Consumer behavior session 4

Lecture notes are available at: http://Arashmanagement.blogspot.com

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Consumer behavior (CB) Arash Najmaei
Arash.unity@gmail Arash.unity@yahoo.com H/P : 0172116875
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Consumer Behavior learning, memory and Motivation, Attitude
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outline
Definitions of learning and memory Four basic components in learning: 4.Stimulus 5.Drive 6.Response 7.Reinforcement Motivation and Attitudes  Definitions of motivation and attitude  Differentials  Cognitive dimensions  Affective dimensions  Behavioral

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Consumer learning
• The cognitive process of acquiring skill , knowledge, learning is the acquisition and development of memories and behaviors, including skills, knowledge, understanding, values, and wisdom
Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK
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Importance of Learning
• Marketers must teach consumers:
where to buy By whom and for whom how to use ,feel and perceive how to maintain how to dispose of products

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Learning Taxonomy

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Learning Theories
• Behavioral • Cognitive Theories: Theories: Theories based on A theory of learning the premise that based on mental learning takes information place as the result processing, often in of observable response to responses to problem solving. external stimuli. Also known as stimulus response 8 theory.

Learning Processes
• Intentional: • Incidental: learning acquired learning acquired as a result of a by accident or careful search without much for information effort

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Elements of Learning Theories
1. 2. 3. 4. Motivation Cues Response Reinforcement Stimulus Drive Response Reinforcement
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Reinforceme nt

A positive or negative outcome that influences the likelihood that a specific behavior will be repeated in the future in response to a particular cue or stimulus.
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Product Usage Leads to Reinforcement

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Stimulus Generalizati on

The inability to perceive differences between slightly dissimilar stimuli.

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Reinforcement Negative • Positive Reinforcement: Reinforcement: Positive outcomes Unpleasant or negative outcomes that strengthen that serve to the likelihood of a encourage a specific response specific behavior • Example: Ad showing beautiful • Example: Ad showing wrinkled hair as a skin as reinforcement to reinforcement to buy shampoo buy skin cream
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Other Concepts in Reinforcement

• Punishment
– Choose reinforcement rather than punishment

• Extinction
– Combat with consumer satisfaction

• Forgetting
– Combat with repetition

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Observation al Learning

A process by which individuals observe the behavior of others, and consequences of such behavior. Also known as modeling or vicarious learning.

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COMPONENTS OF OBSERVATIONAL LEARNING

ATTENTION

RETENTION

PRODUCTION PROCESS

MOTIVATION

OBSERVATIONAL LEARNING

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Cognitive Learning Theory

Holds that the kind of learning most characteristic of human beings is problem solving, which enables individuals to gain some control over their environment.

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Classical Conditioning

A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.
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Models of Classical Conditioning

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Instrumental (Operant) Conditioning

A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors.
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Operant Conditioning . . .
. . . is the process in which the frequency of occurrence of a bit of behavior is modified by the consequences of the behavior.
If positively reinforced, the likelihood of the behavior being repeated increases. If punished, the likelihood of the behavior being repeated decreases.
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Operant (or instrumental) conditioning Stimulus Response Reward Reinforcement

Can you explain  habit ?

Evans, Jamal, Foxall, Consumer Behaviour © 2006 John Wiley & Sons, Ltd

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Observational Learning

A process by which individuals observe how others behave in response to certain stimuli and reinforcements. Also known as modeling or vicarious learning.
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Vicarious Learning . . .

. . . is the phenomenon where people observe the actions of others to develop “patterns of

Consume rs Learn by Modeling

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Factors Increasing a Model’s Effectiveness

1. The model is physically attractive. 2. The model is credible. 3. The model is successful. 4. The model is similar to the observer. 5. The model is shown overcoming difficulties and then succeeding.

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Three Major Uses of SocialLearning Theory

• A model’s actions can be used to create entirely new types of behaviors • A model can be used to decrease the likelihood that an undesired behavior will occur • The model can be used to facilitate the occurrence of a previously learned behavior
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Appeal to Cognitive Processing

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Shaping Consumer Responses . . .
. . . is creating totally new operant behaviors by selectively reinforcing behaviors that successively approximate the desired instrumental response.

Extinction & Eliminating Behaviors

• Once an operant response is conditioned, it will persist as long as it is periodically reinforced.

• Extinction is the disappearance of a response due to lack of reinforcement.

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Types of Reinforcement

1. Positive 2. Negative 3. Forgetting 4. Extinction

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INSTRUMENTAL (OPERANT) CONDITIONING

REINFORCEMEN T

BEHAVIOR

LIKELIHOOD OF BEHAVIOR

NOT the same thing!

{

NEGATIVE REINFORCEMENT

PUNISHMEN T

LIKELIHOOD OF BEHAVIOR
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Reinforcement: An Example You eat a cake (behavior) ----> good taste (reward) ----> more likely to eat cake on another occasion

Extinction Behavior which is not reinforced tends to become extinct gradually

Ehrenberg

ATR

Model

Awareness Trial Reinforcement

Advertising
The thicker lines denote the major effects.

Repeat purchase

Evans, Jamal, Foxall, Consumer Behaviour © 2006 John Wiley & Sons, Ltd

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Trial learning/experience repeat purchasing commitment

Behavioural        Loyalty
loyalty

involvement

Attitudinal loyalty
Evans, Jamal, Foxall, Consumer Behaviour © 2006 John Wiley & Sons, Ltd 37

Brand Loyalty vs. Habit • Habit: consumer picks product without much thought; may be due to convenience • Loyalty: consumer actively seeks out product

Brand Loyalty

Function of three groups of influences
1. Consumer drivers 2. Brand drivers 3. Social drivers

Four types of loyalty
1. 2. 3. 4. No loyalty Covetous loyalty Inertia loyalty Premium loyalty
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Developing Brand Loyalty: Tricks and Traps • Product quality ---> satisfaction • Sales promotions • Stealing loyal consumers away from others • Price
– value – exclusiveness

Information Processing and Memory Stores
Workin g Memor y (Shortterm Store)

Senso ry Input

Senso ry Store

Rehear sal

Encodin g

Long term Stor Retriev al e

Forgott en; lost

Forgott en; lost

Forgotte n; unavaila ble
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Memory
• Short term (compare to RAM ---> volatile)
– mnemonic devices

• Long term (compare to hard disk ---> longer in duration but imperfect--”I remember it well…”)

STM

REHEARSAL

LTM

DECAY

Retention
Information is stored in long-term memory
Episodically: by the order in which it is acquired Semantically: Total package of according to associations is called significant a schema concepts

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Role of memory in learning

Stages: 2. Encode 3. Storage 4. Decode and retrieval

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Recognition versus recall
Recognition: Remembering with stimulus

Recall/Retrieve: Remembering without stimulus

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The Cycle of Remembering
Learning

Short-term Memory

Long-term Memory

Retrievall

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We now associate this product with strength.

The consumer observes a positive response by two teens.

Information Processing

• Relates to cognitive ability and the complexity of the information • Individuals differ in imagery – their ability to form mental images which influences recall

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Information Processing and Memory Stores

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Information Processing

• Movement from short-term to long-term storage • depends on
– Rehearsal- cognitive practice – Encoding- memory’s associations or the way through which information is stored.
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Consumer motivation

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Customer motivation

“Marketing Creates Needs”
Do you agree, or disagree……..??

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What is Motivation?
Motivation refers to an activated state of needs within a person that leads to goal-directed behavior. Types of Needs Needs can be either innate or learned Needs can be expressive( emotional) Needs can be utilitarian( practical and functional). Needs can be hedonic
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Consumer motivations

• Represents the drive to satisfy both physiological and psychological needs through product purchase and consumption . • It Gives insights into why people buy certain products. Stems from consumer needs: industries have been built around basic human needs
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Characteristics of Needs

2. Needs are dynamic 3. Needs have hierarchy 4. Needs can be internally and externally aroused 5. Needs can conflict

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Maslow’s Hierarchy of needs

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Motivated Purchase…

• Conspicuous consumption: purchases motivated to some extent by the desire to show other people how successful they are Companies reinforce the notion that products enable users to communicate their social image
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Different kinds of motivation

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Positive motivation

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Motivational Conflict and Need Priorities

Satisfying a need often comes at the expense of another need these trade-offs cause motivational conflict

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Types of Motivational Conflict

Approach-approach: deciding between two or more desirable options Avoidance-avoidance: deciding between two or more undesirable options Approach-avoidance: behavior has both positive and negative consequences
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Motivational Intensity
Motivational intensity: how strongly consumers are motivated to satisfy a particular need Depends on need’s importance Involvement: degree to which an object or behavior is personally relevant Motivational intensity and involvement determine amount of effort consumers exert in satisfying needs
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The Challenge of Understanding Consumer Motivation
Reasons underlying consumer motivation are not always “obvious” Research is necessary to discover real motivations behind behaviors People don’t always want to disclose real reasons for their actions People don’t always know why they do what they do , unconscious motivation Motivations change over time
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Consumer’s attitudes

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Attitudes

Global evaluative judgments
Relationships between Consumer Beliefs, Feelings, Attitudes, and Intentions

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Consumer Attitudes

Properties of Attitudes
• Valence: Whether the attitude is positive, negative or neutral • Extremity: The intensity of liking or disliking • Resistance: Degree to which the attitude is immune to change • Confidence: Belief that attitude is correct • Accessibility: How easily the attitude can be retrieved from memory
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Types of Attitudes
Attitude towards the object (Ao) represents the evaluation of the attitude object.

Attitude towards the advertisement (Aad) represents the global evaluation of an advertisement.
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Types of Attitudes
Attitude towards the behavior (Ab): represents the evaluation of performing a particular behavior involving the attitude object.

Preferences represent attitudes toward one object in relation to another

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Attitude toward the behavior:
Buying a Dell personal computer would be: Very good 1 2 3 4 5 Very bad Very rewarding 1 2 3 4 5 Very punishing Very wise 1 2 3 4 5 Very foolish

Attitude toward the object:
How much do you like/dislike Dell computers? Like very much 1 2 3 4 5 Dislike very much

Preference:
Compared to Apple personal computers, how much do you like Dell personal computers? Like IBM much 1 2 3 4 5 Like Apple much more than Apple more than IBM
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Stimulus Importance-Performance Grid
Attribute Our Competitor’s Importance Performance Performance POOR HIGH GOOD Simultaneous Result

Poor Good Poor Good Poor

Neglected Opportunity Competitive Disadvantage Competitive Advantage Head-to-head competition Null Opportunity False Alarm False Advantage False Competition
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POOR LOW GOOD

Good Poor Good

Changing Consumer Attitudes: Changing Beliefs
 Firms hope that changing beliefs about products will result in more favorable product attitudes and influence what consumers buy.  If beliefs are false, they need to be brought into harmony with reality and then being stabilized and reinforced.  If beliefs are accurate, it may be necessary to change the product Comparative advertising can hurt beliefs about a competitive brand
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Changing Consumer Attitudes: Changing Attribute Importance
 Changing an attribute’s importance is more difficult than changing a belief.  How is a brand perceived relative to ideal performance?  Increasing attribute importance is desirable when the competitor’s brand is farther from the ideal point than your product Firms may add a new attribute which necessitated NPD or product revision

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Changing Consumer Attitudes: Changing Ideal Points

Altering consumers’ preferences for what the ideal product should look like.

It is far more difficult than any other approach in changing consumer’s attitudes toward brand and product
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Moral and logical lesson

• The best way to capture customer is to being adjusted with his or her desirable situation and favorable attitudes.

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Behavioral Sequence

Post­purchase Action

Attitude Learning
Perception Attention Exposure
Evans, Jamal, Foxall, Consumer Behaviour © 2006 John Wiley & Sons, Ltd

Sequential model of   purchase and repurchase  behavior in marketing

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Summary….
1. Different theories in Learning 2. Memory and its role in learning process 3. Motivation and its relationship with needs 4. Attitudes 5. Relationship existing amongst attitude, feeling and behavior 6. ATR model 7. Brand loyalty 8. Behavioral Sequence

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