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Consumer Behavior Essentials in Marketing Communication

Consumer Behavior Essentials in Marketing Communication

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Contents..................................................................................................................... 1 Lecture 1: Intro & Organization...................................................................................3 Chapter 1 Consumer Behavior and Consumer Research...........................................4 Chapter 2 Creating Marketing Strategies for Customer-Centric Organizations..........6 Lecture 2: Consumer Decision Making and Motivation.................................................8 Chapter 3 The Consumer Decision Process.............................................................11 Chapter 4 Pre-Purchase Processes: Need Recognition, Search, and Evaluation.......12 Chapter 7 Demographics, psychographics, and personality....................................14 Chapter 8 Consumer Motivation.............................................................................16 Lecture 3: Consumer Perception & Information processing........................................17 Chapter 14 Making Contact....................................................................................17 Chapter 15 Shaping Consumers’ Opinions..............................................................18 Chapter 16 Helping Consumers to Remember........................................................19 The interaction of retail density and music tempo: Effects on shopper responses. .21 Lecture 4: Consumer Research & Attitudes...............................................................21 Chapter 5 Purchase................................................................................................22 Chapter 6 Post-Purchase Processes: Consumption and Post-Consumption Evaluations............................................................................................................23 Chapter 9 Consumer Knowledge............................................................................24 Chapter 10 Consumer Beliefs, Feelings, Attitudes, and Intentions..........................25 Implicit consumer preferences and their influence on product choice.....................26 Adapting to a retail environment: Modeling consumer-environment interactions. . .26 Lecture 7: Social Influences.......................................................................................27 Chapter 11 Culture, Ethnicity, and Social Class......................................................28 Chapter 12 Family and Household Influences.........................................................29

Chapter 13 Group and Personal Influence..............................................................30 Market mavens: Psychological influences...............................................................33 Lecture 8: Dissatisfaction..........................................................................................33 Service validity and service reliability of search, experience and credence services: A scenario study.....................................................................................................34 Lecture 9: New products...........................................................................................35 Diffusion of preventive innovations........................................................................35

Lecture 1: Intro & Organization
• • Macro-level: economics/econometrics, sociology, business administration. Analyses: trends (over time), competition analyses, SWOT, sales figures, Nielsen data, market share. Micro-level: consumer psychology, communication studies, social psychology, environmental psychology, decision making research, methodology. Individual consumer behavior. Consumer decision making toward obtaining, consuming and divesting products and services.

Consumer behavior: activities people undertake when obtaining, consuming, and disposing of products and services. Also, a field of study that focuses on consumer activities. Integrated marketing communications, IMC: a new way of looking at the whole, where once we saw only parts such as advertising, public relations, sales promotion, purchasing, employee communications, and so forth, to look at it the way the consumers sees it – as a flow of information from indistinguishable sources. 4 P’s (product, price, place, promotion): advertising, sales promotion, sponsorship, pr, point-of-purchase communication, exhibitions, trade fairs, direct marketing, personal selling, viral marketing (W-O-M), 360° marketing, product design, interior design, relationship marketing. • • Rational perspective: maximize profit, optimal decision making; all alternatives & each piece of information are weighted and integrated into decision making (formal decision making model). Non-rational (psychological) perspective: how it actually goes (is nonrational!).

Consuming means how. Consumption analysis refers to why and how people use products in addition to why and how they buy. and distribution of ideas. 2006) Chapter 1 Consumer Behavior and Consumer Research What is Consumer Behavior? Consumer behavior is defined as activities people undertake when obtaining. where. goods. when and under what circumstances consumers use products.. • • • Obtaining refers to the activities leading up to and including the purchase or receipt of a product. and services to create exchanges that satisfy individual and organizational objectives. pricing. and disposing of products and services. Marketing concept – the process of planning and executing the conception. consuming. Consumer behavior also can be defined as a field of study that focuses on consumer activities. Why Study Consumer Behavior? . promotion. Disposing refers to how consumers get rid of products and packaging.Consumer Decision Making Model (Blackwell et al.

An observational approach to consumer research consists primarily of observing consumer behaviors in different situations. Marketing era: a time when productive capacity exceeded demand. thus adopting a marketing orientation. manufacturing. and retailing together as a customer-centric demand chain.Marketing is the process of transforming or changing an organization to have what people will buy. In-home observation places marketers inside people’s homes to examine exactly how products are consumed. Interviewer bias: the potential for an interviewer to affect the responses of the interviewee. causing firms to change their orientation away from manufacturing capabilities and toward the needs of consumers. Behavioral sciences took center stage and provided a toolbox of theories and methodologies borrowed by innovative marketing organizations. and (3) experimentation. logistics. asking questions about each step of the process. Surveys are an efficient way of gathering information from a large sample of consumers by asking questions and recording responses. Shadowing is a method in which a researcher accompanies or “shadows” consumers through the shopping and consumption processes. Marketing orientation: a focus on how an organization adapts to consumers. Longitudinal studies involve repeated measures of consumer activities over time to determine changes in their opinions. Positivism: the process of using rigorous empirical techniques to discover generalizable explanations and laws. defined as all the organizations involved in taking a product from inception to final consumption. Evolution of Consumer Behavior Supply chain. How Do You Study Consumers? Methods can be classified into three major methodological approaches: (1) observation. Consumer orientation: the process of bringing product design. buying and consumption behaviors. Experimentation attempt to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables. perhaps because of a desire to please the interviewer. Focus groups usually consist of eight to twelve people involved in a discussion led by a moderator skilled in persuading consumers to discuss thoroughly a topic of interest to the researcher. (2) interviews and surveys. A laboratory experiment is conducted in a physical environment that permits . including: • • • Motivation research: the act of uncovering hidden or unrecognized motivation through guided interviewing. Postmodernism: an approach to understanding consumer behavior that uses qualitative and other forms of nonexperimental research methods.

The Underlying Principles of Consumer Behavior Market segments: a group of consumers with similar needs. Consumer insight can be defined as an understanding of consumers’ expressed and unspoken needs and realities that affect how they make life. Marketing strategy involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive products or services. Chapter 2 Creating Marketing Strategies for Customer-Centric Organizations The Century of the Consumer Consumer analysis: the process of understanding consumer trends. A field experiment takes place in a natural setting such as a home or a store. and communication methods to reach target markets most effectively. but somewhat differently than other groups. Market segmentation is the process of identifying groups of people who behave in similar ways to each other. Mass customization is customizing goods or services for individual customers in high volumes and at relatively low costs. with the study of consumers at the core.maximum control of variables being studied. behavior. technology. Customer-centricity is a strategic commitment to focus every resource of the firm on serving and delighting profitable customers. The opposite of market segmentation is market aggregation or mass marketing. . Strategy is a decisive allocation of resources (capital. legal and economic environments. current and potential competitors. models to predict purchase and consumption patterns. which are identified through the market segmentation process. Market analysis is the process of analyzing changing consumer trends. and the technological. The process includes market analysis. and people) in a particular direction. Determining the attractiveness of a market segment involves analyzing segments based on the following four criteria. company strengths and resources. Intermarket segmentation: the identification of a group of customers that are similar in a variety of characteristics that transcend geographic boundaries. or other characteristics. which occurs when organizations choose to market and sell the same product or service to all consumers. market segmentation. From Market Analysis to Market Strategy: Where Does Consumer Behavior Fit? Value is the difference between what consumers give up for a product and the benefits they receive. brand strategy and implementation. brand. global consumer markets. and product choices. A market segment is a group of consumers with similar behavior and needs that differs from those of the entire or mass market.

sales promotion. Brand protection. Brand personality is the reflection consumers see of themselves or think they will develop by using a brand. In this phase. Emotional elements: characteristics of a brand (including image. A brand is a product or product line. and logistics) that solve a problem for the consumer. sore or service with an identifiable set of benefits. wrapped in a recognizable personality. brands reduce the risk to consumers that a product or service may not deliver as expected. style. Substantiality refers to the size of the market. public relations. price. and behavior of a market segment. The third element of the marketing mix is price. The first element of the marketing mix is product. by promising a certain outcome. firms decide the most effective outlets through which to sell their products and how best to get them there. Customer Loyalty and Retention Strategies Customer lifetime value (CLV): the value to the company of a customer over the whole time the customer relates to the company.• • • • Measurability refers to the ability to obtain information about the size. • • Functional elements: characteristics of a brand (including performance. Accessibility is the degree to which segments can be reached. nature. and evoked feelings) that create an emotional connection between customers and the brand. A brand promise describes what consumers can expect in exchange for their money. including advertising. which includes the total bundle of utilities (or benefits) obtained by consumers in the exchange process. Global Marketing Strategy Cross-cultural analysis is the comparison of similarities and differences in behavioral and physical aspects of cultures. Brand equity is the difference in value created by a brand less the cost of creating the brand. quality. Congruity refers to how similar members within the segment exhibit behaviors or characteristics that correlate with consumption behavior. . reliability. personality. The final element of the marketing mix is promotion. Cultural empathy refers to the ability to understand inner logic and coherence of other ways of life and refrain from judging other value systems. or the total bundle of disutility’s (costs) given up by consumers in exchange for a product. and personal sales. The second element of the marketing mix is place.

performance 1955 demand < supply selling orientation Growing market.Ethnography. If one of the brands is perceived as superior based on that attribute. ad awareness. pre-post advertising campaign survey’s (measuring brand awareness. Producers. Now. As before. the least complex of all decision processes. A useful technique for overcoming language problems in back-translation. Lecture 2: Consumer Decision Making and Motivation Evolution of Consumer Behaviour • • • 1850-1950 demand > supply manufacturing orientation 50’s demand = supply product orientation Product attributes: quality. Each brand is compared. 70’s > marketing orientation Ad hoc survey’s: large scale. technological explosion. it is selected. against this set of cutoffs. however.g. large sample. describing and understanding consumer behavior by interviewing and observing consumers in real-world situations. can help analyze subtle ways buyers and sellers interact in the marketplace and can be useful in business negotiation processes. Consumers: decision making strategies. criteria. they are then compared on the second most important attribute. (aggressive) persuasion. market share). • Lexicographic strategy (noncompensatory evaluation strategy): brands are compared initially on the most important attribute. In this procedure. push-strategy in selling/advertising. Conjunctive strategy (noncompensatory evaluation strategy): Cutoffs are established for each salient attribute. one at a time. 80’s > Customer needs consumer orientation • • Habitual decision making: a decision to buy based on a past purchase. • • Extended problem solving (EPS): problem solving of a higher degree of complexity that influences consumers’ actions. Intermarket segmentation is the identification of groups of consumers who transcend traditional market or geographic boundaries. If two or more brands are perceived as equally good. This continues until the tie is broken. Elimination by aspects strategy (noncompensatory evaluation strategy): resembles the lexicographic approach. brands are first evaluated on the most important attribute. If the brand meets the cutoffs for all the attributes it is chosen. Limited problem solving (LPS): problem solving of a low degree of complexity that influences consumers’ actions. a message is translated from its original language to the translated language and then back to the original by several translators.). the consumer imposes cutoffs (must be under 2 dollars e. .

self-respect. chew (chewing. candy) • Orally aggressive fixation: teeth. spending. gnawing. and swallow (smoking. elimination (organizing. love 4. prestige 3. neatness) • Anal expulsive fixation (creativity. expensive products. bladder. strong cognitive or emotional involvement. chips) • Anal retentive fixation: bowel. gambling) • Phallic fixation: genitals. high risk. status oriented products. Esteem needs: accomplishment. Motivational conflict can take one of three basic forms.• • Simple additive (compensatory evaluation strategy): an evaluation strategy by which the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria. Self-actualization needs: self-fulfillment. Safety needs: protection. friendship. eating. water. Psychological needs: food. Approach-avoidance exists when a chosen course of action has both positive and negative consequences. Weighted additive (compensatory evaluation strategy): unfamiliar. Avoidance-avoidance conflict involves deciding between two or more undesirable alternatives. Motivational conflict: what consumers experience when they must make tradeoffs in satisfying their needs. sleep . • • • Approach-approach conflict occurs when the person must decide between two or more desirable alternatives. enriching experiences 2. suck. oepidus & electra complex (competition. sports) • Latency “fixation”: dormant sexuality (sex industry?) • Genital fixation: mature sexual interests (Viagra) Maslow’s Hierarchy of Needs (1970) (TENTAMEN!!!) 1. Freud (TENTAMEN!!!) • Orally passive fixation: mouth. candy. Social needs: companionship. security 5.

variety and risk).Customer needs pyramid (Van Hagen. 2003) The VALS 2 Technique Values and Lifestyle System. and self-expression (desire social or physical activity. achievement (look for products that demonstrate success to their peers). . and satisfaction to their lives. consumers buy products and services and seek experiences that fulfill their characteristic preferences and give shape. An individuals’ primary motivation determines what in particular about the self or the world is the meaningful core that governs his or her activities. Consumers are inspired by one of three primary motivations: ideals (knowledge and principles). substance.

• • • • • • • • Innovator: these consumers are on the leading edge of change. and such high self-esteem and abundant resources that they can indulge in any or all self-orientations. Survivors: these consumers have the lowest incomes. Believers: these consumers are the low-resource group of those who are motivated by ideals. communication. Makers: these consumers are the low-resource group of those who are motivated by self-expression. • Internal search: the scanning and retrieval of decision-relevant knowledge from memory. well-educated professionals. . and sales strategies. Need recognition occurs when an individual senses a difference between what he or she perceives to be ideal versus the actual state of affairs. responsible. Achievers: these consumers are the high-resource group of those who are motivated by achievement. Experiencers: these consumers are the high-resource group of those who are motivated by self-expression. Chapter 3 The Consumer Decision Process The Consumer Decision Process Model The consumer decision process (CDP) model represents a road map of consumers’ minds that marketers and managers can use to help guide product mix. Thinkers: these consumers are the high-resource group of those who are motivated by ideals. They are mature. have the highest incomes. Strivers: these consumers are the low-resource group of those who are motivated by achievements.

With limited problem solving. need recognition leads to buying action. spur-of-the-moment action triggered by product display or point-of-sale promotion. dissatisfaction occurs.• External search: the act of collecting information from one’s environment. Factors Influencing the Extent of Problem Solving Involvement is the level of perceived personal importance and interest evoked by a stimulus within a specific situation. in other words. extensive search and evaluation are avoided because the purchase does not assume great importance. financial records. Impulse purchase is an unplanned. Learning: the process by which experience leads to changes in knowledge and behavior. but many decisions occur along the middle of the continuum and require midrange problem solving. and stored in memory. as potentially the most important. EPS and LPS are extremes on a decision process continuum. The other extreme of the decision-making continuum is limited problem solving (LPS). Generic need recognition occurs when the need for an entire product category is stimulated. processed. Consumers think of salient attributes such as price. Search. Different consumers employ different evaluative criteria – the standards and specifications used to compare different products and brands. Types of Decision Process When the decision process is especially detailed and rigorous. When experiences and performance fall short of expectations. and factors that probably vary little between similar types of products. extended problem solving (EPS) or problem solving of a higher degree of complexity that influences consumers’ actions. often occurs. reliability. or problem solving of a lower degree of complexity that influences customers’ actions. Satisfaction occurs when consumers’ expectations are matched by perceived performance. Variables That Shape the Decision Process Information processing: the process by which information is received. Determinant attributes usually determine which brand or store consumers choose. Selective need recognition occurs . and Evaluation Need Recognition Spyware is software that’s downloaded onto a computer without the permission of the owner and that collects personal information such as the user’s online activities. and passwords. Chapter 4 Pre-Purchase Processes: Need Recognition. there is little information search or evaluation before purchase.

• Lexicographic strategy (noncompensatory evaluation strategy): an evaluation strategy in which brands are compared initially on their most important attribute. External search set: those choice alternatives that consumers gather information about during prepurchase search. represents the motivated activation of knowledge stored in memory or acquisition of information from the environment about potential need satisfiers. Search Search. Perceived risk represents consumers’ uncertainty about the potential positive and negative consequences of the purchase decision. “Funnel” search strategy: when people begin their internet search with generic terms but eventually refine their search with terms focusing on specific products. According to a cost versus benefit perspective. Pre-Purchase Evaluation The manner in which choice alternatives are evaluated is the focus of our third stage of the consumer decision-making process. people search for decision-relevant information when the perceived benefits of the new information are greater than the perceive costs of acquiring this information. Opinion leaders or influential’s are other consumers who are respected for their expertise in a particular product category. evaluation of a choice alternative depends on the particular category to which it is assigned. In contrast. Internal search involves scanning and retrieving decision-relevant knowledge stored in memory. External search motivated by an upcoming purchase decision is known as pre-purchase search. Haptic information represents information acquired by touch. in which information acquisition takes place on a relatively regular basis regardless of sporadic purchase needs. pre-purchase evaluation. an evaluation is derived from consideration of the alternative’s advantages and disadvantages along important product dimensions. is one way companies employ categorization to their advantage. Those alternatives considered during decision making compose what is known as the consideration set (also known as the evoked set). in which a well-known and respected brand name from one product category is extended into other product categories. . A cutoff is simply a restriction or requirement for acceptable performance. Brand extensions. Retrieval set: the recall of choice alternatives from memory. Signals are stimuli used to make inferences about the product. under a piecemeal process. According to a categorization process.when the need for a specific brand within a product category (selective demand) is stimulated. External search consists of collecting information from the marketplace. This type of external search differs from ongoing search. the second stage of the decision-making process.

Simple additive (compensatory evaluation strategy): an evaluation strategy by which the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria. which recognizes that the future growth of any population will be influenced by its present age distribution. A primary . Changing Structure of Consumer Markets Economic demographics: the study of the economic characteristics of a nation’s population. Birthrates should not be confused with natural increase. Chapter 7 Demographics. structure. Changing Geography of Demand Where people live. Birthrate is the number of live births per 1. surrounded by nonmetropolitan counties and not closely related with other metropolitan areas.• • • Elimination by aspects strategy (noncompensatory evaluation strategy): an evaluation strategy resembling the lexicographic strategy but in which the consumer imposes cutoffs. Macromarketing: the aggregate performance of marketing in society. which is the surplus of births over deaths in a given period. The fertility rate is the number of live births per 1. Changing Age Distribution in the United States A cohort is any group of individuals linked as a group in some way. Conjunctive strategy (noncompensatory evaluation strategy): an evaluation strategy employing a comparison of each brand to cutoffs that are established for each salient attribute of the brand. Population momentum. and personality Analyzing and Predicting Consumer Behavior Demographics: the size. and distribution of a population. psychographics. how they earn and spend their money and other socioeconomic factors – referred to as geodemography – are critical to understand consumer demand. Suburbs have grown rapidly. Cognitive age is the age one perceives one’s self to be.000 women of childbearing age (defined as 15 to 44 years). The metropolitan statistical area (MSA) is defined as a free-standing metropolitan area. but today exurbs – areas beyond the suburbs – are experiencing the fastest growth.000 population in a given year. Total fertility rate (TFR) is the average number of children that would be born alive to a woman during her lifetime if she were to pass through all of her childbearing years conforming to the age-specific fertility rates of a given year.

the personality consumers interpret from a specific brand. Interest: the degree of excitement that accompanies both special and continuing attention to an object. The term psychographics is often used interchangeably with AIO measures – statements that describe the activities. Lifestyle Concepts and Measurement Lifestyle is a summary construct defined as patterns in which people live and spend time and money. Opinion: a spoken or written “answer” that a person gives in response to a “question”. shopping in a store. Contra cyclical advertising is the practice of increasing or at least maintaining advertising during economic slowdowns to gain market share when competitors cut promotional activity. Psychographics is an operational technique to measure lifestyles. event. relatively enduring way in which one individual differs from another. stocks. • • • Activity: an action such as bowling. and a home. Global Market Demographics and Attractiveness A trait is any distinguishable. Consumption is heavily influenced by what consumers think will happen in the future referred to as consumer confidence. or topic. it provides quantitative measures and can be used with the large samples needed for definition of market segments. . Personal Values Social values define “normal” behavior for a society or group. A grouping of closely related PMSAs is a consolidated metropolitan statistical area (CMSA). interests and opinions of consumers. Wealth is a measure of a family’s net worth or assets in such things as bank accounts. Economic Resources Income is defined as money from wages and salaries as well as interest and welfare payments.metropolitan statistical area (PMSA) is a metropolitan area that is closely related to another city. minus its liabilities such as home mortgage and credit card balances. (TENTAMENVRAAG!!!) AIO Components are defined by the following categories. or talking on the telephone. Personal values define “normal” behavior for an individual. Laddering refers to in-depth probing directed toward uncovering higher-level meanings at both the benefit (attribute) level and the value level. Trait theory is perhaps most useful to marketing strategies in developing brand personality .

e. prestige 8. friendship. Social needs: companionship. consoling. enriching experiences 7. security 10. Motivational Conflict and Need Priorities Motivational conflict: what consumers experience when they must make tradeoffs in satisfying their needs. Self-gifts are things that we buy or do as a way of rewarding. or motivating ourselves. • • • Approach-approach conflict occurs when the person must decide between two or more desirable alternatives. Self-actualization needs: self-fulfillment. Self concept: the mental images or impressions one has of oneself. Motivating Consumers . Motivational conflict can take one of three basic forms. Maslow’s hierarchy of needs (tentamen!!!): 6. Motivational Intensity Motivational intensity represents how strongly consumers are motivated to satisfy a particular need. Impulse buying occurs when consumers unexpectedly experience a sudden and powerful urge to buy something immediately. love 9. self-respect. Approach-avoidance exists when a chosen course of action has both positive and negative consequences.Chapter 8 Consumer Motivation Types of Consumer Needs Phising: online scams in which crooks pose as representatives of banks or companies sending e-mails soliciting credit card and other personal information from consumers. Safety needs: protection. The Challenge of Understanding Consumer Motivation Unconscious motivation: being unaware of what really motivates one’s behavior. Esteem needs: accomplishment. sleep (Need for cognition hoort hier NIET in thuis!!!) Benefit segmentation involves dividing consumers into different market segments based on the benefits they seek (i.. the needs they want fulfilled) from product purchase and consumption. water.Psychological needs: food. Avoidance-avoidance conflict involves deciding between two or more undesirable alternatives. The term conspicuous consumption is often used to describe purchases motivated to some extent by the desire to show other people just how successful we are.

Premiums: products that are offered as an incentive for the purchase of another product. Zapping: the act of switching channels via remote control during a television program’s commercial breaks. in which a person fast-forwards through commercials when watching recorded programming. Long-term memory is the mental warehouse containing all of our knowledge. In contrast. Habituation occurs when a stimulus becomes so familiar and ordinary that it loses its attention-getting ability. Value-discounting hypothesis predicts that products offered as a free premium will be valued less. • • • Sensory memory refers to that part of mental capacity used when initially analyzing a stimulus detected by one of our five senses. Advertising wearout is the term used to describe ads that lose their effectiveness because of overexposure. A permission-based e-mail is one which recipients have previously granted permission to a commercial sender to contact them in this fashion. The cousin of zapping is zipping. attitude. Viral marketing occurs when a company creates something (linked sometimes only tangentially to the company’s product) that is so compelling than consumers spontaneously pass the “something” along to others they know. . Short-term memory is where thinking occurs. Another new advertising medium is advergaming. Loyalty programs try to motivate repeat buying by providing rewards to customers based on how much business they do with a company. This activation happens when a stimulus meets or exceeds the lower threshold: the minimum amount of stimulus intensity necessary for sensation to occur. Attention Attention: the second stage of information processing representing the amount of thinking focused in a particular direction. Buzz refers to how much attention has been generated by a marketing activity. stereo-type) in memory that influences response to a later stimuli. Chapter 14 Making Contact Exposure Exposure occurs when there is physical proximity to a stimulus that allows one or more of a person’s five senses the opportunity to be activated. spam is unsolicited commercial e-mail. Lecture 3: Consumer Perception & Information processing Priming: when an earlier stimulus temporarily activates a ‘construct’ (scheme. Product placement: a technique in which companies pay to have their products embedded within an entertainment vehicle. which are games containing product associations.

The length of time short-time memory can be focused on a single stimulus or thought (i. Opinion Change Once an initial opinion has been formed.. or attitude about something is called opinion formation. food). Conditioned stimulus: In Pavlov’s theory of classical conditioning. the span of attention) is not very long. the stimulus that automatically evokes a particular response (e. Opinions that arise without thinking about relevant information follow a peripheral process. The differential threshold represents the smallest change in stimulus intensity that will be noticed. Affective responses: feelings that are experienced during processing.e. • • • • Unconditioned stimulus: In Pavlov’s theory of classical conditioning. The notion that people are influenced by stimuli below their conscious level of awareness is often referred to as subliminal persuasion. Conditioned response: In Pavlov’s theory of classical conditioning. any subsequent modification in an existing opinion represents opinion change. . the response arising from conditioning that occurs to the unconditioned stimulus and response. the response evoked by the unconditioned stimulus. Stimulus categorization: when a stimulus is classified using the mental concepts and categories stored in memory. Comprehension involves the interpretation of a stimulus. • • Cognitive responses: the thoughts that occur during processing. perceptions of change depend on more than simply the absolute amount of change. ringing a bell). Peripheral cues are stimuli devoid of product-relevant information. Isolation involves placing only a few stimuli in an otherwise barren perceptual field.. According to classical conditioning. Chapter 15 Shaping Consumers’ Opinions Opinion Formation The first time we develop a belief. feeling. The term permission marketing refers to asking consumers for their permission to send them product-related materials. Unconditioned response: In Pavlov’s theory of classical conditioning.g. simply pairing one stimulus that spontaneously evokes certain meanings and feelings with another stimulus can cause a transfer of these meanings and feelings from one to the other (TENTAMEN!!!).g. According to Weber’s law. Central process: a process of opinion which opinions are formed from a thoughtful consideration of relevant information.. the new stimulus to which the unconditioned response can be transferred (e.

Match-up hypothesis: in product endorsement. Scarcity effect: when an object is viewed as more desirable as its perceived scarcity increases. however. Nine-ending prices: prices in which the last digit of a product’s price is the number 9. the recycling of information through short-term memory. Experience claims can also be verified but require product consumption in order to do so. • • • • Informational advertising appeals attempt to influence consumers’ beliefs about the advertised product. Emotional advertising appeals try to influence consumers’ feelings about the advertised product. Utilitarian advertising appeals aim to influence consumers’ opinions about the advertised product’s ability to perform its intended function. loss-framed messages emphasize what cost may be incurred if the messages’ recommendations are not followed (Tentamen!!!). Stimulus generalization occurs when. Reference pricing: the act of providing information about a price other than that actually charged for the product as a way of influencing consumers’ perceptions of the product’s expensiveness. Subjective claims. the use of endorsers is most effective when the endorsers are perceived as being the appropriate spokespeople for the product to be endorsed. Chapter 16 Helping Consumers to Remember Cognitive learning Cognitive learning occurs when information processed in short-term memory is stored in long-term memory. the more likely it will evoke the same response. The amount of elaboration (the degree of integration between the stimulus and existing . more formally. “Pennies-a-day” strategy: a persuasion strategy that decomposes a product’s price into its cost on a daily basis in order to make the price appear less expensive. are claims that may evoke different interpretations across individuals (TENTAMEN!!!). Rehearsal involves the mental repetition of information or. Search claims are those that can be validated before purchase by examining information readily available in the marketplace. These claims are called credence claims. Sometimes advertising claims are such that verification of their accuracy is either impossible or unlikely because they require more effort than consumers are willing to invest. In contrast. the more similar a new stimulus is to the existing one. for an existing stimulus-response relationship. Objective claims are claims that focus on factual information that is not subject to individual interpretations. Value-expressive advertising appeals attempt to influence consumers’ opinions about the advertised product’s ability to communicate something about those who use the product. Loss aversion: principle that says that losses loom larger than gains.How Businesses Shape Consumers’ Opinions Composite branding refers to the use of two well-known brand names on a product. Gain-framed messages emphasize what is attained by following the messages’ recommendations.

Associative network: a theory of memory organization that proposes that memory nodes containing bits of information are linked to other memory nodes in a series of hierarchical networks. abstract words (such as democracy or equality) are less amenable to visual representation.knowledge) that occurs during processing influences the amount of learning that takes place. Retrieval Retrieval involves the activation of information stored in long-term memory that’s then transferred into short-term memory. • • Intentional learning: deliberate learning with the intent of later remembering what is learned. According to the concept of spreading activation. Cued recall: a type of recall measure in which certain types of retrieval cues are provided. The failure to retrieve something from memory is commonly known as forgetting. activating one memory node causes a ripple effect that spreads throughout its linkages to other nodes. How Companies Can Help Consumers to Remember Self-referencing involves relating a stimulus to one’s own self and experiences. Closure refers to the tendency to develop a complete picture or perception when elements in the perceptual field are missing. • • Free recall: a type of recall measure that does not use any retrieval cues. Concrete words (such as tree or dog) are those that can be visualized rather easily. Incidental learning: learning that occurs despite the absence of the intention to do so. According to decay theory. . In contrast. Day-after recall (DAR) measure: a measure that assesses consumers’ ability to recall the advertised brand twenty-four hours after being exposed to an advertisement. A retrieval cue is a stimulus that activates information in memory relevant to the tobe-remembered information. memories grow weaker with the passage of time. The concept of dual coding proposes that information can be stored in both semantic and visual forms. Interference theory proposes that the chances of retrieving a particular piece of information become smaller as interference from other information becomes larger. Mental representations refer to the particular manner in which information is stored in long-term memory. Brand name suggestiveness is the extent to which a brand name conveys or reinforces a particular attribute or benefit offered by the brand.

The interaction of retail density and music tempo: Effects on shopper responses Based on the schema incongruity model. Hedonic and utilitarian evaluations of the shopping experience are the highest under conditions of slow music/high density and fast music/low density. Up-tempo music may distract from a boring environment. Three dimensions: • • • Direction (pleasant. unpleasant) Intensity (very exciting. • • Hedonic value: reflects the entertainment and emotional worth of the shopping trip Utilitarian value: reflects whether the shopping tasks were accomplished Too much density can be compensated by ‘low arousal’ music (slow music). Density induces tension and confusion because of limited space. 2002) • • Belief strength (belief that action will lead to consequence) Evaluation: importance (evaluation of consequence) . The basic argument of the schema incongruity theory is that when faced with stimuli that are mildly incongruent with prior expectations. individuals will engage in more elaborative information processing. little exciting) Impact Belief based attitude measure (Ajzen. it is found that shopper hedonic and utilitarian evaluations of the shopping experience are highest under conditions of slow music/high density and fast music/low density. Lecture 4: Consumer Research & Attitudes Attitude: a global evaluation of an object.

providing both a warehouse feel for consumers and a strong price appeal. . and hours of store operation. The physical properties of the retail environment designed to create an effect on consumer purchases are often referred to as store atmospherics. attractive. which they rely on when choosing a store. Consumers have rated retail interiors using cool colors as more positive. Determinants of Retailer Success or Failure Image advertising uses visual components and words that help consumers form an expectation about their experience in the store and about what kinds of consumers will be satisfied with the store’s experience. even if you only look at the most important belief (healthy food) (lexicographic strategy). on the other hand. Consumer logistics is the speed and ease with which consumers move through the retail and shopping process. Information advertising. which are sometimes most suitable for a store’s exterior or display window to draw customers into the store (TENTAMEN!!!). Direct marketing refers to the strategies used to reach consumers somewhere other than a store. The Changing Retail Landscape Multichannel retailing: the act of reaching diverse consumer segments through a variety of formats based on consumers’ lifestyles and shopping preferences. Chapter 5 Purchase To Buy or Not to Buy The decision to buy can lead to a fully planned purchase (both the product and brand are chosen in advance). Retailing and the Purchase Process Store image: consumers’ overall perception of a store. a partially planned purchase (intent to buy the product exists but brand choice is deferred until shopping). prices.(5*1) + (3*4) + (4*2) + (4*1) = 29 (5*4) + (3*3) + (4*4) + (4*3) = 57 SubWay get’s a higher score. and other attributes that might influence purchase decisions. locations. Colors within the store can also influence consumers’ perceptions and behavior. or an unplanned purchase (both the product and brand are chosen at point of sale). Hypermarket: a market that incorporates breakthrough technology in handling materials from a warehouse-operating profile. and relaxing than those using warmer colors. Data mining: the creation of a database of names for developing continuous communications and relationships with the consumer. provides details about products.

Consumption rituals are defined as “a type of expressive. symbolic activity constructed of multiple behaviors that occur in a fixed. Consumption norms represent informal rules that govern our consumption behavior. and light users.Direct selling is defined as any form of face-to-face contact between a salesperson and a customer away from a fixed retail location. This concept has also been called dual time usage and contrasts with performing only one activity at a time (monochronic time use). Capacity refers to the cognitive resources that an individual has available at any given time for processing information. Nondiscretionary time: time that is constrained by physical. Chapter 6 Post-Purchase Processes: Consumption and PostConsumption Evaluations Consumption Consumption represents consumers’ usage of the acquired product. and branding effective. data-driven. or physical compulsion or obligation. Punishment occurs when consumption leads to negative outcomes. social. or activity that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others. cross-organizational marketing communication process that is customer-centric. legal. Usage expansion advertising: advertising that attempts to persuade consumers to use a familiar product in new or different ways. The term compulsive consumption is defined as a response to an uncontrollable drive or desire to obtain. use. Negative reinforcement occurs when consumption enables consumers to avoid some negative outcome. substance. moral. A consumption experience provides positive reinforcement when the consumer receives some positive outcome from product usage. Communicating with Consumers: Integrated Marketing Communications Integrated marketing communications (IMC) is a systematic. Usage volume segmentation: a form of segmentation that divides users into heavy. episodic sequence. Inbound telemarketing refers to the use of a toll-free number to place orders directly. and that tend to be repeated over time. moderate. User and nonuser are terms often used to distinguish between those who consume the product and those who do not. and moral obligations. Cognitive resources represent the mental capacity available for undertaking various information-processing activities. Ethnography involves describing and understanding consumer . or experience a feeling. The allocation of cognitive capacity is known as attention. technically anchored. Polychronic time use involves combining activities simultaneously. Consumer Resources: What People Spend When They Purchase • • Discretionary time: time during which consumers are not constrained by economic.

can help retailers better understand which things seem to attract shoppers’ attention and interest as well as which areas have room for improvement. which occurs when consumers are extremely upset. negative disconfirmation occurs. Finally. exists when the product provides more than expected.behavior by interviewing and observing consumers in real-world situations. short for Web logs are websites that contain an online personal journal with reflections. known as word-of-mouth communication. Chapter 9 Consumer Knowledge The Importance of Consumer Knowledge Brand associations are the linkages in memory between the brand and other concepts. comments. Image analysis involves examining the current set of brand associations that exist in the marketplace. • • Purchase knowledge encompasses the various pieces of information consumers possess about buying products. on the other hand. Relative price knowledge is what consumers know about one price relative to another. Types of Consumer Knowledge • Product knowledge represents the information stored in consumers’ memory about products. Blogs. Top-ofthe-mind awareness refers to the particular brand that is remembered or thought of first. . Post-Consumption Evaluations Discussing one’s consumption experiences with other people is a common activity. If the product delivers less than expected. Positive disconfirmation. Product experts possess vast amounts of product category knowledge. Expectancy disconfirmation model: a model that proposes that satisfaction depends on the comparison of pre-purchase expectations with consumption outcomes. Shop-alongs. a new term has entered our vernacular: word-of-mouse communication. Perceptual mapping is a form of image analysis that derives brand images from consumers’ similarity judgments. and often hyperlinks provided by the writer. The concept of brand image refers to the entire array of associations that are activated from memory when consumers think about the brand. Regret occurs when consumers believe that an alternative course of action than the one chosen would have produced a better outcome. confirmation takes place when the product’s performance matches expectations. in which shoppers are accompanied by one or more observers. A more extreme reaction to negative disconfirmation is rage. To better represent the uniqueness of consumers communicating with each other over the Internet. Product novices possess very simple levels of product category knowledge.

Misperception is simply inaccurate knowledge. Consumer Attitudes • • Attitude valance refers to whether the attitude is positive. Another type of consumer belief is the inferential belief. Attitudes. Attitude confidence represents a person’s belief that her or his attitude is correct. Knowledge gaps refer to an absence of information in memory. in which consumers use price information to form beliefs about a product’s quality. Some of the most common inferential beliefs are price-quality inferential beliefs. • • Attitude toward the object (Ao) represents an evaluation of the attitude object. Attitude accessibility refers to how easily the attitude can be retrieved from memory. and Intentions Consumer Beliefs Expectations are beliefs about the future. Self knowledge represents the person’s understanding of her or his own mental processes. Chapter 10 Consumer Beliefs. . Partially comparative pricing is when a retailer features price comparisons for some but not all products it carries. Attitude toward the ad (Aad): the global evaluation of an advertisement. negative or neutral. Attitude resistance is the degree to which an attitude is immune to change. Pleasure represents positive feelings. Consumer Feelings Mood state refers to how people feel at a particular moment in time. in which consumers use information about one thing to form beliefs about another thing.• • • Consumption and usage knowledge encompasses the information in memory about how a product can be consumed and what is required to actually use the product. Persuasion knowledge represents what consumers know about the goals and tactics of those trying to persuade them. Attitude extremity reflects the intensity of the liking or disliking. arousal reflects feelings of excitement and stimulation. The Benefits of Understanding Consumer Knowledge Desired image refers to the image that a company seeks to create in the marketplace for its product. and dominance indicates feelings of being in control. Feelings.

Russell to describe and measure emotional states. • • Pleasure: positive affective state Arousal: a feeling state of sleep – frantic excitement (energy. negative arousal. relaxation. boredom) . Consumption intentions represent consumers’ intentions to engage in a particular consumption activity. Repurchase intentions: whether consumers anticipate buying the same product or brand again. or concepts. are activated automatically and influence uncontrollable consumer responses.Preferences represent attitudes toward one object in relation to another. Perceived behavioral control: consumers’ beliefs about how easy it is to perform a behavior. Shopping intentions capture where consumers plan on making their product purchases. IAT: The Implicit Association Test (IAT) is an experimental measure within social psychology designed to detect the strength of a person's automatic association between mental representations of objects (concepts) in memory. Consumer Intentions • • • • • • Spending intentions reflect how much money consumers think they’ll spend. Adapting to a retail environment: Modeling consumerenvironment interactions The PAD emotional state model is a psychological model developed by Albert Mehrabian and James A. Behavioral expectations represent the perceived likelihood of performing a behavior. Implicit attitudes have an unknown origin. Explicit attitudes: A person’s conscious views toward people. the person is aware of the feelings he or she holds in a certain context. • Attitude toward behavior (Ab) represents an evaluation of performing a particular behavior involving the attitude object. tiredness. objects. Volitional control represents the degree to which a behavior can be performed at will. That is. Implicit consumer preferences and their influence on product choice Implicit attitudes: evaluative responses regarding an attitude object which are not necessarily subject to introspection. Individuals may not be aware of their implicit attitudes or they may be unable to verbalize them. Purchase intentions represent what consumers think they’ll buy. Search intentions indicate consumers’ intentions to engage in external search.

places to shop. an agent who is the sender of information and opinions. they will often look to others for cues/information concerning the correct behavior. Normalization: the convergence of individual judgments to a single judgment. Market maven: individuals who have information about many kinds of products. Normative Focus Theory (Cialdini & Goldstein. and initiate discussions with consumers and respond to requests from consumers for market information. People obey injunctive norms only when they are relevant and significant. the stimulus is interpreted and contemplated using concepts stored in long-term memory.• Dominance: extent to which one feels unrestricted or free to act in a variety of ways (perceived control & freedom of choice) Cognitive appraisals: personal interpretation of a situation (how an individual views a situation). Long-term memory: the mental warehouse containing all of our knowledge. Lecture 7: Social Influences Short-term memory: where thinking occurs. Practical implications: • • • Focus the target audience on the type of norm that is aligned with the end objective Norm-based persuasion most effective when the descriptive and injunctive norms are presented in concert and aligned to another Norm-based persuasion most effective when the norms are associated with meaningful reference groups Opinion leader: in W-O-M marketing. and who influences the decisions of others. Conformity: existing norms are consolidated. . Normative influence: a person conforms to be liked or accepted by others. and other facets of markets. • • Descriptive norms: what is commonly done in a given situation Injunctive norms: norms specifying what ought to be done – what is approved or disapproved behavior in a given situation. 2004) Norms will influence behavior only to the extent that they are focal (salient) for the person involved at the time of behavior. Informational social influence: when persons are in a situation where they are unsure of the correct way to behave.

personality types. and profits. Core values: the very basic values of people that. Microculture refers to values and symbols of a restrictive group or segment of consumers. usually the mass market. ideas. Cultural artifacts include the material component of a culture. attitudes. Macro-culture refers to values and symbols that apply to an entire society or to most of its citizens. education. define acceptable market relationships. Ethnic Microcultures and Their Influences on Consumer Behavior Acculturation measures the degree to which a consumer has learned the ways of a different culture compared to how they were raised. Changing Values Changes in a society’s values can be forecast on the basis of a life-cycle explanation. ethnicity. their values change. Cohort analysis: a process that investigates the changes in patterns of behavior or attitudes in a cohort. wealth. interpret. . economic position. attitudes. Norms are rules of behavior held by a majority or at least a consensus of a group about how individuals should behave. define how products are used in society. Transcultural marketing research is used to gather data from specific ethnic groups and compare these data to those collected from other markets. Social-Class Microcultures Social class is defined as relatively permanent and homogeneous divisions in a society into which individuals or families sharing similar values. religion. and behavior. defined according to variables such as age. and Social Class What is Culture? Culture refers to a set of values. such as religion or politics. How Core Values Affect Marketing Core merchandise: a basic group of products that is essential to a store’s traffic. provide positive and negative valences for brands and communications programs. The processes by which people develop their values. Ethnicity. and behavior can be categorized. and summary constructs. or social class. and evaluate as members of society. and habitual activity are referred to as socialization. Abstract elements include values. consumer loyalty. status. motivations. meaning that as individuals grow older. artifacts. ideas. Consumer socialization: the acquisition of consumption-related cognitions. and other meaningful symbols that help individuals communicate. Generational change suggests that there will be gradual replacement of existing values by those of young people who form the leading generation in value terms. among other things. interests.Chapter 11 Culture. lifestyles. and define ethical behavior.

such as grandparents. marriage. The extended family is the nuclear family. and employment status. Social mobility refers to the process of passing from one social class to another. and other functions performed by group members. also known as functional or economic roles. The term household is used to describe all persons. Adaptability measures the ability of a family to change its power structure. Communication is a facilitating dimension. Chapter 12 Family and Household Influences The Importance of Families and Households on Consumer Behavior Family: a group of two or more persons related by blood. whereas the one established by marriage is the family of procreation. which people who like to do the same things they do. and with whom they feel comfortable. Social stratification refers to the perceived hierarchies in which consumer’s rate other as higher or lower in social status. People have high prestige when other people have an attitude or respect or deference to them. uncles and aunts. plus other relatives. The family into which one is born is called the family of orientation. and parents-in-law. and communication. • • • Cohesion is the emotional bonding between family members. who occupy a housing unit. Expressive roles involve supporting other family members in the decision-making process and expressing the family’s aesthetic or emotional needs. performance. Those who earn a higher status due to work or study have achieved status. and child(ren) living together. Three sociological variables that help to explain how families function include cohesion. Parody display describes the mockery of status symbols and behavior. in the same ways. Family marketing: marketing based on the relationships between family members based on the roles they assume. Who Determines What the Family Buys? Instrumental roles. and relationship rules in response to situational and developmental stress. cousins. Structural variables include the age of the head of the household or family. including upholding family norms. both related and unrelated. role relationships. critical to movement on the other two dimensions.Status groups reflect a community’s expectations for style of life among each class as well as the positive or negative social estimation of honor given to each class. whereas those who are lucky to be born wealthy or beautiful have ascribed status. The nuclear family is the immediate group of father. involve financial. . or adoption who reside together. mother. adaptability. presence of children. marital status. Association is a variable concerned with everyday relationships.

Household life cycle (HLC): the series of stages that a household passes through and that change in over time. values and behavior. Formal groups: social aggregations characterized by a defined structure and a known list of members and requirements for membership. Dissociative groups: groups with which an individual tries to avoid association. Consumer life cycle (CLC): the series of stages that a consumer passes through during life and that change an individual’s behavior over time. or behaviors. Value-expressive influence occurs when a need for psychological association with a group causes acceptance of its norms. values. Chapter 13 Group and Personal Influence Group and Personal Influences on Individuals A reference group is any person or group of people who significantly influences an individual’s behavior. but are more sporadic. Normative influence occurs when individuals alter their behaviors or beliefs to meet the expectations of a particular group. Virtual membership groups: groups based on virtual communities in which individuals from different geographic areas share information without face-toface contact. Informational influence occurs when people .Family Life Cycles • • • Family life cycle (FLC): the series of stages that a family passes through and that change them over time. Changing Masculine Roles Androgynous consumer: a consumer who has the characteristics of both male and female consumers (or no distinguishing masculine or feminine characteristics at all). Aspirational groups: groups that the individual seeks to associate with by adopting the group’s norms. Informal groups: groups that have far less structure than formal groups and are likely to be based on friendship or common interests. Changing Roles of Women A role specifies what the typical occupant of a given position is expected to do in that position in a particular social context. Secondary groups: groups that have face-to-face interaction. and less influential in shaping thought and behavior than are primary groups. • • • • • • • • Primary groups: groups that are sufficiently intimate to permit and facilitate unrestricted face-to-face interaction. Membership: the act of achieving formal acceptance status within a group. attitudes. less comprehensive.

Two types of conformity exist: compliance and acceptance. Recognizing that mass media can reach anyone in a population and influence them directly. but reverse customer intimacy – how well marketers facilitate customers knowing the marketer – may also be a key to customer loyalty. Another source of personal influence in the marketplace is the surrogate consumer (or surrogate shopper) – an individual who acts as an agent to guide. direct. and conduct activities in the marketplace. openness to information (including direct mail and the Internet). the multistep flow of communication model was developed. This model indicates that information can . An expert is any person who possesses unique information or skills that can help consumers make better purchase decision than other types of spokespersons. Market mavens gather much of their information from shopping experiences. • • Compliance occurs when an individual conforms to the wishes of the group without accepting all its beliefs or behaviors. The twostep flow of communication model indicates that opinion leaders are the direct receivers of information from advertisements and that they interpret and transmit the information to others through word-of-mouth. often a key to successful marketing. a service encounter occurs. referred to by sociologists as anomie. Acceptance occurs when an individual actually changes his or her beliefs and values to those of the group. Whenever there is personal communication between a consumer and a marketer. Transmission of Influence through Dyadic Exchanges Similar to opinion leaders are product innovators – individuals who are the first to try a new product. Trickle-down theory. Customer intimacy refers to the detailed understanding and focus on customers’ needs lifestyles and behaviors in an effort to create a deep cultural connection with the customers.have difficulty assessing product or brand characteristics by their own observation or contact. In contrast. the oldest theory. How Reference Groups Influence Individuals The desire of an individual to fit in whit a reference group often leads to conformity – a change in beliefs or actions based on real or perceived group pressures. making them more aware of new product than other people. theorizes that lower classes often emulate the behavior of their higher-class counterparts. Another consideration leading to diminished normative compliance is a weakened respect for social norms. and general market awareness. the common-person appeal features testimonials from “regular” consumers with whom most individuals can relate.

• • • Continuous innovation: the modification of the taste. with good social skills and respect within larger social systems. It follows then that a product innovation (or new product) is any product recently introduced to the market or perceived to be new when compared to existing products. but the most commonly accepted definition is any idea or product perceived by the potential adopter to be new. performance. and opinion seekers or receivers. Some members of the social system are adopters – people who have made a decision to use a new product – whereas others are nonadopters. the last group to adopt innovations. also increases the rate of diffusion. Laggards. Innovativeness is the degree to which an individual adopts an innovation earlier than other members of a social system. • • • • • Innovators are the first consumer group to adopt products. Early adopters tend to be opinion leaders and role models for others. Vertical coordination. diffusion is defined as the process by which an innovation (new idea) is communicated through certain channels over time among the members of a social system. a high degree of dependence and interlocking relationships among channel members. Cognitive innovators have a strong preference for new mental experiences. whereas those who are innovators for only one product are monomorphic. Diffusion of Innovations An innovation can be defined in a variety of ways. Consumers who are innovators for many products are said to be polymorphic. including opinion leaders. tend to be anchored in the past. and often at the pressure of peers.flow directly to different types of consumers. Discontinuous innovation: the act of introducing an entirely new product that significantly alters consumers’ behavior patterns and lifestyles. are suspicious of the new. The early majority consists of consumers who deliberate extensively before buying new products. or reliability of an existing product rather than the establishment of a totally new one. Dynamically continuous innovation: the act of creating either a new product or a significant alteration of an existing one. . yet adopt them just before the average time it takes the target population as a whole. The late majority tends to be cautious when evaluating innovations. whereas sensory innovators have a strong preference for new sensory experiences. but does not generally alter established purchase or usage patterns. appearance. gatekeepers. The Diffusion Process According to Rogers. and exhibit the lowest level of innovativeness among adopters. taking more time than average to adopt them.

a level of selfacceptance or respect for oneself. Market mavens are defined as “individuals who have information about many kinds of products. . Domain-specific opinion leadership: consumer influence on individuals in specific product areas. Global self-esteem: an overall estimate of general self-worth. Innovators are defined as consumers who tend to adopt products comparatively early within a given social system. the opinion leaders. and initiate discussions with consumers and respond to requests from consumers for market information”. places to shop. Consumer need for uniqueness: an enduring personality trait by which consumers pursue dissimilarity through products and brands in an effort to develop a distinctive self and social image. composed of all subordinate traits and characteristics within the self. and other facets of markets. It is a judgment that a product/service feature. Opinion leaders are defined as individuals who influence the purchasing behavior of other consumers in a specific product domain. The customer’s fulfillment response. Tendency to conform: a global. Consumer susceptibility to interpersonal influence: the need to identify or enhance one’s image with significant others through the acquisition and use of products and brands. or the product/service itself. and the market maven.Market mavens: Psychological influences The marketing literature has identified three distinct types of influential consumers: the innovators. a trait or tendency relatively stable and enduring. provides a pleasurable level of consumption-related fulfillment. Lecture 8: Dissatisfaction Satisfaction: • • A positive post-consumption evaluation that occurs when the consumption experience either meets or exceed expectations. the willingness to conform to the expectations of others regarding purchase decisions and/or the tendency to learn about products and services by observing others and/or seeking information from others. enduring personality trait in which the individual is predisposed to acquiesce to social norms prescribed by reference groups that are relevant and important to the individual. Market mavens are consumers who highly involved in the marketplace and represent an important source of marketplace information to other consumers.

1967) Can product performance be attributed to the product. Dissatisfaction: if a product falls short of expectations (negative disconfirmation) the consumer is likely to be dissatisfied. Tax & Brown (1998). The better the match between service specifications and consumers’ needs. Consistency: Does it always perform? 3. person or situation? Three main types of information: 1. the more satisfied customers are. experience and credence services: A scenario study Customer satisfaction: the number of customers or percentage of total customers. Distinctiveness: different from other products/brands? 2.Expectancy disconfirmation model • • • Negative disconfirmation: the result that occurs when. Covariation model of attribution (Kelley. (1999). the product delivers more than what was originally expected. to the situation or to themselves. Smith & Bolton (2002)) Customer (dis)satisfaction: • • • Distributive fairness → compensation Procedural fairness → responsibility & responsiveness Interactional fairness → empathy The service recovery paradox states that with a highly effective service recovery. Social Justice Theory (Tax et al. whose reported experience with a firm. Confirmation: when a product’s performance meets certain expectations. Service validity and service reliability of search. other’s behavior. a service or product failure offers a chance to achieve higher satisfaction ratings from customers than if the failure had never happened. Knowledge-bias: advertiser is largely unaware of the alternatives. . after consumption. after purchase. Attribution: how individuals assign causes of events. Consensus: How do other consumers feel about the product? Reporting-bias: advertiser under-reports undesirable performances. Positive confirmation: the result that occurs when. (1998). or its services (ratings) exceeds specified satisfaction goals. and their own behavior to the product/service. the product delivers less than what was originally expected. its products. while being much more open on desirable attributes (advertiser acts out of self-interest). Smith et al.

but does not generally alter established purchase or usage patterns. (3) time. SEC-Classification • • • Search service: dominant product/service attributes can be validated before purchase and consumption. Dynamically continuous innovation: the act of creating either a new product or a significant alteration of an existing one. Experience service: dominant product/service attributes can be verified but require consumption. or object that is perceived as new by an individual or other unit of adoption. Communication-variables Diffusion of preventive innovations Diffusion is the process through which (1) an innovation (2) is communicated through certain channels (3) over time (4) among the members of a social system. Credence service: dominant cannot be verified because consumers lack information/expertise. practice. after introduction. concept. Three underlying dimensions: 1. and (4) the social system. (2) communication channels. or reliability of an existing product rather than the establishment of a totally new one. brand…. An innovation is an idea.• • Service reliability: Is the service correctly produced? The extent to which the service delivery matches the service specifications. Socio-economic variables 2. among consumers (throughout society) Adoption (acceptance): the individual decision making process to adopt (accept and buy) a new product. performance. appearance. Lecture 9: New products Diffusion: the social process of diffusion of the new product. Service validity: is the correct service produced? The extent to which the service specifications match the customer’s needs and demands. • • • Continuous innovation: the modification of the taste. service. service. concept. The characters that determine an innovation’s rate of adoption are: . Personal & attitude variables 3. Discontinuous innovation: the act of introducing an entirely new product that significantly alters consumers’ behavior patterns and lifestyles. Innovativeness is the degree to which an individual adopts an innovation earlier than other members of a social system. brand. The four main elements in the diffusion of new ideas are (1) innovation.

Utilize champions to promote preventive innovations. are: (1) innovators. 2. Innovations that are perceived by individuals as having greater relative. 3. triability.5% of the individuals in a system to adopt an innovation. 5. observability. (3) to a decision to adopt or reject. Change the perceived attributes of preventive innovations. . 3. Relative advantage: the degree to which an innovation is perceived as better than the idea it supersedes. 1. Early majority are the next 34% of the individuals in a system to adopt an innovation. Five adopter categories. past experiences. or classifications of the members of a social system on the basis on their innovativeness. 4. What does matter is whether an individual perceives the innovation as advantageous. Preventive innovations are relatively low in relative advantage. Laggards are the last 16% of the individuals in a system to adopt an innovation. (2) early adopters. The innovation – decision process is the mental process through which an individual (or other decision making unit) passes (1) from first knowledge of an innovation. Triability: the degree to which an innovation may be experimented with on a limited basis. and (5) laggards. 2. compatibility. A champion is an individual who devotes his/her personal influence to encourage adoption of an innovation. 2. Early adopters are the next 13. advantage. 3.5% of the individuals in a system to adopt an innovation. (3) early majority. Innovators are the first 2. compared to nonpreventive innovations. Complexity: the degree to which an innovation is perceived as difficult to understand and use. Compatibility: the degree to which an innovation is perceived as being consistent with the existing values. Late majority are the next 34% of the individuals in a system to adopt an innovation.1. and to (5) confirmation of this decision. (4) late majority. 4. 5. What strategies could be used to speed up the diffusion and use of preventive innovations? 1. and needs of potential adopters. Change the norms of the system regarding preventive innovations through peer support. (4) to implementation of the new idea. and less complexity will be adopted more rapidly than other innovations. Innovativeness is the degree to which an individual or other unit of adoption is relatively earlier in adopting new ideas than other members of a social system. Observability: the degree to which the results of an innovation are visible to others. Preventive innovations are new ideas that require action at one point in time in order to avoid unwanted consequences at some future time. (2) to forming an attitude toward the innovation.

Active peer networks to diffuse preventive innovations. Entertainment-education is the process of placing educational ideas (such as on prevention) in entertainment messages.4. Use entertainment-education to promote preventive innovations. . 5.

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