Understanding Consumer Behavior

Topic 1: Introduction for Consumer Behavior

• Consumer behavior is defined as the activities people undertake when addressing real needs.
• The field studies consumers through the consumption process.
• Knowledge of consumer behavior leads to designing products that resonate with consumers.
• Understanding consumer behavior informs business strategies, public policy, and improves individual lives.
• Consumption utilizes goods, services, or ideas and is a marketer-consumer interaction creating value.
• Consumer behavior helps grasp why, what, and how people purchase.
• Consumers exchange time, money, and energy for value (products, services).
• Technology changes are essential for understanding current consumers.
• Social media platforms like Google, Facebook, Twitter, and Pinterest are avenues for reaching consumers.
• Massive data amounts offer potential for companies to predict consumer behaviors.

Topic 2: Consumer Behavior Model

• Consumer behavior is influenced by internal processes in decision-making.
• Social factors such as social identity and reference groups also affect behavior.
• Cultural influences like culture, subculture, and social class similarly play a role.
• Situational influences and specific marketing strategies further shape consumer decisions.
• Value is a key component that consumers consider during behavior.
• Value measures a consumer's assessment of the net worth obtained from an activity.
• Consumers seek actions that fulfill motivations and needs.
• Marketing literature distinguishes between utilitarian and hedonic values.
• Utilitarian value results from accomplishing tasks or solving problems.
• Hedonic value provides immediate gratification from an experience, is emotional, and may be hard to explain.
• The best consumer experiences offer both high utilitarian and hedonic value.
• The Holbrook framework organizes consumer values into eight categories.
• The eight categories are efficiency, excellence, status, esteem, play, aesthetics, ethics, and spirituality.
• Marketing must understand who the consumer is to enhance the value proposition.
• Main purchase roles include user, influencer, initiator, decider, and buyer.
• The 7 O's Model describes key elements related to consumer behavior when buying a product.
• The 7 O's include objects, objectives, organization, occupants, operations, occasions, and outlets.

Topics 3 and 4: Consumer Decision Process

• Consumers make choices daily to address unsolved needs and problems.
• The basic process involves five main activities in satisfying needs.
• The decision-making activities are: Need Awareness, Information Search, Evaluating Alternatives, Purchase Decision, and Post Purchase.
• Consumers do not always proceed sequentially, nor do they complete the process.
• A need is recognized when there is a difference between the actual and desired states.
• Desired states influenced by reference groups, novelty seeking, and cognitive processes.
• Consumers may delay decisions if the end goal is not sufficiently valued.
• Consumer information search involves behaviors used to satisfy needs.
• Consumers seek information on the number of alternatives available, prices, relevant attributes, and performance.
• Search behaviors include ongoing search, pre-purchase search, internal search, and external search.
• Ongoing search involves seeking information due to a product or organization due to genuine interest.
• Internal searches involve retrieval of knowledge from memory related to products and services.
• External search gathers information from friends, family, salespeople, advertising and research reports.
• Evaluating alternatives is important in decision-making.
• Consumers examine criteria for making choices after recognizing a need and searching.
• Evaluative criteria include attributes, features, or potential benefits.
• Consumers evaluate brands they know and remember, making evoked sets important.
• The purchase decision is when consumers decide to acquire products/services.
• Consumers seek an offer they believe delivers the expected value under certain conditions.
• Post-purchase, consumers verify if the solution satisfies their needs, is key in retaining customers.
• Consumer satisfaction, defined as a positive emotional state, and customer loyalty, as managers, are key when related to repeat purchases.
• Disposal of consumer refuse marks a final consumption step.
• Disposal alternatives include trashing, recycling, converting, trading, donating, and reselling.
• Purchase involvement and various other factors influence the activity of information search.
• The ZMOT (Zero Moment of Truth) concept, developed by Google, highlights consumer searches in search tools.

Topic 5: Motivation

• This topic explores the role of motivation in consumer behavior.
• Motivation is essential to consumer behavior since it influences consumption of products.
• Model of consumer behavior has many factors.
• Motivation is the inner reason or driving force behind human actions.
• Homeostasis represents behavior aimed at maintaining a current acceptable state.
• Self-improvement motivation represents behavior aimed at changing one's current state to be more idea.
• Regulatory focus theory suggests that consumers orient their behavior to a prevention focus or a promotion focus.
• Maslow's hierarchy of needs organizes human motivation into a finite set of needs.
• The needs are in order basic survival, safety, belongingness, esteem, and self-actualization.
• Utilitarian motivation drives consumers to acquire products to accomplish things.
• Hedonic motivation involves experiencing something personally gratifying.

Topic 6: Emotions

• Emotions affect consumer behavior.
• Emotions key the creation of value for consumers.
• Emotions are specific, psychobiological reactions appraisals with psychological processing and physical responses.
• Cognitive appraisal theory describes how thoughts serve as basis for specific emotions.
• Four cognitive appraisals relevant for consumer include anticipation, agency, equity, and outcomes.
• PAD is a three-dimensional approach (pleasure, arousal, dominance) used to measure emotional experiences via various semantic scaling approaches.
• PANAS (positive-affect-negative-affect scale) helps consumers self-report their feelings using 20 emotional adjectives.

Topic 7: Perception

• Perception is a main factor to take into account in marketing.
• Perception refers to a consumer's awareness and interpretation of reality.
• Perception is influenced by a person's needs, values, and expectations.
• Marketers shape learning and customer behavior if they understand consumers' perception.
• Perception differs from reality because customer perceptions are not always accurate.
• The perceptual process involves stimulus exposure, attention, and comprehension.
• Exposure brings stimulus within proximity of a consumer's senses.
• Sensation describes a immediate consumer response to stimuli captured by five human senses.
• Marketers use sensory marketing to engage consumers' senses as a primary value.
• Attention allocates information-processing capacity to understanding stimulus.
• Comprehension derives meaning from received information.
• Consumer perception occurs is a process that includes sensing, organizing, and reacting.
• Consumers then classify stimuli according to categories in their memory to compare any differences.
• Consumers practice selective perception of a selective type of stimulus.
• Cognitive organization assembles sensory evidence into something recognizable.
• Consumers cannot easily organize/categorize all stimulus they sense all of the time.
• Selective perception includes selective exposure, selective attention and also selective distortion.

Topic 8: Sensorial Consumer Behavior

• The goal is to discuss brands/products that should be experienced sensoringly.
• Consumers wish to experience products in a global way
• Marketers must understand how consumers use senses (or more than 1).
• The goal is for consumers to evaluate, consume, and dispose of products.
• Environmental Stimulus can make consumers decide on provider.
• Marketing Pros should know detail on environmental stimuli that buys behavior.
• The goal is to influence a customer's decision making.
• Visual helps aims brand positioning by appealing to humans vision.
• The goal is to draw profiles of how to influence visual resources.
• Red/Yellow is intense colours and attract impulse consumers.
• Blue/Green calms consumers.
• Olfactory/Smell is also relevant.
• Memory/Emotions uses Smells.
• Music can influence store clients behavior.
• Classical music can increase consumers' perception in sophistication/price in wine shops.
• Soft product increases sales time/cash spent for clients.
• The design or Materials of the product will increase touch
• Soft chairs soften negotiations
• Apple uses them to influence notebooks by touch.

Topic 9: Learning

• This topic looks at discussion of learning and consumers' learning process.
• Learning relates to consumers information and retention of a product.
• Key info/brand reduce search time plus already know brand alternatives.
• The 4 models of learning used in consume behaviour are: Cognitive, Classical, Instrumental (operant) and Modelling.
• Marketing means more obvious.
• Cognitive learning is mental processes and consumer is comprehended, elaborate action.
• Consumer is active mind with association.
• Classical Condition: Learns association with constant appearance.
• PAVLOV shows stimulus elicits a response.
• Instumentral Condition: Skinner (degree, reward, punishment from behaviour).
• Showing own reward is powerful (intrinsic or extrinsic).
• Fidelity or mileage programs are intrinsic.
• Modelling: Observe to repeat from observing.
• Bencmarking is repeating use of opinion leaders.
• Comprehend the message (receiver) to know the value (comm environments or message characteristics)

Topic 10: Personality, Lifestyle, and Self-concept

• This chapter discusses personal factors that influenc consumer behavior.
• These elements means its easy to segment into market.
• Marketers focus on personal values plus search for sustainable brands based on customer behaviours.
• Personality means the person or habits who adapts to environments for their behaviours.
• Personality and social traits varies per person (some same attributes), is stable and effects situations, plus combined means behaviour. The persons interaction plus behaviours in specific.
• Multiple trait model is popular, (known as "Big 5) contains dominance, extroversion, agreeableness, openness with experience, stability and conscientiousness!
• FFM is used - the approach for brand personality.
• Band persoalit can be desribed by competence, ruggedness, sincerity, excitement, sophistication from Aaker 1997!
• Can even make your own top 5 trait models!
• Personal values: Act hows values are for each person from preferecens per 1973 rokeach. Belief relates to actions plus judgements. It guides behaviour or standds.
• Schwarz 92)
• Values is objecitve/no emotion, plus motivation or the goals! Abstract or transecnednt with actiosn or suts!
• Lifestyle means time plus money well spent (related to pesonality).
• VALS: is sucess. SBI segments (reosuces to cuatomers with ideals, achievenmtn and experssions0
• Self-concept: how you are or have about themself (meaning you want to give to identiy from schema)

Topic 11: Attitudes

• Attitudes are judgments.
• The main goal is to create strategies the reover from negative or neutral or positive attitudes!
• The choice of message and source is useful to mange this and is critical.
• Costumer: Enduring evaluations.
• Consumer behavior has plays a critical role especially for marketing!
• ATTITUDES = value! (positive)
• ABC affects; feelings, beliefs, behaviours.
• Research suggests: hierarchy or effects or sequential (can't be both!)
• This follows hierarcies: High, LOW, Experience, behavioural
• High= faces problem then made known! beliefs, feelings, purchases.
• Low: simple = little to no behaviour
• Experiental: Base on feeling/impulse = motivated y feelings
• Behaviour = no feelings- strong environment affects belife
• Persuation communication is important!!
• Message can affect persuasion as well as SOURCE (character/people)
• They use a few like sex of appeal then also model affect.
• Souce credibility = trust/expertise = importatn!
• Attractivness from models makes products sell better!
• Some source affects some consumer but not all, it is different based on people

Topic 12: Social Influence

• This understands how others excert on as + others.
• There fore consider this for a puchase and make "Social Presence".
• Influences with social and strategy.
• Consumers want relationship which effects personality.
• References are essential. Guide your norms/ conduct. These effects seek values. Effects attitudes, opinions/behaviour.
• Ingroups means all types of groups.
• 2007 Oyserman's Identities are constricts: Positive is seen here.
• Primary groups: Direct contact + very strong. Secondary means less frequent
• Comminities. Brand community = relationships of shared interested is also a example.
• Formal members becomes church for instance but informal doesnt means coffee of sports
• Aspirations means you desire their view.
• Dissaccociative - to not belong.
• Classify five categories. Reffereal, Legitimate, expert rewards. and coercive.
• Social power = members to maintain agreeance.
• Influence = individual to expect equal.

Topic 13: Consumer Culture

• Consumers can ahcne the purchase and decide process to be easier.
• Go global with better culture as a whole.
• Understand how culture values the meaning of the stuff or acts!.
• Culture shapes what you use.
• Cutlture means knowledge, norms and habits.
• You also have self/communication or food. or time and habits.
• Culture norms = rule is a specified behaviour.
• Unfortuantly, that expereince effects cutlural sanctions and penalties.
• Beliefs define religon or arts or behaviours or how to be respectful.
• Causses: How peopel end up diffrent on land. How is it diffrent.
• Ecological Factors (differences and relative objects) physical charateristics! Also tradition over time.

Topic 14: Neuromarketing

• This aplies neuro for scientific + human behaviour + neural signal + customers + marketing