Consumer Behavior Summary PDF

Consumer Behavior SESSION 1 Consumer Behavior Dynamics: - Consumer Behavior: the dynamic interaction of a7ect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives. - Segmentation: the act of dividing up a market into groups of people with similar needs. o Psychographic segmentation: market segmentation according to the psychological proﬁles of potential customers. o Behavioral segmentation: market segmentation according to the behavior of its members. o Demographic segmentation: market segmentation according to peoples age, income and social standing. - Service-dominant logic: the view that all value is co-created by the consumer and the supplier, and thus that all value can be considered a service. - Relationship marketing: marketing in such way as to generate long-term partnership with customers. (its cheaper to retain a customer than to recruit a new one!) - Transactional marketing: marketing in which the marketer focuses on an individual scale, not on the long-term relationship with customers. SESSION 2 - Sensation: the immediate response of our sensory receptors to such basic stimuli as light, color, and sound. - Perception: the process by which these sensations are selected, organized, and interpreted. (what part of the sensation do we keep or take away as we process) o 3 stages: exposure à attention à interpretation Senses: 1. Sight: 2. Smell: - Odours can stir emotions or create a calming feeling. - We process fragrances cues in the limbic system, the most primitive part of the brain and the place where we experience immediate emotions. 3. Hearing: 4. Touch 5. Taste - Exposure: Occurs when a stimulus comes within the range of the individual’s sensory receptors, so that he or she has the potential to notice it. - Absolute threshold: the minimum amount of stimulation that can be detected on a sensory channel. - Di7erential Threshold: refers to the ability of a sensory system to detect changes in a stimulus or di7erences between two stimuli. - Just noticeable di7erence (JND): the minimum change in a stimulus that can be detected. - - Webers law is important to determine the relative JND for their product so that: 1. Reductions in product size, increases in product price, or changes in packaging are not readily discernible to the public 2. Products improvements are perceived by the public. - Subliminal Perception: the perception of stimuli below the level of consumer consciousness. (no proof it has no e7ect on consumer behavior!) - Attention: the extent to which the brain’s processing activity is devoted to a particular stimulus. - Sensory overload: being exposed to more information than one is willing or able to process. - Perceptual selectivity: people attend to only a small portion of the stimuli to which they are exposed. - Personal Vigilance: a factor of selective exposure. Consumers are more likely to be of aware of stimuli that relate to their current needs (conscious or unconscious needs). - Perceptual defense: people don’t see what they don’t want to see. If a stimulus is threatening to us in some way, we may not process it or we may distort its meaning so that it is more acceptable. (e.g. a heavy smoker may blur out cancer images on packaging). - Adaptation: the degree to which consumers continue to notice stimulus over time. à The process of adaptation occurs when consumers no longer pay attention to stimulus because it is so familiar. Consumers become habituated and require an increasingly stronger does of a stimulus for it to be noticed. - Several factors can lead to adaptation: o Intensity: consumers become habituated to less-intense stimuli as these have less sensory impact. o Duration: stimuli that have relatively lengthy exposure to be processes tend to be habituated to because they require long attention span. o Discrimination: simple stimuli tend to be habituated to because they do not require attention to detail. o Exposure: people tend to habituate to frequently encountered stimuli as the rate of exposure increases. o Relevance: People tend to habituate to stimuli that are irrelevant or unimportant because they fail to attract attention. - There are factors marketers can utilize for consumers to notice stimuli. Marketers can create contrast between the surroundings and the supposed stimuli through: o Size (of the stimuli in comparison to surroundings) o Color (to draw attention to product or give it a distinct identity) o Position (to increase likelihood to notice the product) o Novelty (communications that use novel stimuli or appear in unexpected places tend to grab our attention) - Interpretation: refers to the meanings that people assign to sensory stimuli. - Schema: a set of beliefs, to which the stimulus is assigned. o A schema provides a cognitive framework that helps organize and interpret information that surrounds a particular stimulus, such as a brand, for example. - Gestalt psychology: a school of thought maintaining that people derive meaning from the totality of a set of stimuli rather than from any individual stimulus. o Gestalt psychology suggests that humans don't focus on separate components but instead tend to perceive objects as elements of more complex systems. o Principle of closure: people tend to perceive an incomplete picture as complete. o Principle of similarity tells us that consumers tend to group together objects that share similar physical characteristics, that is, they group like items into sets to form an integrated whole. o Figure-ground principle: one part of a stimulus will dominate (the ﬁgure) while other parts recede into the background. - Positioning Strategy : the way the marketer wants the brand to be viewed in the eyes of the consumer. It uses the marketing mix. - Repositioning: updating the brand’s image for an evolving market. - Dimension of brand positioning: o Price leadership o Attributes o Product class o Occasions o Users o Design SESSION 3 Decision-making process, buyer behavior and brand interaction. - Evoked set: the group of brands a consumer can remember spontaneously. à for regular purchases or familiar product categories these may be the only brand considered by the consumer. - Consideration set: the group of brands which a consumer believes will meet his or her need, and which are therefore seriously being considered for purchase. - John Deweyy model for decision-making: 1. A di7iculty is felt (need identiﬁcation) 2. The di7iculty is located and deﬁnes 3. Possible solutions are suggested 4. Consequences are considered 5. A solution is accepted. à Probably too rational model! - EKB model of consumer behavior: Consumer Decision Process model: 1. Need recognition 2. Search for information 3. Pre-purchase evaluation of alternatives. 4. Purchase 5. Consumption 6. Post-consumption evaluation 7. Divestment - - Assortment depletion: the reduction is one’s overall quantity of possessions. - Psychology of complication: the tendency for people to make their lives more complex, and therefore more interesting. - Psychology of simpliﬁcation: the tendency for people to make their lives less complex and therefore less stressful. - Assortment adjustment: the process of substituting some possession for others in order to improve one’s overall position. à can be programmed or non-programmed o Assortment replenishment: replacing possessions that have been worn out or used up. o Assortment extension: Increasing one’s overall quantity of possessions. Will require little information or purchase risk. It is more likely to lead to an extensive problem-solving pattern. - Impulse buying: purchases that are not based on plan. Can be further divided into 4 categories: o Pure impulse (based on novelty of the product) o Reminder impulse (relates to a product that has been left o7 the shopping list) o Suggestion impulse (which is about products that fulﬁll a previously unfelt need) o Planned impulse (which occurs when the costumer has gone out to buy a speciﬁc type of product but is prepared to be swayed by special o7ers) - Limited decision-making: takes place when the customer is already familiar with the product class and merely wants to update his or her information or ﬁll in a few gaps revealed by the internal search. - Extended decision-making: occurs when the consumer is unfamiliar with the product class, form and brand. - Interrupts: something that diverts an individual away form a goal, usually temporarily. 1. Unexpected information that is inconsistent with established beliefs. 2. Prominent environmental stimuli (e.g. in-store alternatives on display) 3. A7ective states (e.g. hunger, boredom or tiredness) 4. Conﬂicts (motivational conﬂicts) - Interrupts may not always divert consumer behavior. If the goal is strong and the interrupt is weak, the purchasing behavior may not divert. - Heuristic: a decision-making rule; sometimes also seen as a shortcut rule. - Perceived cost: the extent to which the consumer has to commit resources to the search. People will frequently cut down the search simply because it is taking too much time, money, and e7ort. The potential of loss of making a wrong purchase is seen as being less that the cost of making a full search. - Risk reducing strategies: à people will frequently choose the middle-ranked or middle-priced brand as a form of compromise. - Limits on the information search (research e7ort): - Non-compensatory decision rules: a heuristic that cannot be o7set by other factors. - Conjunctive rule: a heuristic by which brands are compared to all cut-o7s until only a few surviving brands remain. - Involvement: the perceived relevance of their object based on the person’s inherent needs, values, and interests. à it is about the degree to which the individual feels attached to the product or brand. à involvement has both cognitive and a7ective elements: it acts on both the mind and on the emotions. - Inertia: making decisions out of habit rather than from any conscious loyalty. - Intrinsic self-relevance: source of involvement derived from means- end knowledge stored in the individual’s memory. - Five-factor model for assessing the dimensions of involvement: 1. The personal interest a person has in the product category, its personal meaning or importance 2. The perceived importance of potential negative consequences associated with a poor choice of product (risk importance) 3. The probability of making a bad purchase. 4. The pleasure value of the product. 5. The sign of the product category (how closely it relates to the self). - Increasing Consumer Involvement: o Appeal to hedonic needs o Use unusual stimuli to attract attention o Use celebrity endorsement o Use prominent stimuli o Develop an ongoing relationship with consumers - Unsought goods: products that are bought ass a result of coercion rather than through desire. SESSION 4 - Drive: the force that makes a person respond to a need. It is an internal stimulus caused by a gap between someone’s actual state and their desired state. - Whilst marketers cannot usually do a lot about the actual state (like make someone thirsty) they can encourage people to revise their desired state, hence encourage people to aspire something new. - The higher the drive state is of a person, the more open they are to trying new things to satisfy their needs. - Activating the need: reminding people of their need when their drive state is low, hence intensifying the drive by moving the desired state further from the actual state. - Optimum Stimulation Level (OSL): the point at which a need has become strong, but before is has become unpleasantly so. Here the individual will seek to make an immediate adjustment to satisfy the need. - Consumer Motives: - Volition: The cognitive process by which an individual decides on and commits to a particular course of action. (will) - Need: a perceived lack of something. - Wants: a speciﬁc satisﬁer for a need - Arousal theory of Motivation / Hierarchy of Stimulation (Zuckerman 2000): 1. Thrill-seeking (extreme sports, adventure travel à highest level of arousal) 2. Experience-seeking (Travel, walking, arts, books à second highest level) 3. Disinhibition: removal of the internal inhibitors which constrain behavior (social stimulation, parties, drinking alcohol, e.tc) 4. Boredom (the need to change things around, try new products, things, etc.) à At boredom, individual has risk-free but also stimulation-free existence. à At thrill-seeking, individual has dangerous but exciting life. - Self-actualization: the need to become the ideal self. - Maslow’s Hierarchy of Needs: à Criticism for being too simplistic, as well as the fact that people may change needs even throughout their day. - Herzberg (1966): developed the idea that some factors in life are motivational, while others are simply expected as a matter of course: the absence of these factors would be demotivational, but more of the same would not be motivational. o Hygiene factors: those aspects of a product which consumers would expect as a basic feature of any product in the category. o Di7erentiation: Providing a product with features that distinguish it from competing product. - Vroom’s Expectancy Theory: motivation is the result of rational calculations made by individuals, taking into account the value of the reward itself, the expected likelihood of being able to obtain the reward, and the e7ort needed to achieve the reward. à the trade-o7s between these factors are subject of the calculation. - David McClelland: suggested that people have three categories of social needs in terms of motivation: 1. Achievement: the need to excel at something. 2. A7iliation: the need to be part of a group. 3. Power: the ability to control outcomes. à di7erent people place di7erent emphasis on these needs. - Cautionary tale: a story intended to illustrate the possible negative outcomes of a particular course of action. - When needs conﬂict, motivational conﬂict occurs. This can take one of three basic forms: o Approach-approach conﬂict: occurs when the person is faced with two or more desirable alternatives. o Avoidance-avoidance conﬂict: occurs when the person is faced with two or more equally unappealing choices. o Approach-avoidance conﬂict: occurs when the course of action has both positive and negative consequences. (most purchases have this) - Switching cost: all the costs associated with changing from one particular product or service to another. - Hierarchical model of consumer goals: - Abstraction: the process whereby lower-level goals help determine what higher- level goals must be if there is to be overall goal consistency. - Adaptation: the process by which goals are inﬂuenced by contextual issues such as the cultural and social environment, current concerns and consumption intentions. - Heuristics: rules for buying. Simple if..then decision-making rules which can be established before any goals are set. o Search heuristics: the rules for ﬁnding information. o Evaluation heuristics: the rules for judging products o Choice heuristics: the procedures for comparing evaluations of alternatives. - Hedonism: the cult of pleasure. Refers to the pleasurable aspects of consumption. (e.g. the ﬂavor of food, rather than its nutritional value). - Utilitarianism: the cult of practicality. - In most cases, products have both hedonic and utilitarian features. This is because even the comfort features have become regarded as hygiene factors by most people. Hence, manufacturers are in a constant race to add even more hedonic features to di7erentiate their products from competition. SESSION 5 – Segmentation, Targeting. And Positioning - Positioning: the process by which a company creates a distinct image and identity for its products, services, and brand in consumers’ minds. - An e7ective target segment (market), a market segment must be: 1. Identiﬁable (customers grouped based on common needs using various factors) 2. Sizeable (enough customers to make segment proﬁtable) 3. Stable and Growing 4. Reachable (customers must be accessible and not to expensive to reach) 5. Congreunt with the Marketer’s Objectives and Resources - Bases for segmentation: o Behavioral data is evidence-based; it can be determined from direct questioning, etc., consists of: 1. Consumer-intrinsic factors, such as a person’s age, gender, marital status, income, etc. 2. Consumption-based factors, such as the quantity of product purchased, frequency of leisure activities, frequency of purchasing the product. o Cognitive factors: abstract factors that ‘reside’ in the consumer’s mind, can be determined only through psychological and attitudinal questioning, and generally have no universal deﬁnitions, consist of: 1. Consumer-intrinsic factors, such as personality traits, cultural values, and attitudes towards political and social issues. 2. Consumption-based factors, such as the beneﬁts sought in products and attitudes regarding shopping. - Demographic segmentation: determine consumer’s needs. Examples are age, gender, occupation, wealth, ethnicity, etc. They enable marketers to classify each costumer into a speciﬁc category. à Its easy, cost-e7ective, and can be used to identify new segments. - Geodemographics: a hybrid segmentation scheme based in the premise that people who live close to another are likely to have similar ﬁnancial means, tastes, preferences, lifestyles, and consumption habits. - Green Consumers: attractive prospect for marketers. - Psychographics: the study and classiﬁcation of people according to their attitudes, aspirations, and other psychological criteria, especially in market research. - Beneﬁt segmentation: segmentation based on the beneﬁts that consumers seek from products and services. - Media-based Segmentation: utilizing the media tools customers use to adopt these in marketing communication tools. - Usage Rate Segmentation: reﬂects the di7erences among heavy, medium, and light users, and nonusers of a speciﬁc product, service, or brand. - Product Awareness Status: the degree of a consumer’s awareness of the product and its features, and whether or not he or she intends to buy it reasonably soon. - Product Involvement: reﬂects the degree of personal relevance that the product holds for the consumer. - Usage Occasion Segmentation: recognizes that consumers purchase some products for speciﬁc occasions. - Behavioral Targeting: consist of sending consumers personalized and prompt o7ers and promotional messages designed to reach the right consumers and deliver to them highly relevant messages at the right time and more accurately than when using conventional segmentation techniques. - Showrooming: occurs when customers use smartphones to scan the bar codes of products displayed in physical stores and then check the items’ price inline in order to purchase them at the lowest prices. - Geofencing: to combat showrooming, physical stores started geofencing, which consists of sending promotional alerts to smartphones of customers who opted into this service, when the customers near or enter the store. - Predictive Analytics: used by marketers, are measures that foresee consumers’ future purchases on the bases of past buying information and other data, and also evaluate the impact of personalized promotions stemming from the predictions. - Umbrella Positioning: a statement or slogan that describes the universal beneﬁt of the company’s o7ering. - Premier Position: positioning strategy focusing on the brand’s exclusivity. - Repositioning: the process by which a company strategically changes the distinct image and identity that its product or brand occupies in consumer’s minds. - Perceptual Mapping: constructing a map-like diagram representing consumer’s perceptions of competing brands along relevant product attributes. Perceptual maps show marketers: o How consumers perceive their brands in relation to competition, o How to determine the direction for altering undesirable consumer perception of their brands. o Gaps, in the form of un-owned perceptual positions, that represent opportunities for developing new brands or products. SESSION 8 – Group Inﬂuence and Social Media - Reference Group: an actual or imaginary individual or group conceived of as having signiﬁcant relevance upon an individual’s evaluations, aspirations, or behavior. (any external inﬂuence that provides social cues) Reference Groups inﬂuence consumers in three ways: 1. Informational 2. Utilitarian 3. Value-expressive - Normative Inﬂuence: the reference group that helps to set and enforce fundamental standards of conduct. (e.g. parents) - Comparative Inﬂuence: e.g. weight watchers, - Reference groups can be formal (large organizations), or informal (friends and family). Marketers tend to be more successful at inﬂuencing formal than informal groups because they are more easily accessible and identiﬁable. However, small informal groups typically have higher inﬂuencing power as they are more involved with the consumer’s life. - Brand community: a set of consumers who share a set of social relationships based on usage of and interest in a product. - Aspirational reference groups: comprise idealized ﬁgures, such as successful businesspeople, athletes, or performers. - Membership reference groups: involve other customers who belong to the same groups as we do. (e.g. friend, family, sport club friends) - The likelihood that people will become part of a consumer’s identiﬁed reference group is a7ected by several factors: o Propinquity (physical nearness): when physical distance decreases, relationships between people are more likely to form. o Mere exposure: we become like people or things simply as a result of seeing them more often. o Group cohesiveness: the degree to which members of a group are attracted to each other and value their group membership. As the value of the group to the individual increases, so too does the likelihood that the group will guide consumption decisions. - Dissociative Reference Group: groups/ group members the consumer wants to avoid association with. (hence avoid purchasing anything that could identify one with that group) - Antibrand community: groups that are united by distain from something/someone - Social Power: the capacity to alter the actions of others. - Power Bases: o Referent Power: If a person admires the qualities of an individual or group, he or she will try to imitate those qualities by copying the referent’s behaviors as a guide to forming consumption preferences. o Informational Power: A person can have information power simply because he or she knows something others would like to know. o Legitimate Power: Sometimes people are granted power by virtue of social agreements, such as that given to police o7icers and politicians. (marketers may borrow legitimacy, e.g. by letting someone wear a doctor’s coat in an ad) o Expert Power: derived from possessing a speciﬁc knowledge or skill. o Reward Power: when a person or group has the means to provide positive reinforcement- a stimulus that increases a behavior or response- that entity will have power over a consumer to the extent that this reinforcement is valued or desired. o Coercive Power: often e7ective in the short term, it does not tend to produce permanent attitudinal or behavioral change. Surveillance is usually required to make people do something they don’t want to. - Conformity: refers to a change in beliefs or actions as a reaction to real or imagined group pressure. (norms of society) - Factors of Conformity: o Cultural Pressures o Fear of deviance o Commitment o Group Unanimity, size, and expertise o Susceptibility to interpersonal inﬂuence o Environmental cues - Social Comparison Theory: suggests that consumers will often compare themselves to others in ways that increase the stability of self-evaluation, especially when objective evidence is unavailable. We tend to choose a co-oriented peer, a person of equivalent standing, when undergoing social comparison. - Deindividuation: when individual entities get submerged within the group. - Risky shift: in many cases group members show a greater willingness to consider riskier alternatives following group discussion than they would if each member made his or her own decision with no discussion. àDue to di7usion of responsibility à Due to value hypothesis: riskiness as culturally valued characteristic, and social pressures operate on individuals to conform to attributes. - Decision Polarization: whichever direction the group members were leaning toward before the discussion began (for/against product), becomes even more extreme after the group discussion. - People shopping groups tend to spend more, due to group pressure, gaining approval, etc. à Companies encourage group shopping activities. - Bandwagon e7ect: a psychological phenomenon where people adopt certain behaviors, styles, or attitudes simply because others are doing so. - Social loaﬁng: the phenomenon of a person exerting less e7ort to achieve a goal when they work in a group than when working alone. - Di7erent members in a group have di7erent roles: o Initiator (brings up idea) o Gatekeeper (conducts and control information ﬂow) o Inﬂuencer (tries to sway outcome of decision) o Buyer o User - Reactance: an unpleasant motivational reaction to o7ers, persons, rules, regulations, advice, recommendations, information, and messages that are perceived to threaten or eliminate speciﬁc behavioral freedoms. - Opinion leaders: knowledgeable people whose advice others take seriously. They possess a lot of social power. o They are technically competent and possess exert power o They pre-screen, evaluate product information in unbiased way à knowledge power o They tend to be socially active and highly interconnected in their communities. o They tend to be similar to the consumer in terms of their values and beliefs. à homophilous o Opinion leaders are among the ﬁrst to buy new products, absorbing most of the risk. - Generalized opinion leader: someone whose recommendations are sought for all types of purchases. - Monomorphic: experts in a limited ﬁeld - Polymorphic: experts in several ﬁelds - Two-step ﬂow model of inﬂuence: suggests that the ﬂow of information and inﬂuence from the mass media to their audiences involves two steps: from the media to certain individuals (i.e., the opinion leaders) and from them to the public. - Market Maven: consumer category consisting of people who are actively involved in transmitting marketplace information of all types. - Surrogate consumer: a person who is hired to provide input into purchase decisions. - Identifying Opinion leaders: o The self-designating method: most commonly used technique: asking the individual whether they consider themselves to be opinion leaders. o Sociometric methods: trace communication patterns among group members, allow researchers to systematically map out interactions. à identify the ‘source’ of information in the group. - Tie strength: refers to the nature of bond between people. à from strong primary (like spouse) or weak secondary (acquaintance) à Bridging function: referral behavior that bridges connections - Word-of-Mouth communication (WOM): product information transmitted by individuals to individuals. à Far more powerful than ads, inﬂuences 2/3 of the consumers à people may use WOM because they have expertise in the product and want to share, they want an ego boost from demonstrating they own that product, or they want to genuinely help a person. - Negative WOM: is very powerful and weighted more heavily than positive WOM by consumers. - Buzz Marketing: activities undertaken by marketers to encourage consumers to spread WOM about the brand. - Product curators: some marketers proactively seek out inﬂuencers to help them identify just what they should o7er to their customers. - Wisdom of Crowds: argues that under the right circumstances groups are smarter than the smartest people in them. - Guerilla marketing: promotional strategies that use unconventional locations and intensive WOM campaigns to push products. - Viral Marketing: strategy of getting customers to sell or promote product on behalf of the company that creates it. Approach is particularly suited to the web. - Nodes: members of the network - Media Multiplexity: ﬂows of communication across various member on various platforms in various directions. - Successful communities possess several important characteristics: o Standard of behavior o Member contributions (most members are lurkers, only 10% participate) o Degree of connectedness o Network e7ects - Mass connecters: huge inﬂuencers - Content marketing: a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly deﬁned audience, - and ultimately to drive proﬁtable customer action. SESSION 9 – The Self - Self-concept: refers to the beliefs a person holds about his or her own attributes and how he or she evaluates these qualities. - Social comparison: exposure ads can trigger a process of social comparison, wherein the person tries to evaluate his or herself by comparing it with other people’s selves and those of media images. - Impression management: when a person works hard to manage what others think of them (strategically). - Avoidance Self: the type of person we don’t want to be. - Symbolic interactionism: stresses that relationships with other people play an important part in forming the self. - Looking-glass self: the process of imagining other’s reactions to us. The process of reﬂexive evaluation occurs when an individual attempts to deﬁne the self. - Extended self: people may purchase products to help their role in the person they identify themselves as, and here use products to sell that identity. à products become the extended self. - Symbolic self-completion theory predicts that people who have an incomplete self-deﬁnition tend to complete this identity by acquiring and displaying symbols associated with it. - Compensatory consumption: when consumers are threatened or lacking on a particular dimension, they may consume in ways that allows them to cope with this treat. - Cognitive matching: over time we tend to form relationships with products that resemble the bonds we create with other people (love, respect, hate). - Consumers deﬁne themselves by referring to four levels of the extended self: o 1. Individual level (consumers may include many personal possessions like jewelry, clothes, or cars) o 2. Family level (part of extended self includes a consumer’s residence and furnishings in it) o 3. Community level (commons for consumers to describe themselves in terms of the neighborhood or the town they come from) o 4. Group level (attachments to certain social groups, part of extended self) - Digital Self: the version of ourselves that we post online, that we can modify to our liking. - Sex-typed traits: characteristics typically associated with one gender or the other. - Androgyny: the possession of both masculine and feminine traits. - Body cathexis: refers to the emotional signiﬁcance of some object or idea to a person, and some parts of the body are more central to self-concept than others. - Body Decoration and Mutilation: o To separate group members from non-members o To place the individual in the social organization o To place the person in a gender category o To enhance gender-role identiﬁcation o To provide a sense of security o To indicate desired social conduct o To indicate high status or rank Self-Esteem: Refers to the positive aspect of self-concept Power and Self-Esteem: A7ects how consumers spend money Envy and Self-Esteem: A7ects how consumers respond to ads and their level of participation SESSION 10 – Experiential Marketing - Consumer preferences are shifting more and more from buying just a product, to buying an experience. They are looking to spend money that engage them personally and are memorable. - Experiences are increasingly becoming a di7erentiating factor and driver for value creation. What matters to costumers is how products and services are delivered to them. - Firms are competing for consumer’s time and attention. It is hence important to know where people spend their time. - Services are o7ered on demand, while experiences unfold over time à A service: Time well saved à An experience: Time well spent - The company no longer needs to o7er goods and services alone, but rather experiences rich in sensations - Logical Rational Approach Experiential Approach Information processing - Challenging consumer rationality Assumption of consumer - Emphasis on entertainment rationality - Senses, sensations and emotions Emphasis on problem solving Cognition Consumers are motivated to - What motivates consumers, is the maximize their beneﬁts or well- search for pleasure, sensations being (and, as a corollary, to and esthetics reduce their costs) - Immersion Distance - The experiential Journey (Customer Map): schematically represents the feelings, emotions, motivations and questions of consumers at each stage of the process. It integrates consumer’s interactions with the brand and points of contact. Stages: Pre-Visit, Visit, Post-Visit - à look out for time, points of contact, critical points, reinforcements.

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