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Notes On Consumer Behavior by Annel Segui
Notes On Consumer Behavior by Annel Segui
•Behaviors interact with the situation – The “party animal” of the mind 2. Dogmatism. Reflects the degree of rigidity a
– Operates according to the pleasure person displays toward the unfamiliar and
•Single measures of personality cannot predict principle toward information that is contrary to his/her
specific behaviors, such as what brand a own established beliefs
consumer will purchase Superego – If low in dogmatism (open-minded): likely
* Moral: Behavior must be measured on multiple – Individual’s internal expression of society’s to prefer innovative products
occasions to assess personality-behavior moral and ethical codes of conduct – If high in dogmatism: more receptive to ads
relationships accurately – Counterweight of the id for new products that contain an appeal
– The person’s conscience from an authoritative figure
Focus: 4th Aspect of Personality
Ego
•Single measures of personality cannot predict –
3. Social character. Ranges on a continuum:
Individual’s conscious control that balances – Inner-directedness
specific behaviors the demands of the id and superego • rely on own values when evaluating
–Moderates the effects of advertising messages – System that mediates between the id and products
and marketing situations on consumer behavior the superego • consumer innovators
• prefer ads that stress product internal driver. Cognitive Personality Factors
features/personal benefits
– Other-directedness •Need for cognition (NC)
VALS reflects a real-world pattern that explains
• look to others
the relationship between personality traits and –A person’s craving for or enjoyment of thinking
• less likely to be innovators
• prefer ads that feature an approving
consumer behavior. VALS uses psychology to –Individual with high NC more likely to respond
analyze the dynamics underlying consumer to ads rich in product-related information of
social environment or social acceptance
preferences and choices. VALS not only description
distinguishes differences in motivation, it also •More responsive to cool colors
4. Need for uniqueness. Consumers who avoid
captures the psychological and material
appearing to conform to expectations or
constraints on consumer behavior. –If low NC, more likely to be attracted to the
standards of others background or peripheral aspects of an ad
5.Optimum stimulation level. Measures the
VALS is based on current personality research •Spend more time on print content,
into specific components of social behavior. VALS have much stronger brand recall
level or amount of novelty or complexity that
asserts that people express their personalities
individuals seek in their personal experiences
through their behaviors. People with different – Plays a role in an individual’s use of the
– Reflects a person’s level of lifestyle Internet
personalities engage in different behaviors or
stimulation
• High OSL consumers tend to accept risky
exhibit similar behaviors for different reasons.
•
Visualizers versus verbalizers
and novel/new products more readily than
low OSL consumers. –A person’s preference for information
presented visually or verbally
6. Variety Novel-Seeking. Measures a
consumer’s degree of variety seeking:
–Visualizers prefer visual information and
– Exploratory Purchase Behavior (brand products that stress the visual
switching) –Verbalizers prefer written/verbal information
– Use Innovativeness (using an already and products that stress the verbal over graphics
adopted product in a new/novel way) and images
– Vicarious Exploration (obtaining
information about new and different •This distinction helps marketers know
alterna-tives, then contemplating/ whether to stress visual or written
daydreaming about the option) elements in their ads
•Consumers have a variety of enduring images 3. Extended Self. Possessions can extend self in
•
Human sensitivity refers to the experience of
a number of ways: sensation:
of themselves (“self-image” or “perceptions of
self”) –Sensitivity to stimuli varies with the quality of
–Actually:
•These images are associated with personality an individual’s sensory receptors and the amount
•allowing the person to do things that is difficult of intensity of the stimuli to which he/she is
in that individuals’ consumption relates to self- to accomplish exposed
image
–Tend to buy products or services and patronize –Symbolically: –Sensation itself depends on energy change, or
the difference of input
retailers with images/”personalities” that •Making the person feel better/bigger
closely correspond to their own self images –Conferring status or rank •Thus, a constant environment (whether very
busy/noisy or relatively quiet) would provide
–Bestowing feelings of immortality
The Marketing Concept little sensation because of the lack of change –
–Endowing with magical powers the consistent level of stimulation
•One or multiple selves
4. Altering the Self-image.
3. Perceptual Defense. Screening out of stimuli
•As sensory input decreases, the ability to Marketing Applications which are threatening or damaging
detect changes increases of the J.N.D. –If a stimulus is threatening to us in some way,
–This ability of the human organism to •Marketers need to determine the relevant we may not process it or we may distort its
meaning so that it’s more acceptable
accommodate itself to varying levels of j.n.d. for their products
sensitivity as external conditions vary not only •People don’t see what they don’t want to see
protects us from damaging, disruptive, or –so that negative changes are not readily Perceptual Selection
irrelevant bombardment when the input level is discernible to the public
high… 4. Perceptual Blocking. Consumers avoid being
–so that product improvements are very bombarded by tuning out (screening out
–…but has important implications for marketers apparent to consumers enormous amounts of advertising/ stimuli)
2. Stereotypes. People hold meanings related •Filling Several Positions –Other studies show that customers rely on
to stimuli –Creating several distinct offerings, often in the well-known brand name as a quality indicator
–Tend to carry “pictures” in their minds of the form of different brands to fill several –A later study found out that consumers use
unidentified niches price and brand to evaluate the prestige of the
meaning of various kinds of stimuli
product but do not generally use these cues
•Stereotypes influence how stimuli are •Repositioning when they evaluate the product’s performance
perceived –In response to market events (competitors
3. First Impressions. First impressions are cutting into market share) Retail Store Image
lasting –To satisfy changing consumer preferences •Retail stores have images of their own that
•Formed while the perceiver does not know Perceptual Mapping
serve to influence the perceived quality of
which stimuli are relevant, important, or
predictive
•A research technique that enables marketers products they carry and the decisions of
consumers as to where to shop
to plot graphically consumers’ perceptions
4. Jumping to Conclusions. People tend not to
concerning product attributes of specific brands •Consumers tend to perceive stores that offer a
listen to all the information before making a
conclusion
•Enables the marketer to see gaps in the small discount on a large number of items
(frequency of price advantage) as having lower
positioning of all brands in the product class and prices overall than competing stores that offer
–Many jump to conclusions before examining to identify areas in which consumer needs are larger discounts on a larger discounts on a
the relevant evidence like hearing the beginning not being adequately met smaller number of products (magnitude of price
of an ad and drawing the incorrect conclusions Issues in Perceived Price advantage)
•Important to put persuasive arguments first in •Reference prices – used as a basis for •The width of product assortment also affects
advertising comparison in judging another price retail store image
Interpretation –Internal: prices retrieved by the consumer
•The type of product the consumer wishes to
from memory
5. Halo Effect. Consumers perceive and buy influences his/her selection of a retail
evaluate multiple objects based on just one or a –External: advertisers use a higher external outlet
few dimensions reference price in an ad in which a lower sales –conversely, the consumer’s evaluation of a
•Used in licensing of names: associating price is being offered
product often is influenced by the knowledge of
products with a well-known celebrity or designer Acquisition-Transaction Utility where it was bought.
name •
Acquisition utility
•When a second extrinsic cue is available (e.g.
•Important with spokesperson choice –The consumer’s perceived economic gain or price and store image), perceived quality is
loss associated with the purchase sometimes a function of the interaction of both
Issues in Consumer Imagery
–Function of product utility and purchase price cues on the consumer
•Consumers have a number of enduring •
Transaction utility
perceptions/images and products/ brands have Manufacturers’ Image
symbolic value for individuals who evaluate –The perceived pleasure or displeasure •Manufacturers who enjoy a favorable image
them on the basis of their consistency with their associated with the financial aspect of the
personal picture of themselves: generally find that their new products are
purchase
accepted more readily than those of
–Product Positioning and Repositioning –Determined by the difference between the manufacturers who have a less favorable of even
internal reference price and the purchase price a “neutral” image
–Positioning of Services
–Perceived Price Perceived Quality of Products –Researchers have found out that consumers
generally have favorable perceptions of pioneer
–Perceived Quality •Consumers often judge the quality of a product brands (the first in a product category), even
(perceived quality) on the basis of a variety of after follower brands become available
–Retail Store Image informational cues:
Perceived Risk __________________________________
–The stimuli that give direction to the motives
•The degree of uncertainty perceived by the LEARNING
consumer as to the consequences (outcome) of a Learning –In the marketplace, the following may serve
specific purchase decision as cues to help consumers fulfill their needs
•
Marketers are concerned on how individuals
•Consumer perception of risk varies, depending learn because they want to teach them about: •price
on: •styling
–The person –Products
–The product –Product attributes •packaging
–The situation –Potential consumer benefits •advertising
–The culture •
Marketers must teach consumers:
•store displays
•High-risk perceivers: –where to buy their products –Serve to direct consumer drives when they are
–described as narrow categorizers because they consistent with their expectations
limit their choices (e.g. product choices) to a –how to use their products
few safe alternatives –how to maintain their products •Response:
•Low-risk perceivers: –how to dispose of their products –How individuals react to a drive or cue; how
they behave
–described as broad categorizers because they
tend to make their choices from a much wider •Marketing strategies are based on –Not tied to a need in a one-to-one fashion
range of alternatives communicating with consumers –A need/motive may evoke a whole variety of
Types of Perceived Risk –Marketers want their communication to be: responses
–Remaining loyal to a brand with which they –To the learning of abstract concepts and •
Early classical conditioning theorists regarded
have been satisfied instead of purchasing new or complex problem-solving all organisms as passive recipients
untried brands –Conditioning involved building automatic
• Select by Brand Image
•
BUT, there is no single, universal theory of how responses to stimuli
people learn
– When consumers have no experience with a •
Ivan Pavlov, a Russian physiologist, was the
Elements of first to describe conditioning…
product, they tend to “trust” a favored/well-
Learning Theories
known brand name •
…and to propose it as a general
• Rely on Store Image
•
Motivation: model of how learning occurs. He
Observational Learning
–New learning can interfere with the retrieval celebrity spokespersons or highly visual and •Refers to the value inherent in a well-known
symbolic ads] brand name
of previously stored material
–Old learning can interfere with the recall of •The best strategy for increasing the personal •Value stems from consumer’s perception of
recently learned material relevance of products to consumers is the same brand superiority
as the core of modern marketing:
–Provide benefits that are important and
•Brand equity reflects learned brand loyalty
Issues in Involvement Theory relevant to consumers •Brand loyalty and brand equity lead to
•Consumer Relevance –Improve the product and add benefits as
competition intensifies
increased market share and greater profits
•Central and Peripheral Routes to Persuasion –Focus on forging bonds and relationships with
customers rather than just engaging in
•Measure of Involvement transactions
The Medium
•The perceived honesty and objectivity of the
•New modes of interactive communication that source contributes to his/her credibility
permit the audiences of mass media to provide
–If the source is well-respected and highly •Source credibility judged on past performance, •The reputation of the retailer who sells the
thought of by the intended audience, the reputation, service, quality, spokesperson product has a major influence on message
message is much more likely to be believed, and image, retailers, social responsibility credibility
vice versa •Institutional advertising used to promote
favorable company image
•The reputation of the medium that carries the
advertisement also enhances the credibility of
• Credibility is build on several factors, foremost
• Not-for-profit sources generally have more the advertiser
of which are the intentions of the source
credibility than for-profit sources
–If the receiver perceives any type of personal –Such formal sources as neutral rating services •There is no single answer as to which medium
has the most credibility
gain for the message sponsor as a result of the
or editorial sources have greater credibility than – especially now when new forms of media and
proposed action or advice, the message itself
commercial sources
becomes suspect traditional media in new forms are emerging
• Consumers judge commercial source credibility
•The consumer’s previous experience with the
The Message Initiator (Source) on such factors as:
Issues with credibility product or the retailer has a major impact on
–Past performance the credibility of the message
• Credibility of Informal Sources
–The kind and quality of service
• Credibility of Formal Sources –The quality and image of products offered
•Credibility of Spokespersons and Endorsers –Their position in the community Sleeper Effect
The idea that both positive and negative
Credibility of Formal Sources
•Message Credibility credibility effects tend to disappear after a
•Firms with well-established reputations period of time.
1. Credibility of informal sources. generally have an easier time selling their
products than do firms with lesser reputations Effects of Time on Source Credibility
o Includes word of mouth
•These sources also called opinion leaders •A quality image permits a company to •The persuasive effects of high-credibility
experiment more freely in many more areas of sources do not endure over time
•Informal sources may not always be credible marketing than would otherwise be considered •Although a high-credibility source is initially
prudent
•Built on the perception that the informal more influential than a low-credibility source,
sources (friends, neighbors, relatives) have •Institutional advertising is designed to research suggests that both positive and
nothing to gain from their recommendation promote a favorable company image rather than negative credibility effects tend to disappear
to promote specific products after 6 weeks or so
•An opinion leader is an example of an informal
source who profits psychologically, if not •Firms often engage in cause-related marketing, –This phenomenon has been termed the
tangibly, by providing product information to where they contribute a portion of the revenues sleeper effect = consumers simply forget the
others they receive from selling certain products to source of the message faster than they forget
causes the message itself
–This ego gratification may actually improve
the quality of the information provided 3. Credibility of Spokespersons and Endorsers
–The sleeper effect is caused by disassociation
over time, leaving just the message content
–The fact that the opinion leader does not •Effectiveness related to:
receive material gain from the recommended •The theory of differential decay suggests that
action increases the likelihood that the advice –The message the memory of a negative cue simply decays
will be seriously considered –Synergy between endorser and type of product faster than the message itself, leaving behind
•Clever marketers initiate word-of-mouth –Demographic characteristics of endorser
the primary message content
(WOM) campaigns
–Corporate credibility
•Reintroduction of a similar message by the
–Many firms enlist typical consumers to serve as source serves to jog the audience’s memory, and
their buzz agents –Endorsement wording the original effect remanifests itself
•Marketers are now more acutely concerned •The spokesperson that gives the product –i.e. the high-credibility source remains more
with negative word-of-mouth that can result in message is often perceived as the source persuasive than the low-credibility source
unfounded rumors about products •Studies show: The Target Audience (Receivers)
•Persistent critics of marketers who initiate ad –The effectiveness of the spokesperson is •Receivers decode the messages they receive
publicity online are called determined related to the message itself on the basis of their personal experience and
detractors
–The synergy between the endorser and the personal characteristics
•Factors motivating consumers to engage in type of product/service advertised is an •Personal characteristics and comprehension:
WOM: important factor –The amount of meaning derived from the
–Consumer involvement with the product or –Endorsers who have demographic message is the result of the message
message characteristics that are similar to those of the characteristics, the receiver’s opportunity and
target audience are viewed as more ability to process the message, and the
–Self-involvement credible/persuasive than those who do not receiver’s motivation
–Alleviating post-purchase uncertainty & –The endorser’s credibility is not a substitute –Personality, attitudes, and prior learning all
dissonance affect how a message is decoded
for corporate credibility
–Seeking information –Perception, based as it is on expectations,
•Marketers who use celebrities to give motivation, and past experience, certainly
–Concern for others testimonials/ influence message interpretation
•Primary motives behind eWOM: endorse products must be sure that the
specific wording of the endorsement lies within
•Involvement and congruency
–Venting negative feelings the recognized competence of the spokesperson –A person’s level of involvement determines
how much attention is paid to the message &
–Concern for others •In interpersonal communications, consumers how carefully it is decoded
–Extraversion and positive self-enhancement are more likely to be persuaded by salespersons
•Mood
who engender confidence and who give the
–Social benefits impression of honesty and integrity –A consumer’s mood (cheerfulness,
–Economic incentives unhappiness) affects the way in which an ad is
4. Message Credibility perceived, recalled and acted upon
–Helping the company –Often influenced by the context in which the
–Advice seeking •Credibility of retailers advertising message appears (e.g. the adjacent
•Reputation of the medium that carries the ad TV program or newspaper story) and the content
2. Credibility of Formal sources. Neutral of the ad itself which in turn, affect the
sources have the greatest credibility •Consumer’s previous experience with product consumer’s evaluation and recall of the message
•Barriers to communication may affect the –Which consumers received the message •Selective binding possible
accuracy with which consumers interpret [Data collected via both types of measures are
messages offered for sale by syndicated services] •High quality production
–Selective exposure to messages
•Message Attention and Interpretation •High credibility
–Psychological noise
–Physiological measures •Long message life
Selective Exposure to Messages
–Theater tests •High pass-along rate
•Consumers selectively perceive advertising •Long lead time
messages –Readership surveys
–Tend to ignore ads that have no special –Attitudinal measures •High clutter
interest or relevance to them
•Message Recall Measures •Delayed and indirect feedback
–TV remote controls offer viewers the ability to
“wander” among program offerings with ease •Rates vary based on circulation and selectivity
(referred to as “grazing”) –Day after recall Persuasive Capabilities and Limitations of Major
Media (Television)
–Some marketers try to overcome channel Physiological Measures
surfing during commercials by roadblocking •Low costs per contact
(i.e. playing the same commercial •Physiological measures track bodily responses
simultaneously on competing channels) to stimuli •Long lead time
Psychological Noise
•Sophisticated physiological techniques can be •High clutter
used to measure the degree of consumer arousal
•Things that impair reception of a message, and involvement…
•Short message life
such as competing advertising messages or
distracting thoughts •…but do not assess the reasons behind their •Viewers can avoid exposure with zapping, etc.
•To overcome psychological noise, a sender can: levels of engagement with the messages tested •Day-after recall tests for feedback
–Repeat exposure to the message Attitudinal Measures •Large audiences possible
–Use contrast
–Use teasers
•Generally, researchers use attitudinal •Appeals to many senses
measures, placed within copy pretests or
–Use customized ads posttests to assess whether respondents: •Emotion and attention possible
–Shift advertising from TV to internet –like the message •Demonstration possible
•The most effective way to ensure that a –understand it correctly
promotional message stands out and is received •Very high costs overall
and decoded appropriately by the target –regard it as effective and persuasive
audience is through effective positioning and a Designing Persuasive Communications
•Researchers are also interested in measuring
unique selling proposition
the emotions and feelings evoked by the ads •Message Strategy
Feedback: The Receiver’s Response –The message is the thought idea, attitude,
Designing Persuasive Communications
•The ultimate test of marketing communication image or other information that the sender
is the receiver’s response •Communications strategy wishes to convey to the intended audience
–Senders must recognize what they are trying
–Only through feedback can the sender
determine if and how well the message has been
–Must include objectives to say and audience’s characteristics so they can
received •The sponsor must first establish the primary encode the message appropriately
•Feedback is also important for impersonal or factors of perception, experience and memory •Resonance
mass communication because of its expense •Media Strategy •Message framing
–The organization that initiates the message –Consumer profile
needs some method for determining whether its
•First, the sponsor should develop a consumer
•Comparative advertising
mass communication is:
•being received by the intended audience profile of the target market •Order effects
•understood in the intended way –Audience profile •Repetition
•successful in achieving the intended objectives •Next, a medium with an appropriate audience
•Unlike interpersonal communications, mass profile needs to be selected 1. Resonance. Wordplay
–Before selecting a specific medium, the
communications feedback is rarely direct; it is
usually inferred advertiser needs to select a general media
•Used to create a double meaning when used
category that will enhance the message with a relevant picture
–Receivers buy (or do not buy) the advertised
product; they renew (or do not renew) their –Once marketers have identified the 2. Message Framing.
magazine subscriptions, etc. appropriate media category, they can then
choose the specific medium/media in that
•Another type of feedback that companies seek category that reaches their intended audiences
Positive framing:
from mass audiences is the degree of consumer –stress the benefits to be gained by using a
satisfaction or dissatisfaction with a product
–The web is an advertising medium, and using it specific product
to communicate effectively with customers is a
purchase •Negative framing:
challenge to marketers
Advertising Effectiveness Research –stress the benefits to be lost by not using the
Persuasive Capabilities and Limitations of product
•Media and message exposure measures Major Media (Magazines)
•Order of benefits
•Brand name
Order Effects
•Communications researchers have found that
the order in which a message is presented
affects audience receptivity
•On television, the position of a commercial in a
commercial pod can be critical
–Commercials shown first are recalled best,
those in the middle the least
•Magazine publishers recognize the impact of
order effects by charging more for ads on the
front, back and inside covers of magazines than
for the inside magazine pages because of their
greater visibility and recall
•Order is also important in listing product
benefits within an ad
–If interest is low, the most important point
should be made first to attract attention
–If interest is high, it is not necessary to pique
curiosity and so product benefits can be
arranged in ascending order
•When both favorable and unfavorable
information are to be presented, placing the
favorable material first often produces greater
tolerance for the unfavorable news
–It also produces greater acceptance and
understanding of the total message
5. Repetition
•Important factor in learning
–Frequency of the ad affects:
•persuasion, ad recall, brand name recall, and
brand preferences
–Multiple message exposures give consumers
more opportunity to:
•internalize product attributes
•develop more or stronger cue associations and
more positive attitudes
•increased willingness to resist competitive
counter persuasion efforts
Advertising Appeals
•Factual and emotional appeal effectiveness
varies with the circumstance and the audience
–Reason-why appeals are more effective in
persuading educated audiences