly. Attitudes are formed
for the consumer to be similar to another person or group. => we identify with a
certain group and its attitudes
Highest level: INTERNALISATION - Attitudes become part of consumers value
system and it is very difficult to change them => we internalize attitudes (almost
like a religion)
Football example:
Compliance: you go watch the match with friends for the social experience, just to have
some fun together.
Identification: you go watch the match because you are very fond of your
(home/favourite) team and identify with the team and its supporters
Internalisation: you live for the sport, you would not go to your work, compromising your
job security (or other, like skipping scool) because the team is playing and you really
can't miss any match. (football is (one of) the most important thing(s) in your life)
Of course for marketers the last level is desirable (if the attitudes are favorable), but it is
difficult to achieve that. This level is more common in politics, religion etc. and a few
brands like Apple, Harley Davidson, etc. However marketers can more easily change
attitudes on the first two levels so there are opportunities for them.
Cognitive consistency and dissonance
Cognitive consistency: the consumers values and beliefs work together well. There are
no conflicts in combining them. If necessary consumers will change their thoughts,
feelings or behaviours to make them consistent with their other experiences => maintain
uniformity
Cognitive dissonance: conflicts between consumers attitudes and behaviors. We dont
want to get into situations where behaviour and believes do not fit together. We want to
match it.
The solution to this uncomfortable state depends on the weight of each element consumers try to get out of this uncomfortable state by eliminating, adding or changing
elements. The pressure to reduce dissonance is more likely to be observed in high
involvement situations in which the elements are more important to the individual.
Dissonance-related cognitive processes are
more likely to occur or increase after the purchase marketers should provide useful,
positive info.
The USE of attitudes:
Social Marketing
It involves the promotion of causes and ideas regarding facets of everyday life.
Attitudes are formed, changed and perpetuated in many ways, ranging from persuasive
messages, to observations of brands.
to predict
- outcomes beyond consumers' control
- behaviour is not always intentional
- time-frame of the attitudes measure
attitude tracking programmes
- attitudes formed by direct, personal experience with an attitude object are stronger and
more predictive of behaviour than those formed indirectly, such as throught advertising
Tracking attitudes
- attitude surveys provide a snapshot at a given time
- attitude trancking provides inferences about progress over time by administering an
attitude survey at regular intervals
- attitude tracking valuable for strategic decision making
Changing Attitudes (excerpt from SBAH 166 - 167)
Some basic aspects of communication specifically help to determine how and if attitudes
will be created or modified. This objective relates to persuasion > an active attempt to
change attitudes.
The basic psychological principles that influence people to change their minds (or
comply with a request) are:
Reciprocity: People are more likely to give if they receive. Including money in a mail
survey questionnaire increases response rate by 65% on avg. over surveys that come in an
empty envelope.
Scarcity: Items become more attractive when they are less available. One study asked
people to rate the quality of chocolate biscuits and participants who got only 2 liked them
better than those who got 10 of the same kind of biscuit. This helps to explain the
attractiveness of "limited edition" items.
Authority: Relating to who delivers the message. We tend to believe an authoritative
source much more readily.
Consistency: People try not to contradict themselves in terms of what they say and do
about an issue.
Liking: We tend to agree with those we like or admire. In one study, good looking fund
raisers collected almost twice the amount as other volunteers who were not as attractive.
Consensus:We often take into account what others are doing before we decide what to
do. The desire to fit in with what others are doing influences our actions.
Other Principles of Persuasion
In addition to these 6 basic principles of persuasion, there is many other ways as well.
Some times your work is to face resistance and you must know beforehand how to act.
This is typical especially if you are selling vacuum cleaners e.g. In this case you can't just
try to force person to buy it, instead you have to deal with the resistance early. Don't
ignore resistance, but try to build two-sided-speech by offering new ideas, arguments and
proposals.
Effective Listening: According to Gerald I. Nierenberg in his book "The Art of
Negotiation" If you want to persuade others pay attention to the needs of the one being
persuaded. Communication is two-way not one-way process and if you don't know the
needs of the one being persuaded you will not likely succeed in your effort to persuade.
Once you have discovered the needs of the listener, you can deal directly with them,
either assuring the person or convincing him or her that product, service or idea will some
way meet those needs.
Persuasive Communication has important unique characteristics. Some issues must
be answered:
- Who? > Perceived source
- How? > Message
- Where? > Medium
- To Whom? > Target Market s characteristics
Importance of the source & message (SBAH 172-181, 196-198)
The source of a message can have a big impact on how the message is received and
accepted.
Important source characteristics are credibility and attractiveness. To choose between
these values, marketers should act towards a match between the needs and the potential
rewards, as well as the type of the product.
Credibility (expert) performance risk
Expertise, objectivity, trustworthiness, competence and good will.
Bias> knowledge (source doesn t have enough), reporting (source lacks communication
skills)
Attractiveness (celebrity) social risk
Perceived social value. Star Power, What is Beautiful is Good
When the source is not so important The Sleeper Effect
Over time, people tend to forget about the source and change their attitudes anyway. The
message is kept in memory so reaction is delayed.
- dissociative hypothesis: between message and source
- availability-valence hypothesis: selectivity of memory
negative emotions
Concrete|Vivid mood?
The source Vs the message The ELM model:
- Elaboration Likelihood Model of Persuasion
Imagem2.png
It assumes that once a consumer receives a message he or she begins to process it.
Depending on the personal relevance of this information, one of the two routes to
persuasion will be followed.
Central Route : The person is likely to think actively about the arguments presented
and generate cognitive responses. It is likely to involve the traditional hierarchy of
effects. Beliefs are carefully formed and evaluated, and the resulting strong attitudes will
be likely to guide behavior.
Message factors, like the quality of arguments presented, will be important in
determining attitude change. Mostly High Involvement (HI) decisions.
Peripheral Route : The person is not motivated to think deeply about the arguments
presented. The consumer is likely to use other cues (like the product's package, the
attractiveness of the source) in deciding on the suitability of the message. Mostly Low
Involvement (LI) decisions.
Attention to the SOURCE or the MESSAGE depends on the audience and its level of
involvement.
As we can see, low-involved consumers tend to pay more attention to peripheral cues and
to be more sensitive to stimuli, thus being more affected by the SOURCE.
In situations of high-involvement, consumers analyze arguments rationally, thus paying
more attention to the MESSAGE.
L6&7 Culture
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Culture defined
Culture is the collective programming of the human mind that distinguishes the
members of one human group from those of another. (Hofstede, 1980)
Culture is always changing.
Culture points the difference between social groups, as it was seen at 4th slide of the
powerpoint with the example of 4 countries, Brazil, India, Russia and China.
-->Culture is symbolic communication. Some of its symbols include a group's skills,
knowledge, attitudes, values, and motives. The meanings of the symbols are learned and
deliberately perpetuated in a society through its institutions.
CULTURE = the meanings that are shared by (most) people in a social group (P&O)
In a broad sense, cultural meanings include:
1. Common affective reactions (we love puppies)
2. Typical cognitions (the world WAS created in 7 days)
3. Characteristic patterns of behaviour (eating habits)
Similar to the ABC model on the previous class
Importance of culture in consumer behaviour : Culture is part of the external
influences that impact the consumer. That is, culture represents influences that
are imposed on the consumer by other individuals.
Culture can be viewed as the collective memory of a society (shared
attitudes, rituals, norms and traditions among members). - from generation
to generation.
Culture forms the lens through which people view products and try to
make sense of their own and other peoples behaviour (acts as a filter).
masculine or feminine does not mean that they are consistently held by
members of each respective genderthere are very large within-group
differences. There is, however, often a large correlation of these cultural values
with the status of women.)
Uncertainty
L8 Decision-making
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Decisions
Choices on different levels. Basic-Specific. How the process of making
choices works.
Always require choices between different behaviors.
Key process is the integration process by which knowledge is
combined to evaluate two or more alternative behaviors and
select one. Intention is not the behavior. Intention to attend
class, someone stops you behavior.
The outcome is a choice, represented cognitively as a behavioral
intention. (BI)
Marketers are mostly interested in consumers' purchase
choices.
There are three phases of consumer behaviour, the prepurchase, the
actual purchase and the post-purchase. Marketers have been
focusing in the actual purchase which is directly related to the
prepurchase.
The decisions are affected by:
Environmental factors - As seen in classroom with the example of the
Vista in a store (in Vivian's example) also social, physical and financial
factors;
Cognitive and affective processes (thoughts, emotion);
Behavioural actions: Usually it is a group of decisions.
GENERIC MODEL of consumer problem solving (5 stages)
Problem recognition: to feel a sort of need, lack or tension (How can feel people more
needs? What triggers them?)
Search for alternative solutions: collecting information from different sources (What
sources do they take? Who do they ask for information?)
Evaluation of alternatives: Comparing brands (What types of criteria do they use? How
many criteria do they use?)
Purchase (decision)
Postpurchase use and reevaluation: Changing your mind about the purchase or sharing
information about the decision
But do consumer really make decision in this way? This depends on the Involvement, as
described below. Also often we do not make a decision linear, but often go back to a
previous step of the model. Furthermore other decisions may have an influence, which
are not included in the model - involve multiple problems and multiple decisions.
Involvement
Involvement how important something is for you. The amount of
involvement will reflects on the choice.
Involvement refers to a person's perceived relevance of the object
based on their inherent needs, values and interests.
Involvement can be viewed as the motivation to process information.
-it translates into consumer effort and dedication.
Depends on:
The degree of intrinsic and situational self-relevance - how important is a product
to the consumer affects the level of involvement this consumer will have in
buying this product. This factor can also be affected by the situation, that means
the level of involvement for each product isn't fixed, it can vary;
Intrinstic whats important to a person, if high high involvement
Situational clothes is not important, some situations will force you to
change your mind, funeral, wedding. People in your society will expect
a kind of clothes on a funeral. Determine how much effort in choice.
Perceived risks: physical (our body, medicine), financial, functional
(wrong medicine, stay sick), psycho-social (wrong clothes will in
some situations give a bad influence on others. Bad impression.
And also how people feel about themselves)The risk is
influenced by the degree of unpleasantness of the negative
consequences and the likelihood that they will occur.
Perspectives on decision-making
1. The rational perspective - people calmly and carefully intergrate
as much information as possible with what they arleady know about a
product. Thay weight up the pros and cons of each before making a
decision.
2. Behavioural influence perspective - decisions are made under
Imagem1.png
If you want to learn more about INFORMATION SEARCH you should read the
chapter in the book: pages 265-272.
IN-CLASS DISCUSSION
The Paradox of Choice Schwartz
A World of Choices Freedom? Welfare? / Too many? Bad consequences?
Examples:
Products (Jeans-variety)
Health Care (shift of the responsibility to the consumer)
Variety give consumers the chance to reinvent yourself, in a world that demand you to
be unique and different What kind of person do you want to be?: Consumers
even choose their identity, a shift of the burden and responsibility.
Deeply linked to Technology: everything and everybody is now too linked, too close, too
easy.
Negative Consequences for consumers:
Paralysis: you are not able to make a decision anymore more offers, less customers
Lower Level of Satisfaction - Regret: the more options there are the easier to regret our
decision opportunity cost: the pain of losing the other possibilities.
Raising expectations: hope for perfection => no positive surprises anymore
Options dont help, they hurt - Self-Blame and Depression.
Negative Consequence for marketers:
Decreasing sales
Unsatisfiable expectations
Consumers regret the purchase
Marketing Opportunities:
Less is more: Simple solutions
After-Sale service
Assistants (helping to make a choice)
- Facilitate choices: develop heuristics (emotional, subconscious stimuli that activate the
signals we pay attention to.
- Explore values like the simplest, special services (consulting, research/data
collection).
Valid for all societies?
There is a point until which more variety is desirable may depend on the politics and
the wealth. Western societies have probably reached already the limit of choice for
comfort Everybody needs a fish bowl.
In more traditional societies, benefits may still raise with an increase in the possibilities
of choice. The play Fiddler in the Roof gives us a good example on how traditional
societies hang on to tradition, a designed and safe path to keep the balance and look
suspiciously towards change and innovation.
L9 'New' consumer
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What happens to consumption and consumers in a world dominated by the market?
Throughout the course we have seen how individuals increasingly turn to consumption
when faced with problems. Even the higher order problems, such as searching for
meaning in life and defining our 'self', that were in the past governed by religion and the
local community (the family, clan, etc.) increasingly shift into the domain of markets and
consumption.
These changes point to important cultural shifts. We started the course by pointing out
that the traditional definition of consumer is outdated (think prosumer). Todays
consumer is more complex and extensive than yesterday's. The changes suggested above
have made it more difficult to think of consumers (and consumption) outside the other (in
the past separate) spheres of social existence.
We used to distinguish very clearly between citizen and consumer. Citizens deal with
politics and social problems, consumers with products and consumption issues. Not any
more! When faced with political and social problems individuals now often respond with
consumption instead of political action (voting, contacting politicians). If they are angry
at certain countries they stop consuming their products (boycotting). If they like the
political/social solutions offered by a company/brand they consume it to show support
(BUYcotting). Its called voting with your wallet and its becoming more popular than
the actual voting. Think Coca Cola and Nike boycotts (http://killercoke.org/); think US
boycotts of French products when France refused to join the anti-terrorist
coalition(http://www.boycottwatch.org/misc/france-01.htm); think Fair trade products
(http://www.fairtrade.net/); think Ben & Jerrys (http://www.benjerry.com/activism/).
We used to separate religion from the marketplace, the intimate and personal from the
commercial. Not any more! We saw wedding services being held in a mall; we saw
industrial chaplains; we see people (including ourselves) sharing intimate information on
commercial platforms (think Facebook, Youtube, or any type of reality show you can
imagine); we see more and more individuals transforming themselves into products
(think politicians, celebrities, everybody!) by opening/adapting their lives to the
consuming public, by treating their bodies as packaging that can encourage consumption
(think plastic surgery, steroids, the beauty industry,). We see our bodies and minds as
instruments that can be upgraded, fixed, etc. We consume in ways that were not
imaginable a few decades ago.
As a result, our understanding of consumers and consumption can more readily than ever
be used in areas that used to have nothing or little to do with consumption and marketing.
Politicians, the church, doctors, educators, there are all increasingly faced by consumers
and consumer mindsets (instead of citizens, patients or students). What happens when
everything becomes a consumption experience? You might say that nothing is sacred
anymore. You could also say that consumption becomes sacred. I prefer the second one.
Instead of simply complaining that the market and consumption have destroyed religion,
politics, etc. we can try to understand the new forms of consumo-religion and political
consumption that have recently emerged. Instead of complaining about the death of the
natural, pure human being, we can consider these new consumer cyborgs more closely
(e.g., drug/machine enhanced humans, plastic beauties, etc.). Think of the exciting new
ideas we could learn.
GENERAL TRENDS (they are interrelated!)
- the rise of the market & consumption as the central socio-cultural force
- the blurring of divisions between other social spheres and consumption
- commoditization of previously sacred aspects of life
- consumption replacing religion and ancestry as the prime sources of self definition
- emerging political/social consumption (voting with wallets)
- moving to postmodernity (see p. 621-624 in SBAH)
The results will be published early next week. Until then, here are the correct answers. If
you have any questions, please post them on the discussion page.
1. Which of the following approaches to consumer motivation focuses on society
(culture) rather
than the individual?
A none of the above
B artist
C rat
D psychologist
E god
2.Which statement is INCORRECT?
A Weber's law suggest that the absolute treshold of human perception is invertly
related to the
differentual treshold.
B Gestalt psychology suggest principles like the principle of 'closure', 'similarity' and
'figure-ground'
C Perception is the process by which physical sensations such as sights, sounds, and
smells are selected,
organised and interpreted.
D Gestalt psychology is a school of thought dealing with the interpretation processes
(organization
principles to be more precise).
E Weber's law suggests that our ability to detect a change in stimuli (such as sounds,
smells, etc.) is
relative to the strenght of initial stimuli.
3. The Wheel of consumer behavior (used to analyze consumer behavior) consists of
three basic
elements: 1. the environment, 2. consumer behavior and 3.
A needs and wants