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Consumer Behavior

Fall 2010
Week 2

Dr. Liat Hadar

The Consumer Wheel

Marketing Strategy

Consumer Environment

Affect and Cognition

Affect-Cognition Interaction
Mood influences thinking
Positive mood
Broadens thought (e.g., leads to more inclusive categories) More likely to spend Hedonic goods

Negative mood
Narrows thought (e.g., narrower focus of fear and anger) Less likely to spend Utilitarian goods

Affect-Cognition Interaction
Cognitive appraisal influences emotion
Satisfaction with outcome depends on reference point, knowledge, and beliefs Stanley Schacters two factor theory Bridge study (Dutton & Aron, 1974)

Interface of separate systems


Learning from brain imaging Learning from lesions

Systems are highly interdependent


E.g., depressed are make more rational decisions, hold more pessimistic beliefs.

Primacy of Cognition or Affect


Primacy of cognition (Lazarus)
Belief then emotion Perceptual fluency

Perceptual Fluency
For your next cup of coffee, choose Coffea. A gourmet blend at grocery store prices, Coffea provides an excellent value. In ground, whole bean and flavored varieties, Coffea is carefully blended and roasted to have moderate acidity. With 10 gourmet varieties available in both caffeinated and decaf. Each foil package is vacuumsealed for freshness. Try it for its nonbitter taste. For your next cup of coffee, choose Coffea. A gourmet blend at grocery store prices, Coffea provides an excellent value. In ground, whole bean and flavored varieties, Coffea is carefully blended and roasted to have moderate acidity. With 10 gourmet varieties available in both caffeinated and decaf. Each foil package is vacuum-sealed for freshness. Try it for its non-bitter taste.

Which appeal do you like better?

Primacy of Cognition or Affect


Primacy of cognition (Lazarus)
Belief then emotion Perceptual fluency
You like it because you recognize it. Recognition need not be conscious

Primacy of Cognition or Affect


Primacy of cognition (Lazarus)
Belief then emotion Perceptual fluency
You like it because you recognize it. Recognition need not be conscious

Primacy of affect (Zajonc)


Emotion then belief Affect precedes recognition
You like it because it triggers positive emotions in you. Mere exposure effect : Affect needs no recognition

Information Processing Model of Decision-Making

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Input

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Interpretation processes

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Memory

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Integration processes

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Output

- Environment - Affect - Cognition

- Exposure - Attention - Perception - Comprehension

- Knowledge structures

- Attitudes - Intentions - Decisions -Judgment - Knowledge

-Behavior

General Characteristics of Memory


We remember the a construction of the reality, not necessarily reality Capacity limits Divided attention Using cell phone while driving Naked News Automaticity: How much thinking goes into driving home?

Memory
Memory is critical to information processing What is memory? Storage facility: file cabinet of knowledge about products, services, shopping trips, and experiences Encoding: transferring info into memory Retrieval: remembering and accessing what is stored in memory

How is Memory Organized?


The Associative Network Consumers store concepts, feelings, and events in nodes. Associative links (of varying strengths) connect the nodes. Links in networks created through knowledge and experience Spreading activation: When one node is activated, this activation spreads along links to related concepts.

Example of an Associative Network


Speed

Beautiful

Powerful

Jaguar

Graceful

Rare

Exotic

The Importance of Associations


Marketers go to great lengths to influence associations formed in memory involving their brand Associative Networks: Networks can be relatively simple or elaborate Spreading activation occurs through networks
Bread----Butter Doctor----Butter

Frequently accessed paths create stronger associations in memory, facilitating activation Schemas vs. scripts

Knowledge Structures
Schemas Episodic knowledge Semantic knowledge Strategic activation using cues (e.g., symbolic advertising) Scripts Procedural knowledge

Cognitive representation of knowledge


High safety

Schema Volvo
reliability

Anti-lock brakes

High CR ratings trustworthy

Familyoriented

Me
traditional

Test-drove one in SM last month

strong link weaker link

Insurance Ad

Activates values such as fairness, justice, liberty.

Building associations to brand

Evokes strong, affectladen, episodic memories

How does an associative network influence retrieval?


Stronger links are more accessible Spreading activation Explains our seemingly random thoughts Cannot retrieve when link fades Retrieval is a probabilistic process Availability vs. Accessibility

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Marketing Implications of Memory Structure


Strengthen links between brands and associations Repetition strengthens links and nodes Spacing between repeats strengthens links and nodes Links can convey competitive market structure

Marketing Implications of Memory Structure


Retrieval Strategies Multiple paths to single node Recent activation Retrieval cues Encoding specificity principle POP cues Encoding variability Old links can persist and hinder a brands development

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Knowledge Structures
Schemas Semantic knowledge Strategic activation using cues (e.g., symbolic advertising) Scripts Procedural knowledge

Big Picture of Memory Process


Stimuli Sensory perceptors Attention Encoding Short term memory Rehearsal (storage) Retrieval Long term memory

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Types of Memory
Sensory memory Short term memory Long term memory

Transfer of Information

Sensory memory

Pay attention to information

Short term memory

Rehearse info (elaborate)

Long term memory

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Sensory Memory
Information that comes in through our senses Echoic memory: things we hear Iconic memory: things we see Information stored in its sensory from Very short-lived, 250 ms to 2 s Lost if not processed

Short Term Memory


Currently activated portion Limited capacity The magic number 7 2 Chunking Short Lived Information can be held for about 18-30 seconds Door to long term memory, if elaboration occurs, otherwise information will be lost.

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Long Term Memory


Permanently stored knowledge Autobiographical memory = knowledge about ourselves and our own experiences Semantic memory = knowledge about the world Procedural memory = knowledge about how to do things Very large storage capacity Differing views Information is never lost but sometimes cannot be found. Information can be lost (e.g., due to trauma).

What leads consumers to remember what they have learned?


Chunking Example: acronyms IBM: International Business Machines IDC Meaningful dates

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What leads consumers to remember what they have learned?


Prior knowledge Dual encoding Primacy and recency Novelty and incongruity Elaboration (rehearsal and self-referencing) Simple message (e.g., Intel Inside) Same conditions at encoding and retrieval (state dependent learning) Imagery (pictures and high imagery words)

Take-Aways: Memory
Control quality and quantity of associations with product/service. Encourage consumers to elaborate on your message (transfer to long term memory). Be aware that consumers memories may not accurately represent their past experiences. Use ways to improve memory to help consumers remember positive information about your product.

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Road Map
Affect & cognition Interaction between affect and cognition Memory Continue with product-related cognitions Types of product knowledge Attributes, benefits, values Laddering interviews Levels of involvement Exposure, attention, and comprehension

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