10/12/21

Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Lecture Overview

! Part A: Introduction to the Course

!  Teaching approach
!  Course objectives
!  Course content
!  Assessment procedures

! Part B: Introduction to Consumer Behavior

!  What is and why study consumer behavior
!  The international consumer
!  Marketing applications of consumer behavior
knowledge
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Introduction to the Course

Teaching Approach

•  Explain it to me and I will forget

!  Show it to me and I will remember
!  Get me involved and I will understand
(Confucius)

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Course Objectives

1.  Develop a comprehensive understanding of the omnipresence, the

process, and the nature of consumer behavior.
2.  Identify and assess the various psychological, cultural, societal, and
group influences on consumer behavior at different stages of the
consumption process.
3.  Comprehend how consumer behavior can be understood and
explained by the underpinning disciplines of psychology, social
psychology, and behavioral economics.
4.  Evaluate the importance of the optimal usage of market research
for a solid understanding of consumer behavior for business
success, compare the relative usefulness of each method, and
appraise the possible synergies between the different methods.
5.  Put acquired knowledge and tools to use via the group projects.
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Course Content

•  The science of persuasion and pre-suasion

•  Behavioral economics & marketing: choice architecture & nudges
•  Consumer research methods: VOC, neuromarketing, big data
•  The process of consumer decision-making: searching, evaluating,
buying, and disposing
•  The omnichannel customer experience analysis & mapping
•  Sensory marketing & the shopping experience
•  Psychological processes affecting consumption decisions
•  Cultural, societal and group influences on consumption
•  Symbolic consumption and the meaning of possessions
•  Materialism, social comparison, and advertising
•  New Product Development
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Assessment Procedures

1.  Examination (70%)

2.  Projects (30%)

Introduction to
the Study of
Consumers

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What is Consumer Behavior

What is Consumer Behavior

The field of consumer behavior covers a lot of ground. It is the

study of the processes involved when individuals or groups
select, purchase, use and dispose of products, services, ideas or
experiences to satisfy needs and desires (Solomon et al. 2019)

=> Therefore,
•  - Consumer behavior involves more than products;
•  it also involves services, activities and ideas.
•  - Consumer behavior can involve many people
•  - It also involves more than buying:
•  it looks at the processes that have to do with the selection,
acquisition, usage and disposal of products.

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Why study Consumer Behavior

The Importance of Consumer

Behavior for Marketing

“Marketing is the whole business seen from the point of view of its final
result, from the customer’s point of view” (Peter Drucker)

=> “The winners will be those who deliver solutions from the users’
point of view. That is a big part of marketing’s job” (Jack Welch)

=> “The better that marketers understand the needs and wants
consumers are seeking to satisfy through purchasing behavior, the
better able they will be to meet these needs and wants” (Gordon Foxall)

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Understanding Customer Needs

"  Physiological needs

"  Social needs
"  Symbolic needs
"  Hedonic needs
"  Cognitive needs
"  Experiential needs

Marketing Applications of
Consumer Research

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Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Understanding Consumer Behavior

Persuasion & Pre-suasion

Choice Architecture
Nudge Theory
Behavioral Economics

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The Power of Persuasion

The Prevalence of Persuasion

and the Relevance to us

Video I & Discussion:

The Science of Persuasion

https://www.youtube.com/watch?v=cFdCzN7RYbw 4

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Video II & Discussion:

The Science of Pre-suasion

The psychological trick behind getting people to say yes

https://www.youtube.com/watch?v=HctZg2aOPMw

The science and ethics of pre-suasive techniques

https://www.youtube.com/watch?v=lhtghNHVSvU

Behavioral Economics

!  The homo economicus (rational profit-maximization

oriented decision maker) fallacy
!  People do not have fixed preferences; preferences are
in fact rather fluid.
!  People are strongly influenced by the order in which
they see options and what happened right before they
made a choice
!  Trust is a product of brain chemistry

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The Predictably Irrational

Decision Maker

!  Bounded rationality

!  Predictability of irrationality

!  Cognitive biases

Cognitive Biases

1  Anchoring bias 7  Outcome bias

2  Availability heuristic bias 8  Overconfidence

3  Bandwagon bias 9  Placebo bias

4  Choice supportive bias 10  Survivorship bias

5  Confirmation bias 11  Selective perception bias

6  Ostrich bias 12  Blind spot bias

https://www.youtube.com/watch?v=wEwGBIr_RIw

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Cognitive Biases
1  Anchoring bias: the very first information we receive has tremendous
impact on our brain.
2  Availability heuristic bias: people do not make decisions on facts and
statistics, but on news and the most available and prevalent information
and stories
3  Bandwagon bias: people do what the rest of the world does without
thinking (the groupthink effect)
4  Choice supportive bias: people tend to seek and hold on to
information that justifies their choices, ignoring the faults of their choice
and noticing the advantages («if I chose it, it must be good»)
5  Confirmation bias: we tend to listen and pay attention to information
that confirms what we already know or even interpret it this way
6  Ostrich bias: the subconscious decision to ignore negative information,
thinking that problems will be solved by ignoring them.

Cognitive Biases
7  Outcome bias: we tend to judge the efficacy of a decision primarily by
how things turn out, not examining the conditions that existed at the time
of the decision
8  Overconfidence: making decisions based on your opinion and not on
facts, because you have been correct so many times in the past (gambler’s
fallacy)
9  Placebo bias: when you believe something will have a certain effect on
you, then it will actually cause that effect (positive people have positive
lives, mindpower)
10  Survivorship bias: judging something based on the surviving information
(quit college to be the person to create the next Facebook-like
phenomenon)
11  Selective perception bias: causes people to perceive messages and
actions accroding to their frame of reference (people overlook and forget
contrary information)
12  Blind spot bias: you do not understand your own biases («the bias bias»)

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 10/25/21

Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Behavioral Economics

!  The homo economicus (rational profit-maximization

oriented decision maker) fallacy
!  People do not have fixed preferences; preferences are
in fact rather fluid.
!  People are strongly influenced by the order in which
they see options and what happened right before they
made a choice
!  Trust is a product of brain chemistry

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The Predictably Irrational

Decision Maker

!  Bounded rationality

!  Predictability of irrationality

!  Cognitive biases

Cognitive Biases

1  Anchoring bias 7  Outcome bias

2  Availability heuristic bias 8  Overconfidence

3  Bandwagon bias 9  Placebo bias

4  Choice supportive bias 10  Survivorship bias

5  Confirmation bias 11  Selective perception bias

6  Ostrich bias 12  Blind spot bias

https://www.youtube.com/watch?v=wEwGBIr_RIw

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Cognitive Biases
1  Anchoring bias: the very first information we receive has tremendous
impact on our brain.
2  Availability heuristic bias: people do not make decisions on facts and
statistics, but on news and the most available and prevalent information
and stories
3  Bandwagon bias: people do what the rest of the world does without
thinking (the groupthink effect)
4  Choice supportive bias: people tend to seek and hold on to
information that justifies their choices, ignoring the faults of their choice
and noticing the advantages («if I chose it, it must be good»)
5  Confirmation bias: we tend to listen and pay attention to information
that confirms what we already know or even interpret it this way
6  Ostrich bias: the subconscious decision to ignore negative information,
thinking that problems will be solved by ignoring them.

Cognitive Biases
7  Outcome bias: we tend to judge the efficacy of a decision primarily by
how things turn out, not examining the conditions that existed at the time
of the decision
8  Overconfidence: making decisions based on your opinion and not on
facts, because you have been correct so many times in the past (gambler’s
fallacy)
9  Placebo bias: when you believe something will have a certain effect on
you, then it will actually cause that effect (positive people have positive
lives, mindpower)
10  Survivorship bias: judging something based on the surviving information
(quit college to be the person to create the next Facebook-like
phenomenon)
11  Selective perception bias: causes people to perceive messages and
actions accroding to their frame of reference (people overlook and forget
contrary information)
12  Blind spot bias: you do not understand your own biases («the bias bias»)

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Why are all these Important?

"  Incorporating these findings into models of decision making

and consumer behavior should improve their power to
predict everything from which loans people choose to which
degrees and universities they apply for.

"  How can consumers and decision makers in general be lured

away from bad choices and towards good ones?

https://www.youtube.com/watch?v=jVTg3ZsNTTY

The Power of Nudges

•  To nudge is to push mildly or poke gently in the ribs,

especially with the elbow, to alert, remind or mildly
warn another.

•  Nudge is any aspect of the choice architecture that

alters people's behavior in a predictable way
without forbidding any options or significantly changing
their economic incentives. To count as a mere nudge,
the intervention must be easy and cheap to avoid.
Nudges are not mandates. Putting fruit at eye level
counts as a nudge. Banning junk food does not.

•  Why nudges can help: they can lure consumers away

from wrong decisions and toward more responsible
ones.
https://www.youtube.com/watch?v=jsy1E3ckxlM 8

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The Power of Nudges

•  Nudge’s argument is that as policymakers go about

their jobs – whether regulating the mortgage industry
or organizing food in school cafeterias – they should
design programs that give people choices but also
invisibly lead them away from bad ones.
•  To nudge people, you need to take into account the
odd realities of human behavior, like the deep and
unthinking tendency to conform even in areas where
conformity is irrelevant:
•  “If you want people to use less energy, you could make
it very expensive, or you could just let them know how
much they use in comparison with their neighbors.
When that bit of information was added to electric bills
in California, heavy users quickly lowered their
consumption, even though no one had asked them to”.
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The School Cafeteria Example

•  Carolyn is the director of food services for a large city school system.
She is in charge of hundreds of schools and hundreds of thousands
of kids eat in her cafeterias every day. Carolyn had an interesting
idea: without changing any menus, they run some experiments in the
schools to determine whether the way the food is displayed and
arranged might influence the choices kids make. In some schools the
desserts were placed first, in others last, in others in a separate line.
In some schools the French fries while in others the carrot sticks
were at eye level. The results were dramatic: simply by rearranging
the display of food, Carolyn was able to increase or decrease the
consumption of many food items by as much as 25%.
•  School children, like adults, can be greatly influenced by small
changes in the context. The influence can be exercised for better or
for worse. For example, Carolyn knows that she can increase
consumption of healthy foods and decrease consumption of
unhealthy ones.
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The School Cafeteria Example

Carolyn believes she now has considerable power to
influence what children eat. Carolyn is thinking what to do
with her newfound power. Here are some suggestions:
1.  Arrange the food to make the students best off, all
things considered.
2.  Choose the order at random
3.  Try to arrange the food to get the students to pick the
same food they would choose on their own.
4.  Maximize the sales of the items from the suppliers that
are willing to offer the largest bribes.
5.  Maximize profits.
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The Science of Choice

•  A choice architect has the responsibility and the power to

organize the context in which people make decisions.
There is no such thing as a neutral design.
•  If you are a doctor and you must describe the alternative
treatments available to a patient, you are a choice
architect. If you design the form that new employees fill
out to enroll in the company health care plan, you are a
choice architect. If you are a parent, describing possible
educational options to your son and daughter, you are a
choice architect. If you are a salesperson, you are a choice
architect.
•  Small and apparently insignificant details have
major impacts on people’s behavior.
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Choice Architecture Tools

•  Defaults
•  Feedback
•  Incentives
•  Error Expectancy
•  Mapping
•  Structuring Complex Choices

https://www.youtube.com/watch?v=nBuX1Swncn4
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The Golden Circle Principle of

Decision Making

https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en
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The Golden Circle Principle of

Decision Making & the Brain

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Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Consumer Research
•  The ad hoc or continuous process of gathering,
interpreting and reporting information to help marketers
take advantage of marketing opportunities.

•  The function which links the consumer and public to

the marketer through information. This information is
used to identify marketing opportunities and problems,
generate and refine marketing actions and monitor
marketing performance.

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The Importance of
Consumer Research

“The researcher’s greater challenge is not

just generating data, but in creating a
vision from that data”

Assessing the Usefulness of

Consumer Research

Steve Jobs on Market Research

https://www.youtube.com/watch?v=2U3w5Blv0Lg

«If I had asked

customers what
they wanted, they
would have said
faster horses»

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Consumer Research Methods

•  Surveys
•  Focus groups
•  Interviews
•  Experiments
•  Field experiments
•  Diaries
•  Observation
•  Ethnography
•  Behavioral Data/Big Data
•  Neuro data (consumer neuroscience) 5

Surveys

!  Generalizability
!  Breadth
!  Validity & reliability
!  Sample selection critical
!  Research instrument development critical
!  Questionnaire length critical

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Experiments

!  Lab experiments
!  Field experiments
!  Dependent/independent variables
!  Careful control of the conditions to ensure we
actually do measure the effect of an independent
variable on a dependent variable
!  Example 1: Relaxing vs updeat music
!  Example 2: menthol vs vanilla scent

Focus Groups

!  Qualitative research method that enables us to delve

deeper into the motives of behavior
!  1-3 hours duration, 4-12 participants
!  Also known as the group interview
!  Group dynamics powerful and very interesting
!  Moderator’s role: critical and difficult
!  Selection of participants crucial

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Observation

!  Online observation
!  Offline observation

!  Participant observation

!  Unobtrusive observation

!  Contextual interviewing: bringing together

the power of observation & interviewing
!  Observation vs opinion research

Mystery Shopping

!  Monitoring the customer service process

through the customers’ eyes
!  Scenario-based to assess customer
experience under different circumstances
and conditions

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Videos & Discussion:

A Probe inside the Mind of the

Shopper: Neuromarketing
https://www.youtube.com/watch?v=UEtE-el6KKs
https://www.youtube.com/watch?v=1FIv6OQa6ks
https://www.youtube.com/watch?v=Ajg0ypDD7i0
https://www.youtube.com/watch?v=AvRG921pKkc

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Coca Cola & Neuromarketing

https://www.youtube.com/watch?v=kmMWJ4z8ssA 12

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The Promise of Big Data:

The Use of Consumer
Behavioral Data
Extremely large data sets that may be analyzed
computationally to reveal patterns, trends, and associations,
especially relating to human behavior and interactions

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Reading & Discussion:

MasterCard Mines Data for

Marketers

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Marketing Applications of
Consumer Research

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A. Developing a
Customer-Oriented Strategy
•  Segmenting the market
•  Assessing the profitability of each segment
•  Understanding the characteristics of consumers in
each segment
•  Assessing the level of satisfaction with existing
offerings

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Customer Profiling

!  Customer profiling is a way to create a portrait of

the customers to help make service design decisions.
!  Customers are broken down into groups of
customers sharing similar goals and characteristics.
!  Each group is given a representative, with a photo,
name and description.

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Personas

!  Personas are fictional characters which we

create based upon research data in order to
represent the different user types
!  Personas can humanize complex data
!  They help give user experience design teams a
consistent focus and target.

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B. Selecting the
Target Market & Positioning
•  Determining the most viable targets
•  Understanding how competitive
offerings are positioned
•  Determining how our offering should
be positioned
•  Understanding when our
offering should be repositioned

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Brand Taglines

Just do it
I’m Loving it Think different
We love to fly and it shows
Connec?ng people
The world’s local bank
Let us stay with you
High Performance. Delivered
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C. Making Strategic &Tactical

Marketing Decisions

•  Deciding on product features

•  Deciding on pricing strategy, changes in
prices, and pricing tactics
•  Determining promotion objectives and
tactics, content, media and campaigns
•  Deciding on type of outlets &
their design and aesthetics

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Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Design Thinking:
Outside the Box Thinking
!  Design thinking is often referred to as ‘outside the box’
thinking, as designers are attempting to develop new
ways of thinking that do not abide by the dominant or
more common problem-solving methods.
!  Design thinking is essentially a problem-solving
approach, which combines a user-centered perspective
with rational and analytical research with the goal of
creating innovative solutions.
!  Asking the right questions and challenging assumptions
is at the heart of design thinking.
!  The intention to improve products by analyzing and
understanding how users interact with products is
also at the heart of design thinking. 2

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Design Thinking Phases

!  Empathize with your users

!  Define your users’ needs, their problems and
insights
!  Ideate by challenging assumptions and creating
ideas for innovative solutions
!  Prototype to start creating solutions
!  Test solutions

The Power of Storytelling

!  Telling stories can inspire opportunities, ideas

and solutions.
!  Concrete details facilitate the process of
imagining solutions to particular problems.

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Consumer Behavior as a Process

Problem /Need Recognition

Information Search

Evaluation of Alternatives

Outcome/Choice

Post-acquisition Stage

Types of Consumer Decisions

" Extended problem-solving
" Limited problem-solving
" Habitual decision-making
" High involvement - low involvement decisions

" Involvement is the subjective importance of a

purchase to the consumer: Consumers are highly
involved with some purchases and less involved with others.

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Types of Buying Decision Behavior

Routine Limited Extensive
Response Problem- Problem-
Behavior Solving Solving
Low cost products More expensive
products
Frequent
Infrequent
purchasing
purchasing
Low customer
involvement High customer
involvement
Familiar product
class and brands Unfamiliar product
class and brands
Little thought, Extensive thought,
search and time search and time
given to purchase given to purchase

Issues at Different Stages of the

Consumption Process
How are consumer attitudes
How does a consumer decide
Pre- towards products formed/
that s/he needs a product? What
Purchase changed? What cues do
are the best sources of
Issues consumers use to infer which
information?
products are superior to others?
Is acquiring a product a stressful How do situational factors, such
Purchase
or a pleasant experience? What as time pressure or store
Issues
does the purchase say about the displays, affect the purchase
consumer? decision?

Does the product provide What determines whether a

Post-
pleasure or perform its intended
Purchase
function? How is the product
Issues
eventually disposed of, and what
are the environmental
consequences of this act?
consumer will be satisfied with
a product and whether s/he will
buy it again? Does this person
tell others about the experience
and affect their purchasing
decisions?

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UNDERSTANDING
THE CUSTOMER
EXPERIENCE –
ANALYZING THE
CUSTOMER
JOURNEY

Customer Experience – CX&UX

•  Customer experience/user experience, also known as
CX/UX, is the customers’ holistic perception of their experience
with a business or a brand.

•  It is the result of every interaction a customer has with the

business, from navigating the website to talking to customer
service and receiving the product/service.

•  Customer experience is the sum of the entire customer

journey with a business.

•  To achieve customer satisfaction we need to optimize the

customer experience.

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The Importance of
Customer Experience

2015

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https://www.youtube.com/watch?v=JBF2dwCP80Y
https://www.youtube.com/watch?v=mSxpVRo3BLg
https://www.youtube.com/watch?v=3bdjeBDHdrM
https://www.youtube.com/watch?v=A2LFJF1SUBg

1.  Persona
2.  Timeline
3.  Customer experience stages
4.  Touchpoints
5.  Customer thoughts
6.  Customer emo<ons
7.  Opportuni<es/ideas for improvement

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Personas

!  Personas are fictional characters which we

create based upon research data in order to
represent the different user types.
!  Personas can humanize complex data.
!  They help give user experience design teams a
consistent focus and target.

15

Customer Profiling

!  Customer profiling is a way to create a portrait of the

customers to help make service design decisions.
!  Customers are broken down into groups of customers
sharing similar goals and characteristics.
!  Each group is given a representative, with a photo,
name and description.

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•  A touchpoint is a mode of interaction between a customer

and a business.
•  They create customer experiences in a wide array of
modes of contact and channels.
•  When customers come in contact with a touchpoint they can
make positive or negative evaluations of the touchpoint/
company.

https://www.mycustomer.com/hr-glossary/customer-touchpoints
https://www.canny-creative.com/how-to-define-brand-touchpoints-for-a-winning-customer-experience/

1.  Create a list with all touchpoints

2.  Evaluate (self-evaluation, team evaluation,
expert evaluation, client evaluation)
3.  Prioritize

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21

Είναι Πέμπτη βράδυ. Το UEFA Champions League, η μεγαλύτερη ποδοσφαιρική γιορτή της Ευρώπης, έχει φτάσει στην κορύφωσή της με τον
μεγάλο τελικό Real Madrid – Liverpool. O Αντώνης, νεαρός φοιτητής της ΑΣΟΕΕ από το Περιστέρι, «γκατζετάκιας» και φανατικός οπαδός του
ποδοσφαίρου, δε θα μπορούσε να μην ακολουθήσει την καθιερωμένη πλέον γι’ αυτόν ...μυσταγωγία. Καλεί στο σπίτι τα φιλαράκια του, για
να απολαύσουν μαζί στον καναπέ, σε απευθείας μετάδοση τις δύο πρωταθλήτριες ομάδες, πίνοντας παγωμένες μπύρες. Θέλει όμως να
συνοδεύσει τις μπύρες του με κάτι νόστιμο, γρήγορο, αλλά και οικονομικό. Έχει ήδη εγκαταστήσει στο τελευταίας τεχνολογίας smart phone
του την εφαρμογή efood και ξεκινάει γεμάτος ενθουσιασμό την έρευνά του...

Discovery Pre-ordering Ordering Consuming Feedback

10 min 1,58 min 4,05 min 92 min 3 min

10 min 5 sec 30 sec 1 min 10 sec 30 sec 30 sec 30 sec 3 sec 20 sec 2 min 45 min 2 min 45 min 3 min

Choosing Opening Entering Discovering Inserting Restaurant Adding to Payment Order Order Customer Waiting for Order Food Feedback
efood App efood App the address deals of the filters e.g. Selection cart Method Completion Confirmation Support the order Arrival Enjoyment Rating
day “Pizza” via e-mail

T O U C H P O I N T S

Ads Smart Phone App design Ads Content Tour list of choices Order page Payment page Verification E-mail Customer Packaging Rating page
Social Media efood App Content Promo Tools - filters Checking Reviews Coupons Live chat Code Confirmation Service Delivery Person Reviews
Word of mouth Home page Registration form Recommended Tour details efood deals Efood deals Phone support Thank you page Ongoing Billing FAQs Food condition News-letter
Blogs Location page Restaurants Tour menu Recommendations Cart Address details Order Invoice receipt Live Chat Cutlery and Napkins included or not Surveys
Hardcopy Menus Entering Address Suggested dishes Customization Search menu Order processing Safe payment completion page Phone Forums
Leaflets Google Maps Deals of the day List of choices process Support Blogs
Social Media

T H I N K I N G & F E E L I N G

Looking for Looking for Looking for speed Not enough Looking for a Looking for a large Cancellation Looking for Fast order I need I need my food I want a fast,
speed & easiness and ease of use deals & large selection selection of options Process takes speed, ease completion solutions on time easy rating
convenience discounts of filters too much time and reliability on time It takes a lot of process
and effort I want more time
payment I am hungry
methods Fast order Food portions are
confirmation I like the really good
Correct reaction of Food is hot, as
Invoicing the rider expected

I D E A S F O R I M P R O V E M E N T

Invest more Keep the Use automatically Offer a wider Offer a larger Offer a larger Easier and Add “Ticket Give more Send also an Train Keep the customer Train Give incentives to Easy, fast
in Advertising platform simple the “mobile variety of deals selection of selection of simpler Restaurants” as precise SMS CSD busy with a game delivery customers that and simple
and user friendly location”, instead and discounts filters collaborated cancellation Payment schedules of Order people embedded in the efood persons hashtag #efood in “Likert type”
of typing restaurants process needed Method deliveries Confirmation App social media Rating
22

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Assignment 1

Choose an example of a service or retail experience that in

your view successfully utilizes store atmospherics/retail
theming in the context of sensory marketing. Prepare a
customer journey map for the experience of a selected
type of customer/persona. Submit your customer journey
map along with an analysis of the process you followed
for its development and the key results and findings you
reached. Discuss also the role of atmospherics and their
influence on the overall customer experience.

24

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Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Assignment 1

Choose an example of a service or retail experience that in

your view successfully utilizes store atmospherics/retail
theming in the context of sensory marketing. Prepare a
customer journey map for the experience of a selected
type of customer/persona. Submit your customer journey
map along with an analysis of the process you followed
for its development and the key results and findings you
reached. Discuss also the role of atmospherics and their
influence on the overall customer experience.

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The Time of Purchase

!  Mood at the time of purchase

!  The consumption situation
!  Temporal factors
!  Physical surroundings
!  Social surroundings

In-Store Decision-Making

•  Spontaneous shopping: unplanned buying

•  Impulse buying: the result of an irresistible urge
•  Point-of-purchase stimuli
•  Place-based media

https://www.youtube.com/watch?v=RjgkQ6bq7aE
https://www.youtube.com/watch?v=g3IwOgA3Ngw
https://www.youtube.com/watch?v=M9f21TzP3xY 4

2
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THE SHOPPING
EXPERIENCE -
RETAIL THEMING
SENSORY
MARKETING

The Shopping Experience

!  The act of shopping has taken on new entertainment

and experiential dimensions
!  Stores and malls are becoming the new mini-
amusement parks
!  Retail theming
!  The store image
!  Atmospherics

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•  Welcoming customers and bringing them in

•  Managing the customers’ movement in store
•  Prolonging the stay
•  Creating a sense of comfort
•  Flexibility & changes in time
•  Completing the visit

•  Intriguing shopfront
•  The decompression zone
•  Wayfinding & customer journey in the store
•  The power wall & brand identity
•  Accessibility & aisle space
•  Path to purchase

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The Role of Physical Evidence

•  Attention-creating medium: making the company

stand out from competitors and attract customers from
target segments

•  Message-creating medium: communicating the

distinctive quality and nature of the service experience
through symbolic cues

•  Effect-creating medium: employing colors, textures,

sounds, scents, and spatial design to enhance the
service experience or heighten an appetite for certain
goods, services, and experiences

https://www.youtube.com/watch?v=YrERR8SpDs0
https://www.youtube.com/watch?v=duDNbKWEy5M

10

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Color as a Tool to Shape

Consumer Behavior

https://www.youtube.com/watch?v=QMXlSwMcZag

11

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Music as a Tool to Shape

Consumer Behavior

https://www.youtube.com/watch?v=s19Fr-_WaXo
https://www.youtube.com/watch?v=SePL2w5f6dE 1
3

Scent and its Role in Shaping

Consumer Behavior

https://www.youtube.com/watch?v=dBiXVOrAsZA
https://www.youtube.com/watch?v=nkmYivLSyfI 14

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15

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17

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19

20

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Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Assignment 1

Choose an example of a service or retail experience that in

your view successfully utilizes store atmospherics/retail
theming in the context of sensory marketing. Prepare a
customer journey map for the experience of a selected
type of customer/persona. Submit your customer journey
map along with an analysis of the process you followed
for its development and the key results and findings you
reached. Discuss also the role of atmospherics and their
influence on the overall customer experience.

1
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Individual Determinants
Personal characteris.cs
–  Age and stage in the life cycle
–  Occupa.on and economic
circumstances
–  Personality and self concept
–  Lifestyle, a:tudes and values
–  Ability and knowledge

Psychological Processes as
Internal Influences

The perceptual process

Learning

Memory

Mo.va.on
4

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The Perceptual Process

Stimuli
Sensation Meaning
• Sights
• Sounds
• Smells Sensory
receptors Attention Interpretation Response
• Tastes
• Textures

Perception

The Perceptual Process

!  Percep.on is the process through which the person

selects, organizes and interprets informa3on inputs
(sensory informaBon) in order to represent and
understand the world

!  People may understand reality in a rather different

way

!  Interpreta.on refers to the meaning that people

assign to phenomena, whether this comes from
sBmuli from the outside world or the ideas and
concepts coming from one’s inner mind

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The SubjecBve Nature of PercepBon

Perceptual Principles

"  The principle of closure: consumers tend to

perceive an incomplete picture as complete,
filling in the gaps based on previous experience

"  The figure-ground principle: one part of the

stimulus will dominate while others will recede in
the background

"  The principle of similarity: consumers tend to

group together objects that share similar
characteristics

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Perceptual DistorBon:
The Figure-Ground Principle

The Gestalt Principle of Closure

10

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Memory
o  Encoding – storage - retrieval

o  Types of memory:

o  Sensory memory

o  Short-term memory

o  Long-term memory

o  Storing of informa.on in memory

o  Retrieving of informa.on for purchase decisions

11

MoBvaBon

#  An inner state of arousal, with aroused energy directed

towards achieving a goal.

#  This driving force is produced by a state of tension, which

exists as a result of an unfulfilled need that moves us
away from psychological equilibrium or homeostasis.

#  Consumers can be mo.vated to engage in behaviors,

make decisions, or process informa.on, and this
moBvaBon can be seen in the context of acquiring, using,
or disposing of an offering.

12

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Consumer MoBvaBon

#  It is the drive to saBsfy needs and wants, both

physiological and psychological, through the purchase
and use of products and services.

#  Biogenic versus psychogenic drives

#  UBlitarian versus hedonic needs

#  PosiBve versus negaBve moBvaBon: approach/

avoidance

#  Internal versus external moBvaBon

13

“Adver3sing, taken as a whole, conspires first to

make men feel that the things that ma<er to them
are the material things of life: the goods, services,
and opportuni3es provided by the economy.
Second, it conspires to make men dissa3sfied with
what they have – so turning them into efforts to
increase their real earnings so as to acquire more”
(Mishan 1971)

14

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MoBvaBon Theories: Freudian

Freudian motivation: id, ego, superego

15

Maslow’s Hierarchy of Needs

16

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Maslow’s Hierarchy of Needs

17

9
 12/7/21

Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Social & Cultural Influences

The consumer socializa0on process

Cultural influences

Religious influences

Social Class

Peer group influence

Reference group influence

2

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Readings and Discussion:

Suscep9bility to
External Influence

https://www.youtube.com/watch?v=XxfcaY86jpw
https://www.youtube.com/watch?v=KZYxfsTjEzI 3

Consumer Socializa9on

!  Consumer socializa9on is the process by which young people

acquire skills, knowledge and aGtudes relevant to their
func9oning in the marketplace.
!  Where does this knowledge come from??
!  Parents

!  Friends

!  Teachers

!  Media

!  Observa9onal learning

https://www.youtube.com/watch?v=K-RvJQxqVQc 4

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Five Stages of Consumer Development

!  Stage 1: Observing

!  Stage 2: Making requests

!  Stage 3: Making selec9ons

!  Stage 4: Making assisted purchases

!  Stage 5: Making independent purchases

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Cultural Influences
!  The collec9ve programming of the mind;

!  The lens through which we see the world;

!  The meaning system that provides us with a sense of

iden9ty and ra9onale for our ac9ons

!  Culture comprises:
!  Cogni9ve elements and beliefs
!  Values and norms
!  Sign, signals and symbols

!  Countries and ethnic groups

!  Encultura9on vs. accultura9on

7

Religious
Influences

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Religious Influences
!  Religion provides individuals with a structured set of
beliefs and values that serve as a code of conduct or
guide of behavior.
!  It also provides 9es that bind people together and make
one group different from the other.
!  Religious influences can some9mes affect consumer
behavior: Discussion & Examples

10

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Social Class
!  Most socie9es have a social class hierarchy that confers
higher status to some classes of people than to others
!  Social classes consist of iden9fiable groups of individuals
whose behaviors and lifestyles differ from those of
members of the other classes.
!  Members of a par9cular social class tend to share similar
values and behavior pa]erns
!  What determines social class:
!  Occupa9on
!  Educa9on
!  Income

!  Upward and downward mobility

!  Social class fragmenta9on 11

Social Class & Consump9on

!  People are more likely to be influenced by individuals in
their own social class than by those in other classes.
!  The trickle-down effect vs. the status float

!  Conspicuous consump6on: showing off wealth and

possessions
!  The acquisi+on and visible display of luxury goods and services to
demonstrate the consumer’s ability to afford them

!  Status symbols acquisi9on

!  Compensatory consump6on
!  The consumer behavior of buying products or services to offset
frustra+ons or difficul+es in life

!  The meaning of money 12

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Group Influence

!  Consumers’ product/brand decisions reflect the influence

of a variety of reference groups.
!  Consumers’ product/brand choices indicate membership of
relevant social groups.
!  Rejec9on of products and brands is used to indicate
distance (non-membership) from other social groups.

13

Group Influence
!  Group influence requires the opportunity for social
interac9on or public scru0ny of behavior.
!  Complying with the preference of others and adop9ng
values of others all involve some sort of communica9on
or observa9on of decisions, opinions or behavior. In a
purchase context, this implies products that will be seen
by others.
!  Conformity pressures: people are ofen worried about
how others would perceive them if they refused to
conform to the expected behavior of the group.

14

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Peer Groups

!  A peer group is defined as a group of people of the same

age, status and interests.
!  An individual’s peer groups are a significant source of
informa0on and are instrumental in forming a person’s self
concept.

15

Young People & Peer Acceptance

!  Young people place great emphasis on their appearance and
on gaining peer acceptance.
!  As teenagers develop, they interact more with their peers as
opposed to others and are thus more likely to learn about and
internalize their friends’ product preferences.
!  One of the most no9ceable aspects of adolescent culture is
their preoccupa9on with clothing, hairstyles and grooming.

16

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Reference Groups

!  Actual or imaginary individuals or groups that significantly

influence an individual’s evalua9ons, aspira9ons and behavior.
!  They serve as frames of reference for purchase or
consump9on decisions.
!  Reference groups can influence two types of decisions:
whether we buy a product and what brand we buy
!  Two dimensions that influence the degree to which reference
groups are important are:
!  Whether the purchase is to be consumed publicly or privately
!  Whether it is a luxury or necessity

17

Forms of Reference Groups

!  Norma0ve referents: provide the individual with norms, aGtudes and
values.
!  Compara0ve referents: provide standards of achievement to which
individuals aspire.
!  Formal reference groups: large, more remote groups with recognized
structure
!  Informal groups: smaller groups that tend to be more important to the
individual
!  Membership reference groups: groups we belong to
!  Aspira0onal reference groups: composed of people the individual can
iden9fy with or admire
!  Posi0ve reference groups: those we wish to belong
!  Nega0ve reference groups: groups we disapprove of
18

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Types of Reference Group Influence

!  Informa0onal influence: based on the desire to make
informed decisions

!  U0litarian reference group influence: reflected in a]empts

to comply with the wishes of others to achieve rewards or
avoid punishments

!  Value-expressive influence: characterized by a need for

psychological associa9on with a person or group

19

Word of Mouth
Communica9on
!  More reliable and trustworthy
!  People becoming more cynical of commercial
communica9ons
!  People’ s faith in ins9tu9ons declining
!  Backed up by social pressure to conform
!  The influence of others’ opinions is at 9mes even more
powerful than one’s own percep9ons.

20

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Opinion Leaders
!  People whose posi9on, exper9se or knowledge renders them
par9cularly important sources of relevant and credible
informa9on.
!  An opinion leader is a person who is frequently able to
influence others’ aGtudes or behavior.
!  Credibility is an important characteris9c of an opinion leader.

!  Types of opinion leaders?

21

Brand Communi9es and Tribes

!  A brand community is a set of consumers who share a set of social
relationships based upon usage or interest in a product.
!  Unlike other kinds of communities, these members typically do not
live near each other and they exchange views online and meet at
organized events called brandfests.
!  These events help owners to bond with fellow enthusiasts and
strengthen their identification with the product .
!  Consumer tribe refers to a group of people who share a lifestyle
and who can identify with each other through a shared allegiance to
an activity or a product.
!  The challenge of tribal marketing is to link one’s product to the
needs of the group as a whole.

22

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The Use of Reference Group

Influence in Marke9ng

https://www.youtube.com/
watch?v=4fiMVaQk5OY

23

Types of Reference Group Appeals in

Marke9ng Usage: A. Celebrity Appeals
!  How celebri0es are used:
!  Tes6monial ci6ng the benefits
!  Endorsement
!  Actor
!  Spokesperson: eventually the celebrity’s
appearance becomes closely associated with the
brand or the company
!  Credibility of the celebrity: exper6se &
trustworthiness
!  Prototypical bonding: associa6ng the
spokesperson's aGributes, traits, or values
with a par6cular service or product
24

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Types of Reference Group Appeals in

Marke9ng Usage: B. Expert Appeals
!  A person who is in a unique posi0on to help the
prospec0ve customer evaluate a product or service
!  Why & How?

!  Because of his/her occupa0on

!  Special training

!  Experience

25

Types of Reference Group Appeals in

Marke9ng Usage: C. Common Man Appeals

!  Tes0monials of sa0sfied customers

!  Slice of life commercials
!  Benefits??
!  Someone just like them used and liked the
product
!  Especially effec6ve in public health
announcements
!  Most people seem to iden6fy with people like
themselves when it comes to such messages

26

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Types of Reference Group Appeals in

Marke9ng Usage: D. Execu9ve Appeals
!  Execu0ve spokespersons seem to be
admired by the general popula6on
because of their achievements and the
status implicitly conferred on business
leaders
!  The appearance of the company’s CEO in
adver9sing seems to imply that someone at
the top is watching over the consumer’s
best interest.
!  A varia9on of this appeal is the factory
worker, the engineer or the scien0st who
work towards the development of a
par9cular product.
27

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Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Symbolic Consump0on

1
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Symbolic Consump0on

A PERSON’S
SELF CONCEPT

STEP 1 STEP 3

A PRODUCT WHICH
A REFERENCE GROUP
ACTS
AS SYMBOL

STEP 2

Symbolic Consump0on

Step1: The consumer buys a product that may

communicate his or her self concept to the audience.

Step2: The consumer hopes that the audience will

have the desired percep0on of the symbolic nature
of the product.

Step3: The consumer hopes that the reference group

views him or her as having the same symbolic
quali0es as the product.
4

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Self Concept
our mental concep4on
of who we are

Various Types of Self Concept

!  Actual Self: How a person actually perceives him/herself

!  Ideal Self: How a person would like to perceive him/herself
!  Social Self: How a person thinks others perceive him/her
!  Ideal Social Self: How a person would like others to
perceive him/her
!  Expected Self: An image of self somewhere in between the
actual and the ideal self
!  Situa4onal Self: A person’s self-image in a specific situa0on

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The Self Concept and

Product Symbolism

!  Products may act as symbols for consumers, they can

stand for or express something else
!  The primary reason for buying products is not their
func0onal benefits but their symbolic value
!  Consumers’ personali4es can be defined through the
products they use
!  People view their possessions as an extension of
themselves

Possessions

“A man’s self is the sum total of all that he can call his,
not only his body and his psychic powers,
but his clothes and his house, his wife and his children,
his ancestors and friends, his reputa4on and
works, his lands, and yacht and bank account”.
Russell Belk

4
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Possessions

!  A possession’s public or private meanings are what gives

it value.
!  These public and private meanings arise from a number
of sources.
!  Categories of possessions’ value:
!  U0litarian
!  Enjoyment (hedonic)
!  Representa0ons of interpersonal 0es
!  Iden0ty and self-expression.

Products Most Likely to be Viewed as

Symbols by Consumers

!  They must have visibility in use: purchase,

consump0on and disposi0on is readily apparent to
others
!  They must show variability: some consumers must
have the resources to own the product, whereas
others do not have the resources to possess it
!  The product should have personalizability: the
extent to which a product denotes a stereotypical
image of the average user.

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The Image Congruence Hypothesis

!  Social iden4ty theory proposes that we evaluate brands in

terms of their consistency with our individual iden00es

!  The image congruence hypothesis postulates that

consumers select products and stores that correspond to
their self concept

!  A seman4c differen4al scale using bipolar adjec0ves can

measure product images and self images and can assess
image congruence

11

Seman0c Differen0al Scales

12

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Materialism & Happiness

13

Materialism

!  Refers to the importance people a_ach to worldly

possessions.
!  Adver0sing encourages this emphasis on
consump0on and increasingly portrays consump0on
as an end in itself rather than as a means to a_ain
well being.
!  Individual differences exist among consumers in
terms of the value they place on materialism.

14

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Dr. Kalipso Karantinou

Assistant Professor
Department of Marketing & Communication

Materialism & Happiness

1
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Materialism

!  Refers to the importance people a6ach to worldly possessions.

!  Adver=sing encourages this emphasis on consump=on and
increasingly portrays consump=on as an end in itself rather
than as a means to a6ain well being.
!  Individual differences exist among consumers in terms of the
value they place on materialism.

The Impact of Adver1sing

2
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The Impact of Adver=sing

!  Adver&sing is everywhere.
!  Few people admit to being greatly influenced by ads, but
surveys and sales figures show that a well-designed
adver=sing campaign has drama&c effects.
!  Ads are designed to have an effect while being laughed
at, beli6led and all but ignored.
!  A logical conclusion is that adver&sing works below the
level of conscious awareness and it works even on those
who claim immunity to its message.

The Impact of Adver=sing

!  Repeatedly showing a product along with other things that

we feel good about can make us feel good about the
product too. This transfer of feelings from one set of items
to another is called affec&ve condi&oning.
!  Constant bombardment with images of unrealis=c and
una6ainable perfec=on has a significant impact on an
individual’s self esteem.
!  Some researchers believe that adver=sers purposely
normalize unrealis=cally thin bodies, in order to create an
una<ainable desire that can drive product consump&on
perpetually.

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Idealized Images in Adver=sing

!  Adver=sing has long been accused of depic1ng unrealis1c

or idealized images of people and their lives
!  Adver=sing may create an idealized image of what one’s life
should be like. If we do not measure up to this image, we
may feel dissa1sfied.
!  Idealized images raise comparison standards for
a6rac=veness and lower sa=sfac=on with one’s own
a6rac=veness (Richins 1991)
!  Exposure to adver=sing with highly a6rac=ve models raises
comparison standards for physical a?rac1veness (Mar=n &
Kennedy 1993).

Self Esteem

!  Refers to the posi=vity of a person’s self-concept.

!  Self esteem is influenced by a process where the

consumer compares his or her actual standing on some
a6ribute to the ideal.

!  Marke=ng communica=ons can influence the level of self-

esteem, via social comparison.

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Social Comparison

!  According to the social comparison theory, individuals have

a need to evaluate themselves and they do so via
comparison with others (Fes=nger 1954).
!  Fes=nger’s original hypothesis apply to the evalua=on of
abili&es and opinions. Wood’s (1989) work showed that
comparison occurs in the evalua=on of personal traits and
circumstances.
!  Fes=nger’s original work dealt with comparisons within
groups and other face-to-face comparisons. Other authors
subsequently have however recognized that people may
compare themselves with members of groups they do not
belong to or with social categories. Models in ads, for
example, form a social category.
9

Social Comparison

!  Both sought and unsought comparison may occur.

!  “It can be hard to hear an extremely intelligent person on the
radio, or see an extremely handsome one in the grocery
store, or par7cipate on a panel with an expert without
engaging in social comparison no ma:er how much we
would like not to” (Goethals 1986).
!  Comparison with those who can be considered ‘be6er off’
may be forced by television commercials.
!  Forced comparison feedback can intrude on a person, even
when the comparison is unsought, and have a posi=ve or
nega=ve impact on self-feelings.

10

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Outcomes of the
Comparison Process
!  When individuals are in the process of social
comparison, the goal is not just self evalua=on,
but also self-improvement and self-enhancement
!  Feelings of failure and inadequacy can result from
comparison with others whose abili=es are
superior (Fes=nger 1954).
!  Social comparison can affect self-concept or self-
feelings (Wood 1989).
!  Social comparison is important in determining
subjec&ve well-being (Diener 1984).
!  Numerous studies have demonstrated the
nega&ve effects of idealized male or female body
images in adver&sing
11

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13

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15

The Dark Side of

Consump1on

16

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The Dark Side of Consump=on

!  Materialism, over-consump=on and waste

!  The impact of the manipula=ve intent of adver=sing
!  Exposure to una6ainable media ideals of beauty and success
and the behavioral outcomes of it.
!  Impulsive and compulsive consump=on (gambling, compulsive
shopping, excessive drinking or cigare:e smoking)
!  The consump=on of non-standard products (e.g. drugs) and the
use of non-standard channels (black market, street traders for
illegal substances).

17

Addic=ve Consump=on
•  Consumer addic=on is a physiological and/or psychological
dependency on products or services.
•  Excessive gambling for example can be quite destruc=ve.
•  Much nega=ve and destruc=ve consumer behavior can be
characterized by three common elements:
–  The behavior is involuntary
–  The gra=fica=on derived is short-lived
–  The person experiences strong feelings
of regret or guilt aherwards

•  Video & discussion

18

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Marke=ng and Adver=sing to Children

•  Research has shown that children under the age of 6 do not
have the cogni&ve abili&es to understand that adver=sements
are trying to persuade them.
•  Camel cigare<es came under fire for the Joe Camel campaign.
The charges were that the Joe Camel character a6empts to
a6ract children to cigare6es: video & discussion
•  Alcopops have also been accused to be targeted to teenagers.

19

Example of Excessive and

Inappropriate Consump=on
!  The careless use of an=bio=cs: there has been an
indiscriminate overuse of an=bio=cs
!  Many =mes the instruc=ons about when to take them and
when to finish the course are not followed.
!  The result is the emergence of infec=ous bacteria resistant
to an=bio=cs

20

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21

! An innova=on is a product, service, a6ribute, or idea that

consumers within a market segment perceive as new and
that has an effect on exis=ng consump=on pa6erns.

! We can iden=fy different types of innova=ons based on:

! Degree of novelty

! Benefits offered

! Breadth of innova=on

22

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! When do consumers adopt innova=ons?

! Innovators
! Early adopters
! Early majority
! Late majority
! Laggards

! Reasons for resistance to adop=on?

23

!  Characteris=cs of the innova=on

!  Perceived rela=ve benefit
!  Perceived costs
!  Uncertainty
!  What will become the standard product
!  The expected length of the product life cycle
!  Consumer learning requirements
!  Compa=bility
!  Trialability
!  Complexity

24

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!  Social relevance
!  Observability
!  Social value
!  Legi=macy and adaptability
!  Characteris=cs of the social system
!  Modernity
!  Similarity
!  Physical distance
!  Opinion leadership

25

New Product Development

Presenta=ons
!  Select a product that you think you can improve upon.
!  Iden=fy the nega=ve aspects or weaknesses of the selected
product and create a list of all the weaknesses.
!  Based on this analysis, come up with sugges=ons for
improvement, tackling one-by-one all the weaknesses of the
exis=ng product.
!  Develop your new product, draw it and present its
superiority on every aspect.

26

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