Consumer Behavior Summary PDF

lOMoARcPSD|13067510 Consumer Behavior summary Consumer behaviour (Universidad Carlos III de Madrid) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Fernando Rodríguez (fernandorodriguezandreu@...

lOMoARcPSD|13067510 Consumer Behavior summary Consumer behaviour (Universidad Carlos III de Madrid) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 CONSUMER BEHAVIOUR TOPIC 2 - THE SELF 2 TOPIC 3 - PERCEPTION 4 TOPIC 4 - MARKET RESEARCH IN CB 9 TOPIC 5 - MOTIVATION 12 TOPIC 6 - LEARNING AND MEMORY 16 TOPIC 7 - ATTITUDES & EMOTION 21 TOPIC 8 - SOCIAL INFLUENCE. 27 TOPIC 9 – DECISION MAKING 32 TOPIC 10 - CULTURE. 37 1 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 2 - THE SELF The self-concept The self-concept refers to the beliefs a person holds about his or her attributes, and how he or she evaluates these qualities. While one’s overall self-concept may be positive, there are certainly parts of the self that are evaluated more positively than others. Consumers’ self-concepts are reflections of their attitudes towards themselves. Whether these attitudes are positive or negative, they will help to guide many purchase decisions; products can be used to bolster self-esteem or to ‘reward’ the self. Attributes of self-concept can be described along such dimensions as their ​content ​(for example, facial attractiveness vs. mental aptitude), ​valence ​on positivity or negativity (i.e. self-esteem), ​intensity (and stability over time) and ​accuracy ​(that is, the degree to which one’s self-assessment corresponds to reality) Self-esteem Self-esteem refers to the positivity of a person's self-concept, is often related to acceptance by others. A good example is when the tendency of members of high-status groups to have higher self.esteem than excluded people. Marketing ​communications can ​influence ​a consumer’s level of self-esteem. Exposure to ads can trigger the basic human process of ​social comparison​, where the person tries to evaluate his or her self by comparing it to the people depicted in these artificial images. Self-esteem advertising attempts to ​change product attitudes by stimulating positive feelings about the self. One strategy is to challenge the consumer’s self-esteem and then show a linkage to a product that will provide a remedy. Sometimes compliments are derived by comparing the person to others. Ideal vs real self The ideal self is a person’s conception of how he or she would like to be, while the actual self refers to our more realistic appraisal of the qualities we have or lack. The ideal self is moulded by elements of the consumer’s culture, such as heroes or people depicted in advertising who serve as models of achievement or appearance While most people experience a discrepancy between their real and ideal selves, for some consumers this gap is larger than for others. These people are especially good targets for marketing communications that employ fantasy appeals. These marketing strategies allow us to extend our vision of ourselves by placing us in unfamiliar, exciting situations or by permitting us to try interesting or provocative roles. Multiple self The self can be thought of as having different components, or role identities, and only some of these are active at any given time. Some identities (e.g. husband, boss, student) are more central to the self than others, but other identities may be dominant in specific situations. 2 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Each of us is really made up of multiple selves. We have as many selves as we do social roles. This causes us to prefer different products and services. Symbolic interactionism The sociological tradition of symbolic interactionism stresses that relationships with other people play a large part in forming the self. Essentially the consumer poses the question: ‘Who am I in this situation?’ The answer to this question is greatly influenced by those around us: ‘Who do other people think I am? We tend to pattern our behaviour on the perceived expectations of others in a form of self-fulfilling prophecy. By acting the way we assume others expect us to act, we may confirm these perceptions and it is often expressed in our ‘gendered roles. The looking glass self This process of imagining the reactions of others towards us. According to this view, our desire to define ourselves operates as a sort of psychological sonar: we take readings of our own identity by ‘bouncing’ signals off others and trying to project what impression they have of us. The looking-glass image we receive will differ depending upon whose views we are considering. Consumption and self-concept Consumers learn that different roles are accompanied by groups of products and activities which help to define these roles. Some objects are so important to the roles we play that they can be viewed as a part of the extended self. Consumers use self-altering products to express individualism by maintaining or creating new self, extending the self or conforming. Since consumption is a base for judgments about a person’s social identity, The use of consumption information to define the self is especially important when an identity is yet to be adequately formed, something that occurs when a consumer plays a new or unfamiliar role. ​ ymbolic self-completion theory predicts that people who have an incomplete self-definition tend to S complete this identity by acquiring and displaying symbols associated with it. S​elf-image congruence models predict that products will be chosen when their attributes match some aspect of the self. These models assume a process of cognitive matching between these attributes and the consumer’s self-image. (Ejemplo: los dueños que escogen mascotas que se parecen a ellos) 3 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 3 - PERCEPTION The Perceptual process Perception is a three-stage process that translates raw stimuli into meaning. These three stages of exposure (or sensation) , attention and interpretation​ ​make up the process of perception. 1. Exposure (or sensation) Sensation ​refers to the immediate response of our sensory receptors (e.g. eyes, ears, nose, mouth, fingers) to such basic stimuli as light, colour and sound. ​Perception is the process by which physical sensations, such as sights, sounds, and smells, are selected, organized and interpreted. Such interpretations or assumptions stem from ​schemas​, or organized collections of beliefs and feelings. A perceptual process can be broken down into the following stages: 1. ​Primitive categorization​: basic characteristics of the stimuli are isolated. 2. ​Cue check​: characteristics are analysed in preparation for the selection of a schema. 3. ​Confirmation check​: schema is selected 4. ​Confirmation completion​: the decision is made as to what the stimuli is. After that, the perceptual process is very important for a brand's positioning. For that, marketers tend to use ​perceptual maps ​in order to answer some crucial strategic questions, such as which product alternatives are seen by consumers as similar or dissimilar. SENSORY SYSTEMS The hierarchy of senses is: vision (the most objective)​, sound, touch, smell and taste ​(the least objective)​. Nowadays there is a new tendency called ​sensory marketing ​based on paying extra attention to the impact of sensations in our product experiences (i.e: the smell of a hotels’ hall, the smell of Hollister…). This is due to the fact that our senses help us to decide which products appeal to us. o ​Vision: ​Marketers rely heavily on visual elements in advertising, store design and packaging. They communicate meanings on the ​visual channel ​through a product’s colour, size and styling. At this point​, colours may even ​influence our emotions more directly​. Evidence suggests that some colours (particularly red) create feelings of arousal and stimulate appetite, and others (such as blue) create more relaxing feelings. Some reactions to colour come from learned associations, biological and cultural differences, age also influences our responsiveness toward colours and finally, even our culture and language affect the colours we see. In addition, when some colour combinations come to be so strongly associated with a corporation, it receives the name of the company's​ trade dress. o ​Smell: ​Odours can stir emotions or create a calming feeling. They can invoke memories or relieve stress. o ​Sound: os acordais de la cancion de coca-cola de 2010 para el Mundial, de un hombre de Somalia, pues al parecer la hicieron como una campaña de marketing muy innovadora. So, Coke has used a technique called ​audio watermaking. ​This is a popular and well-known trick that has been around for 4 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 centuries and used by composers and producers to weave a sound/motif into a piece of music. (​For our understanding, ​este audio watermaking es la tipica cancioncilla que no te sale de la cabeza xq tiene unas caracteristicas que te gusta y hace q se te repita todo el rato). Regarding that sense, there are two main areas of research that have widespread applications in consumer contexts: 1. The effects of background music on mood Muzak (​es el “concepto” de los Americanos de musica de fondo, o musica de ascensor). This so-called “functional music” is played in stores, shopping centres and offices either to relax or stimulate consumers: - Slow music: ​makes people take their time and spend more money. - Loud music: ​makes them move through the store quickly without affecting sales. - Classical music: ​lead people to buy more expensive merchandise. 2. The influence of speaking rate on attitude change and message compression. Time compression is a technique used by broadcasters to manipulate perceptions of sound. The evidence of the effectiveness of time compression is mixed, increasing persuasion in some situations but to reduce it in others. o ​Touch: ​touch can influence sales interaction. People tend to associate the textures of fabrics and other products with underlying product qualities. o ​Taste: ​our taste receptors contribute to our experience of many products. An interesting point here is that companies may use a group of ​“sensory panellists” as tasters. These consumers are recruited because they have superior sensory abilities and are then given six months’ training. In a blind taste test, panellists rate the products of a company and its competitors on a number of dimensions. SENSORY THRESHOLDS There are stimuli that people are not capable of perceiving. The science that focuses on how the physical environment is integrated into our personal, subjective world is known as ​psychophysics. o ​The absolute threshold: ​refers to the minimum amount of stimulation that can be detected on a sensory channel. o ​The differential threshold: refers to the ability of a sensory system to detect changes or differences between two stimuli. The minimum change in a stimulus that can be detected is known as ​JND ​(“Just Noticeable Difference”). In addition, it is important to understand ​Weber’s Law that states: ​The stronger the initial stimuli, the greater the change must be for the second stimuli to be noticed. In other words, the JND between two stimuli is not an absolute amount but an amount relative to the intensity of the first stimuli. PERCEPTUAL SELECTION 5 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 - Augmented reality This term refers to media that combines a physical layer with a digital layer to create a combined experience. § ​Web-based AR: ​these techniques use your PC and webcam to offer an enhanced experience via a marker, image or through motion capture. § ​Kiosk-​based AR: this is similar to web-based AR, but you can often find more powerful applications that use 3D or facial tracking. § ​Mobile AR: these applications use the viewfinder on a mobile phone to access enhanced digital information. - Subliminal perception. This term refers to a stimulus below the level of consumers’ awareness. If you can see it or hear it, it’s not subliminal; the stimulus is above the level of conscious awareness. Marketers supposedly send subliminal messages on both ​visual ​and ​aural channels. ​Embeds are tiny figures that they insert into magazine advertising via high-speed photography or airbrushing. These hidden figures, usually of a sexual nature, supposedly exert strong but unconscious influences on innocent readers. También, en el sector de los CD de auto-ayuda, se ha visto como el uso de mensajes subliminales ha ayudado a los consumidores a cambiar comportamientos de su vida diaria como dejar de fumar, perder peso e incluso ganar confianza. At this point, ​does subliminal perception work? So, for this kind of message to have a prayer of working, an advertiser has to tailor it specifically to an individual rather than the mass message suitable for the general public. The stimulus should also be close to the liminal threshold as possible. Here are other discouraging factors: wide individual differences referring to their threshold levels; advertisers lack control over consumers’ distance and position from the screen; the viewer must pay absolute attention to the stimulus; it works only at a very general level. 2. Attention Attention is the degree to which consumers focus on stimuli within their range of exposure. Consumers often are in a state of ​sensory overload, ​where they are exposed to far more information than they can process. Taking into account the slides, attention works in two different ways: 1. Location state (where?) - Saliency map - Systematic search 2. Identification state (what?): gather more information about the selected object (i.e: reading, holding, etc…) MULTITASKING AND ATTENTION More than a half of teens report that they engage in ​multitasking, ​where they process information from more than one medium at a time as they attend to their cell phones, TVs, instant messages and so on. How do marketers get our attention? The process of ​perceptual selection means that people attend to only a small portion of the stimuli to which they are exposed. Consumers practice a form of ‘psychic 6 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 economy’, picking and choosing among stimuli to avoid being overwhelmed. How do they choose? Both personal and stimulus factors help to decide. 1. PERSONAL FACTORS​: consumers are more likely to be aware of stimuli that relate to their current needs, a behaviour known as ​perceptual vigilance. ​For example, a consumer who rarely notices car ads, will become very much aware of them when she or he is in the market for a new car. The flip side of perceptual vigilance is ​perceptual defence. ​This means that people see what they want to see – and don’t see what they don’t want to see. For example, a heavy smoker may block out images of cancer-scarred lungs because these vivid reminders hit a bit too close to home. Still another factor is adaptation, ​the degree to which consumers continue to notice a stimulus over time. Several factors can lead to adaptation: - ​Intensity: ​less-intense stimuli habituate because they have less sensory impact. - ​Duration: stimuli that require relatively lengthy exposure in order to be processed habituate because they require a long attention span. - ​Discrimination: ​simple stimuli habituate because they don’t require attention to detail. - ​Exposure:​ frequently encountered stimuli habituate as the rate of exposure increases. - ​Relevance:​ stimuli that are irrelevant or unimportant habituate because they fail to attract attention. 2. STIMULUS SELECTION FACTORS: ​characteristics of the stimuli itself play an important role in determining what we notice and what we ignore. In general, we are more likely to notice stimuli that differ from others around (remember Weber’s Law). A message creates contrast in several ways: - ​Size: ​the size of the stimuli itself. - ​Colour:​ powerful way to draw attention. - ​Position:​ we stand a better chance of noticing stimuli that are in places we are more likely to look. - ​Novelty: stimuli that appear in unexpected ways or places tend to grab our attention. For that, marketers and advertisers start to allocate their campaigns in unconventional places. 3. ​Interpretation: ​ refers to the meaning that people assign to a sensory stimuli STIMULUS ORGANIZATION People do not perceive a single stimulus in isolation. A number of perceptual principles describe how stimuli are perceived and organized. First, these principles are based on work in ​gestalt psychology, ​it states that people derive meaning from the totality of a set of stimulus , rather than from any individual stimulus. - ​The principle of closure: ​implies that consumers tend to perceive an incomplete picture as complete. The utilization of that principle in marketing encourages audience participation, which increases the chance that people will attend to the message. - ​The principle of similarity: tell us that consumers tend to group together objects that share similar physical characteristics. This principle is used by companies who have extended product lines, but wish to keep certain features similar. - ​Figure-ground principle​: in which one part of a stimulus (the figure) will dominate while others parts recede into the background. THE ROLE OF SYMBOLISM IN INTERPRETATION Symbols help us make sense of the world by providing us with an interpretation of a stimulus that others often share. The degree to which the symbolism is consistent with our previous experience affects the meaning we assign to related objects. 7 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 For understanding how consumers interpret the meanings of symbols, some marketers are turning to a field of study known as semiotics, which examines the correspondence between signs and symbols and their role in the assignment of meaning. The intended meaning may be literal (e.g. an icon such as a street sign with a picture of children playing). Or it may be indexical if it relies on shared characteristics (e.g. the red in a stop sign means danger). Meaning also can be conveyed by a symbol in which an image is given meaning by convention or by agreement of members of a society. Marketer-created associations often take on lives of their own as consumers begin to believe that hype is, in fact, real. We call this condition hyperreality. 8 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 4 - MARKET RESEARCH IN CB 1. What exactly is an experiment? (En las primeras diapositivas se muestran distintos experimentos en los que manipulan la variable independiente para calcular los efectos de las variables dependientes) An experiment is a kind of test in which purposeful changes are made to the ​input variables ​of a process or system. So, that we may ​observe and identify the reasons for changes that may be observed in the ​output response​. For our understanding, en un experimento hacemos cambios intencionados sobre un input (en este caso, el input es el donut y sus distintos embalajes son los cambios intencionados). Para después analizar qué efectos tienen estos cambios sobre nuestros consumidores (output). A la hora de diseñar un experimento es muy importante definir tus variables (​Operational definition of variables). ​Para ello, cuando vamos a diseñar un experimento puedes hacerte esta pregunta y ver así las variables que vas a manipular ​(independent variables) ​y las que vas a calcular (​dependent variables): ​What exactly we will manipulate and measure? 2. Generating testable hypotheses. First of all, we must sort out our research between: 1. Problem Identification Research (intuitivamente, son los estudios que usamos para ver si existe algún problema con algo específico, i.e: el embalaje de nuestros productos afecta en la customers’ perception toward our product 2. Problem Solving Research ​(intuitivamente, son los estudios que usamos para ver cual es la mejor “medida” para solucionar nuestro problema, i.e: los envoltorios de plástico (vs. envoltorios de papel) incrementan/disminuyen la customers’ perception toward our product) Una vez sabemos qué tipo de estudio vamos a realizar, debemos generar nuestra hipótesis. A hypothesis is a testable theoretical relationship between two or more variables. In addition, a hypothesis is ​only testable if the ​variables are measurable (i.e: Attitude toward our product or willingness to buy our products measured in a 7-point linker scale). Also, a hypothesis is only testable if the ​relationship between the variables is precisely specified ​(i.e: ​H1: el embalaje de plástico (vs. embalaje de papel) ​decrease la willingness to buy our product; ​H2:​ el embalaje de papel (vs. embalaje de plástico) ​increase ​la willingness to buy our product) Summarizing, para hacer una hipótesis relevante tienes que tener muy claras las variables que vas a medir. Hay dos tipos de variables en las hipótesis: 1. Independent variables. (IV) These are the variables that we control (i.e: promotion focus vs. prevention focus; embalaje de plástico vs. embalaje de papel ; AD1 vs. AD2; big plate vs. small plate). 9 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 2. Dependent variables.​ ​(DV) These are the variables that we ​measured and recorded. In addition, those variables are affected by the IV (i.e: attitude toward our product, purchase intention, behavioural intentions toward our product after being exposed to a certain ad). 3. Scientific experimental designs. To begin, aquí sólo vemos estudios cuantitativos, por lo que tenemos tres tipos distintos de estudios cuantitativos. In other words, there are three different types of primary quantitative data: 1. Non-experimental- ​surveys, eye tracking 2. Experiments- ​Lab studies, field studies 3. Quasi-experiments- ​test markets EXPERIMENTS An experiment could be a basic experiment A/B (something that you can do by having a nice software called shutterstock) or more reliable experiments. At this point, an experiment has three fundamental elements: 1. Control Group vs. Treatment Group. Different groups get different treatments, we want to see the effect of the independent variable on the dependent variable​. In an experiment, ​researchers randomly assign consumers to different groups and then observe the effect of a treatment variable on the two groups (​example: control group tests old formula of a cleaning agent – we ask them how effective it is – treatment group tests new formula – we ask them how effective it is – groups are same on all other variables b/c of randomization and b/c of experimental controls (we give everyone in both groups the same stain on the same type of counter and the same paper towel – the only thing that differs is the formula of the cleaning agent – we can determine whether new formula is considered more or less effective than old formula) For our understanding, básicamente necesitamos un control group para ver si los efectos de las variables independientes son significativos para nuestras variables dependientes. 2. Look at the effect of the independent variables on the dependent variables. 3. Randomization In order to have a statistically and socially reliable research WE MUST randomly assign participants to the control or treatment groups. From a consumer behavior’s viewpoint, conducting an experiment has many p​ ros​ as: ○ Tightly controlled conditions in the lab so we can ascertain more accurately the effects of our independent variables over the dependent variables. ○ Help us to determine causality. On the other hand, the ​cons a​ re: ○ Real world validity (do people really pay as much attention to an ad in the lab as they do in the real world? NO). ○ Generalizability (must have a sample that represents your consumers in order to generalize- can be hard to get certain types of consumers into the lab like young people). To finish talking about the experiments: Why do Experimental Research??? - Running an experiment is a good way to show ​causation (​one variable produces an effect on another). 10 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 NOTA: consejos de la profe de la magistral traducidos a español: Ahora quiero hablar brevemente sobre la diferencia entre causalidad y correlación para ilustrar algunas de las trampas al tratar de establecer la causalidad a partir de ​datos no experimentales​. Suele malinterpretarse y constituye un problema al utilizar métodos de investigación que no pueden distinguir la causalidad de la correlación. Muchos datos pueden mostrar que dos variables están relacionadas (correlación), pero no pueden mostrar si una realmente está causando la otra o no. Una cosa que quiero que recuerden de esta conferencia es que la correlación no implica causalidad. Dos cosas pueden estar relacionadas, pero no causar la otra. (al final de las diapositivas habla sobre las confounding variables que podemos tener en el research) CONFOUNDING VARIABLES If we ​unintentionally change another variable together with our independent variable X, we can’t tell which of the two causes the differences in the dependent variable. Before collecting data, think of all possible confounding & nuisance variables, and try to control them all using precise experiment design!! If unable, measure them so that you could statistically control for their effects during your data analysis! 11 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 5 - MOTIVATION 1.​ ​The motivation process (goals, needs, wants) Unfulfilled needs wants and desires -> tension -> drive -> behaviour -> goal or need fulfilment -> tension reduction. Motivation​: driving force within individuals that impels them to action. It is produced by a state of tension by having a need which is unfulfilled -> consumers want to fulfil these needs and decrease the state of tension. 1.1​ ​Motivation and emotions Sentiment analysis​: a process through which social media collects and analyses the words people use when they describe a specific good or company. Motivation is largely driven by raw emotions (affect). At the most basic level, we are driven to heighten positive emotion or moods and to reduce negative ones. Our emotional reactions influence the likelihood that we will engage in an activity next time (positive or negative reinforce us). Bloggers’ motivation​: blogging for 1) self-expression 2) life documenting 3) commenting 4) forum participation 5) information seeking 1.2 Needs: ​essence of marketing content. When a gap exists between the desired and current state (bigger gap -> greater need -> more motivation). Needs are never 100% satisfied. New needs emerge as old ones are satisfied. People who achieve their goals set new and higher ones. ​Marketers do not create needs. They make consumers aware of needs and specify the way to satisfy them 1. Biogenic needs:​ elements necessary to maintain life (food, water, shelter) 2. Psychogenic needs: reflect the priorities of a culture and their effect on behaviour will vary from environment to environment. We acquire psychogenic needs as we become members of a specific culture (status, power and affiliation) If the need is utilitarian or hedonic, the magnitude of the tension it creates determines the urgency the consumer feels to reduce it (​degree of arousal a drive = how quickly our body tells us to reduce the tension we feel when a need is unfulfilled​). We can satisfy a basic need in any way and the specific path a person chooses is influenced by 1) the unique set of experiences and 2) values his culture has. 3. Utilitarian need: A desire to achieve some practical or functional benefit. We emphasize the goal, tangible attributes of products (fuel a car for it to work). 4. Hedonic needs: an experimental need, involving emotional responses or fantasies. We emphasize subjective and experiential aspects (self-confidence, excitement) DIRE DRIVE THEORY-PUSH EXPECTANCY THEORY-PULL BIOLOGICAL NEEDS LEARNED NEEDS Focuses on biological needs that produce unpleasant stat Behaviour is largely governed by expectations of of arousal (stomach rumbling when you are hungry). We achieving desirable outcomes. are motivated to decrease the tension caused by that “+ incentives” arousal. “pushed from within” 12 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 1.3​ ​Wants Want​: a specific way of satisfying a need. Depends on individual history, learned experiences, cultural environment, cultural factors … etc Motivational strength​: a person is willing to spend energy to reach the goal. It reflects their underlying motivation to reach it Homeostasis​: goal-oriented behaviour that tries to decrease or eliminate an unpleasant state and return to a balanced one – homeostasis theory from the case. 1.4​ ​Goals + valued goals​: consumers are motivated to approach the goal and will seek out products that will be useful to attain it Avoiding negative goals​: consumers are motivated to avoid negative outcome structuring their purchases or consumption activities Substitute goals: used when a consumer cannot attain a specific goal, so that a more achievable goal replaces it to reduce tensions and may even replace the 1​st​ goal over time 1.5​ ​Regulatory focus Regulatory focus​: way in which someone approaches pleasure, but avoids pain. Concentrates on desired end-states and the approach motivation used to go from the current state to the desired end-state Promotion-focus (achieve positive​): based on hopes and accomplishments = gains. Higher level gains are ideals, desires, luxury … etc Prevention-focus (avoid negative​): based on safety and responsibilities = non loses. Security and safety = follow guidelines and the rules. Pragmatic security and safety by following the rules, needs 2.​ ​Defence mechanisms (when not reaching goals) - AWRR Failure to achieve a goal may end in frustration. Some adapt, some adopt different mechanisms to protect their ego. Some approaches are: AGGRESSION​: RATIONALIZATION​: aggressive behaviour inventing plausible reasons for being unable to attain their goals (as not enough time) deciding that the goal is not worth it (how important is X to me in reality?) REGRESSION​: WITHDRAWAL​: childish or immature withdraw from the situation behaviour 3.​ ​Arousal (stimulation) of motives Physiological arousal​: state of hunger Emotional arousal​: frustration Cognitive​ ​arousal​: read information in a new advertisement Environmental arousal​: change of weather 13 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 4.​ ​Hierarchy of needs A)​ ​Maslow Unsatisfied needs -> motivation -> final behaviour Higher-order needs (internal): self-actualization, esteem, social needs Lower-order needs (external): safety, psychological needs - ​Self- actualization​: drive to become what one is capable of becoming - ​Esteem Ego needs -internal: self-respect, autonomy, achievement -external: status, recognition, attention - ​Social​: affection, belonging, acceptance, friendship Belonginess - ​Safety​: protection from physical and emotional harm - ​Physiological​: hunger, thirst, shelter Problems -> some good can satisfy different needs, hierarchy is culture bound (western culture). B)​ ​Consumer needs (Mc Lelland’s 3 needs theory - APA) - ​Need for achievement​: drive to excel, to achieve in relation to a set of standards, to strive to succeed -> ​PERFORMANCE​. Place a premium on products that signify success (lux, technology) - ​Need for affiliation​: desire for friendly and close interpersonal relations -> ​RECOGNITION​. Focus on goods that are used in groups (alcohol, sports bars) - ​Need for power: ​need to make others behave in a way that they would not behave otherwise -> INFLUENCE. ​Focus on goods that allow them to have mastery over surroundings (nice cars, big radios) Moreover, there is also a ​need for uniqueness​: need to assert one’s individual qualities. Enjoye goods that focus on their unique character (clothes, perfume) 5.​ ​Motivational conflicts Cognitive dissonance​: distressing mental state caused by inconsistency between a person’s 2 beliefs or between a belief and an action. When dissonance occurs people change their behaviour, justify their behaviour by changing the conflicting cognition and justify their behaviour by adding new cognitions. 1) A goal has a valence, positive or negative 2) Goals can be sought or avoided Approach-approach conflict​: a person must choose among 2 desirable alternatives. Solution: show superiority of your alternatives and combine features Approach-avoidance conflict: many products or services we desire have negative consequences attached to them Avoidance-avoidance conflict: a choice between 2 undesirable alternatives. Solution: promote your products as a reasonable alternative and turn – into + 6.​ ​Consumer involvement Involvement: perceived relevance of an object based on one’s needs, values and interests Cognitive involvement​: a person is motivated to learn all he can about the product 14 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Product involvement​: level of interest in making a particular purchase Message-response involvement (advertising involvement): interest in processing marketing communications Ego involvement (enduring involvement): the importance of a product to a customer’s self-concept cedents of involvement vement ble results of involvement onal factors products ortance of good class d, importance, value, interest) advertisements ferences in product attributes ference for X brand ct or stimulus factors advertisements itation of counter-arguments to a erentiation of alternatives, source products ectiveness of adv to induce purch munication, content of munication) tional factors purchase decision uence of price hase, use, occasion) advertisements w many info search e deliberating alternatives e of decision rule used in choice Involvement is a function of person, situation and object. The level of involvement may be influenced by 1 or more than 1 of these factors. Interactions among persons, situation and object factors are likely to occur. 6.2 Continuum inertia A person’s degree of 2 involvement can be conceived as continuum, consumption at the low end of involvement is characterized by intertia. In this state, decisions are made out of habir because the consumer lacks the information to consider alternatives. On the other hand, decisions can be very passionate and carry great meaning for a person. In consumer situations of high involvement, the consumer enters a flow of state, where he is in an elated state of focus and loses track of time. 6.3 Level of involvement High involvement​: think before you act (left brain) -> digital, verbal, order, rational, linear, analytic Low involvement​: act before you think (right brain) -> art, big picture, music, creative 6.4 Strategies to increase involvement Appeal to consumer’s hedonic needs. Use novel or prominent stimuli, include celebrity endorsers, build a bond with consumers by maintaining an ongoing relationship with them. Internet has provided consumers with new opportunities for creating loyal bonds with customers and the possibility to personalize products and services. 15 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 6 - LEARNING AND MEMORY Learning: The ​process ​by which individuals ​acquire ​the ​knowledge and experience ​that they apply to future related behaviour Ways of learning: 1.​ ​Simple association between a Stimulus and a Response (e.g. logo recognition “Coca Cola”) 2. ​Complex cognitive activity (e.g. ​e.g., a woman shopping perfume may remember the reactions her friend received on wearing it, and she may base her purchase behaviour on these reactions) The Learning Process ​Learning:​ A relatively permanent change in behaviour caused by experience –direct experience –learning from others (​Vicarious Learning​) –incidental learning ​Incidental Learning: Casual, unintentional acquisition of knowledge (e.g., you may learn about brands even when not using them (associations from advertising) ​Learning is an Ongoing Process:​ Constantly being revised Elements of learning theories Motivation: ​Unfilled needs lead to motivation Cues:​ Stimuli that direct motives Response: ​Consumer reaction to drive or cue Reinforcement: ​Increases the likelihood that a response will occur in the future as a result of a cue Two major learning theories (​I-II​) : I.BEHAVIOURAL LEARNING: ​Based on observable behaviours (responses) that occur as the result of exposure to stimuli Classical based on repetition Conditioning theories: Instrumental based on avoiding punishment/ 1)​ ​Classical Conditioning reinforcement “Pavlov’s dog” Model - Ivan Pavlov (1849-1936) Instrumental: occurs as the person learns to perform behaviours that produce positive outcomes and avoid those that result in negative outcomes. 16 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Classical Conditioning in Marketing Brand s (CS) should be paired with a strong US – emotional responses and positive feelings (UR) associated with the US should spill over to the brand –after repetition, brand should elicit the same emotional responses and positive feelings (CR) Important is finding a strong UCS to which a product can be paired – e.g. babies, sexy models, beautiful scenery Classical Conditioning Orders Temporal order is important – Best conditioning: ​CS​ precedes ​UCS​ (forward) – Worst conditioning:​UCS​ precedes ​CS ​(backward) Repetition Conditioning effects are more likely to occur after the ​CS and the ​UCS have been paired a nº of times - ​Contiguity​: consistent pairing of products with ​UCS When the ​UCS​ is not paired with the ​CS​ : extinction CS-Conditioned stimulus Requirements for Classical Conditioning UCS- unconditioned stimulus CR- Conditioned response Forward conditioning: CS should be before UCS UCR- unconditioned respons UCS and CS belong logically to each other Better to have a CS that is novel and unfamiliar Better to have a UCS that is biologically or symbolically salient Repetition: Optimal amount of exposures to a marketing communication = 3 –​1st exposure​ = creating brand awareness –2nd exposure​ = demonstrate relevance to consumer –3rd exposure​ = remind the product's benefits “Wear out” problem people are tired to see the same stimuli repeated many times Stimulus Generalization Tendency of a stimulus similar to a CS to evoke similar, conditioned responses – e.g., Pavlov's dogs also started to salivated on the sound of key jangling (sound similar to the ringing of a bell) E.g.: Look-alike logos, Look-alike packaging, brand and line extensions, family branding, licensing… Stimulus Discrimination ​“Unique combination of CS and UCS” Ability to differentiate between a CS and other stimuli that have not been paired with an UCS Stimulus discrimination occurs when an UCS does not follow a stimulus similar to a CS. When this happens, reactions weaken and will soon disappear. E.g.: Apple wants consumers to resist other lower priced smartphones that use a similar touch screen design but are not the genuine iPhone. 17 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 2)​ ​Instrumental or Operant (Burrhus F. Skinner 1904-1990) Motivation and emotion People are driven to heighten positive emotion or mood, and to reduce negative feelings Emotional reactions in turn influence the likelihood that we will engage in an activity next time they positively or negatively reinforce us. Instrumental (Operant) conditioning occurs as the person learns to perform behaviours that produce positive outcomes and avoid those that result in negative outcomes. ➔ Reinforcement = Increase the behaviour ➔ Punishment = Decrease the behaviour Instrumental conditioning occurs in three ways: 1) Positive reinforcement: where a reward is delivered following a behaviour. E.g.You clean your room and get a hug from your parents or roommates A behavior that is rewarded is more likely to occur again When a positive outcomes is no longer received, the learned stimulus response connection will not be maintained: Extinction 2) Negative reinforcement: where a negative outcome is avoided by performing a behaviour. E.g. You put a sunscreen on to avoid getting sunburned A behavior that avoids negative outcomes is more likely to occur 3) Punishment: ​where a behaviour is followed by unpleasant events. E.g. You arrive at work late and the boss gives you more night shifts A behavior that leads to negative outcomes is less likely to occur. Examples: – a detergent that does not clean your laundry properly will not be bought again – a person that is being ridiculed by his friends for a bad smelling perfume will not buy that perfume again Instrumental conditioning rules (schedule) An important factor in operant conditioning is the set of rules by which appropriate reinforcements are given for a behaviour. – Ratio = Number of correct behavior – Fixed ratio reinforcement, known – Variable ratio reinforcement, not known – Interval = Time 18 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 – Fixed interval reinforcement, known – Variable interval reinforcement,not known Classical vs. Instrumental Conditioning Classical conditioning Instrumental conditioning Cause of response Association of CS with US Association of reward with specific response Type of response Automatic, involuntary Deliberate, to obtain reward Types of learning Simple behaviors, attitudes and Relatively complex, goal directed feelings behavior II.COGNITIVE LEARNING: ​Learning based on mental information processing, often in response to problem solving Applications of Cognitive Learning Principles Consumers learn vicariously by seeing others receive reinforcement for their behaviors Marketers can reinforce or punish consumers indirectly by showing what happens to desirable models who do or do not use their products Memory systems: Knowledge structures: Products as memory markers 19 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Products also play a role as memory markers They are used by consumers to retrieve memories about past experiences and are often valued for their ability to do this. This function also contributes to the use of nostalgia in marketing strategies. Measuring memory in marketing Memory for product information can be measured through recognition and recall techniques. Consumers are more likely to recognize an advertisement if it is presented to them than to recall one without being given any cues. Problems with memory measures Response bias - results obtained from a measuring instrument are not necessarily due to what is being measured, but rather to something else about the instrument or the respondent. Memory lapses -​ people are prone to unintentionally forgetting information. Memory for facts vs. feelings - it is very difficult to take ‘feelings’ out of impressions about ads (especially if the ad raises strong emotions). 20 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 7 - ATTITUDES & EMOTION The big picture of Consumer Behavior Internal influences: attention, perception, memory,learning, decision rules, attitudes and emotions External influences: macro-environment (cross-cultural) and micro-environment (social groups) Both intervene on the decision making process: Decision making process: problem recognition → information acquisition → construction of alternatives → alternative evaluation and choice → decision implementation and re-evaluation Attitude is a lasting, general evaluation of people (including oneself), objects, ads or issues. Also a predisposition to evaluate an object or product positively or negatively. Attitudes toward product objects Ao Anything towards which one has an attitude is attitude toward products: product categories (automobiles,coffee…); product forms (sport cars…), brands (Corvette…), models (Corvette with automatic transmission), company (Starbucks…), advertisement, store, people, marketing strategies or ideas. Attitudes toward actions/behavior ​A​act Focus on the perceived consequences of a purchase or specific actions. A person might have a positive Ao towards a product, but a negative Aact towards it (ex. condoms). Attitudes toward the advertisement ​Aad A predisposition to respond in a favorable or unfavorable manner to a particular advertising stimulus during a particular exposure occasion. Determined by: - Attitude towards the advertiser - Evaluation of the ad execution itself - Mood evoked by the ad - Degree of arousal Ads can elicit emotions and feelings. These elicited emotions and feelings can affect the attitude towards the product. Forming attitudes Attitudes are formed through experience: complex cognitive processes, classic conditioning, instrumental conditioning → see attitude hierarchies Differing in involvement leads to different attitudes: attitudes of high involvement consumers are more extreme that attitudes of low involvement consumers. Different levels of Commitment to an Attitude Degree: the degree of commitment is related to the level of involvement with an attitude object. Compliance​ -​ ​at lowest level of involvement ○ Attitudes help in gaining rewards and avoiding punishments. ○ Superficial attitude. ○ Can change easily, eg. when other options are available. Identification ​- at medium level of involvement 21 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 ○ Attitudes are formed in order to be similar to others, eg. you drink pepsi because your favorite celebrity drinks pepsi Internalization ​- at highest level of involvement ○ Attitudes are internalized and become part of a consumer’s value system ○ Very deep attitudes The Consistency Principle (Principle of Cognitive Consistency): consumers value harmony among their thoughts, feelings or behaviors to be consistent with other experiences. Cognitive dissonance theory - ​distressing mental state caused by inconsistency between a person’s two beliefs or a belief and an action. When dissonance occurs, people change their behaviour / justify their behavior by changing the conflicting cognition / justify their behavior by adding new cognitions. Conditions for cognitive dissonance: - Decision is important and about expensive products - Action is irreversible - A number of desirable alternative is available - Unchosen alternatives have desirable features - Decision is psychologically significant - Decision is made as a result of a free will Self-Perception theory - ​observe yourself to understand what your attitudes are, in the same way you judge about attitudes of other people based on observing their behavior. It provides alternative explanations to dissonance effects: states that we maintain consistency by inferring that we must have a positive attitude towards an object if we have bought or consumed it. Relevant to low-involvement hierarchy since it involves situations in which behaviours are initially performed based on automatically evoked attitudes (implicit attitudes). Social Judgement Theory - we assimilate new information about attitude objects in light of what we already know/feel. Initial attitude is a frame of reference and new information is categorized in terms of existing standards. People differ in terms of the information they find acceptable or unacceptable and form → ​Latitudes of acceptance and rejection: ○ Ideas that fall within a latitude will be favorably received (assimilation effect) ○ Ideas that fall outside this zone will be rejected (contrast effect) Balance theory - ​relations among elements a person might perceive as belonging together. When perceptions are balanced, attitudes are likely to be stable. When inconsistencies are observed, more likely to observe changes in attitudes. 22 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Cognitive VS. Affective Cognition​ refers to the beliefs a consumer has about an attitude object. Affect ​refers to the way a consumer feels about an attitude object. The functions of Attitudes Attitudes exist because they serve some function for consumer (eg. make decisions) and are determined by a consumer’s motives and values. Utilitarian function: ​relates to rewards and punishments (eg. product provide pleasure or pain) Value-expressive function: expresses consumer’s values or self-concept (eg. what the product says about them, highly relevant to lifestyle analysis - social identity) Ego-defensive function:​ protect ourselves from external threats or internal feelings. Knowledge function: ​need for order, structure or meaning. Attitude can serve more than one function, but a particular one will be dominant. Components of Emotions Impression - feeling Activation - physiology Expression - behavior Facial feedback hypothesis - Strack, Martin & Stepper (1988): ​Physical facial change involving certain facial muscles results in an emotion. Explicación wiki: ​physiological activation of the facial regions associated with certain emotions holds a direct effect on the elicitation of such emotional states, and the lack of or inhibition of facial activation will result in the suppression (or absence altogether) of corresponding emotional states. Basic Emotion - Izard (1977): ​Most basic emotions are present in infancy, except for contempt, shame and guilt. Functions of emotions Information - ​Impression​: the “how-do-I-feel-about-it” heuristic. Communication - ​Expression​: informative to others Mobilization - ​Activation​: fight of flight (anger, fear), care and protect (love), gain time to reorient (surprise), goal striving (hope), move away from poison (disgust), acknowledge and heal (sadness), gain resources (joy). Models of Attitude and hierarchies of effects Attitude has three components: affect, behaviour and cognition. (ABC model of attitudes). Level of involvement: High involvement: think before you act Low involvement: act before you think Standard learning hierarchy (High involvement) Cognition (think) → Affet (feel) → Behavior (do) Is a problem-solving process. Beliefs lead to feelings, which in turn influence behavior. Attitude based on cognitive information processing. The person seeks out a lot of information, weighs alternatives and comes to a thought decision. Likely to occur if the decision is important to the consumer. 23 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Low involvement hierarchy Behavior (do) → Affect (feel) → Cognition (think) Based on good or bad experiences. Consumers do not have strong initial preference, act on limited knowledge and form an evaluation after product trial. More likely to respond to simple stimulus and having automatically evoked attitudes → ​Involvement paradox: the less important the product is to consumers, the more important are many of the marketing stimuli. Experiential hierarchy Affect → Behavior → Cognition An emotional response, feelings lead to behavior which generates beliefs. Attitude based on hedonic consumption. Highlights the idea that attitudes can be strongly influenced by intangible product attributes as package design. Fishbein Multi- Attribute model A consumer’s attitude (evaluation) of an attitude object (Ao) will depend on the beliefs they have about several or many attributes of the object. Multi-attribute models specify attributes, beliefs and importance weights. Fishbein model measures: 1. Salient beliefs people have about an Ao. 2. Object-attribute linkages, the probability that a particular object has an important attribute. 3. Evaluation of each of the important attributes. By combining the three elements, a consumer’s overall attitude towards an object can be computed. Theory of Reasoned Action (TRA) Intentions vs Behavior Attitude toward Buying ○ Attitude toward the act of buying (Aact): how someone feels about buying a product that has certain consequences Social pressure ○ Subjective Norm (SN) Normative Belief (NB): belief that others believe an action should or should not be taken Motivation to Comply (MC): degree to which consumers take into account anticipated reactions 24 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Theory of Planned Behavior (TPB) Three ways to Influence Attitudes 1. Attitude-based: classical conditioning 2. Belief-based: persuasion Arguments = explicit reason - why ○ Capitalize on relative advantage ○ Influence competitor rating Cues/heuristics = implicit reason - why ○ Product: price, product design, country of origin ○ Message: # of arguments, repetition ○ Source: attractiveness, expertise, status, number of sources Beliefs are easier to change than evaluations because evaluations are often linked to a person’s self concept. 3. Evaluation-based: Information ○ More info on how important a product/attribute is Scarcity ○ Products become more attractive if they are less available Change the perception of the problem, turn negative into positive and change the importance of an attribute. 25 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Evaluation and scarcity ​→ consumers are rational and invest in the best option. Loses have greater weight than gains (Kahneman & Tversky) Consumers might invest more in the less preferred option if they know it might disappear (Shiv & Ariely), eg. higher premiums for once in a lifetime opportunities, create an impression the option will disappear. The elaboration likelihood model (ELM) The ELM assumes that once a consumer receives a message they begin to process it. Depending on personal relevance of this information, one of two routes of persuasion will be followed. Under conditions of ​high involvement the consumer takes the ​central route to persuasion. Under conditions of low involvement​ a ​peripheral route​ is taken instead. 26 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 8 - SOCIAL INFLUENCE. Social influence is the process through which individuals or groups change the thoughts, feelings, and behaviors of others. Social power ​ describes the capacity to alter the actions of others’. Reference groups A ​reference group is ‘an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behaviour’. Reference groups influence consumers in three ways: The information influence means that others provide information on consumer choices. The utilitarian influence means that our choices are influenced by important others. The value-expressive influence means that the individual uses the consumer choice to express values consistent (or not) with the group. The term ​reference group ​is often used a bit more loosely to describe ​any ​external influence that provides social cues. Some people influence us simply because we feel similar to them. Normative influence. Reference group helps to set and enforce fundamental standards of conduct. (​parents​) Comparative influence. ​Whereby decisions about specific brands or activities are affected. (​Manchester United fan club​) In general, small, ​informal groups exert a more powerful influence on individual consumers. These groups tend to be more involved in our day-to-day lives and to be more important to us, because they are high in normative influence. Larger, ​formal groups tend to be more product or activity-specific and thus are high in comparative influence. Marketers tend to have more control over their influencing of formal groups because they are more easily identifiable and accessible. Types of reference groups A ​membership/ associative reference group ​consists of people we actually know; whereas although we don’t know those in an ​aspirational reference group, ​we can admire them anyway (​successful business people, athletes, performers...​). Not surprisingly, many marketing efforts that specifically adopt a reference group appeal concentrate on highly visible, widely admired figures (such as well-known athletes or performers) and link these people to brands so that the products they use or endorse also take on this aspirational quality. 27 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 We model our behavior to be consistent with what we think the group expects us to do. Sometimes, however, we also deliberately do the opposite if we want to distance ourselves from other people or groups who function as ​avoidance or dissociative groups, ​groups we don't want to belong to​. ​Many consumers find it difficult to express what they want, whereas they can quite clearly express what they do not want. The motivation to distance oneself from a negative reference group can be as or more powerful than the desire to please a positive group. When reference groups are important With more people in a group, it becomes less likely that any one member will be singled out for attention. ​De-individuation ​is a process in which individual identities get submerged within a group (​fancy dress parties​). Social loafing ​is a similar effect. It happens when we do not devote as much effort to a task because our contribution is part of a larger group effort (​tip more when you are alone than when in a group​). The ​risky shift effect ​refers to the observation that in many cases, group members show a greater willingness to consider riskier alternatives following group discussion than they would if each group member made his/her decision without talking about it with the others. Group discussion tends to increase ​decision polarisation. ​Therefore, whichever direction the group members were leaning towards before discussion began becomes even more extreme in that direction after discussion. Discussion among like-minded people tends to strengthen pre-existing attitudes. Conformity Conformity ​refers to a change in beliefs or actions as a reaction to real or imagined group pressure. In order for a society to function, its members develop ​norms​, or informal rules that govern behavior. ​Red Sneakers effect ​referred to people who exhibit non-conforming behavior (unconventional choices). Non-conforming behaviors under some conditions do lead to more positive impressions but these disappear if the observer is unsure why the brave soul is violating the norm or if they decide the violator is not doing so intentionally (he/she clueless). We also observe conformity in the online world; consumers are more likely to show interest in a product if they see that it is already popular. Types of social influence. Normative social influence (need to be accepted) ​occurs when a person conforms to meet the expectations of a person or group. This type of conformity results in public compliance with the group’s beliefs and behaviors but not necessarily in private acceptance. We often conform in order to be accepted by others. People will conform because they are afraid to look stupid, they want to be accepted byothrs and expectations of rewards and punishments. Furthermore,they will conform when the group is large, uniform and important. ​ ormative pressures usually result in ​public compliance without private acceptance - people go along N with the group even if they do not believe in what they are doing, or think it is wrong. ○ Conformity​- do what others do ○ Opportunism​- do different than others do 28 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 ○ Compliance​- do what others ask ○ Reactance​- do opposite of what they want/ask Informational social influence (need to know what's ‘right’) ​refers to conformity that occurs because the group’s behavior is taken as evidence of reality. We conform because we believe that others’ interpretation of an ambiguous situation is more correct than ours and will help us choose an appropriate course of action. People will conform when the situation is ambiguous, the situation is a crisis and when other people are experts. ○ Public compliance. ​Conforming to other people’s behavior publicly ​without necessarily believing ​in what we are doing or saying. ○ Private acceptance (internalization). ​Conforming to other people’s behavior out on ​genuine belief ​that what they're doing or saying is right. Social comparison Social comparison theory ​asserts that this process occurs as a way of increasing the stability one’s self-evaluation, especially when physical evidence is unavailable. This theory was studied in terms of only self-evaluation, is likely to have a negative effect on self-esteem. In general people tend to choose a ​co-oriented peer​, or a person of equivalent standing, when performing social comparison. Six principles of influence 1. Reciprocity. ​Give what you want to receive. a. Example. b. Application. Uninvited gifts, free samples, that’s not all, unequal exchange. 29 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 2. Commitment & consistency.​ It is easiest to resist at the beginning than at the end. a. Example. Lowballing (agree to initial offer), bait-and-switch (lower quality replacement) b. Applications. Strengthen commitment;write it down, make it public. 3. Authority. ​Expose your expertise. a. People feel compelled to follow an authority. Trustworthy and expert, appearance sufficient. Obedience helps to keep order and avoid chaos. b. Examples. c. Applications. Emphasize your expertise, “4 out of 5 doctors recommend”, references. 4. Liking. ​People like those who like them. a. People prefer to say ​YES​ to individuals they know and like. Liking has been associated with: i.Physical Attractiveness. ​Fund-raisers generate more, candidates receive more votes. ii.Similarity. ​More likely to do things for people dressed/ looked like them, buy insurance from a person similar to them. b. Applications. Target campaigns to similar ones, use attractive figures, emphasize similarity, search or create connections with customers. 5. Scarcity. ​Use exclusive information to persuade. a. People assign more value to opportunities when they are less available. b. Applications. Limited time offer, we are running out of the item, exclusivity of product and information about products. 6. Social proof. a. People look around to understand what is correct behavior in a given situation. The majority of the time is safe to go with the crowd. 30 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 b. Applications. “Billions and billions served”, “just one of the 50 million americans who invested in US saving bonds” c. Overcome “magnetic middle”. Adjust feedback message, negative for over-consumers, positive for under-consumers. Social norms are ​socially shared​, which means that there should be a certain social group upon which norms spread. Group relevance of social norms differentiates them from ​personal norms​, which are defined as self-based standards. Social norms provide "social poof" for consumers' attitude and behavior and are driven by ​social sanctions. Types of social norms. Descriptive norm. ​What most people do ○ Others know better ○ Others behave effectively Injunctive norm. ​What one should do ○ What others expect and request ○ Can arouse resistance Applications. The behavior of others in the social environment shapes individuals’ interpretations of, and responses to, the situation. People try to explain received information. Implications. Use ​descriptive norms with cognitive deliberation (AND support idea of ‘right majority’). Use ​injunctive norms ​without cognitive deliberation (OR stimulate positive thoughts,using humor). Word-of-mouth communication ​is product information transmitted by individuals to individuals. More reliable form of marketing, social pressure to conform, influences ⅔ of all sales, powerful when we are unfamiliar with product category. WOM communication is considered reliable and credible. 31 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 9 – DECISION MAKING Consumer purchase = response to a problem. A series of steps: 1. problem recognition 2. information search 3. evaluation of alternatives 4. product choice 5. outcomes Since some purchase decisions are more important than others, the amount of effort put in each one differs Consumer hyperchoice: condition where the large number of available options forces us to make repeated choices that drain psychological energy while decreasing our abilities to make smart decisions.too much product variety Perspectives on decision-making Rational perspective: people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weighing the pluses and minuses of each alternative, and arriving at a satisfactory decision incorporates the ​economics of information ​approach to the search process; it assumes that consumers will gather as much data as they need in order to make an informed decision and continue to search to the extent that the rewards of doing so (what economists call the ​utility​) exceed the costs. Limitations of this perspective: - consumers don’t follow this elaborate sequence every time they make a purchase - some of our purchases don’t seem rations because they don’t serve a rational purpose - people differ in terms of their cognitive processing style. Some of us tend to have a rational system of cognition ​that processes information analytically and sequentially using rules of logic, whereas others rely on an ​experiential system of cognition ​that processes information more holistically and in parallel Now it is believed that decision-makers actually possess a repertoire of different strategies Constructive processing: consumer evaluates the effort required to make a particular choice and then chooses a strategy best suited for the level of effort required. Consumers tailor their degree of cognitive effort to the task at hand when task requires a rational approach more effort is put into the decision, otherwise make more 32 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 automatic choices in the conditions of low involvement, our decision is a learned response to environmental cues = behavioural influence perspective in other conditions consumers are highly involved in the decision but we still cannot explain their selections entirely rationally (when explaining people’s choices of favourite music, art, ecc) = no single quality may be the determining factor, instead the ​experiential perspective Types of consumer decisions Express the amount of effort that goes into the decision in terms of a continuum, with habitual- decision making on the one end and extended problem solving on the other. 1. Extended problem-solving : corresponds to the traditional decision-making perspective. we usually initiate this careful process when the decision we have to make relates to our self-concept and we feel that the outcome may be risky in some way. Try to collect as much info as possible. 2. Limited problem-solving: more straightforward and simple. In this case we are not nearly as motivated to search for information or to evaluate each alternative rigorously. Instead, we are likely to use simple ​decision rules ​to choose among alternatives (cognitive shortcuts) 3. Habitual decision-making: choices that we make with little or no conscious effort, routinized purchases. Habitual decision-making poses a problem when a marketer tries to introduce a new way of doing an old task. In this case consumers must be convinced to ‘unfreeze’ their former habit and replace it with a new one 33 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Steps in the decision-making process 1. Problem creation: problem can arise in two ways the quality of the consumer’s ​actual state ​can sometimes move down- wards or decrease (​need recognition​)ex if you run out of a product or buy product that doesn’t satisfy needs the consumer’s ​ideal state ​can move upward (​opportunity recognition​)when we are exposed to different or better-quality products Marketers role in problem creation: c. create primary demand: consumers are encouraged to use a new product regardless of the brand in the early stages of the product’s life cycle d. secondary demand: when consumer are prompted to prefer specific brand instead of others 2. Information search: Pre-purchase search: involvement in the purchase, to increase product and market knowledge and higher satisfaction with purchase outcome On-going search: involvement with the product, increased satisfaction from search and other outcomes Internal vs external search: in our memory or in the environment Deliberate vs accidental search One important distinction in consumer search is between a decision strategy that seeks to deliver the best possible result (maximizing) and one that simply tries to yield an adequate solution, often as a way to reduce the costs of the decision-making process. This is called a satisfying solution. Because we rarely have the resources (especially the time) to weigh every possible factor into a decision, we will often happily settle for a solution that is just good enough. This perspective on decision making is called bounded rationality. Variety seeking/variety amnesia Biases in the decision-making process: o Mental accounting: the way we frame a problem and whether it is framed in terms of gains or losses influences our decisions. o ​Behavioural economics: ​blend of psychology and economics that studies how consumers make economic decisions recognizes that our decisions are not always based on logical factors such as price or quality but are influenced by our emotions o Anchoring: use an anchor for basing future judgement o Hyperopia :people who are so obsessed with preparing for the future they can’t enjoy the present o Loss aversion: emphasize our losses more than our gains (worse to lose many 34 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 than better to gain money) + our sense of risk differs when we face options involving gains versus those involving losses Non-conscious processes in consumer decision-making​: ex incidental brand exposure How much do we search​: search tends to be greatest among consumers who are moderately knowledgeable about the product inverted-U relationship between knowledge and external search effort (when expertise is very limited not capable of search extensively) Perceived risk 3. Evaluation of alternatives: a. Identifying alternatives: depends on the decision-making process we are using. - ​Evoked set​: alternatives a consumer knows (products already in memory plus those prominent in the environment). - ​Consideration set​: alternatives a consumer considers. - ​Inept set: ​alternatives the consumer is aware but doesn’t consider buying. - ​Inert set: ​alternatives not under consideration. Product categorization: cognitively represent information in a knowledge structure, a set of beliefs and the way we organize these beliefs in our minds. Typically we represent a product in a cognitive structure at one of three levels= basic level category (group items that have a lot in common but still permits us to consider a broad range of alternatives), superordinate category (more abstract), Subordinate category (individual brands) implications of product categorization: - product positioning - identifying competitors - exemplar products - locating products 4. Product choice: selecting among alternatives: Evaluative criteria: ​the dimensions we use to judge the merits of competing options. Determinant attributes: ​the features we actually use to differentiate among our choices (marketers can play a role in showing which attributes and features should be considered when making choice, ex. Use of natural ingredients as a determinant attribute) Neuromarketing: ​uses MRI to understand how brain reacts to alternatives ​Cybermediaries: ​intermediary that helps to filter and organize the online market info so that customers can identify and evaluate alternatives more efficiently Heuristics: ​mental shortcuts that lead to a speedy decision. These rules range from the very general (‘Higher-priced products are higher-quality products’ or ‘Buy the same brand I bought last time’) to the very specific (‘Buy Silver Spoon, the brand of sugar my mother always bought’) 35 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 - Relying on product signal: visible elements of a product that communicate some underlying quality (ex. Often judged vehicle mechanical conditions by its appearance) - Co-variation: the associations we have among events that may or may not actually influence one another (consumer may judge product quality by the length of time a manufacturer has been in business) - Market beliefs: assumptions about companies, products, and stores - Country of origin as a product signal - Inertia: buy a brand out of habit because it requires less effort - Brand loyalty: conscious decision to continue buying the same brand Decision rules we use when we care: - non compensatory decision rules: when we feel that a product with a low standing on one attribute cannot compensate for this flaw by doing better on another attribute. Eliminate all options that don’t meet basic standards - lexicographic rule: select the brand that is the best on the most impo attribute selected - elimination-by-aspects rule: impose specific cut-off on the most impo attribute - conjunctive rule: choose a brand if it meets all of the cut-offs while failure to meet any of the cut-offs implies rejecting it. - Compensatory decision rules: give a product a chance to make up for its shortcomings. Simple additive rule (choose the alternative that has the largest number of positive attributes) and weighted additive rule (take into account the relative impo of each attribute) CONTEXT EFFECTS 1. Substitution effect. Adding an item to a choice set will hurt similar items disproportionally more than dissimilar items 2.Attraction effect. New item can increase the favourable perceptions of similar, but superior, items 3. Compromise effect. Items gain market share when they become the compromise or middle option in the choice set 4.Range effect. Add item that stretches range, which enhances similarity between focal item and a competitor 5. Categorisation effect. Add item from different category, which enhances similarity between focal item and a competitor 6. Frequency effect. Add intermediate products to enhance distinctiveness of top product 36 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 TOPIC 10 - CULTURE. The patterns of meaning acquired by members of society expressed in their ​knowledge, beliefs, art, laws, morals, customs, and habits. ​Culture may also be thought of as the collective memory of a society. Cultural values; ​ a collective set of beliefs about what is important, useful, and desirable. Subcultures; smaller groups of a larger culture that at once share larger cultural values and demonstrate unique cultural values. A ​cultural system​ consists of three interrelated functional areas: Ecology. ​The way the system adapts to its habitat. This area is shaped by the technology used to obtain and distribute resources (​industrialised societies vs less affluent countries​). Social structure. ​The way orderly social life is maintained. This area includes the domestic and political groups that are dominant within the culture (​gender roles, male-female dominance​). Ideology. ​The way people relate to their environment and social groups. This area revolves around the belief that members of a society possess a common ​worldview. ​They also share an ethos, or set of moral and aesthetic principles. Language. Consumers make inferences based on a brand’s ​country-of-origin. Marketing implication. ​Foreign branding, ​strategy of spelling or pronouncing a brand name in a foreign language. 5 Hofstede’s Dimensions of Cultural Variability. Power distance. ​The extent to which less powerful members of a society accept that power in institutions and organizations is distributed unequally. Uncertainty avoidance. ​The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. Masculinity (vs femininity). ​A preference for achievement, heroism, and material success as opposed to a preference for relationships, modesty, caring for the weak, and the quality of life. Individualism vs Collectivism. ​A preference for individual welfare vs group welfare 37 Downloaded by Fernando Rodríguez ([email protected])  lOMoARcPSD|13067510 Long-term orientation. ​The extent to which society exhibits a pragmatic future oriented perspective. In ​collectivist cultures, ​people subordinate their personal goals to those of a stable in-group. By contrast, consumers in ​individualistic cultures ​attach more importance to personal goals, and people are more likely to change memberships when the demands of the group become too costly. Members of a culture share a system of ​beliefs ​and ​practices, ​including ​values. ​The process of learning the values of one’s culture is called enculturation. Each culture can be described by a set of core values. 38 Downloaded by Fernando Rodríguez ([email protected])