TOPIC 1- What is Consumer Behavior, and Why

being offered
Should I Care?
Technological - factors affecting the dynamic
Changes process of CB3
Terms Definition
- tech has given cons6 access to
wide array of options of deciding
Consumption - represents the process by
and buying
which goods, services, or ideas
are used and transformed into Changing - factors affecting the dynamic
value Demographics process of CB3
- households increasingly
Competition - a reason why ppl1 get treated include 2 primary income
better in some environments providers, some countries have
than others declining populations, some
families have become less price
Relationship - the recognition that cus2 sensitive
Marketing desires are recurring and a
single purchase act may be only
one touchpoint in an ongoing The Basic Consumption Process
series of interactions with a cus2
Need
Interpretative/Quali - two basic approaches to Want
tative Research studying CB3 Exchange
- discover ideas, used in Cost and Benefits
exploratory res4 w/ gen7 res4
Reaction
objects
- observe and interpret Value
- unstructured, free-forms
- researcher is intimately Consumer Behavior and Closely Related
involved Disciplines
- results are subjective
- small samples, often in natural
Economics Psychology
settings
- exploratory res4 designs
Marketing
Quantitative - two basic approaches to
Consumer studying CB3 Consumer Behavior
Research - test hypothesis or specific res4
questions Anthropology Social Psychology
- measure and test
- structured response
- categories provided Why study Consumer Behavior?
- researcher uninvolved
- observer ➔ CB3 provides input to business/MS5
- results are objective ➔ CB3 provides a force that shapes society
- large samples to produce ➔ CB3 provides input to making responsible
- generalizable results (results
decisions as a cons6
that apply to other situations)
- descriptive and casual res4
designs - The cons researcher should realize that no
single best way of studying CB exists.
Research Aspect - common purpose
- approach Notes:
- data collection approach ppl1 - people
- researcher independence cus2 - customer/s
- samples CB3 - Consumer Behavior
- most often used res4 - research
MS5 - Marketing Strategy
Internationalization - factors affecting the dynamic
cons6 - consumer/s
process of CB3
- every culture will interpret
products and behaviors
differently.
- the meanings these cons6
perceive will determine the
success or failure of the product
TOPIC 2- Motivation and Emotion: Driving
consuming that thing
Consumer Behavior
Consumer - represents the degree of
Involvement personal relevance a consumer
Terms Definition
finds in pursuing value from a
given consumption act
Motivations - what drives human behavior
- are the inner reasons or driving Product - the personal relevance of a
forces behind human actions as Involvement particular product category
consumers are driven to address - behavior is common in fashion
real needs conscious market
- do not completely determins
behavior because other sources, Product - cons w/ v high involvement in
Enthusiasts some product categ
incldng situational factors like
- behavior is common in fashion
the physical environment, conscious market
influence behavior
- do much to provide the answer Shopping - personal relevance of shopping
or intended reason for a Involvement activities
consumer’s actions - those who react to
sale/promos/limited offers
Homeostatis - one of the two key groups of
Situational - temp interest in some imminent
behavior
Involvement purchase situation
- aimed at maintaning one in a
- those who purchase car,
current acceptable space
appliances
- refers to the fact that the body
naturally reacts in a way so as to
Enduring - ongoing interest in some
maintain constant normal blood
Involvement product opportunity
stream
- opposite of situational
involvement, often assiociated
Self-improvement - one of the two key groups of
with hedonic value
behavior
- aimed at changing one’s
Emotional - type of deep personal interest
current state to a level that is
Involvement that evokes strongly felt feelings
more ideal
simply from the thoughts or
- leads to acts normally involving
behavior assiociated w/ some
an emotional payoff
obj or act
- usual behavior displayed by
Maslow’s Hierarchy - physiological needs (food,
sports fans
of Needs water, sleep, warmth, sex),
- safety needs (personal &
High Product - dresses, tv, champagne, bras
financial security, well-being),
Involvement
- social needs (friendship,
intimacy & family),
Low Product - detergents, facial soap,
- esteem needs (freedom,
Involvement toothpaste, yogurt
recognition, self-confidence),
- self-actualization (achieving
Emotions - psychobiological reactions to
full potential, seeking hapiness)
appraisals
- extremely important to CB and
Utilitarian - desire to acquire products that
marketing bcs cons react most
Motivation can be used to accomplish
immediately to their feelings
things
- idea of maintaining behavior
Cognitive - when a cons makes an
- helps a cons maintain his/her
Appraisal Theory appraisal, he/she is assessing
state, work much like
some past, present, or future
homeostasis
situation
Hedonic Motivation - desire to experience something
Anticipation - focuses on the future and can
personally gratifying
Appraisals elicit emotions like hopefulness
- usually emotionally satisfying
or anxiety
Involvement - initially linked to motivation
Agency Appraisals - reviews responsiblity for events
because when one highly
and can evoke gratefulness,
involved w/ something, one is
frustration, or sadness
motivated to expend effort in

Equity Appraisals - considers how fair some event
is and can evoke emotions like
warmth or anger
Outcomes - considers how something
Appraisals turned out relative to one’s goals
and can evoke emotions like
joyfulness, satisfaction, sadness,
or pride
Mood - cons mood is temp and
changing feeling
- considered less intense than
many other emotional
experiences
- can highly influence CB
Affect - cons affect is more often used
to represent the feelings a
consumer has about a particular
product or act
Autonomic - offers the greatest validity in
Measures representing CB
- responses are based on
autonomic reactions
ie. facial expressions, lie
detector test, heart rate
Self-Report - less intrusive and dont invlove
Measures physical contraptions
- requires respondents to recall
their affect state from a recent
experience
ie. use of questionnaire,
paper-pencil test
Emotional - drives one to consume
Involvement generally strong hedonic
motivations
- often can make a consumer
appear irrational
Emotional - the extent to wc a cons shows
Expressiveness outward behaviorial signs
Emotional - one’s awareness of the
Intelligence emotions expressed in a
situation and the ability to control
reactions to these emotions
Consumer Involvement as a Moderator
➔ A highly involved consumer is likely to take
more time because there are more attractive
alternatives.
➔ Some degree of involvement is needed to
have an ability to effectively evaluate multiple
brands.
➔ The highly involved consumer is more likely to
actually distinguish meaningful differences
between brands.
Differences in Emotional Behavior
➔ Not all consumers react emotionally or show
their emotions to the same extent or in the
same way.
➔ Personality characteristics can affect the way
consumers respond or demonstrate their
emotions.
TOPIC 3- Consumer Learnig Starts Here:
Perception
Terms Definition
Learning - change in behavior resulting
from some interaction between a
person and a stimulus
Perception - consumer’s awareness and
interpretation of reality
Consumer - perception and reality are
Perception distinct concepts bcs the
perceptions that consumers
develop do not always match the
real world
- perception can be thought of as
a consumer’s awareness and
interpretation of reality
Consumer - there are three phases of
Perception Process perception process, sensing,
organizing, and reacting
- correspond to the elements of
exposure, attention, and
comprehension
Sensing - when a consumer enters a
store, views a website, the
perceptual process is put into
action
- sensing does not allow a cons
to assign meaning
Organizing - consumers develop an
interpretation and begin to
comprehend what the stimuli is
Reacting - occurs as a response or
behavior.
- reactions can include both
physical and mental responses
to the stimuli that we encounter
Selective - includes selective exposure,
Perception selective attention, and selective
distortion
- cons practice selective
perception from all the
thousands stimuli each day
- cons are selective in what they
expose themselves to, what they
attend to, and what and how
 they comprehend
JND - Just Noticeable Difference
- represents how much stronger
one stimulus has to be relative to
another so that someone can
notice that the two are not the
same
Implications of JND
Pricing (JND) - cons do not perceive very small
diff in prices as truly diff
- price increases must be in
small increments
- price reduction must be large
enough to show savings
Quantity (JND) - small diff in quan are often not
perceived as being diff
- reduction of ml per bottle, red
of toilet paper sheets
Quality (JND) - small improvements in qual
might not have any impact on
cons
Add-on Purchases - small additional purchase
tacked onto a large purch may
not be perceived as addtnl
spending
- offering $5 for socks after
buying pair of shoes that costs
$125 is an interesting offer
Implicit Memory - memory for things that a
person did not try to remember
- things learned
passively/unintentionally
- brand placements in athletes,
vgs or movies
- memorizing SM theme song
Explicit Memory - memory that developed when
the person is trying to remember
the stimuli
- learning is intentional
- being provided w marketing
materials to study/visiting
websites
- learning formulas
Tools Marketers
Use to Get
Consumers
Attention
Intensity of Stimuli - louder sounds
Contrast - colored picture of ad in b/w
newspaper
Movement - electronic billboard, flashing
lights
Surprising Stimuli - surprising scene
Size of Stimuli - bigger signage than other
nearby signs
Involvement - relevant to cons’ hobbies or
interest
Intentional - cons set out to specifically
Learning learn info devoted to a certain
subj
- product demos, test drive
Unintentional - cons do not intend to learn
Learning - cons only respond to stimuli
- cons are exposed to stimuli
such as good ambience
- free samples when buying in
bundles
Applying the JND Concept
➔ When marketers makes a positive change,
such as a drop in price or an improvement in
qual, they should make sure the diff is large
enough to be perceived by cons.
➔ When marketers make a negative change,
such as increase in price or a reduction in
quan being offered, they should think abt
implementing the change in small increments
so that a diff is not perceived.
➔ Marketers should make sure that changes are
not perceived as being deceptive. Such action
would be unethical.
Enhancing Consumer’s Attention
➔ Consumers are so bombarded with stimuli in
the marketing environment that they simply
cannot devote attention to all the stimulation.
➔ This presents a particular challenge to
marketers trying to break through the clutter
–the multiple layer of clutter must be
penetrated in order to gain attention
Defining Learning and Perception
➔ Marketers need to communicate a firm’s
unique and valuable bundle of benefits forthe
consumer
➔ The issue that marketers commonly face is
that consumers don’t always perceive the
value being offered.