CONSUMER BEHAVIOR: FINALS
PSYCHOLOGICAL CORE
LOW EFFORT SITUATION
- Consumers are unwilling to use effort
or emotional resources to process an
idea
How to overcome?
- Peripheral route to persuasion
- Aspects other than key message
arguments that are used to
influence attitudes
- Peripheral cues: easily processed
aspects of a message, such as
music, an attractive source,
picture, or humor.
- Design ads to favor the thoughts and
feelings of consumers
UNCONSCIOUS INFLUENCES ON
CONSUMER’S ATTITUDES
THIN SLICE JUDGEMENTS
- Evaluations made after very brief
observations
- Assessments consumers made
- Consumers can form accurate
information thru this.
BODY FEEDBACK
- Influence’s attitude and behavior
AFFECTIVE BASES OF ATTITUDES IN LOW-
COGNITIVE BASES OF ATTITUDES IN LOW-
EFFORT CONSUMERS
SIMPLE INFERENCES
- Beliefs based on peripheral cues
- Consumer’s superficial analysis of
brand’s name, country origin
HUERISTICS
- Simple rules of thumb that are
used to make judgments
- FREQUENCY HEURISTICS: belief
based simply on the number of
supporting arguments or amount
of r1epetition
TRUTH EFFECT
- When consumers believe a
statement simply because it has
been repeated a number of times
HOW COGNITIVE ATTITUDES ARE
INFLUENCED?
COMMUNICATION SOURCE
- Source expertise is used to judge
the credibility of a message
MESSAGE
- Category and scheme consistent
information
- Number of supporting arguments
- Simple messages
- Involving messages such as self-
referencing
MESSAGE CONTEXT AND REPETITION
- Message context affects the
strength and salience of
consumer’s beliefs
- Repetition enhances brand
awareness
- Incidental learning: learning that
occurs from repetition rather than
from conscious processing
EFFORT CONSUMERS
MERE EXPOSURE EFFECT
- When familiarity leads to
consumers liking an object
CLASSICAL
- Producing a response to a stimulus by
repeatedly pairing it with another
stimulus that automatically produces
this response
EVALUATIVE
- A special case of classical conditioning,
producing an affective response by
repeatedly pairing a neutral
conditioned stimulus with an
 CONSUMER BEHAVIOR: FINALS
emotionally charged unconditioned - Positioning a product or service as a
stimulus solution to the problem
ATTITUDE TOWARD THE AD
- When liking an ad leads to positive INTERNAL SEARCH
feelings to the brand
- Process of recalling stored information
CONSUMER MOOD
from memory
- A stimulus creates a positive or a
negative mood; in turn, this mood
HOW MUCH DO WE ENGAGE IN INTERNAL
can affect the consumer’s
SEARCH?
reactions to any other stimulus
- Degree of internal search varies
the happen to evaluate
- Depends on their MAO to process
- SEVA: surgency elevation, vigor,
information
and activation
- Greater degree of knowledge and
- Deactivation feelings: soothing,
experience, have a greater ability to
relaxing, quiet, or pleasant
search internally
responses
- Social affection: feelings of
KINDS OF INFORMATION RECALLED FROM
warmth, tenderness, and care
INTERNAL SEARCH (4 Major dko alam)
COMMUNICATION SOURCE
- Brands
- Physical attractiveness, liability,
- Attributes
and celebrity
- Evaluations
MESSAGE
- Experiences
- Pleasant pictures
- Music
- Humor BRAND RECALL
- Sex CONSIDERATION (OR EVOKED SET)
- Emotional content such as - Subset of top-of-mind brands
transformational advertising and evaluated when making a choice
dramas - Size
- context - Stability
- Variety
PROBLEM RECOGNITION - Preference dispersion
- perceived difference between an
FACTORS THAT INCREASE THE POSSIBILITY
actual and an ideal state
OF CONSUMERS RECALLING A PARTICULAR
- IDEAL – the way we want things to be
BRAND
- ACTUAL – current state; the way
- Prototypicality – easily recall
things are
brand close to prototype
- Brand familiarity – well-known
STIMULATING PROBLEM RECOGNITION
brands are easily recalled rather
- Creating a new ideal state
than unknown brands
- Encouraging dissatisfaction with the
- Goals and usage situation
actual state
- Brand preference
 CONSUMER BEHAVIOR: FINALS
- Retrieval cues – facilitates the
activation of memory
ATTRIBUTE RECALL
- Factors that influence the recall of
attribute information in the
information search and decision-
making process
- Accessibility/availability
- Diagnosticity – information helps
us distinguish objects from one to
another
- Salience – prominent or gano
kasikat ung attribute
- Vividness – vivid information or
maganda ung picture, endorser
- Goals – ano ba goals mo?
RECALL OF EVALUATIONS
- Are easier to remember than
specific attribute information
- Tend to form associative links with
the brand
RECALL OF EXPERIENCES
- Take the form of specific images and
the effect associated with them
- Are most likely to be recalled when
they are more vivid, salient, or
frequent
IS INTERNAL SEARCH ACCURATE?
CONFIRMATION BIAS
- tendency to recall information that
reinforces or confirms our overall
beliefs rather than contradicting them,
thereby making our judgement or
decision more positive
INHIBITION
- limitations in consumer’s capacity, the
recall of one attribute inhibiting the
recall of another
MOOD
- enhancing the recall of positive
attitude through the use of humor or
attractive visuals
EXTERNAL SEARCH
- The process of collecting information
from outside sources (magazines,
dealers, ads)
TYPES OF EXTERNAL SEARCH
PREPURCHASE SEARCH
- A search for information that aids a
specific acquisition decision.
ONGOING SEARCH
- A search that occurs regularly,
regardless of whether the consumer is
making a choice.
SOURCE OF EXTERNAL INFORMATION
- Retailer
- Media and Social media
- Interpersonal
- Independent
- Experiential
- Internet
INTERNET SOURCES
- Keyword search
- Shopping agents
- Information overload
- Simulations
- Online community
INFORMATION PROCESSING
MOTIVATION
- involvement and perceived risk,
perceived cost and benefits,
consideration set, relative brand
uncertainty, attitude toward search,
discrepancy of information
 CONSUMER BEHAVIOR: FINALS
ABILITY
- consumer knowledge, cognitive
abilities, consumer affect,
demographics,
OPPORTUNITY
- amount of information available,
information format, time availability,
number of items being chosen
INFORMATION ACQUIRED EXTERNAL SEARCH
- Brand name
- Price
- Other attribute that are salient and
diagnostic
THE PROCESS OF MAKING DECISIONS
JUDGEMENT AND DECISION MAKING BASED
ON HIGH EFFORT
Judgement – Evaluation of an object or
estimate of likelihood of an outcome or event
• Estimation of likelihood – Judging how
likely something will occur
• Goodness/Badness – Evaluating the
desirability of something
▪ Anchoring and Adjustment:
Starting with an initial evaluation
and adjusting it with additional
▪ Imagery: Multi-sensory mental
representation (image) of a
stimulus or an event
• Mental and Emotional accounting
Decision-Making – Making a selection among
options or courses of action
MENTAL ACCOUNTING
- Categorizing spending and saving
decisions into “accounts” mentally
designated for specific consumption
transactions, goals, or situations
EMOTIONAL ACCOUNTING
- The intensity of positive or negative
feelings associated with each mental
“account” for saving or spending
BIASES IN JUDGEMENT PROCESSES
• Confirmation
• Self-positivity
• Negativity
• Mood
• Prior bran evaluations
• Prior experience
• Difficulty of mental calculations
HIGH-EFFORT CONSUMER DECISIONS
Deciding:
- Which brands to consider
- What is important to the choice
- What brand to choose
- Whether to make a decision now
- When alternatives cannot be compared
Which brands to consider
- Options fall under inept set, inert set,
and consideration set
- Attraction effect: When the addition of
an inferior brand to a consideration set
increases the attractiveness of the
dominant brand
What is important to the choice
- Goal
- Time
- Decision framing
What brand to choose
- Cognitive decision making model: The
process by which consumers combine
items of information about attributes
to reach a decision
- Affective decision-making model: The
process by which consumers base their
decision on feelings and emotions
 CONSUMER BEHAVIOR: FINALS
options based on minimum
TYPES OF COGNITIVE CHOICE MODELS acceptable levels.
Compensatory Noncompensatory • The disjunctive model sets maximum
• Multiattribute • Conjunctive acceptable levels for attributes.
models BRAND model o Allows consumers to simplify the
• Disjunctive decision-making process by
model focusing on finding options that
• Additive • Lexicographic excel in at least one key attribute.
difference ATTRI model
• The lexicographic model is a
model BUTE • Elimination-by-
noncompensatory decision-making
aspects model
model where consumers prioritize
COMPENSATORY MODEL
attributes in a hierarchical order.
• A mental cost-benefit analysis model in
o If multiple options have the same
which negative features can be
performance on the most
compensated for by positive ones
important attribute, the next
• Multiattribute models are decision-
attribute in the hierarchy is
making models that consider multiple
evaluated, and the option that
attributes or criteria simultaneously
performs best on that attribute is
when evaluating options.
selected.
o Multiattribute models often
• The elimination-by-aspects model is
involve assigning importance
another noncompensatory decision-
weights to each attribute based on
making model that involves
their relative importance to the
systematically eliminating options
decision-maker.
based on specific aspects or attributes.
• The additive difference model is a
o The options are evaluated
specific type of multiattribute model
attribute by attribute, and any
that assumes decision-makers
option that fails to meet the
evaluate options by comparing them
minimum cutoff value on any
to a reference point or standard.
attribute is eliminated from
o In this model, decision-makers
consideration.
assess the differences between
each option's attribute value and a
reference point for that attribute.
NONCOMPENSATORY MODEL
• A simple decision model in which
negative information leads to rejection
of the option
o Cutoff levels
• The conjunctive model operates on
the principle of minimum cutoffs for
attributes.
o It simplifies the decision-making
process by narrowing down the
 CONSUMER BEHAVIOR: FINALS
DECISIONS BASED ON GAINS AND LOSSES
Prospect Theory – Losses have more influence
than gains
- Endowment effect: When ownership
increases the value of an item
- Consumers have stronger reaction to
price increases than price decreases
CONSUMER CHARACERISTICS AND
DECISIONS
• Expertise
• Good mood
• Time pressure
• Extremeness aversion
• Metacognitive experience
Extremeness Aversion – Options that are
extreme on some attributes are less attractive
than those with a moderate level of those
attributes
• Compromise effect: When a brand
gains share because it is an
intermediate rather than an extreme
option
• Attribute balancing: Picking a brand
because it scores equally well on
certain attributes rather that faring
unequally in these attributes
Metacognitive Experiences – How the
information is processed beyond the content
of the decision
DECISION CHARACTERISTICS AFFECTING
DECISION MAKING
• Information availability
• Information format
• Trivial attributes
GROUP DECISION MAKING
• Individual-alone goals
o It refers to the goals that
individuals prioritize and pursue
independently within a group
setting. In group decision-making,
individuals may have their own
personal objectives that they aim
to achieve while collaborating
with others.
• Individual-group goals
o Refer to objectives that are shared
by a group of individuals and are
aligned with the interests and
aspirations of both the individual
members and the group as a
whole.
JUDGEMENT & DECISION-MAKING BASED ON
LOW EFFORT
• When MAO (Monoamine Oxidase) is
low, individuals are motivated to
simplify the cognitive process by using
heuristics
REPRESENTATIVENESS HEURISTIC
• Making a judgement by simply
comparing a stimulus with the category
prototype or exemplar.
AVAILABILITY HEURISTIC
• Basing judgements on events that are
easier to recall
BIASES
• Base-rate information
o Refers to the tendency of
individuals to rely on general
statistical information or prior
probabilities when making
judgments or decisions, while
potentially underweighting or
neglecting specific case
information.
o How often an event occurs on
average
• Law of small numbers
 CONSUMER BEHAVIOR: FINALS
o Refers to the tendency of
individuals to draw broad
conclusions or make
generalizations based on a small
sample size of observations or
data points.
o The expectation that information
obtained from a small number of
people represents the larger
population.
UNCONSCIOUS LOW-EFFORT DECISION
MAKING
• People may make a decision without
being consciously aware of how or
why they are doing so
• Influenced by environmental stimuli
• Customer decisions are affected by
visual aspects
• Automatic goal-related behavior
CONSCIOUS LOW-EFFORT DECISION MAKING
• Hierarchy of effects for low-effort
situations
o Sequence of thinking, behaving,
and feeling
o Traditional hierarchy of effects:
Sequential steps used in decision-
making involving thinking, then
feeling, then behavior
• Affective processing (Affective
decision-making model)
o The process by which consumers
base their decisions on feelings
and emotions
• Factors that influence low motivation,
ability, and opportunity (MAO) process
o Satisfice: Finding a brand that
satisfies a need even though the
brand may not be the best brand
o Choice tactics: Simple rules of
thumb used to make low-effort
decisions
LOW-EFFORT THOUGHT-BASED DECISION
MAKING
• Performance-related tactics
o Tactics based on benefits,
features, or evaluations of the
brand
o Based on benefits, features, or
evaluations of a brand
o Used when the outcome of the
consumption process is positive
reinforcement
o Evaluation can be general or
focused on a specific attribute or
benefit
• Habit
o A learned behavior that involves
regular performance of the same
act repeatedly over time.
o Behaviors are often performed
unconsciously and may be difficult
to discontinue
▪ Little or no information
seeking
▪ Little or no evaluation of
alternatives
• Brand loyalty
o Buying the same brand repeatedly
because of a strong preference for
it
▪ Multiple loyalty: Buying two
or more brands repeatedly
because of a strong
preference for them
• Price-related tactics
o Simplifying decision heuristics that
are based on price
▪ Price consciousness is not
static
• Normative influences
o Low-elaboration decision-making
that is based on others’ opinions
▪ Result from direct or indirect
influences or vicarious
observation
 CONSUMER BEHAVIOR: FINALS
▪ Common among inexperienced POST-DECISION REGRET
consumer • The negative feeling that one should
have made another purchase,
LOW-EFFORT FEELINGS-BASED DECISION consumption, or disposition decision
MAKING than one actually did
• Affect related tactics • Immediate
o Tactics based on feelings • Later
▪ Affect does not necessarily
result from a conscious
recognition of need
satisfaction
▪ Affect referral: A simple type
of affective tactic whereby we
simply remember our feelings
for the product or service
• Brand familiarity
o Easy recognition of a well-known
brand
▪ Co-branding: An arrangement
by which the two brands form
a partnership to benefit from
the power of both
• Variety-seeking
o Trying something different
▪ Consumer seek variety due to
satiation or boredom
• Impulse purchases
o An unexpected purchase based on
a strong feeling
▪ Intense feeling to buy the
product
▪ Disregard for negative
purchase consequences
▪ Feelings of euphoria and
excitement
▪ Conflict between control and
indulgence

POST DECISION PROCESSES

POST-DECISION DISSONANCE
• A feeling of discomfort about whether
or not the correct decision was made
 CONSUMER BEHAVIOR: FINALS
WHAT AFFECTS LEARNING?
• Motivation
• Prior knowledge or ability
• Ambiguity of information or lack of
opportunity
• Processing biases
CONSUMER JUDGEMENTS
• Satisfaction
• Dissatisfaction
• Utilitarian and Hedonic
THOUGHT-BASED JUDGEMENTS OF
SATISFACTION/DISSATIFACTION
CONFIRMED OR DISCONFIRMED BY ITS
ACTUAL PERFORMANCE
• Disconfirmation: When expectations
do not match the actual brand, product
or service performance, because
performance is either better or worse
than expected
• Expectations: Belief (hypothesis) about
the performance of a brand, product,
or service
• Performance: The extent to which the
product/service does what it is
supposed to do and fulfills consumers’
needs
CAUSALITY AND BLAME
• Attribution theory: A theory of how
individuals find explanations for events
• Based on stability, focus, and
controllability
FAIRNESS AND EQUITY
• Equity theory: A theory about the
fairness of exchanges between
individuals, which helps in
understanding consumer satisfaction
and dissatisfaction
• Fairness in the exchange: The
perception that the inputs and outputs
of people involved in an exchange are
equal
SATISFACTION/DISSATISFACTION BASED ON
FEELINGS
• Experience emotions
o Post-decision emotions: Positive or
negative emotions experienced
while using or disposing of the
acquired brands, products, or
services
• Mispredictions about emotions
o Affective forecasting: Consumers
tend to be more dissatisfied when
a product fails to perform as they
thought it would; makes them feel
worse than they forecasted it
would
RESPONSE TO DISSATISFACTION
• Complaining
• Responding to service recovery
• Engaging in negative word-of-mouth
communication
TYPES OF COMPLAINERS
• Consumers are more likely to complain
when they have the time and easy
access to formal channels of
communication to do so
o Passives
o Voicers
o Irates
o Activists
CUSTOMER RETENTION
• Caring about customers
• Remembering customers between
sales
• Building trusting relationships
• Monitoring service-delivery process
• Providing extra effort
 CONSUMER BEHAVIOR: FINALS
DISPOSING MEANINGFUL OBJECTS
• Physical detachment – Physically
disposing of an item
• Emotional detachment – Emotionally
disposing of a possession