Consumer Behavior - GBBA 2024-2025 PDF

1. Choosing and using products Consumer Behavior GBBA 2024 - 2025  Mind the GAP “Consumers don’t think how they feel. They don’t say what they think and they don’t do what they say.” (Ogilvy) ≠ ≠...

1. Choosing and using products Consumer Behavior GBBA 2024 - 2025  Mind the GAP “Consumers don’t think how they feel. They don’t say what they think and they don’t do what they say.” (Ogilvy) ≠ ≠ ≠  Mind the GAP Not only people have difficulty in understanding what they want, but they often don’t translate into action, evoking the “Intent-Behavior GAP” => INTENTION ≠ BEHAVIOR Intention is a person’s plan or decision to carry out an action (Eagly &Chaiken, 1993), whereas behavior is the action per se (i.e., putting into place the intention). e.g.,: Given the GAP between Intention-Behavior, ethically-minded consumers rarely purchase ethically (Carrington et al., 2014)  Key Questions to Consumer Behavior Who? Where? How? What? When?  Consumer Roles During any purchase, a consumer may play one or more roles in the decision process: Initiator Influencer Decider Buyer User External sources of Identify the The person responsible The one finally investing The one who profits influence on the final on the purchase (can from the consumption, unfulfilled need for the final decision decision (e.g., family, not be part of the rest using the final product friends, school, professor…) of the purchase) or service  Three Types of Decision-Making The Three “Buckets” of Consumer Decision Making  Types of Purchases LOW Involvement HIGH Involvement Less effort Fully engaged Quickly Effortful Lower risk Long time Risky FACTORS Price FACTORS Convenience Price Habit Risk Uncertainty regarding alternatives IN CLASS ACTIVITY 1. We will watch a short video together 2. Try to identify the STEPS in purchase decision making 3. Take notes – you will then have to write down these steps on Dropbox on Brightspace!  Purchase Decision Model WATCH VIDEO: https://www.youtube.com/watch?v=EuTX9j17kBs IDENTIFY the DIFFERENT STEPS in Purchase Decision Process INDIVIDUAL WORK Write the steps you identified on Brightspace on dropbox. You have 5 minutes! The dropbox will be closed after this time.  Purchase Information Search Evaluation Need Recognition Post-Purchase Evaluation Blackwell, Kollat & Engel’s model  Information Search Evaluation Purchase Decision Model Purchase Need Recognition Post-Purchase Evaluation A difference between what he or she perceives to be the ideal versus the actual state of affairs ATTENTION: Needs vs Desires Blackwell, Kollat & Engel’s model  Information Search Evaluation Purchase Decision Model Purchase Need Recognition Post-Purchase Evaluation INTERNAL vs. EXTERNAL Search may be internal, retrieving knowledge from memory or perhaps genetic tendencies, Blackwell, Kollat & Engel’s model or it may be external, collecting information from peers, family, and the marketplace,  Information Search Evaluation Purchase Decision Model Purchase Need Recognition Post-Purchase Evaluation Evaluation: establish choice criteria based on different decision rules pour evaluate and rank the alternatives Salient (most important) versus discriminant Blackwell, Kollat & Engel’s model  Evaluation of alternatives „ Un attribut is important if a consumer takes it into consideration in their purchase decision For choosing a car… Not important Important Color Gas consumption Design Make (brand)  Evaluation of alternatives „ Un attribut is discriminant if it helps differentiate among the products „ Un attribut is saliant if it is obvious/present during the purchase process For the choice of a car… Not discriminant Color Gas consumption Discriminant Design Make (brand)  Information Search Evaluation Purchase Decision Model Purchase Need Recognition Post-Purchase Evaluation How do you decide? Additional consideration arises: size, package, places to buy, quantity. Consumers are also influenced by store environment: store atmosphere, other products offered, senses, presence of other consumers, etc. Blackwell, Kollat & Engel’s model  Purchase: Decision heuristics Non-compensatory decision rules do not use all the information but rely on decision shortcuts – “heuristics” Attitude-based heuristics choices based on holistic evaluation. Use the attitudes stored in memory and choose the one you prefer. For example, familiar brand names € 3,00 € 2,00 Attribute-based heuristics choices based on the comparison of attributes. Select the product that performs best on the most important attribute. For example, the hazelnut spread with the lowest price. Alternative heuristic choices based on an alternative comparison. Choose the product that meets all minimum requirements in all criteria. For example, a light, powerful and affordable computer. Þ By increasing uncertainty with the decision (over The Paradox Of Choice comparison) Þ By evoking regret and impacting on the overall experience (satisfaction, re-purchase intention) Þ decision is a burden;  Information Search Evaluation Purchase Decision Model Purchase Need Recognition Post-Purchase Evaluation Outcome of the decision – satisfaction or not. Consumers may engage in cognitive dissonance: consumers doubt their decisions and worry the forgone options were better. The higher the price, the higher the level of cognitive dissonance Blackwell, Kollat & Engel’s model  Endowment Effect – to watch at home! WATCH VIDEO: https://www.youtube.com/watch?v=D9U5EdFP9EI What is the ENDOWMENT EFFECT? Why is it important for consumers and marketers?  Consumption Some products are for immediate consumption, others for delayed consumption – what does this mean for the consumption process? Consumers need to think about how to store products for later consumption and when to buy them. Immediate Delayed  - A ‘responsible’ consumer would be curious about this Divestment element in the life of the product at the time of purchase What to do with end-of-life products: producers are also responsible for the behavior at the end of the life of products. - Information on packaging for recycling - Shelf-life information (for perishable products) - Warranties - Producers repair or recover end-of-life products  For Reflection What is an impulse purchase ? Does it go through Decision Making Process An unplanned decision to buy a product or service, made just Steps? Emotions, feelings, and before a purchase. attitudes play a decisive role One who tends to make such inpurchasing,triggered by purchases is referred to as seeing the product or upon an impulse purchaser, impulse exposure to a well crafted buyer, or compulsive buyer promotional message Situational factors Sensorial Activation The first thing we think when we develop a new concept is the “atmospherics” inside the store (lights, sound, smell, comfort).  Basic definitions SENSATION => Information that is received in a raw form by one (or more) of the five senses; The experience of different stimuli by sensorial organs result in the perception. PERCEPTION => Process of decoding sensorial input by the brain; The process includes psychological and physiological process to help on the interpretation. e.g., “red is link to danger, then seeing red is a stop sign. Red in food activate protective behaviors, in grading means failure, in stock means lost.  Perception A sequence of six psychological steps that a person unconsciously uses to organize and interpret information from the outside world. Organization – A person organizes the sensorial input Observation – A person Selection – A person selects the Exposure - senses are initially observes the stimuli stimuli, driven by internal and exposed to the external stimulus external factors (selective attention) is the directing attention to - The sensory receptors of a messages that are consistent with consumer are engaged by their attitudes, beliefs and needs. product or brand cues through sight, sound, smell, taste and texture. Interpretation – assigns a meaning to the - BACKERY sensory stimulus Response – A person behaves Understanding is aided by expectations and accordingly to the stimuli familiarity. A consumer scans his memory to retrieve previous experiences with the brand or a similar brand..  Perception and Selective attention Perception, then is a very subjective, active and creative process through which we assign meaning to sensory information. In that way, another person looking at the same thing cannot have the same perception Perception is unique to each person, with no two people perceiving exactly the same or perceiving 100% of all things at all times. Selective attention is the process of directing attention to a particular stimuli for a certain period of time, while ignoring the unimportant details. So how exactly do we decide what to pay attention to and what to ignore? Because our ability to attend to the things around us is limited in terms of both capacity and duration, we have to be picky about the things we pay attention to.  Inattentional blindness Selective Attention Test https://www.youtube.com/watch?v=vJG698U2Mvo  The role of taste Although we eat constantly, we are not good enough to distinguish tastes based on the sole modality. That is why, tastes are combination of the five senses: Vision – aesthetic appeal of food Olfactory – the smell characteristics of the food itself Tactile - temperature, textures such as fattiness, painfulness such spiciness Auditory - the sound of the food (e.g., potato chip cracking) => Tastiness may have nothing to do with the taste itself, but rather be a stimuli that appeals to one of our other senses. We can hardly distinguish a potato from an apple or red wine from coffee when not using the visual and olfactory modality combined with the taste (Herz, 2007: 187).  The role of sight – Food Packaging Experimental study, 40 participants rate sweetness and healthiness of 12 food products contained in red, green and blue packages. The results demonstrate that red packaged products are perceived to be sweeter, whereas products packaged in green and blue are associated with the perception of healthiness. Sweeter Healthier Huang and Lu (2015)  The role of sight SIGHT: Considered as the dominant modality for human beings Soothing-inducing colors Arousal-inducing colors Þ Positive feelings, Competitive contexts Collaborative context Þ Approach behaviors, Þ Negative feelings, Þ Positive feelings, Þ Longer stays, Þ Avoidance motivations, Þ Approaching motivations, Þ Greater exploration, Þ Danger perceptions (threat and failure), Þ Attractiveness, Þ Healthier perception Þ Perceived dominance Þ Excitement. The Role of Sight  The Role of Sound Have you ever wondered why some cars have powerful engine sounds? Þ It is an artificially developed process of engine sound enhancement applied on luxury cars to provide the impression of power and speed. Sound perception is a helpful tool to assess product characteristics. Countless companies have a an audio accompanying the brand logo, called sound branding.  The Role of Sound TRY TO GUESS THE BRANDS So… why is sound important? SUPERMARKET The role of sound RSTAURANT Loud, fast music = we eat faster and MORE Classical music = we eat slower and less Sound texture, another element in sound, was also found to impact on The role of sound consumer behavior. Such that, crispiness, crunchiness and crinkliness revolutionized the way people experience flavours => synchronizing sound and taste modulates perception of food. (Spence, 2015)  The role of smell Given the power of scents on activating memories, they are also deeply connected with affect elaboration Environmental scents are found to increase brand recall and recognition, forming greater consumer-brand bonds and prompting more positive attitudes towards the brands Preference for the cloth tablecloth: = preference for the meal eaten, high ratings of the meal The role of touch = greater satisfaction with the restaurant experience (Liu et al. 2019)  The role of touch Not everyone has the same desire for touch: The Need-for-Touch scale (Peck and Childers, 2003) These differences impact on the extent to which touch affects product perception and inter-personal relationships TEAM ACTIVITY – now! YOU WILL HAVE TO RUN 2 interviews Prepare and upload on Brightspace the Interview GUIDE!  Interviews You will have to run 2 interviews with customers of the RESPONSIBLE product you decided to focus on The aim of the interviews is to: 1. Find out what people think ‘RESPONSIBLE products’ and ‘RESPONSIBLE consumers’ are 2. Identify the different STEPS in purchase journey: use the Purchase Decision Model 3. Identify which FACTORS influenced the decision and in which steps With your team - Decide WHO to interview - Decide what QUESTIONS to ask! Prepare an interview guide. - Interviews can be in any language – but presentation will have to be in ENGLISH - PREPARE AND UPLOAD THE INTERVIEW GUIDE before the end of the session  BEFORE NEXT TIME !! IN GROUPS - Run the 2 interviews - BRING TO CLASS video/ audio of your interviews