CONSUMER BEHAVIOR

1. Discuss the connection between consumer behavior and marketing

Most of the marketing strategies and tactics are based on explicit or implicit beliefs
about consumer behavior. (ý chính)
Consumer behavior insights are generated based on a brand’s marketing strategy. Brands
rely strongly on studying, analyzing, and incorporating consumer behavior into their
marketing strategies. To buil a relationship with the consumers through the channels of
marketing communication, the marketer has to decide which method would be most
suitable to effectively reach the consumers. Therefore, the company has to know its
target consumers, their location, their preferences, lifestyles,...
Support the decision making by understanding how consumer decides.
Marketing strategies can easily use consumer behavior insights and data to understand
the expectations that consumers have, their preferences, and what helps a company
retain a consumer. Knowledge of consumer behavior can be an important competitive
advantage while formulating marketing strategies. It can greatly reduce the odds of bad
decisions and market failures. Consumer behavior helps in identifying the unfulfilled
needs and wants of consumers which enables the marketer to design products or services
as per the requirements.
Enhancing the marketing effort by applying ethical tactics based on the information
collecting.
Companies use marketing concepts to promote and sell their products or services, and
consumer behavior is how consumers act and respond in the retail environment. In order
for a company to create a strong marketing campaign, it is important to understand how
and to what the consumer will respond. Understanding consumer behavior is critical for
marketing any product or service successfully. Once the unfulfilled needs and wants are
identified, the marketer has to determine the precise mix of four P: Product, Price, Place,
and Promotion. When a company can understand why people buy what they buy and the
reasons behind their decisions as consumers,the company can create a marketing
campaign that specifically addresses those elements of the purchasing decision.

2. What is social marketing and how it can change the behavior

Social marketing is the utilization of marketing theories and techniques to influence
behavior in order to achieve a social goal. In other words, social marketing is similar to
commercial marketing, except that its goal is not to maximize profits or sales; the goal is
a change in behavior that will benefit society – such as persuading more people to use
efficient lighting.
In a social marketing campaign, it's your goal to motivate a specific target audience to
change their behaviors. But that doesn't necessarily mean that's who you'll be always
speaking to. It's common for social marketing campaigns to speak directly to their target
audience.

The goal of social marketing is to influence behavior change by addressing social

problems and issues through education, communication, and persuasion. And it can be
changed behavior:
+ Education: Social marketing involves educating people about the benefits of healthy
behaviors, such as quitting smoking, exercising regularly, or eating a healthy diet. By
providing information and resources, people can make informed decisions and take
action to improve their health and well-being.
+ Communication: Social marketing uses communication channels such as advertising,
public relations, and social media to reach target audiences with messages that promote
healthy behaviors. By using clear and persuasive language, social marketers can inspire
people to take action and make positive changes in their lives.
+ Persuasion: Social marketing uses persuasive techniques such as social norms, peer
pressure, and incentives to encourage people to adopt healthy behaviors. By tapping into
people's values and beliefs, social marketers can motivate them to take action and make
a difference in their communities.
+ Collaboration: Social marketing involves collaboration with stakeholders such as
government agencies, non-profit organizations, and community leaders to address social
problems and issues. By working together, social marketers can leverage resources and
expertise to achieve greater impact and create lasting change.

3. Criticizing the marketing strategies and consumer behavior

- The marketing strategy lays out target markets and the value proposition that will be
offered based on an analysis of the best market opportunities.
- Consumer behavior is the study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of products, services, experiences,
or ideas to satisfy needs and the impacts that these processes have on the consumer and
society.
- All marketing strategies and tactics are based on explicit or implicit beliefs about
consumer behavior. Decisions based on explicit assumptions and on sound theory and
research are more likely to be successful. Consumer behavior enhances the Marketing
effort by applying ethical tactics based on the information collecting.
- Firstly, marketing strategy begins with an analysis of the market the organization is
considering. A detailed analysis of the organization’s capabilities, the strengths and
weaknesses of competitors, the economic and technological forces affecting the market,
and the current and potential customers in the market will be conducted.
(1) The consumers: Knowing the consumer requires understanding the behavioral
principles that guide consumption behaviors. Discovering this term is a complex process
and can be accomplished by marketing research.
(2) The company: A firm must fully understand its own ability to meet customer needs,
which involves evaluating all aspects of the firm.
(3) The competitors: A thorough understanding of the competition’s capabilities and
strategies is vital, which requires the same level of knowledge of a firm’s key
competitors.
(4) The conditions: The state of the economy, the physical environment, government
regulations, and technological developments affect consumer needs and expectation
- Secondly, on the basis of the consumer analysis, the organization identifies groups of
individuals, households, or firms with similar needs which is called market
segmentation. One or more of these segments then will be selected as target markets on
the basis of the firm’s capabilities.
- Thirdly, a general marketing strategy is formulated for each segment. It seeks to
provide the customer with more value than the competition while still producing a profit
for the firm. The strategy is formulated in terms of the marketing mix, which involves
determining the product features, price, communications, distribution, and services
provided to the target market
- Fourthly, the consumer decision process intervenes between the marketing strategy and
the outcomes. The outcomes of the firm’s marketing strategy are determined by its
interaction with the consumer decision process.
- Finally, we conduct an analysis of outcomes.
- Firm outcomes:
+ The most basic outcome of a firm’s marketing strategy is its product position — an
image of the product or brand in the consumer’s mind relative to competing products
and brands.
+ Sales and profits are critical outcomes, and all firms evaluate the success of their
marketing programs in terms of sales revenues and profits.
+ Customer satisfaction is a major concern of marketers.
- Individual outcomes:
+ Need satisfaction: The most obvious outcome of the consumption process and it can
range from no satisfaction to fully satisfaction
+ Injurious consumption: occurs when individuals or groups make consumption
decisions that have negative consequences for their long run well being
+ Society outcomes: includes economic outcomes, physical environment outcomes and
social welfare.
Example: Jump Associates sponsored a series of “game nights” at high school grads’
homes, inviting incoming college freshmen. To get teens talking about dorm life, Jump
devised a board game that involved issues associated with going to college. The game
naturally led to informal conversations about college life. Jump researchers were on the
sidelines to observe, while a video camera recorded the proceedings. On the basis of this
research, Jump successfully launched the Todd Oldham Dorm Room line, which
included all-in-one assortments of the types of products needed by college freshmen.

4. Based on the satisfied customers model, criticize the process that can achieve the
customer satisfaction
- Customer satisfaction is defined as a measurement that determines how happy
customers are with a company's products, services, and capabilities. Customer
satisfaction information, including surveys and ratings, can help a company determine
how to best improve or changes its products and services.
- To achieve customer satisfaction, you must understand your customers’ needs and
wants and their pain points. Only then can you make sure they are fulfilled with each
interaction.
- Understanding the customer satisfaction theory is crucial that may help you save your
business if you are in the middle of a crisis resulting from a decline in customer
satisfaction.
- It lays down important steps you can use to solve the problem that will bring back your
customer base and prevent you from losing your business to competitors who have
higher customer satisfaction than you do.
- Organizations should not assume they know what the customer wants. Instead, it is
important to understand the voice of the customer, using tools such as customer surveys,
focus groups, and polling. Using these tools, organizations can gain detailed insights as
to what their customers want and better tailor their services or products to meet or
exceed customer expectations.
5. What is injurious consumption, criticize the individual outcomes
- Injurious consumption is defined as consumption that has negative consequences for
the long run well-being of the consumer. In another words, injurious consumption
occurs when individuals or groups make consumption decisions that have negative
consequences for their long-term well-being.
- Critics of individual outcomes argue that focusing solely on the negative consequences
of injurious consumption ignores the complex social and economic factors that
contribute to these behaviors. They argue that blaming individuals for their actions fails
to address the root causes of injurious consumption and may stigmatize and marginalize
vulnerable populations.
Individual Outcomes:
- Need satisfaction: The most obvious outcome of the consumption process for an
individual, whether or not a purchase is made, is some level of satisfaction of the need
that initiated the consumption process ( whether none, negative, or complete )
- Injurious consumption: The dark side of consumer behavior, occurs when individuals ỏ
groups make consumption decisions that have negative consequences for thier long-run
well-being

6. How could a company can create customer satisfaction?

Use these seven techniques to empathize with your customer needs, refine your
customer journey, and increase your CSAT score:
1. Understand your customer journey—firsthand
 Your users interact with several key customer touchpoints throughout their
journey with your brand, from clicking on your website and reading a blog post to
watching a product demo. Taken together, these touchpoints reveal crucial
insights into the customer experience.
 Customer journey mapping, where you map out the main stages of customer
engagement with your company, gives you an overview of what this looks like.
But to get a fuller picture of the customer experience—to understand where they
get blocked and what they need—you need to go beyond mapping and experience
the journey yourself. This reveals any points of user friction or frustration that
 negatively impact customer satisfaction—like areas where customers can’t find
what they're looking for or have difficulty understanding or purchasing your
product.
2. Listen to your customers
 There’s no way of knowing whether your customers are satisfied with your
product or not, or what they want you to update or fix, unless you ask them
directly and actively listen to their response.
 Listening and responding to your users helps you retain more customers and build
product loyalty. But without the right tools in place to actively listen to your
customers, you could be missing out on important roadblocks in the customer
journey, key user frustrations, and unique ideas for improvement.
3. Offer proactive multi-channel support
 Multi-channel support options help you quickly answer customer questions, ease
user frustrations, pre-qualify leads, and better onboard your customers. If a
customer can’t find a quick answer to their question on the channel they’re using,
they're likely to jump ship and find another solution.
4. Act on customer feedback
 To achieve your customer satisfaction goals, you need to turn customer feedback
into a concrete business strategy. Acting on customer feedback promotes positive
customer experiences, building customer loyalty and adding to their lifetime
value.
5. Personalize your user experience
 A personalized user experience shows your customers that you’re committed to
meeting their specific needs and promotes product loyalty.
 Since no two customer journeys are the same, it’s important to adapt your
messaging to specific customers and their particular challenges, needs, and goals
with tailor-made product suggestions, content, and support.
6. Leverage NPS and CSAT scores
 Your net promoter score® (NPS) and customer satisfaction score are benchmarks
that help you measure your customer satisfaction efforts against, and uncover
areas for further improvement.
 Continually monitoring your NPS and CSAT scores gives you access to data that
helps you track customer satisfaction over a long period of time. These scores also
help you obtain qualitative insights about the user experience to find out what
your customers like and dislike about your product experience, so you can
improve the aspects of your customer experience that score poorly, and make sure
your top-performing webpages or product features continue to do well.
 7. Follow up with your customers
 Post-purchase follow-up with customers directly impacts customer retention by
reminding users of your product’s value on their path to product adoption.
 Think of creative, consistent ways to convey value in your follow-up to keep your
product top of mind, and take the opportunity to ask customers for their honest
opinions so you can learn what they need
 Before you follow up with your customers, set up a strong customer relationship
management (CRM) tool to store key customer interactions and notes, so your
team can reference them for more personalized outreach.

7. While understand and capturing the consumer behavior, the promotion mix
tends to shift from 4P to 4C, criticizing the 4C concept
The 4C focuses on what customers perceive: their needs, their situation, their
experience, their satisfaction.
a. Consumer
Consumer wants and needs, focus on conducting research, creating customer profiles,
seeking feedback and monitoring social media related to your brand to understand your
customer's needs and wants.
What does the customer want or need that they are not currently getting, and what can
we do to serve that need?
The first of the 4 C’s works on the logic that making a product or brand to cater for
existing customer needs is a superior approach to simply making a product or brand,
then identifying or manufacturing demand for them.
This theory lends itself to a specific order of planning and production. First, we use
market research (e.g. sector-specific consumer surveys, or website data insights) to
discover what the brand’s existing or prospective audience wants or needs. Then, and
only then, can we plan, produce and market the solution.
b. Cost
There is more to cost than just its purchase price.
What is the total cost of the product to the customer? In addition to the product’s retail
price, this must factor in the time and effort required to get and use the product, plus any
additional expenses that come with it.
Let’s consider how the cost-to-consumer of a video games console might break down:
+ Console retail price
+ Cost of games and accessories
+ Need to stay at home to take delivery of console/to visit video games store to collect
c. Convenience
The third C is all about ensuring the brand/product is available as conveniently as
possible to each customer persona/demographic in the target audience.
This is primarily a matter of understanding how a brand’s customers shop. If your target
audience prefers to shop online, the item should be available to order online with
flexible delivery options. Or, if they prefer to try in-store before they buy, that option
should be available too.
Customer convenience can come at a high cost to businesses. For example, clothes
retailers offering free “try before you buy” services to online customers could see their
volume of returned stock quadrupled. In light of this effect, we would phrase the
question of convenience as follows: “What’s the most convenient service we can afford
to give customers, without causing business harm?”
This comes with the caveat that too-little convenience can also cause business harm, in
the shape of lost custom.
d. Communication: How will the brand interact with customers?
Customers often feel a stronger connection with companies that commit to an engaged
dialogue with them. By responding directly and listening to customers’ suggestions,
your customers will feel valued and more apt to continue to buy and recommend your
products and services.
Every interaction between the customer and the brand can affect customer satisfaction,
the likelihood of future sales and the likelihood of customer referrals.
Communication isn’t just about how a brand communicates with its customers: it’s also
about what customers communicate to the brand, and how that information is used.
This is particularly important to the delivery of tailored multi-channel communications
for individual customers
or sales leads. Everything the customer says and does can teach the brand to
communicate better to customers.

8. Explain the qualitative research and quantitative research. Criticizing the

advantages and disadvantages of quantitative and qualitative research.
Quantitative research
- Quantitative research is expressed in numbers and graphs. It is used to test or confirm
theories and assumptions. This type of research can be used to establish generalizable
facts about a topic.
- Common quantitative methods include experiments, observations recorded as numbers,
and surveys with closed-ended questions.
- Quantitative research is at risk for research biases including information bias, omitted
variable bias, sampling bias, or selection bias.
Qualitative research
- Qualitative research is expressed in words. It is used to understand concepts, thoughts
or experiences. This type of research enables you to gather in-depth insights on topics
that are not well understood.
- Common qualitative methods include interviews with open-ended questions,
observations described in words, and literature reviews that explore concepts and
theories.
- Qualitative research is also at risk for certain research biases including the Hawthorne
effect, observer bias, recall bias, and social desirability bias.
The advantages and disadvantages of quantitative and qualitative research
a. Qualitative research
Pros of qualitative research
Explores attitudes and behaviour in-depth
+ Explores attitudes and behaviour in-depth as it’s more on a personal level and can
delve in detail to gain a better understanding of their views and actions to generate or
examine a hypothesis in more detail.
Encourages discussion
+ Encourages discussion as it’s more in an open manner instead of strictly following a
fixed set of questions. In this way, it gives the research some context rather than just
numbers.
Flexibility
+ Flexibility, where the interviewer can probe and is able to ask any questions around
the subject matter, they feel is relevant or had not thought of before during the
discussions and can even change the setting.
Cons of qualitative research
The sample size can be an issue
The sample size can be an issue if you are taking the opinion of 5 people out of 300 of
your customers or subscribers as a generalisation.
Bias in the sample selection
Bias in the sample selection, meaning the people you are selecting to take part in the
qualitative research may all have a certain opinion of the subject matter rather than a
group of people with mixed views, which is more valuable particularly if they are
debating with opposing views during focus groups.
Lack of privacy
Lack of privacy, if you are covering sensitive topics then people taking part may not be
comfortable in sharing their thoughts and opinions of the subject with others.
Whether you are using a skilled moderator or not
It is of vital importance; the moderator is skilled and experienced in managing the
conversations of groups as well as being knowledgeable enough of the subject matter to
ask relevant questions that may have not been thought of.
b. Quantitative research
Pros of quantitative research
Larger sample sizes
Larger sample sizes allowing for robust analysis of the results, so you are able to make
more generalisations of your target audience.
Impartiality and accuracy of data
Impartiality and accuracy of the data as it based on the survey questions for screening,
grouping and other hard number facts.
Faster and easier to run
Faster and easier to run particularly online and mobile surveys, where you can see the
results in real time.
Data is anonymous
Data is anonymous especially with sensitive topics through self-completion exercises
like online surveys.
Offers reliable and continuous information
Offers reliable and continuous information where you can repeat the survey again and
again weekly, monthly, quarterly, yearly to gain consistent trend data to help you plan
ahead or investigate and address issues.
Cons of quantitative research
Limited by the set answers on a survey
Limited by the set answers on a survey, so you are unable to go beyond that in delving
in more detail the behaviours, attitudes and reasons as you do with qualitative research.
This is particularly true with self-completion surveys (online), where there is no
interviewer probing you even if you include a couple of open-ended questions.
Research is not carried out in their normal environment
Research is not carried out in their normal environment, so can seem artificial and
controlled. Answers given by participants are claimed and may not be their actual
behaviour in real life.
Unable to follow-up any answers given following completion of survey
Unable to follow-up any answers given after they have completed the survey due to the
anonymity of the participants. This is especially true for validity of the findings if the
results are inconclusive. Although you can ask at the end of the survey if they would like
to do a follow-up survey but not all participants may agree to do so.

9. What is exposure, and why do marketer want customers to be exposed to

information
- Exposure is a company's campaign or brand that is trying to market specific products
to help service the consumer. It is also a way to make a business stand out in the
marketplace. Without marketing exposure, campaigns would be non-existent and
therefore companies would suffer.
- In most business situations, marketers and managers must choose among two or more
courses of action. This is where fact-finding, marketing information, and research into
the target market segment and target customer enter to help make the choice.
- Data helps to gain better clarity about the target audience. Any information about
customers allows marketers to gain a laser-sharp understanding of their target audience.
Insights from the CRM, for example, can increase a marketer's ability to predict
customer behaviour further.
- Marketing information and research address the need for quicker, yet more accurate,
decision making by the marketer. These tools put marketers close to their customers to
help them understand who their customers are, what they want, and what competitors
are doing. When different stakeholders have very different views about a particular
marketing-related decision, objective information and research can inform everyone
about the issues in question and help the organization come to agreement about the path
forward. Good research should help align marketing with the other areas of the business.
- Marketers should always be tapping into regular sources of marketing information
about their organization and industry in order to monitor what’s happening generally.
For example, at any given time marketers should understand how they are doing relative
to sales goals and monitor developments in their industry or competitive set.
- Beyond this general level of “tuning in,” additional market research projects may also
be justified. As a rule, if the research results can save the company more time, money,
and/or risk than it costs to conduct the research, it is wise to proceed. Ultimately,
successful marketing strategies are developed on the basis of focused and continued
research of customers identified by disciplined segmentation and targeting.

10. What is zipping, zapping and muting, how does it affect the marketing
activities?
- Zipping : Its occur when one fast forwards through commercials on prerecorded
program.
- Zapping: Its involve switching channels when a commercials appear.
- Multing: Turning the sound off during commercial channels when commercial
appears.
So zipping,zapping and muting all these are concern with marketers. These are a concern
to marketers because it makes it harder to get exposure.
Zipping, zapping, and multing are all consumer behaviors that can affect
marketing activities in various ways:
- Zipping: This refers to the tendency of consumers to quickly scan products or
advertisements and make decisions based on limited information. Marketers can respond
to zipping by designing packaging and advertisements that are visually appealing, easy
to read, and convey the key benefits of the product.
- Zapping: This refers to the use of remote controls to quickly change channels or skip
through commercials during television programming. Marketers can respond to zapping
by creating engaging and memorable ads that capture viewers' attention and encourage
them to watch until the end.
- Multing: This refers to the practice of consuming multiple forms of media
simultaneously, such as watching TV while browsing the internet or using a smartphone.
Marketers can respond to multing by creating integrated marketing campaigns that
leverage multiple channels and platforms to reach consumers where they are spending
their time.
Overall, these consumer behaviors require marketers to be creative, innovative, and
adaptable in their approach to reaching and engaging audiences. By understanding how
consumers are interacting with media and products, marketers can develop strategies
that resonate with their target audiences and drive results.

11. What is sensory receptor nerves, and criticize the factors that impact the
sensory receptor nerves that might cause attention
- A major role of sensory receptors is to help us learn about the environment around us,
or about the state of our internal environment. Different types of stimuli from varying
sources are received and changed into the electrochemical signals of the nervous system.
- Several factors can impact the sensory receptor nerves, which in turn can affect
attention. Here are some of these factors:
+ Intensity: The intensity of a sensory stimulus can impact the firing rate of sensory
receptor nerves. Stronger stimuli can lead to greater activation of sensory receptor
nerves, which can result in increased attention and focus.
+ Novel sensory stimuli can also impact the firing rate of sensory receptor nerves.
Unusual or unexpected stimuli can lead to greater activation of sensory receptor nerves,
which can result in increased attention and focus.
+ Familiarity: Familiar sensory stimuli may lead to decreased activation of sensory
receptor nerves over time, as the brain becomes adapted to the stimulus. This can result
in decreased attention and focus, as the brain may prioritize processing other, more
novel or salient stimuli.
+ Context: The context in which a sensory stimulus is presented can also impact the
firing rate of sensory receptor nerves. Stimuli presented in a relevant or meaningful
context may lead to greater activation of sensory receptor nerves, which can result in
increased attention and focus.
+ Emotion: Emotional responses to sensory stimuli can also impact the firing rate of
sensory receptor nerves. Strong emotional responses, such as fear or pleasure, may lead
to greater activation of sensory receptor nerves, which can result in increased attention
and focus.
+ Attention: Attention itself can also impact the firing rate of sensory receptor nerves.
When people actively attend to a sensory stimulus, it can lead to greater activation of
sensory receptor nerves, which can result in increased attention and focus.

12. Information processing is a series of activities by which stimuli are perceived,

transformed into formation, and store where exposure occurs when a stimulus is
placed within a person’s relevant environment and comes within range of their
sensory receptor nerves. Explain the exposures, attention, and interpretation.
An information-processing model for consumer decision making has four major steps or
stages: exposure, attention, interpretation, and memory. Exposure, attention and
interpretation constitute perception.
EXPOSURES
Exposure occurs when a stimulus is placed within a person’s relevant environment and
comes within range of their sensory receptor nerves. Exposure provides consumers with
the opportunity to pay attention to available information but in no way guarantees it.
Most of the stimuli to which individuals are exposed are “self-selected.” This is because
people deliberately seek out exposure to certain stimuli and avoid others. Exposure
includes selective exposure and voluntary exposure.
+ Selective Exposure: The highly selective nature of consumer exposure is a major
concern for marketers since failure to gain exposure results in lost communication and
sales opportunities. Selective Exposure refers to individuals' tendency to favor
information that reinforces their pre-existing views while avoiding contradictory
information.
+ Voluntary Exposure: Although consumers often avoid commercials and other
marketing stimuli,csometimes they actively seek them out. Exposure to online messages
and advertising can also be voluntary or involuntary.
Example: Sometimes a brand can get exposure by telling its story to a new population
segment. Chanel is a high-end luxury brand – meaning its core audience trends a little
older. But in a vibrant and artfully designed video, Chanel shared the story of founder
Coco Chanel in way to appeal to a broader, younger audience. The biographical spot
allowed the brand to frame itself as a triumph of hard work and a revolutionary force in
women’s fashion and empowerment.
ATTENTION
Attention occurs when the stimulus activates one or more sensory receptor nerves, and
the resulting sensations go to the brain for processing. Attention requires consumers to
allocate limited mental resources toward the processing of incoming stimuli. Marketers
wish to understand hơ to gain attention for effective communication.
Attention always occurs within the context of a situation. And the same individual may
devote different levels of attention to the same stimulus in different situations. Attention
is determined by these three factors: the stimulus, the individual, and the situation.
+ Stimulus factors are physical characteristics of the stimulus itself. Stimulus
characteristics are under the marketers’ control and can attract attention independent of
individual or situational characteristics. The attention garnered by stimulus factors tends
to be relatively automatic.
+ Individual factors are characteristics that distinguish one individual from another.
Generally speaking, consumer motivation and ability are the major individual factors
affecting attention
+ Situational factors include stimuli in the environment other than the focal stimulus and
temporary characteristics of the individual that are induced by the environment, such as
time pressures or a crowded store. Clutter and program involvement are two major
situational factors affecting attention.
Example: During one of Switzerland’s biggest public festivals, the Zurifest,
McDonald’s restaurants in the area face the increased competition from independent fast
food stalls. The festival just so happens to be the only time of year when pedestrian
crossings are taken out of use. Spotting an opportunity, McDonald’s restyled the
pedestrian crossing in front of one of their restaurants into a portion of fries. It turned
out to be one of the most memorable campaigns for the brand.
INTERPRETATION
Interpretation is the assignment of meaning to sensations. Interpretation is related to how
we comprehend and make sense of incoming information based on characteristics of the
stimulus, the individual, and the situation.
The subjective nature of interpretation can be seen in the distinction between semantic
meaning and psychological meaning
Interpretation can be either a cognitive “thinking” process or an affective “emotional”
process. Cognitive interpretation is a process whereby stimuli are placed into existing
categories of meaning. Affective interpretation is the emotional or feeling response
triggered by a stimulus such as an ad led to the emotional response range from positive
to negative
Example: It’s a Coca-Cola corporate policy not to advertise on TV news because there’s
going to be some bad news in there, and Coke is an upbeat, fun product.

13. What is motivation? Discuss the intrinsic and extrinsic motivation

- Motivation is the processes that acccount for an individual’s intensity, direction, and
persistence of effort toward attainingg a goal.
- Motivation is the reason for behavior and that reason why an individual does
something.
- Intrinsic motivation comes from an internal desire to accomplish a goal, while extrinsic
motivation comes from external rewards and praise. Neither type of motivation is better
than the other. Their effectiveness depends on each employee and how employers
prioritise each type of motivation in the workplace.

Intrinsic
Motivation
Extrinsic
14. Differentiate between the STM and LTM, from there, criticize the learning
process and learning outcome
- Short-term memory (STM), or working memory, is that portion of total memory that is
currently activated or in use.
- Long-term memory (LTM) is that portion of total memory devoted to permanent
information storage.
Differentiate between the STM and LTM
STM
They have limited capacity to store
information and sensations. It is not used
for storage in the usual sense of that term.
Shortterm memory is closely analogous to
what we normally call thinking. It is an
active, dynamic process, not a static
structure
Short-lived: marketer use to stimulate by
repeating prices or brand name or a key
benefit a prominent manner several times
in an advertisement.
Limited capacity: Marketers can help
consumers chunk product information by
organizing detailed attribute information
in messages around more general benefits
that they create.
Need
Goal
Do thing to satisfy
or advoid sth
LTM
Unlimited, permanent storage. It can store
numerous types of information, such as
concepts, decision rules, processes, and
affective (emotional) states.
Marketers are particularly interested in
Sematic memories, where the basic
knowledge and feeling an individual has.
It represents the person’s understanding
of an object or event at its simplest level.
Episodic memory is the memory of a
sequence of events in which a person
participated. This is the memory of a
sequence of events in which a person
participated.
Criticize the learning process and learning outcome
- Learning is any change in the content or organization of long-term memory or behavior
and is the result of information processing. Information processing is described as a
series of activities by which stimuli are perceived, transformed into information, and
stored. The four activities in the series are exposure, attention, interpretation, and
memory.
- Different information processing systems handle different aspects of learning. The
perceptual deals with information intake through exposure and attention and maybe
conscious or unconscious. Short-term memory deals with holding information
temporarily while it is interpreted and transferred into long-term memory. Longterm
memory (LTM) deals with storing and retrieving information to be used in decisions.
These processes are highly interrelated. Finally, price perceptions associated with their
favorite brand may be updated and stored in long-term memory as a consequence of the
comparison process.
Example, a consumer may notice their favorite brand of soda on the store shelf because
of a purchase goal stored in long-term memory. The soda’s current price is brought into
short-term memory through the perceptual system for processing. But a reference price
may also be retrieved from long-term memory as a comparison point.

15. Discussing the studies related to lifestyle

- Lifestyle studies typically include the following: attempts to develop quantitative
measures of lifestyle were initially referred to as psychographics:
+ Attitudes – evaluative statements about other people, places, ideas, products, and so
forth. Such evaluations are often positive or negative, but they can also be uncertain at
times. For example, you might have mixed feelings about a particular person or issue.
Attitudes can form through direct experience, social influence, formal education,
conditioning processes, and observation. Attitudes are not set in stone and may change
when people learn new information, when they are persuaded by influential people, or
when they experience discomfort due to holding conflicting beliefs.
+ Values – widely held beliefs about what is acceptable or desirable. Norms are derived
from these. They become standards by which people order their lives and make their
choices
+ Activities and interests – nonoccupational behaviors to which consumers devote time
and effort, such as hobbies, sports, public service and church,
+ Demographics - age, education, income, occupation, family structure, ethnic
background, gender, and geographic location
+ Media patterns – the specific media the consumers utilize
+ Usage rates – measurements of consumption within a specified product category;
often consumers are categorized as heavy, medium or light users or as nonusers
- General lifestyle studies can be used to spot new product opportunities, while product
specific lifestyle analysis may help repositioning decisions regarding existing brands.
- A large number of individuals, often 500 or more, provide the above information.
Statistical techniques are used to place them into groups whose members have similar
response patterns. Most studies ust first 2 or 3 dimensions decribed above to group
individuals. The other dimensions are used to provide fuller descriptions of each group.
Other studies include demographics as part of the grouping process.

16. What is motivation and criticizing the intrinsic and extrinsic motivation
- Motivation is the processes that acccount for an individual’s intensity, direction, and
persistence of effort toward attainingg a goal.
- Motivation is the reason for behavior and that reason why an individual does
something.
- Intrinsic motivation is when you feel inspired or energized to complete a task because
it’s personally rewarding. In other words, you're performing the activity because of
some internal drive as opposed to an external force or reward. With intrinsic motivation,
the behavior itself becomes the reward.
- When intrinsically motivated, a person does a task for fun, engagement, and the joy
that comes from doing it. They don’t concern themselves with the external reward,
pressure, or punishment that follows it. Intrinsic motivation is simply a gateway to learn,
explore things based on interest in a task. We do activities merely for fun and not
because of pressure or an external reward.
- Extrinsic motivation refers to doing something not because you enjoy it, but because
you want to earn extrinsic rewards or avoid punishment. External motivation is the exact
opposite of intrinsic motivation. Using extrinsic motivation to drive human behavior is
pervasive in daily life. If you are reading this article because you need the information to
prepare for an exam or to write a paper, you are extrinsically motivated. Extrinsic
motivation is when you’re inspired to perform a task either to earn a reward or to avoid
punishment. In the case of extrinsic motivation, you're not completing the task because
you like it or find it satisfying. Instead, you're completing it because you think you'll
avoid something unpleasant or you'll get something in return.
- Intrinsic motivation is performing an activity for its enjoyment, while extrinsic
motivation is doing something for a separable outcome or an outside incentive other
than enjoyment. Both intrinsic and extrinsic motivation are important ways of driving
behavior.

17. Criticizing the theory of decay

- Definition:
+ The decay is the weakening of nodes or links over time in consumer memory.
Information is less available for later retrieval as time passes and memory wears away.
+ The theory of decay, or fading theory, is the belief that the inability to recall long-term
memories increases with the passage of time as memory traces face.
+ The theory of decay represents that information that is not accessed frequently
essentially ‘rusts’ away. All memories then fade automatically as a function of time.
+ The memory will fade if the learning process is not repeated or reinforced. They can
refer as a retrieval failure. Retrieval failure is where the information is in long-term
memory, but cannot be accessed. Such information is said to be available but not
accessible because the retrieval cues are not present.
+ In conditioned learning, forgetting is often referred to as extinction, since the desired
response decays or dies out if learning is not repeated and reinforced. In cognitive
learning, forgetting is often referred to as a retrieval failure, since the information that is
available in LTM cannot be accessed, that is, retrieved from LTM into STM.
+ Two aspects of forgetting that are of concern to marketers are the likelihood of
forgetting in any given situation and the rate of forgetting.
+ Consumers forget brands, brand associations, and other information for a variety of
reasons. First, learning may be weak to begin with. Second, information from competing
brands and ads may cause memory interference. Third, the response environment (e.g.,
the retail store) may not be set up to encourage retrieval of previously learned
information (e.g., from advertising).
Example: sometimes we forget a brand name even though we have just met it.
18. Criticizing the personal core based on demographic and self-concept
- Demographics describe a population in terms of its size, structure, and distribution.
Population size refers to the number of individuals in society. Structure describes society
in terms of age, income, education, and occupation. Distribution refers to the physical
location of individuals in terms of geographic region and rural, suburban, and urban
location.
- Demographics are both a result and a cause of cultural values and it influence
consumption behaviors both directly and by affecting other attributes of individuals,
such as their personal values and decision styles.
Example: Sony spent $25 million to target what it calls the “zoomers,” a name that
reflects the active lifestyle of the baby boom generation. One of their ads featured a
“grey-haired astronaut filming Earth with his own camcorder.” The tagline: “When your
kids ask where the money went, show them the tape.” Sony credits a surge in camcorder
sales to its renewed focus on this increasingly important segment. Self-concept is
defined as the totality of the individual’s thoughts and feelings having reference to
himself or herself as an object. It is an individual’s perception of and feelings toward
him or herself. In other words, your self-concept is composed of the attitudes you hold
toward yourself.
- The self-concept can be divided into four basic parts, actual versus ideal, and private
versus social. The actual– ideal distinction refers to the individual’s perception of who I
am now (actual self-concept) and who I would like to be (ideal self-concept). The
private self refers to how I am or would like to be to myself (private self concept), and
the social self is how I am seen by others or how I would like to be seen by others
(social selfconcept)
- Self-concept is important in all cultures. However, those aspects of the self that are
most valued and most influence consumption and other behaviors vary across cultures.
- There are two types of self-concepts: independent and interdependent
+ The independent self-concept is based on the predominant Western cultural belief that
individuals are inherently separate.
+ The interdependent self-concept is based more on the common Asian cultural belief in
the fundamental connectedness of human beings.
Example: the consumer purchases shirts having the slogan of Imran Khan’s voluntary
organization. Sometimes the advertising of a product with an affiliation of a celebrity
force the consumer to feel the spirit of the celebrity is available through the brand

19. Criticizing the categories of value

- Cultural values are widely held beliefs that affirm what is desirable. These values
affect behavior through norms, which specify an acceptable range of responses to
specific situations. Numerous values vary across cultures and affect consumption. Three
broad forms of cultural values are other-oriented values, environmentoriented values,
and self-oriented values. The cultural values that have the most impact on consumer
behavior can be classified in one of these three general categories.
- Other-oriented values reflect a society’s view of the appropriate relationships between
individuals and groups within that society. These relationships have a major influence
on marketing practice. Other-oriented values includes: Individual/Collective,
Youth/Age, Extended/Limited family, Masculine/Feminine, Competitive/Cooperative,
Diversity/Uniformity.
Example: In services such as health care and hair styling, consumers in Thailand place
greater importance on personal relationships with the service provider than do U.S.
consumers. These relationships drive loyalty more for consumers in Thailand
- Environment-oriented values prescribe a society’s relationship to its economic and
technical as well as its physical environment . As a manager, you would develop a very
different marketing program for a society that stressed a problem-solving, risk-taking,
performance-oriented approach to its environment than you would for a fatalistic,
security and status-oriented society. Environment-oriented values includes: Cleanliness,
Performance/Status, Tradition/Change, Risk taking/Security, Problem solving/Fatalistic,
Nature.
Example: In China, “modernness” (often symbolized by a Western name) is an
important product attribute, particularly among younger, urban Chinese. A recent study
found that advertisers in China segment their advertising depending on the audience. In
magazines targeted at younger Chinese (e.g., Elle, Cosmopolitan, and Sanlian ), modern
appeals focusing on technology, fashion, and leisure are used more often.
- Self-oriented values reflect the objectives and approaches to life that the individual
members of society find desirable . Again, these values have strong implications for
marketing management. Self-oriented values includes: Active/Passive, Sensual
gratification/Abstinence, Material/Nonmaterial, Hard work/Leisure, Postponed
gratification/Immediate gratification, Religious/Secular.
Example: In U.S. cigarette advertisements, it is not uncommon to find sensual models,
males and females holding hands, and couples in intimate situations. In the eastern
culture of India, such open display of intimacy between opposite sexes is not socially
acceptable

20. How culture can affect the consumer behavior

- Consumers buy products as a way to acquire cultural meanings to use in establishing
their self-identities. Consider the sports fan who buys a team hat or jacket. Major League
Baseball Properties, a licensing and marketing organization, sells authentic jerseys from
the New York Yankees (about $175) and the 1919 Chicago Black Sox ($245) to middle-
aged fans who want to identify with their favorite teams, present and past. 36 Or
consumers might buy Ben and Jerry’s Rain Forest Crunch ice cream (made from nuts
grown in the Amazon rain forest) or Tide detergent sold in packages made from recycled
materials to acquire the ecological values represented by these products. People buy
such products to move important cultural meanings into themselves and to communicate
those meanings to others. In this sense, consumers can use products to partially create
their self-concept or self-identity.
- Americans have a lot of freedom to create different selves through their choices of
lifestyles, environments, and products. Self-construction activity is especially intense
during the teenage and young adult years. Young people try different social roles and
self-identities, and often purchase products to gain meanings related to these roles. Thus,
teenage rebellions against parents’ values and lifestyles usually involve the purchase and
consumption of certain products. As most people become more mature with age, their
self-concepts become more stable (sometimes even rigid), and their interest in self-
change lessens. Of course, changes, even radical changes, in self-concept are still
possible, but they are increasingly rare. Even so, consumers still use the cultural
meanings in products to maintain and fine-tune their current self-identities.
- Although products can transfer useful meanings to consumers, goods cannot provide
all the meanings consumers need to construct healthy self-concepts. People obtain self-
relevant meanings from many other sources, including work, family, religious
experiences, and various social activities. Often the meanings gained through these
activities are more self-relevant and more satisfying than those obtained through product
consumption.
- Unfortunately, especially in highly developed consumption societies, many people
consume products in an attempt to acquire important life meanings. Some of these
consumers may engage in almost pathological levels of consumption as they desperately
purchase products seeking to acquire cultural meanings with which to construct a
satisfactory self-concept. Such consumers can end up heavily in debt and very
unsatisfied.
- Most people have favorite possessions filled with very important, self-relevant
meanings. People have high levels of involvement with such objects. Researchers have
begun to study these cherished objects to understand consumer–product relationships. 38
For instance, elderly people tend to feel strong attachments to objects such as
photographs or furniture that remind them of past events, whereas younger consumers
tend to value objects that allow them to be active in self-relevant ways (sports or hobby
equipment, work-related objects such as books or computers). Marketers need to
understand these consumer–product relationships to develop effective strategies.

21. Discussing some categories related to culture that impact the consumer
behavior
CULTURAL BELIEFS REFLECT CONSUMERS’ NEEDS
- Culture expresses and satisfies the needs of societies. It offers order, direction, and
guidance for problem solving by providing “tried-and-true” methods of satisfying
physiological, personal, and social needs. For example, culture provides standards about
when to eat (“not between meals”); where to eat (“most likely the restaurant is busy
because the food is good”); what is appropriate to eat for breakfast (pancakes), lunch (a
sandwich), dinner (“something hot and good and healthy”), and snacks (“something with
quick energy, but not too many calories”); and what to serve to guests at a dinner party
(“a formal sit-down meal”), at a picnic (barbecued “franks and burgers”), or at a
wedding (champagne). Culture also determines whether a product is a necessity or
discretionary luxury. For example, whereas mobile phones (initially introduced as car
phones and now referred to as cell phones) were once expensive and uncommon, today
they are a necessity because fewer and fewer people have landlines and pay phones are
largely extinct.
- Culture also dictates which clothes are suitable for different occasions (such as what to
wear around the house; what to wear to school, to work, to church, and to a movie
theater; and what to wear at a fast-food restaurant). Marketers advertise “Back-to-
School” clothes and accessories (e.g., backpacks) for children who are returning to
school at the end of the summer vacation.
- In recent years, dress codes have changed drastically and most Americans have been
dressing casually for occasions that once required more formal attire. For example, in
large cities, only a handful of restaurants and clubs still require men to wear jackets and
ties. With the relaxed dress code in the corporate work environment, fewer men are
wearing dress shirts, ties, and business suits, and fewer women are wearing dresses,
suits, and pantyhose. Instead, employees wear casual slacks, sports shirts and blouses,
and even neat jeans and polo/golf shirts.
- Some customs, however, are unlikely to change. For example, soft-drink companies
would prefer that consumers receive their morning “jolts” of caffeine from one of their
products, instead of coffee. Because most Americans do not consider soda a suitable
breakfast beverage, soft-drink companies have faced a dual challenge: “overcoming”
culture, as well as the competition among breakfast drinks. Teas, soft drinks, and even
caffeinated water have challenged coffee as the traditional source of morning caffeine—
mostly unsuccessfully. Indeed, coffee is entrenched in our culture not only as a breakfast
beverage but also as the core of the “coffee break.” Wisely, coffee marketers have not
relied on their cultural advantage, but have been preempting their competitors by
introducing assortments of gourmet and flavored coffees and also by aggressively
targeting young adults with such exotics as espresso, cappuccino, and café mocha.
- When a specific standard no longer satisfies the members of a society or reflects its
needs, it is modified or replaced. For example, once it was unheard of for restaurant
servers to pose questions of a personal nature. Now, we commonly answer servers’
questions about our food allergies and other medical, food-related limitations. At times,
society’s collective interest contradicts an emerging custom. For instance, because most
young Americans are now electronically connected all the time and at almost any place,
distracted driving because of texting or calling on mobile phones is causing more car
accidents. The ad in Figure 11.3 is part of a government initiative to discourage
distracted driving.

22. How can cultural values identify the consumption patterns, and why do
marketers need to understand the cultural values
- The boundaries that culture sets on behavior are called norms, which are simply rules
that specify or prohibit certain behaviors in specific situations.
+ Derived from cultural values, or widely held beliefs that affirm what is desirable.
+ Violation of cultural norms result in sanctions, or penalties ranging from mild social
disapproval to banishment from the group + Cultural values give rise to norms and
associated sanctions, which in turn influence consumption patterns
+ Tend to "obey" cultural norms without thinking because to do otherwise would seem
unnatural
- For example, we are seldom aware of how close we stand to others Cultural values
give rise to norms and associated sanctions, which in turn influence consumption
patterns. Cultures are not static. They typically evolve and change slowly over time
- Marketers that wish to expand internationally need to understand a culture's widely
held beliefs that affirm what is desirable. To do this, marketers should study cultural
values.
- The importance of culture in terms of marketing is big. The world market is made up
of smaller markets. The entire world economy is comprised of smaller economies that
are distinct in themselves. These economies have their own cultures and languages.
American economy is distinct from that of India. Indian market is distinct from the
Chinese and the Chinese are distinct from the Japanese. These differences are there
because of the different cultures and cultural styles. A few things that are acceptable in
Germany may not be acceptable in the US market. The kind of fashion loved in US may
not be as acceptable in Middle East. These cultural differences can affect business
performance.
- Cultural values and social norms impact the way people communicate, think and make
decisions. Being aware of how culture influences different groups of people can help
marketers develop content that resonates with them. Culture marketing can also help
brands form positive connections with people around the world. Effective culture
marketing can help you:
+ Improve communication with your target audience
+ Build rapport with customers and increase brand loyalty
+ Identify unique opportunities to innovate your products or services
+ Increase revenue, sales and your return on investment (ROI)
+ Expand your global reach by tapping into new markets

23.What is sanction, and how does this create consumption pattern

- Sanctions meaning: Sanctions refer to a variety of measures imposed by one country
or a group of countries against another country, organization, or individual to encourage
a change in behaviour, punish non-compliance with international norms or laws, or
achieve specific policy objectives.
- The boundaries that culture sets on behavior are called norms, which are simply rules
that specify or prohibit certain behaviors in specific situation. Norms are derived form
cultural values, or widely held beliefs that affirm what is desirabe and violation of
cultural norms result in sanction

Norms
Specify ranges of
approproate behavior
Culture Consumption
values patterns
Sanction
Penalties for violating
norms

- Sanctions can create consumption patterns by limiting the availability and affordability
of certain goods and services. When a country imposes sanctions on another country, it
may restrict the export of certain products or prohibit financial transactions with that
country's entities. This can lead to shortages of those products in the targeted country,
causing prices to rise and making them less affordable for consumers.
- As a result, people in the targeted country may shift their consumption patterns to
substitute the restricted products with alternatives that are still available. For example, if
sanctions prohibit the import of oil, people may switch to using alternative sources of
energy or reduce their energy consumption altogether. Similarly, if sanctions limit the
availability of medicines, people may turn to traditional remedies or travel abroad to
purchase medicines.

- Sanctions can also create new consumption patterns by encouraging innovation and
entrepreneurship. When certain products become scarce, local businesses may emerge to
fill the gap by producing similar products domestically or finding new ways to source
them from other countries. This can lead to the development of new industries and job
creation, as well as increased self-sufficiency and resilience in the face of sanctions.

24. What should you do when you are encountering with culture in the consumer
behavior and marketing context
- Cross-Cultural Differences: marketers must consider cross-cultural differences when
developing marketing strategies for foreign markets. Cross-cultural differences do not
always coincide with national borders. This is obvious in many countries where cultural
differences among internal social groups are as great as between separate nations.
- Differences in Consumption Culture: The level of consumption orientation in
different markets is an important cross-cultural factor that companies should consider
when developing international marketing strategies. Obviously, a large part of U.S.
culture involves consumption activities. Many other areas of the world—including
Canada, most western European countries, and Japan—also have strong consumer
cultures. In much of the world, however, people have less opportunity to participate in a
consumption culture. For instance, the ordinary citizens of many eastern European
countries, the former Soviet Union, China, and most Third World countries do not have
sufficient purchasing power to consume at high levels, nor are these societies able to
produce goods in sufficient number and variety to meet the consumption needs of their
people.
- Self-Concept: People in different cultures may have strikingly different concepts of
themselves and how they should relate to other people. Consider the differences between
the vision of an independent self typical in North America and western Europe and the
concept of self as highly interrelated with others that is more common in Japan, India,
Africa, South America, and even some southern European cultures.
These cross-cultural differences in self-concept are likely to affect how people in those
cultures interpret product meanings and use products to achieve important ends in their
lives. For example, Japanese gift-giving behavior is strongly affected by the socially
oriented self-concept. Especially when they return from trips abroad, the Japanese feel a
rather strong social (cultural) obligation to bring souvenir gifts to the folks back home.
The meanings of the end values or goals found in means–end research are likely to be
quite different in different cultures, as are the means to achieve them. Consider the value
of self-esteem or “satisfaction with self.” North Americans, for instance, might satisfy
selfesteem needs by acting in ways that represent their independence and autonomy
from the group. But for the Japanese, cooperation with a group is an act that affirms the
self. In Japan, giving in to the group is not a sign of weakness (as it might be interpreted
in North America); rather, it reflects tolerance, self-control, flexibility, and maturity, all
aspects of a positive selfimage for most Japanese. In contrast, stating one’s personal
position and trying to get one’s way (acts valued in America as “standing up for what
one believes”) may be thought childish and weak by the Japanese.
- Marketing Implications: Marketers must determine which cross-cultural differences
are relevant to their situations. A sensitivity to and tolerance for cross-cultural
differences in meaning is a highly desirable trait for international marketing managers.
Most international companies also hire managers from the local culture because they
bring an intimate knowledge of the indigenous cultural meanings to strategic decision
making.

25. Define five key dimensions of situational characteristics

Physical features
The term “atmospherics” to describe the internal control and manipulation of
environmental cues. The term “servicescape” to describe the “built environment (i.e., the
manmade, physical surroundings as opposed to the natural or social environment)”.
Physical surroundings are obvious features, such as institutional location, geographical
location of the destination, décor, sounds, light, and the crowdness of the destination,
and destination density, which have important implications for building a business
image.
Example: Before visitors make a travel intension, they commonly look for cues about
the destination’s quality. The physical environment is rich in such cues and may be
influential in communicating the destination’s image to visitors.
Social surroundings
The term has been redefined and given broader definition. Social surroundings refer to
“the effects of other people on a consumer in a consumption situation”. Social
surroundings have long been considered as an important influential factor of an
individual’s behavior.
Example: People may choose destinations due to friends or relatives’ previous
experiences because they would rather follow the suggestions and opinions of others
than make wrong decisions
Temporal perspective
The definition of temporal perspective refers to time, ranging from day to season of the
year, and length-oftime, for instance, the amount of time available may influence
boomers’ travel intensions. Customers’ behavior changes as a result of the time of year,
such as seasons, which influence people’s choices of activities.
Example: Travelers’ choice of national parks is highly impact by season and the
country’s regional climates.
Task definition
Task definition refers the set of goal a visitors forms to resolve needs deriving from a
specific situation. More formally, it is “the orientation, intent, role, or frame of a person
through which certain aspects of the environment may become relevant. Task definitions
as “the reasons that occasion the need for consumers to buy or consume a product or
service”.
Example: People travel to different types of destinations due to different purposes
Antecedent states
Antecedent states refer to momentary conditions or momentary moods. Momentary
conditions are such as people have cash on hand, or they feel fatigued or ill. For
instance, before visitors make travel intension whether they have sufficient funds or they
feel fatigued may impact their travel decisions. People may expect certain salaries or
holidays when making decisions; however, unexpected situations may arise to affect
their decision. Besides, researchers find that mood factors influence consumer behavior.
Mood factors range from happiness to negative feelings, such as excitement, pleasure,
displeasure, or anxiety. Individuals’ moods can impact their decision making. A good
mood leads to more favorable decision outcomes; however, a bad mood tends to lead to
unfavorable decision outcomes.

26. Criticize the normal, limited, and extended decision making

Nominal decision making:
+ Nominal decisions are often made about low-cost products. They include frequent
purchases, purchases from a familiar brand or product, buying that requires low
involvement, or little search efforts. Referred to as a habitual decision making. Brand
loyal purchase and repeat purchases
+ If you’ve been using the same laundry detergent for twelve years, you’re unlikely to
spend much time researching different brands unless you notice a problem with your
existing purchase. In other words, you’ll keep picking up the same bottle without
thinking about it.
+ Involvement of internal search (LTM) provides a single preferred solution when the
problem is recognized.
Limited decision making:
+ Limited decision-making is a little more involved than nominal decision-making, but
it’s still not a process that requires in-depth research.
+ Limited decisions are made about mid-cost products, semi-frequent purchases, or
purchases from a somewhat familiar brand. They require a little involvement, and
perhaps some searching.
+ When customers make limited decisions, they take a small amount of time to ponder
over their purchase, but they might not go online to look for testimonials and reviews.
Instead, they could consider their memory of their product, and make decisions based on
logical inferences. Involving of internal and external search, few alternatives, simple
decision rules on a few attributes and little post purchase evaluation
+ For instance, you might go to a store with every intention to pick up a particular brand
of juice, but when you arrive you notice that another juice is on offer. Your memory tells
you that you enjoyed this juice before, but found it too expensive for your regular
shopping habits, so you decide to make a change for a limited time, and purchase the
alternative juice instead. While the argument could be made that limited decisions come
from a lack of brand loyalty, the truth is that they can be attributed to anything from the
novelty of a new product, to a feeling of boredom with an existing shopping habit.
+ Sometimes limited decision making occurs in response to some emotional or
situational needs (feeling bored of current brand) Extended decision making
+ Extended decisions are made about higher-cost products, and infrequent purchases.
They require a lot of involvement, often center around unfamiliar brands or products,
and need extended thought and search efforts to ensure buyer confidence.
+ For instance, we don’t buy a huge flat-screen television every day, so when the time
comes to make this kind of investment, we want to know for sure that we’re making the
right choice in everything from brand to picture quality. Major purchases come with
more risk for the customer, and that means that there’s more cause to consider things
from a deeper perspective. Rather than grabbing the first television you see, or buying
one just because it’s on sale, you’d generally ask for advice from friends and family,
find out as much as you can about different specifications, and spend a substantial
amount of time looking up product reviews and testimonials.
+ Extensive internal and external information search followed by a complex evaluation
of multiple alternatives and signification post purchase evaluation

27. Based on the high low involvement model, criticizing all the perspectives of
consumer behavior and marketing action

- High-involvement decisions are those that are important to the buyer. These decisions
are closely tied to the consumer’s ego and self-image. They also involve some risk to the
consumer. This may include financial risk (highly priced items), social risk (products
that are important to the peer group), or psychological risk (the wrong decision may
cause the consumer some concern and anxiety). In making these decisions, consumers
generally feel it is worth the time and energy needed to do research and consider
solution alternatives carefully. The full, six-stage, complex process of consumer
decision making is more likely to happen with high-involvement product purchases. In
these cases, a buyer gathers extensive information from multiple sources, evaluates
many alternatives, and invests substantial effort in making the best decision.

- Low-involvement decisions are more straightforward, require little risk, are repetitive,
and often lead to a habit. In effect, these purchases are not very important to the
consumer. Financial, social, and psychological risks are not nearly as great. In these
cases, it may not be worth the consumer’s time and effort to search for exhaustive
information about different brands or to consider a wide range of alternatives. A low-
involvement purchase usually involves an abridged decision-making process. In these
situations, the buyer typically does little if any information gathering, and any evaluation
of alternatives is relatively simple and straightforward. Consumers are diligent enough
to get a product they want, but they generally spend no more time or effort than is
needed.

- The High-Low Involvement Model (HLIM) is a theoretical framework that explains

how consumers make decisions based on the level of involvement they have in the
product category. The model suggests that consumers' involvement levels can vary
significantly, and this variation affects their decision-making processes and marketing
actions.

Criticisms of the HLIM:

- Limited scope: The HLIM focuses primarily on consumer decision-making

processes and does not consider other factors that may influence consumer
behavior, such as social norms, cultural values, and personal preferences.
- Simplistic: The model assumes that involvement levels are fixed and do not
change over time. However, in reality, involvement levels can fluctuate due to
various factors such as life events, experiences, and learning.
- Lack of empirical evidence: The HLIM is a theoretical framework, and there is
limited empirical evidence to support its validity. Some studies have found mixed
results regarding the relationship between involvement levels and consumer
behavior.
- Ignoring context: The model does not consider the context in which consumers
make decisions, such as the product category, the brand, and the marketing
environment. This context can significantly impact consumer behavior and
decision-making processes.
- Overemphasis on rationality: The model assumes that consumers make rational
decisions based on their involvement levels, but in reality, consumers often make
irrational or emotional decisions.

Marketing actions that can address these criticisms include:

- Understanding the context: Marketers should consider the product category,

brand, and marketing environment when developing marketing strategies to
address consumer needs and preferences.
- Addressing emotional needs: Marketers should recognize that consumers often
make emotional decisions and should focus on addressing emotional needs to
increase engagement and loyalty.
- Providing relevant information: Marketers should provide relevant information
to consumers based on their involvement levels to help them make informed
decisions.
- Addressing social norms and cultural values: Marketers should consider social
norms and cultural values when developing marketing strategies to address
consumer needs and preferences.
- Providing a consistent brand experience: Marketers should provide a consistent
brand experience across all touchpoints to build brand loyalty and trust among
consumers.
28. Criticizing the consumer decision making process
NEED RECOGNITION
- Need recognition occurs when a consumer is faced with a “problem.” There are two
types of need recognition. Some consumers are actual state types, who perceive that they
have a problem when a product fails to perform satisfactorily (e.g., a cell phone that
develops constant static). In contrast, other consumers are desired state types, for whom
the desire for something new may trigger the decision process.
INFORMATION SEARCHING AND PROCESSING
- Not all buying decisions require the same amount of information, cognitive processing
and input from reference groups and other sources.
- When consumers have already established the basic criteria for evaluating a product or
service but still need additional information to understand the differences among brands,
they engage in limited problem solving.
- This type of decision occurs when consumers purchase updated versions of products
they have bought before, which often have additional features: For example, buying a
new laptop computer with multiple input devices, some of which did not exist
previously (e.g., USB Type-C ports).
- Consumer involvement is the degree of personal relevance that the product or purchase
holds for the consumer. High-involvement purchases are very important to the
consumer, have a high degree of perceived risk, andresult in extensive problem solving;
or, if consumers have at least some knowledge about the type of product they seek, and
also a somewhat lower perceived risk, such purchases represent limited problem solving.
Low-involvement purchases are not very important, hold little relevance, have little
perceived risk, and are routinized response behavior.
IDENTIFICATION AND EVALUATION OF ALTERNATIVES
- Pre-Purchase Information Search Pre-purchase search begins when a consumer
perceives a need that might be satisfied by the purchase and consumption of a product.
Many consumer decisions are based on a combination of previous experience and
external information.
- Sometimes, recalling past purchases provides the consumer with adequate information
to make the present choice. However, when the consumer has had no prior experience,
he or she may have to engage in an extensive search for useful information on which to
base a choice.
- Consumers search their memory—their past experiences—before seeking information
from other sources. The greater the relevant past experience, the less external
information the consumer is likely to need to reach a decision. Low-involvement
purchases are not very important, hold little relevance, have little perceived risk, and are
routinized response behavior.
- The act of shopping is an important form of external information. Whereas most men
do not like to shop, most women claim to like the experience of shopping, finding it to
be relaxing and enjoyable. In addition, it has become common practice for consumers to
seek the opinions of their friends while shopping. The shopping selfie is another way
that consumers seek information while shopping
Evaluation of Purchase Alternatives
- The evaluation of purchase alternatives follows the information search stage. The
evoked set (consideration set) refers to the specific brands (or models) a consumer
considers in making a purchase within a particular product category. The inept set
consists of brands (or models) that the consumer excludes from purchase consideration
because they are unacceptable or seen as inferior. The inert set consists of brands (or
models) the consumer is indifferent toward because they are perceived as not having any
particular advantages. Regardless of the total number of brands (or models) in a product
category, a consumer’s evoked set tends to be quite small on average, often consisting of
only three to five brands or models.
- Research also suggests that the use of white space and choice of typeface in
advertisements may influence the consumer’s image of the product. It has also been
suggested that consumers may not, all at once, incorporate the entire number of possible
choices into their evoked set, but instead may make several decisions within a single
decision process. Consumers screen their options and eliminate unsuitable alternatives
before they start the information search process, which makes reaching a final decision
more manageable.
- We have probably all had the experience of comparing or evaluating different brands
or models of a product and finding the one that feels, looks, and/or performs “just right.”
Interestingly, research shows that when consumers discuss such “right” products, there
is little or no mention of price; items often reflect personality characteristics or
childhood experiences; and it is often “love at first sight.” In one study, the products that
consumers claimed to “just feel right” included old leather briefcases, Post-it notes, and
the Honda Accord.13 Research has explored the influence of brand credibility (which
consists of trustworthiness and expertise) on brand choice, and has found that it
improves the chances that a brand will be included in the consumer’s evoked set.
PURCHASE DECISION
- Compensatory decision rules come into play when a consumer evaluates brand or
model options in terms of each relevant attribute and computes a weighted or summated
score for each brand. The assumption is that the consumer will select the brand that
scores highest among the alternatives evaluated.
- In contrast, noncompensatory decision rules do not allow consumers to balance
positive evaluations of a brand on one attribute against a negative evaluation on some
other attribute. There are three types of noncompensatory rules. In following a
conjunctive decision rule, the consumer establishes a separate, minimally acceptable
level as a cutoff point for each attribute. Because the conjunctive rule can result in
several acceptable alternatives, it becomes necessary in such cases for the consumer to
apply an additional decision rule to arrive at a final selection (for example, accepting the
first satisfactory brand). The conjunctive rule is particularly useful in quickly reducing
the number of alternatives to be considered. The consumer can then apply another, more
refined decision rule to arrive at a final choice.
- In following a lexicographic decision rule, the consumer first ranks the attributes in
terms of perceived relevance or importance. The consumer then compares the various
alternatives in terms of the single attribute that is considered most important. If one
option scores sufficiently high on this top-ranked attribute (regardless of the score on
any of other attributes), it is selected and the process ends. When there are two or more
surviving alternatives, the process is repeated with the second highest-ranked attribute
(and so on), until the consumer reaches the point that one of the options is selected
because it exceeds the others on a particular attribute.
- We have considered only the basic consumer decision rules. Most of the decision rules
described here can be combined to form new variations.
POST-PURCHASE BEHAVIOR
- The output portion of the consumer decision-making model as well as the consumer
journey consists of purchase behaviors, consuming the product and post-purchase
evaluation of the purchases.
- Cognitive dissonance occurs when a consumer holds conflicting thoughts about a
belief or an attitude object.
- For instance, after consumers have made a commitment to buy an important and pricy
object—for example, made a down payment on a new house or an expensive car—they
often begin to feel cognitive dissonance when they think of the unique, positive qualities
of the alternatives not selected (“left behind”). When cognitive dissonance occurs after a
purchase, it is called post-purchase dissonance. Because expensive and important
purchases require compromise and choice among similar alternatives (e.g., similar
homes in the same community), post-purchase dissonance in such instances commonly
occurs, and leaves consumers with an uneasy feeling about their behavior (the purchase
decision).
- Still further, post-purchase evaluation occurs after consumers have used the product,
and in the context of their expectations. When a product’s performance matches
expectations, consumers feel neutral. Positive disconfirmation of expectations occurs
when the product’s performance exceeds expectations and the consumer is satisfied.
Negative disconfirmation of expectations occurs when performance is below
expectations and the consumer is dissatisfied.

29. Discuss the consumer decision making process

- The consumer decision-making process involves five basic steps. This is the process by
which consumers evaluate making a purchasing decision.

- 5 steps of the consumer decision making process

+ Problem recognition: Recognizes the need for a service or product

 The first step of the consumer decision-making process is recognizing the need
for a service or product. Need recognition, whether prompted internally or
externally, results in the same response: a want. Once consumers recognize a
want, they need to gather information to understand how they can fulfill that want,
which leads to step two.
 But how can you influence consumers at this stage? Since internal stimulus comes
from within and includes basic impulses like hunger or a change in lifestyle, focus
your sales and marketing efforts on external stimulus.
 Develop a comprehensive brand campaign to build brand awareness and
recognition––you want consumers to know you and trust you. Most importantly,
you want them to feel like they have a problem only you can solve.
Example: Winter is coming. This particular customer has several light jackets, but she’ll
need a heavy-duty winter coat if she’s going to survive the snow and lower
temperatures.

+ Information search: Gathers information

- When researching their options, consumers again rely on internal and external factors,
as well as past interactions with a product or brand, both positive and negative. In the
information stage, they may browse through options at a physical location or consult
online resources, such as Google or customer reviews.

- Your job as a brand is to give the potential customer access to the information they
want, with the hopes that they decide to purchase your product or service. Create a
funnel and plan out the types of content that people will need. Present yourself as a
trustworthy source of knowledge and information.

- Another important strategy is word of mouth—since consumers trust each other more
than they do businesses, make sure to include consumer-generated content, like
customer reviews or video testimonials, on your website.
Example: The customer searches “women’s winter coats” on Google to see what
options are out there. When she sees someone with a cute coat, she asks them where
they bought it and what they think of that brand.

+ Alternatives evaluation: Weighs choices against comparable alternatives

- At this point in the consumer decision-making process, prospective buyers have

developed criteria for what they want in a product. Now they weigh their prospective
choices against comparable alternatives.

- Alternatives may present themselves in the form of lower prices, additional product
benefits, product availability, or something as personal as color or style options. Your
marketing material should be geared towards convincing consumers that your product is
superior to other alternatives. Be ready to overcome objections—e.g., in sales calls,
know your competitors so you can answer questions and compare benefits.

Example: The customer compares a few brands that she likes. She knows that she wants
a brightly colored coat that will complement the rest of her wardrobe, and though she
would rather spend less money, she also wants to find a coat made from sustainable
materials.

+ Purchase decision: Makes actual purchase

- This is the moment the consumer has been waiting for: the purchase. Once they have
gathered all the facts, including feedback from previous customers, consumers should
arrive at a logical conclusion on the product or service to purchase.

- If you’ve done your job correctly, the consumer will recognize that your product is the
best option and decide to purchase it.

Example: The customer finds a pink winter coat that’s on sale for 20% off. After
confirming that the brand uses sustainable materials and asking friends for their
feedback, she orders the coat online.

+ Post-purchase evaluation: Reflects on the purchase they made

- This part of the consumer decision-making process involves reflection from both the
consumer and the seller. As a seller, you should try to gauge the following:

+ Did the purchase meet the need the consumer identified?

+ Is the customer happy with the purchase?

+ How can you continue to engage with this customer?

- Remember, it’s your job to ensure your customer continues to have a positive
experience with your product. Post-purchase engagement could include follow-up
emails, discount coupons, and newsletters to entice the customer to make an additional
purchase. You want to gain life-long customers, and in an age where anyone can leave
an online review, it’s more important than ever to keep customers happy.
30. Discussing the nature of problem recognition
- Need recognition: the first step in the consumer decision-making process occurring
when the consumer identifies and faces a “problem” that can be solved by buying a
product or service. For instance, take a young executive who decides to purchase a new
cell phone with a high-quality digital camera.
- She imagines that she would benefit from having a high-quality digital camera built
into her phone because it would make it easier and more convenient to take more vivid
and realistic photos without having to lug around a separate digital camera. This
executive has recognized a need and identified a suitable response. There are two types
of need recognition. Some consumers are actual state types, who perceive that they have
a problem when a product fails to perform satisfactorily (e.g., a cell phone that develops
constant static). In contrast, other consumers are desired state types, for whom the desire
for something new may trigger the decision process. Need recognition is the beginning
of the traditional consumer decision-making process as well as the new consumer
journey model.
- The model includes three components: (1) input; (2) process, which includes need
recognition, decision spectrum, pre-purchase information search, evaluation of purchase
alternatives, and decision rules; and (3) output. The consumer journey can also be placed
in stages of input, process, and output. Need Recognition  Type of Decision  Pre-
Purchase Information Search  Evaluation of Purchase Alternatives Consumer
- Decision-Making includes three components: (1) input; (2) process, which includes
need recognition, decision spectrum, pre-purchase information search, evaluation of
purchase alternatives, and decision rules; and (3) output. (2) process (e.g., need
recognition, information search, evaluation, and decision rules);

31. What happens if a consumer is dissatisfaction about the products?

- Negative disconfirmation of expectations occurs when performance is below
expectations and the consumer is dissatisfied. This situation is thought to lead to
dissatisfaction. For example, if the consumer perceived the Dell computer to be far
inferior to an Apple after using it, she or he would be negatively disconfirmed and,
according to the theory, would be dissatisfied. Example: a customer whose experience
falls below expectations (e.g., a limited wine list at an expensive restaurant or cold fries
served at a McDonald’s) will be dissatisfied. Additionally, most unhappy buyers share
their dissatisfaction with other consumers, dissuading them from dealing with aggressive
salespeople. Highly dissatisfied customers spread negative and often exaggerated
wordof-mouth.
- Another possibility is that a consumer is dissatisfied with his or her current brand of
laundry detergent. On the next trip to the grocery store, the consumer inspects other
brands and selects one that promises to get white clothes whiter. In this example, a
change in affect and cognition (dissatisfaction) led to a change in the consumer’s
environment (inspecting other brands), which led to a change in behavior (purchase of a
different brand).

32. The Four Ps of Marketing

When designing a successful marketing strategy, marketers often refer to the four Ps.
These four ideas help keep efforts “on-strategy” and guide decisions about what kind of
tactics – using television spots or news events, for example – make the most sense.
Product: What you are offering to help the audience adopt the desired behavior
Price: The costs, in time, money or other barriers, of engaging in the new behavior
Place: Where you offer the product, your distribution system, sales force, and support
services
Promotion: How marketers persuade the audience to use the product