NTRODUCTION TO CONSUMER BEHAVIOR

Overview of Consumer Behavior Consumerism, Public Policy, and Ethics  

 2:  INTRINSIC INFLUENCES

Consumer Information Processing   Cognitive Learning and Memory   Behavioral Learning   Social Influence and Compliance Techniques   Motivation and Affect   Personality and Psychographics   Tripartite Model and Attitude Measurement   Beliefs, Attitudes, and Behavior Change: the Fishbein Model   Persuasion   ELM: Involvement, Knowledge, and Persuasion   Consumer Decision Processes  

 3:  EXTRINSIC INFLUENCES

Environmental and Situational Influences   Group Influences   Households and Families   Cultural and International Issues   Subculture

OVERVIEW

CONSUMER BEHAVIOR

the study of exchange processes involved inacquiring, consuming, and disposing ofgoods, services, experiences, and ideas

The study of consumer behavior (CB) incorporates theories and concepts from all of the behavioral sciences:

cognitive, experimental, social psychology sociology anthropology economics - etc.

Acquisition:The factors that influence the product/service choices of consumers. Much of CB research has focused on this stage. E.g., how did you decide to purchase one brand of car over another?

Consumption:How consumers actually use a product/service. E.g., what sorts of attitudes are you forming during the time that you own a car, and how does this affect future purchases?

Disposition:What consumers do with a product once they have completed their use of it. E.g., if you purchase a new car several years later, do you keep the old one, trade it in, sell it yourself through the newspaper, give it to a friend, or have it towed to a junk yard?

PERSPECTIVES TOWARD THE STUDY OF CB

Marketer:How to best satisfy the wants and needs of a target market.

Consumer:How to become a better consumer by learning how people go about consumption activities and how marketers sell products.

Public policy maker:How to make rules, regulations, or laws which influence marketers and consumers in the marketplace.

INFLUENCES ON CONSUMER BEHAVIOR

Intrinsic:Individual, internal influence factors: personality, motivation, beliefs, attitudes, etc.

Extrinsic:External factors of influence:

group influences, such as culture, family, reference groups environmental and situational factors, such as time of day, temperature, etc.

PERSPECTIVES ON ACQUISITION BEHAVIOR

Decision-makingConsumers move through a series of steps when making a purchase:

problem recognition search alternative evaluation choice post purchase evaluation

E.g., we might go through the above steps in buying an expensive product such as a car or house. In the study of consumer behavior, we are less interested in whether or not this generic

model is the "correct" model, and are more interested in the sorts of factors that influence this as a generic model. Hence, we are interested in the intrinsic and extrinsic influences on this model.

Experiential:Pople do not always make purchases according to a rational decision-making process; they sometimes buy products to have fun, create fantasies, and obtain emotions and feelings.

E.g., concerts, movies, camping: these are experiences that do not result in the ownership of a physical thing, but rather result in a pleasant (or unpleasant) memory. Why would someone go out to eat at a fancy restaurant when they could make dinner at home for less cost in money and time?

Behavioral:Environmental forces propel consumers to make purchases without necessarily first developing strong feelings or beliefs about the product.

E.g., using a coupon, responding to a contest, feeling proud when the national song is played. If the national song is played during commercials for a political candidate, we might later associate a feeling of pride with that candidate (classical conditioning) even though we otherwise know nothing substantial about the candidate.

EXCHANGEa transfer of something,tangible or intangibleactual or symbolicbetween two or more social actors

Exchange occurs between organizations as well as between organizations and household consumers.

Exchanges can be

simple: involves two parties in a reciprocal relationship complex: involves a set of three or more actors enmeshed in a set of mutual relations

RESOURCES OF EXCHANGE:

money goods services information status feelings

TWO MODELS OF EXCHANGE

1) Homans' basic exchange equation:

Profit = Rewards - Costs

When would satisfaction be the result?

2) equity theory:

Outcomes of A / Inputs of A- vs.Outcomes of B / Inputs of B

When would satisfaction be the result?

 

PUBLIC POLICY

REGULATORY ENVIRONMENTthe laws and regulations that federal, state, and local governments develop to exert control over business practices

e.g., in the U.S.:

Food and Drug Administration (FDA, 1906) Federal Trade Commission (FTC, 1914) National Highway Traffic Safety Administration (NHTSA 1970) Consumer Product Safety Commission (1972)

These organizations attempt to ensure that all marketers are on an even playing field, and that the market is fair for buyers.

REGULATORY ENVIRONMENT (U.S.)

1960s-1970s: increase in government regulation 1980s: increase in government deregulation activities 1990s: increase in reregulation activities?

NOTE: Industry self-regulation is just as important as government regulation. E.g., DMA, local BBB. The Direct Marketing Association would like to ensure as much as possible that people are not being bothered by unscrupulous telemarketers; the local Better Business Bureau would like to ensure as much as possible that people have trust in the local business community.

CONSUMERISMthe set of activities of government, business, independent organizations, and concerned consumers that are designed to protect the rights of consumers

e.g.:

Consumers Union - Consumer Reports Nader's Raiders

SOME PUBLIC POLICY ISSUES

Deceptive Advertising:an ad which has the capacity to deceive a measurable (20 to 25%) segment of the public

Advertising Substantiation:FTC (U.S.) idea that companies must provide evidence for the truth of their claims

Corrective Advertising:advertising that is mandated by a federal agency (U.S.) to correct consumer impressions that were formed by previously misleading advertising

CORPORATE SOCIAL RESPONSIBILITYidea that business has an obligation to help society with its problems by offering some of business's resources

 CONSUMER INFORMATION PROCESSING

CONSUMER INFORMATION PROCESSINGthe process through which consumers are

1. exposed to information 2. attend to it 3. comprehend it 4. place it in memory and 5. retrieve it for later use.

PERCEPTIONthe process through which individuals are

exposed to information, attend to the information, and comprehend the information

Exposure:consumers receive information through their senses

Attention:consumers allocate processing capacity to a stimulus

Comprehension:consumers interpret the information to obtain meaning from it

THE EXPOSURE STAGEa consumer's sensory organs are activated by a stimulus

selective exposure:consumers can actively choose whether or not to expose themselves to information

e.g., zipping and zapping through a video tape (fast forwarding through commercials or turning off the sound during commercials)

sensation:the stimulation of a person's sensory receptors and the transmission of the sensory information to the brain

Whether or not a stimulus is actually detected depends on its intensity:

absolute threshold:the lowest level at which a stimulus can be detected 50% of the time.

Why do TV commercials seem louder than the program material?

subliminal perception:the idea that stimuli presented below the level of conscious awareness might influence behavior and feelings

THE EXPOSURE STAGE

Just Noticeable Difference Threshold (JND)the minimum amount of difference in the intensity of a stimulus that can be detected 50% of the time

Weber's Lawas the intensity of the stimulus increases, the ability of a person to detect a difference between the two levels of the stimulus decreases

THE EXPOSURE STAGE

Consumer Adaptation:the amount or level of the stimulus to which the consumer has become accustomed

a reference point to which changes in the level of the stimulus are compared

Butterfly Curve:at the adaptation level, consumer preference for a stimulus declines because the person has become habituated to the stimulus

preference for a stimulus is greatest at points just higher or lower than the adaptation level

Why are fashions constantly changing?

THE ATTENTION STAGEthe allocation of cognitive capacity to an object or task

Types of Attention

voluntary attention:consumers actively search out information that has personal relevance

selective attention:consumers selectively focus attention on relevant information

involuntary attention:consumer is exposed to something surprising, novel, threatening, or unexpected- e.g.:

o surprise o movement o unusual sounds o size of stimulus o contrast effects o color

THE COMPREHENSION STAGEthe process through which individuals organize and interpret information

Perceptual Organizationthe way people perceive shapes, forms, figures, and lines in their visual world

Gestalt Psychology:attempts to understand how people perceive patterns in the world

THE COMPREHENSION STAGE

Interpretation processes:people draw upon their experience, memory and expectations to attach meaning to a stimulus

Expectations:prior beliefs about what should happen in a given situation can influence the interpretation of information

Semiotics:how it is that people interpret meaning from signs

signs: words, gestures, pictures, products, and logos used to communicate information

CONSUMER INVOLVEMENTthe process through which individuals are influenced by the

perceived personal importance and/or interest

evoked by a stimulus

Personal importance increases as perceived risk increases.

As involvement increases, consumers have greater motivation to comprehend and elaborate on information salient to the purchase.

Higher levels of involvement are expected to result in

a greater depth of information processing increased arousal more extended decision making

Factors which can influence purchase involvement:

situation product personality communication

 

COGNITIVE LEARNING AND MEMORY

MULTIPLE STORE MODEL OF MEMORYThis is a "black box" model which concentrates on external inputs and the consumer behavior outputs that seem to ensue from them.

Sensory o preattention stage o brief analysis to determine if additional processing capacity should be devoted to stimulus

Short-Term o where information is actively processed

Long-Term o where information is stored after encoding for later retrieval

encoding:the process of transferring information from short- to long-term memory for permanent storage

retrieval:the process of accessing information stored in long-term memory so that it can be utilized in short-term memory

MULTIPLE STORE MODEL OF MEMORY

Sensory Register(s) o the immediate impression caused by the firing of the sensory nerve cells o preattentive: determines if additional capacity should be allocated to processing stimulus

information Short-Term Memory (STM)

o a.k.a. working memory o where information is temporarily stored while being processed o rehearsal can be used to refresh STM, as when silently repeating a phone number prior

to dialing Long-Term Memory (LTM)

o essentially unlimited in capacity o can store information permanently

MULTIPLE STORE MODEL OF MEMORY

Sensory Register(s)o briefly hold (fractions of seconds) information inputs o very limited in capacity

Short-Term Memory (STM)o a.k.a. working memory o can hold information for tens of seconds o used for integrating inputs and LTM in"thinking" o limited in capacity

Long-Term Memory (LTM)o holds information for long periods of time (years) o "unlimited" capacity

MILLER'S LAW:Expanding the Limits of STM

Recall:STM seems to be capacity limited at around seven bits of information, plus or minus two

Chunking:the mental process of grouping together several pieces of information and treating them as a single set

A chunk uses about the same amount of capacity as a bit.

INFORMATION OVERLOAD:when more information is received than can be processed in short-term memory

INVOLVEMENT AND SHORT-TERM MEMORY CAPACITY

Higher involvement . . . . . ====> higher arousal. . . . . . . . . . . . . . . . . ====>higher capacity

Lower levels of involvement suggest lower capacity for information processing.

What are the implications for advertising?

LONG TERM MEMORY

Testing LTM:

recognition taskperson is asked to judge if information that is presented has been seen previously

recall taskperson must retrieve the information from long-term memory

Consideration Set (evoked set)the set of alternative brands that a consumer regards as acceptable for further consideration; ones which are recalled (enter STM)

LONG-TERM MEMORY

Two basic types of interest to consumer researchers:

Episodicrefers to memories associated with events or episodes in our experiences

-e.g., your first date

Semanticrefers to facts and other information that we store through language; verbal material

-e.g., how to do addition

(Note: Mowen also distinguishes between semantic and visual memory. The notion of an associative network suggests that we do not simply store most information in a language format: the storage is in a holistic form much like a laser hologram. Mowen notes that pictorial information is recognized and recalled more readily than verbal information.)

LONG-TERM MEMORY

Schema:a cognitive structure that represents a person's knowledge about a given object or behavior

an organized set of expectations held by a person about an object

Script:an organized sequence of behavioral events

Information salience:refers to the level of activation of a stimulus in memory

NETWORK ORGANIZATION OF LTM

Nodean LTM center that represents a word, idea, or concept

Linkagethe means of association between two nodes

Activationan energy flow into particular nodes to bring them into STM

Retrievalthe process of locating the proper nodes in LTM and bringing them into STM

Encodingthe process of categorizing a stimulus and choosing a storage location for it in LTM

ATTENTIONthe momentary focusing of our information processing capacity on a particular stimulus

One school of thought is that attention lies on a continuum, anchored by processes that are:

controlled o effortful o consume much capacity

automatic o "effortless"; "mindless" o consume little capacity o occur without conscious control o a.k.a. preconscious attention

STRENGTH OF LEARNING

Importance (effort) Reinforcement (consequences) Repetition (refresh) Imagery (multiple memories)

COGNITIVE PROCESSING TERMS

ActivationStored cognitive representations are made available for retrieval from memory for processing.

Spreading ActivationActivation of one representation will spread to and activate other representations with which it is associated.

Capacity LimitsThe cognitive processing system has a finite limit in the amount of information that can be processed at one time.

AutomatismAs cognitive processes are practiced (i.e., the limited capacity system is used), they eventually require less conscious control and less capacity.

FORGETTING

retroactive interferenceafter old material has been learned, new material interferes with the retrieval of old material from memory

proactive interferencematerial learned prior to the new material interferes with the learning of the new material

advertising pulsingforgetting occurs rapidly at first, and then levels off: why do advertisers often use a pulsing strategy?

 

BEHAVIORAL LEARNING

TWO SCHOOLS OF THOUGHT

Cognitive

"learning is knowledge" focuses on internal characteristics emphasizes the role of memory and thinking

Behavioral

"learning as behavior" focuses on changes in behavior that occur as a result of experience emphasizes stimuli and response behaviors

SUMMARY OF LEARNING THEORIES

Reasoningindividuals use thinking to restructure and recombine existing information and new information to form new associations and concepts

Iconic rote learningtwo or more concepts become associated without conditioning and without reasoning

Vicarious learning (modeling)behaviors are learned by watching the outcomes of others' behaviors or by imagining the outcome of potential behavior

Operant (instrumental) conditioninga response that is given reinforcement is more likely to be repeated when the same situation arises in the future

Classical conditioninga response elicited by one object will be elicited by the second object if both objects frequently occur together

BEHAVIORAL LEARNINGa process in which experience with the environment leads to a relatively permanent change in behavior or the potential for a change in behavior

Three major approaches:

classical conditioning operant conditioning vicarious learning

CLASSICAL CONDITIONING

stimulus =======> response behavior is 'elicited'

OPERANT CONDITIONING

behavior =======> reward (or punishment) [or positive/negative reinforcement] behavioral response is 'emitted' behavior is caused by altering the consequences that follow the behavior

CLASSICAL CONDITIONING

unconditioned stimulus (UCS)any stimulus capable of eliciting autonomically an unconditioned response (note that it can be possible for an unconditioned or 'unconditional' stimulus to have previously been conditioned)

unconditioned response (UCR)the reflexive, involuntary response elicited by an unconditioned stimulus

conditioned stimulus (CS)a previously neutral stimulus that, when paired with an unconditioned stimulus, may elicit a conditioned response

conditioned response (CR)the response elicited by the conditioned stimulus when classical conditioning occurs

OPERANT CONDITIONING

operantnaturally occurring actions of an organism in the environment

reinforcementsstimuli that occur after the behavior, affecting the likelihood that the behavior will be emitted again by an organism

extinctionthe disappearance of a response due to lack of reinforcement

shapinga process through which a new operant behavior is created by reinforcing successive approximations of the desired behavior

 

SOCIAL INFLUENCE - COMPLIANCE TECHNIQUES

RECIPROCITY

Guilto feel guilty====>action to reduce guilt

Door in the Face Effect (DITF)o large request====>moderate request

COGNITIVE CONSISTENCY

Imagining an Evento imagine an event====>commitment compliance

Foot in the Door Effect (FITD)o small request====>moderate request

Low Ball Procedureo decision====>increase in "cost"

VICARIOUS LEARNING

Overt Modelingconsumer observes modeled behavior and consequences

e.g., commercial shows how to apply cosmetic and consequences of usage

Covert Modelingconsumer is told to imagine a model (or self) performing behavior and consequences

e.g., travel agency ad: ""imagine you're on the warm, sunny beaches of Florida"

Verbal Modelingconsumer is given a description of how others similar to her/him self behave in purchase or usage situation

e.g., door-door volunteer collecting for worthy cause: "others on this street have been giving five dollars on average"

MOTIVATION

MOTIVATIONan activated state within a person that leads to goal-directed behavior

motive:a construct representing an unobservable force that stimulates and compels a behavioral response and provides specific direction to that response

Needs occur when a perceived discrepancy exists between an actual and a desired state of being

Note that there are many theories of motivation:

Don't look at these as "right" or "wrong"; they are just theories. None are validated, but seem intuitively logical.

MULTIPLE MOTIVES

Consumers usually have multiple motives for particular behaviors. These can be a combination of:

Manifestknown to the person and freely admitted

Latentunknown to the person or the person is very reluctant to admit

Note: different motives can lead to the same behavior; observing behavior is not sufficient to determine motives.

A model of motivation might look like:

unsatisfied need===>. . . . . . . . . .tension===>. . . . . . . . . . . . . . drives===>. . . . . . . . . . . . search behavior===>. . . . . . . . . . . . . . . . . satisfied need===>. . . . . . . . . . . . . . . . . . . . reduction of tension

MASLOW'S HIERARCHY OF NEEDShypothesized that within every human being there exists a hierarchy of five needs:

1. Physiological 2. Safety 3. Social 4. Esteem 5. Self actualization

You may use this theory as a conceptual guide; it is intuitively appealing. However, there is no real evidence to support it!

(E.g., why would a person like Dr. Bob spend a few years in a doctoral program, attempting to raise a family of four on $725 per month, if "self actualization" shouldn't occur without first meeting lower order needs?)

Nonetheless, one point that can be made from looking at Maslow's theory and from others is that we can expect different people in different situations to be motivated in different ways and toward different goals depending on what needs have been met. That is, while the specific factors of Maslow's idea are not valid in all situations, the idea that motivation can work in a hierarchical fashion is a valid concept.

McCLELLAND'S THREE NEEDS THEORY

nACH:need for achievement: drive to excel: drive to achieve in relation to a set of standards; to strive to succeed.

nPOW:need for power: the need to make others behave in a way that they would not have behaved otherwise.

nAFF:need for affiliation: the desire for friendly and close interpersonal relationships.

High nACH:Some people like goals, some do not. These people are high achieves.

they are not gamblers they avoid very easy or very difficult tasks low odds of losing present no challenge to their skills high odds of losing offer no rewards from happenstance success get most satisfaction from "50-50 odds

High nPOW:

these people like being "in charge" more interested in the prestige of power than in effective performance

High nAFF:

these people strive for friendship prefer cooperative rather than competitive situations desire relationships with a high degree of mutual understanding

McClelland's idea suggests why it is that different people behave in different ways. We all have more or less of a need on some of these factors, making each of us motivated toward different personal goals. People who have a higher nACH would probably make better entrepreneurs or salespeople and be lousy team players. People who have a higher nPOW would probably make better leaders but could be obnoxious "armtwisters" as salespeople. People who have a higher nAFF would probably make the best team players but would lack the "self drive" to be salespeople running their own territory.

The point of this is to note that different people have different personalities.

PERSONALITYreflects the common responses (behavior) that individuals make to a variety of recurring situations

Personality deals with relatively long lasting personal qualities that allow us to respond to the world around us.

has to do with traits has to do with individual differences

PERCEIVED RISK

Financial - might the used car cost me too much to maintain? Performance - might the car break down and leave me unable to get to school? Physical - what if I get into an accident in a car without air bags? Social - what will my friends think if I buy the pink car? Time - what if I have to drive 100 miles each month to that dealer for warranty service on a new

car?

Psychological - what if I attend the more rigorous college but flunk out? Opportunity loss - if I go to college now, how much will I lose by not working a "real" job?

 

PERSONALITY AND PSYCHOGRAPHICS

PERSONALITYpatterns of behavior that characterize each individual's adaptation to particular situations

Personality deals with relatively long-lasting personal qualities that allow us to respond to the world around us.

Two common assumptions:

1. That all individuals have internal characteristics or traits. 2. That there are consistent and measurable differences between individuals on those traits.

CONSUMER DEMOGRAPHIC PROFILE

age gender occupation education marital status expenditures income location - etc.

CONSUMER SOCIAL PROFILE

culture/subculture social class reference groups stage in family life cycle - etc.

CONSUMER PSYCHOLOGICAL PROFILE

innovativeness perceived risk motivation attitudes/opinions class consciousness

personality - etc.

AIO INVENTORY

Activities

work hobbies social events vacation entertainment community shopping sports club membership

Interests

family home job community recreation fashion food media achievement

Opinions

themselves social issues politics business economics education products future culture

LIFESTYLEhow one lives

Lifestyle is a function of inherent individual characteristics that have been shaped through social interaction as one moves through the lifecycle.

Influenced by:

values demographics social class reference groups family individual characteristics

o motives o emotions o personality

PSYCHOGRAPHICSquantitative investigation of consumers' life-styles and personality characteristics

a way of describing the psychological makeup or lifestyle of consumers by assessing such dimensions as:

attitudes values activities and interests demographics media patterns usage rates

PROBLEMS WITH SOCIAL AND PSYCHOLOGICAL MEASURES:

difficult to measure somewhat subjective based on self-reports from consumers sometimes hidden from view

There are disputes over terms, misuse of data, and problems with reliability.

- - "TOUCHY FEELY" - -

Demographic data alone, however, are inadequate.

 

ATTITIDE FORMATION AND MEASUREMENT:THE TRIPARTITE MODEL

Affecta class of mental phenomena uniquely characterized by a consciously experienced subjective feeling state commonly accompanying emotions and moods

Moodsare temporary feeling states

Emotionsinclude stronger feelings such as anger, distress, fear, interest, joy, surprise

Hedonismrefers to gaining pleasure through the senses

AFFECT

Affective responses range on a continuum of higher levels of arousal and activation to lower levels of arousal and activation.

This equates to a continuum from stronger levels of intensity or strength to lower levels of intensity or strength.

This equates to a continuum from emotions to feelings and moods to evaluations and attitudes.

Emotions are strong, relatively uncontrolled feelings that affect behavior:- e.g.,

anger joy fear sadness grief jealousy

Emotions are accompanied by physiological changes:- e.g.

eye pupil dilation increased perspiration more rapid breathing enhanced blood sugar level increased heart rate and blood pressure

Note: some social scientists distinguish between affect and emotion; I don't.

ATTITUDEa learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object

ATTITUDE OBJECTSAn evaluation is always made with respect to some entity or thing that is the object of evaluation. Entities that are evaluated are known as attitude objects.

- e.g.:

a professor (Bob Owen) a presidential candidate (Perot) a car (is yours a clunker or a cream puff?) a brand of shoes (those swoosh ones) an environmental issue (offshore oil drilling)

Evaluative responses are those that express:

approval or disapproval favor or disfavor liking or disliking approach or avoidance attraction or aversion

- etc.

DirectionSuch evaluative responses are regarded as differing in valence or direction because they can be classified into positive and negative evaluations.

MagnitudeIn addition, evaluations of a given valence differ in intensity or extremity. E.g., slightly positive vs. very positive.

MEASURING ATTITUDE

One-item Rating Scale

Compared to other brands, how much do youlike this product?

dislike it :__:__:__:__:__:__:__: like it very much very much

Likert Scale (short i)

1. This product is high priced.

___ strongly agree

___ agree

___ neutral

___ disagree

___ strongly disagree

2. This product provides good value for the money that I would spend to buy it.

___ strongly agree

___ agree

___ neutral

___ disagree

___ strongly disagree

3. Overall, I like this product a lot.

___ strongly agree

___ agree

___ neutral

___ disagree

___ strongly disagree

What might be wrong with this set of questions?

MEASURING ATTITUDE

Likert Scale

assemble a large number of opinion statements relevant to the attitude issue a large number of people express the extent of their own agreement or disagreement with each of

the statements the scale assumes that each of the items measures the same underlying attitude the responses to each individual item are summed to obtain a total test score any items that do not correlate highly with the total test score are eliminated from the scale a new (shorter) scale is constructed from the remaining items a person's overall attitude is taken to be the sum of the individual items, or the average of the

items

MEASURING ATTITUDE

Semantic Differential Scale

Rate how you feel about this producton each of the scales below.

high priced :___:___:___:___:___: low priced

good value :___:___:___:___:___: poor value

dislike it :___:___:___:___:___: like it

What might be wrong with this set of questions?

Why is an uneven number of rating values used?When would an even number be better?

MEASURING ATTITUDE

Semantic Differential Scale

assemble bipolar adjective pairs that represent the evaluative dimension of interest the person's attitude score would be the sum of the numbers corresponding to the positions

checked on the individual subscales (or average)

ATTITUDE AS AN INFERRED STATE

Social scientists often have assumed that certain kinds of responses reveal peoples' attitudes.

observable=======>inferred=======>observable

stimuli that evaluative denote atd.=======>attitude=======>responses object

ATTITUDE AS AN OBSERVED STATE, WITH EVALUATIVE RESPONSES DIVIDED INTO THREE CLASSES:

Social scientists often have assumed that responses that express evaluation, and therefore reveal peoples' attitudes, can be or should be divided into three classes:

cognition (beliefs) affect (feelings) conation (behavior or intentions)

observable=======>inferred=======>observable

cognitive /=======>responses / stimuli that / affective denote atd.=======>attitude=======>responses object \ \ \=======>behavioral responses

TRIPARTITE MODEL

Cognitivethoughts that people have about the attitude object

Affectivefeelings or emotions that people have in relation to the attitude object

Behavioralpeoples' actions with respect to the attitude object

Cognitive, affective, and behavioral responses to a stumulus are taken to suggest an overall attitude about some object.

NOTE: an assumption is that these components tend to be consistent.

 

BELIEFS AND ATTITUDE MEASUREMENT:THE FISHBEIN MODEL

BELIEFS, ATTITUDES, AND BEHAVIORS

beliefsthe knowledge that a consumer has about objects, their attributes, and their benefits

objectsproducts, people, companies, and things about which people hold beliefs and attitudes

attributescharacteristics or features than an object might or might not have

benefitsthe positive outcomes that attributes might provide to the consumer

Note: people buy a bundle of benefits, not product attributes; hence, benefit segmentation as a basis for segmentation beliefs can differ between people beliefs and attitudes are directed toward some specific object of those beliefs and attitudes

BELIEFS

Three types of beliefs:

1. object-attribute beliefs 2. attribute-benefit beliefs 3. object-benefit beliefs

A person's attitude about an object can be a function of the beliefs that a person holds with regard the attitudinal object, but can also be a function of the importance of the individual attributes about which a person has beliefs.

BEHAVIORS AND BEHAVIORAL INTENTIONS

behaviorseverything that consumers do related to acquiring, using, and disposing of products

behavioral intentionsthe intentions of consumers to behave in a particular way with regard to the acquisition, use, and disposition of products

Note: behavioral intentions are presumed to precede behaviors. We therefore assume that measures of behavioral intentions are suggestive of future consumer actions (behaviors).

CREATING BELIEFS DIRECTLYThis can be done via cognitive learning and information processing. Recall: the basic objective of promotion is to inform as well as to persuade and remind.

FORMING ATTITUDES DIRECTLYAttitudes can be formed through:

classical conditioningo e.g., patriotic music during a TV commercial for a political candidate

operant conditioningo e.g., friends make positive or negative responses to your comments about a particular

car model vicarious learning

o e.g., a celebrity model is seen using a particular brand of cosmetics mere exposure

o e.g., Ace-Finderhol Ltd. is briefly mentioned as a TV show's sponsor each week

MULTIATTRIBUTE MODEL OF ATTITUDE

The cognitive component of the tripartite model is generally assessed by using a version of the multiattribute or Fishbein model:

Ao=[SUM]BiEi

where:

Ao = the overall attitude toward object o

Bi = the strength of the belief that object o has some particular attribute i

Ei = the evaluation of the goodness or badness of attribute i

Note that the evaluative component serves as something of a weight.

1. How likely is it that Mountain Dew has no caffeine?

. . . . . . . . . . .1 2 3 4 5 6 7 8 9 10extremely unlikely . . . . . . . . . . . extremely likely

2. How likely is it that Mountain Dew is made from all natural ingredients?

. . . . . . . . . . .1 2 3 4 5 6 7 8 9 10extremely unlikely . . . . . . . . . . . extremely likely

3. How likely is it that Mountain Dew has lemon-lime flavor?

. . . . . . . . . . .1 2 3 4 5 6 7 8 9 10extremely unlikely . . . . . . . . . . . extremely likely

4. Mountain Dew has no caffeine.

. . . . .-3 -2 -1 0 +1 +2 +3very bad . . . . . . . . . . . very good

5. Mountain Dew has all natural ingredients.

. . . . .-3 -2 -1 0 +1 +2 +3very bad . . . . . . . . . . . very good

6. Mountain Dew has lemon-lime flavor.

. . . . .-3 -2 -1 0 +1 +2 +3very bad . . . . . . . . . . . very good

The first three questions measure beliefs; the last three indicate an associated evaluation or weight.

 

PERSUASION

PERSUASIONthe explicit attempt to influence beliefs and attitudes

Communicationall aspects of a message, including the source of the message, the type of message, and through what channel it moved

Messageinformation about some topic

Message Sourcean individual or character who is presenting information about some topic

Channel of Communicationmedia through which information flows

Boomerang Effectattitude changes in direction opposite to what was intended

Cognitive Responsesthe thoughts that a person might develop in response to a message

SOURCE CHARACTERISTICSour interest here is in source effects on persuasion

Source Credibilitythe extent to which a source is perceived to have expertise and trustworthiness

Source Expertisethe extent of knowledge that the source is perceived to have about the subject on which s/he is communicating

Source Trustworthinessthe extent to which the source is perceived to provide information in an unbiased, honest manner

Source Physical Attractiveness

Source Likabilitypositive or negative feelings that people have toward a source of information

MESSAGE CHARACTERISTICSour interest here is on the effects of the content and construction of the message on persuasion

Message Content

Message Construction

Some Factors:

message complexity comparative message one-sided, two-sided message fear humor vividness primacy vs. recency repetition (cf., wearout)

Some Other Terms

Need for Cognitionmeasures the extent to which people have a tendency to engage in effortful cognitive activities

Attitude Toward the Advertisementa person's general liking or disliking for the ad itself

Imagerythe extent to which an ad causes consumers to imagine their use of the product and to connect the ad to their own feelings

 

PERSUASION AND THEELABORATION LIKELIHOOD MODEL

INVOLVEMENTa state if energy (arousal) that a person experiences in regard to a consumption-related activity

Involvement is often thought of as a

continuum of personal relevance continuum of a willingness to expend effort

This continuum is anchored by

HIGH involvement LOW involvement

HIGH INVOLVEMENT

high levels of energy are aroused within the consumer this energy is directed toward some particular consumer activity

A person under conditions of high involvement is likely to be thinking more or feeling more strongly.

LOW INVOLVEMENT

lower levels of energy are aroused within the consumer the consumer will invest less energy into their thoughts or feelings

ELABORATION LIKELIHOOD MODEL

Central Route<============>Peripheral Route

"thoughtful"<============> "mindless"

proposes that people are neither universally "thoughtful" in evaluating a persuasive message nor universally "mindless"

central and peripheral routes represent positions on a continuous dimension ranging from high to low elaboration likelihood

CENTRAL ROUTE

When the person has the motivation and ability to engage in issue-relevant thinking:

elaboration likelihood is said to be high person is likely to scrutinize and elaborate upon the message, draw inferences person will tend to engage in effortful thinking about the issue

Outcome:this is expected to result in an attitude change that is more enduring, more temporally stable, more accessible in memory

PERIPHERAL ROUTE

As various factors in the situation reduce a person's motivation or ability to think about an issue:

the elaboration likelihood is said to be low person will tend to avoid effortful thinking about the issue

person will conserve cognitive resources or expend them on some other irrelevant task person will tend to engage in a superficial analysis of the issue, drawing a "reasonable" attitude

based on non-issue-relevant cues

Outcome:this is expected to result in an attitude change that is less enduring, less temporally stable, less accessible in memory

When a message is on an issue of HIGH involvement or prior knowledge:

the message content will become a more important determinant of persuasion it will be more difficult to find any effects of source credibility more thinking will occur in response to a source of high credibility than of low credibility thinking will be guided primarily by the quality of the arguments presented in the communication highly credible speakers will be more persuasive than speakers of low credibility primarily for

appeals with strong arguments the credibility effect should be attenuated or reversed for appeals with weak arguments or no

arguments

When a message is on an issue of LOW involvement or prior knowledge:

more thinking will occur in response to a source of low credibility than of high credibility this thinking will be guided primarily by the person's preexisting attitude on the issue highly credible speakers will be more persuasive than speakers of low credibility primarily for

counterattitudinal appeals this credibility effect should be attenuated or reversed for pro attitudinal appeals

use a high credibility source to change attitude use a low or high credibility source to reinforce existing attitude

One sided messages reinforce existing points of view.

Two sided messages (both points of view) are more effective than one-sided messages in terms of changing a strongly held attitude.

Which is better?

High involvement situation:

emphasize the message content guide thinking by using high quality, strong arguments stimulate thinking with a source of high credibility

note: use two sided message to stimulate thinking if supportive of your view

Low involvement situation:

stimulate thinking with a source of low credibility (i.e., don't stimulate with high credibility) emphasize the recipient's preexisting attitude on the issue using a source of low credibility

and/or

use a source of high credibility to counter a preexisting attitude

note: peripheral cues might be more important

note: use one sided message to reinforce existing attitude

 

CONSUMER DECISION MAKING

THE GENERIC MODEL REVISITED

problem recognition =====>search =====>alternative evaluation =====>choice =====>postacquisition processes

Recall: we noted that our interest is in various influencers or moderators on this generic model. These influencers can be loosely classified as:

intrinsic extrinsic environmental/situational

PROBLEM RECOGNITIONoccurs when there is a difference between a desired state and an actual state.

The desire to resolve a particular problem depends on two factors:

the magnitude of the discrepancy between the desired and actual states the relative importance of the problem

SEARCH

internal search external search

Internal Search

awareness setbrands about which the person is aware

evoked setbrands which come to mind in a particular situation

o "top of mind awareness" consideration set

brands which are considered acceptable for further consideration o inert set

brands about which the person is indifferent o inept set

brands considered unacceptable

SEARCH

Sources of Information:

Memory of past searches, personal experiences, and low-involvement learning Personal sources such as friends and family Independent sources such as consumer groups and government agencies Marketing sources such as sales personnel and advertising Experiential sources such as inspection or product trial

ALTERNATIVE EVALUATIONassociated with the formation of beliefs and evaluations

Perceived risk can be an important influence in how people evaluate potential outcomes.

Measurement of Evaluative Criteria:

direct methods:o ask consumers what information they use in a particular purchase o observe what consumers say about products and their attributes;

e.g., focus groups indirect methods:

o projective techniques: allow a person to indicate what criteria someone else might use

o perceptual mapping: consumers judge the similarity of alternative brands (often by ranking), which is processed by a computer to derive a spatial configuration

PRODUCT POSITIONINGrefers to the place an offering occupies in consumers' minds on important attributes relative to competitive offerings

E.g., which is more sporty, Porsche, Mercedes, or Cadillac? More prestigious? Expensive? Escort, Miata, Neon, Viper?

What are some dimensions, or characteristics, that you might use to assess business schools?

On each of these dimensions, where would you position several schools relative to each other? E.G., Harvard University, Michigan State, Podunk College, Branfield Community Tech.

PERCEPTUAL MAP: a means of displaying or graphing on two dimensions the location of products or brands in the minds of consumers

REPOSITIONING: changing the place an offering occupies in consumers' minds relative to competitive offerings.

QUALITATIVE RESEARCHUses nonstatistical, unstructured research methods in which consumers are enticed to reveal what they can about their innermost thoughts, feelings, and motivations.

focus group in-depth personal interviews projective tests

PROJECTIVE TESTS

sentence completion

"People buy a Porsche _________________."

story completion

Respondents complete a story.

cartoon techniques

Respondents fill in the words or thoughts of a character in a cartoon drawing

picture

Respondents tell a story about a person shown in some situation.

ALTERNATIVE EVALUATION

Surrogate indicator: readily observable attribute of a product used to represent the performance level of a less observable attribute

e.g., price and brand name are often used by consumers as surrogate indicators of quality

Framing: how a person perceives the value of something in relation to something else

e.g., "mfgr's. suggested retail price"

CHOICE

Note that some people are satisficers and some people are optimizers in specific situational contexts.

Heuristics are the "rules of thumb" that people use to make judgments and decisions.

- e.g.,

choice heuristic: never buy a car in the first model year search heuristic: if buying a computer, go to Wong's for the best deal

POSTACQUISITIONthe consumption, disposition, and postchoice evaluation of goods, services, and ideas

consumptionuse and depletion of the product

Consumer satisfaction is the overall attitude associated with a good or service after its acquisition and use.

Satisfaction or dissatisfaction is the difference between what was what is experienced and what was expected.

o Also, recall equity theory: o outcomes of A outcomes of Bo ------------- ~ -------------o inputs of A inputs of Bo

When would satisfaction be the result?

o Also, recall attribution theory, which is concerned with how people identify the causes for action.

o Also, recall the notion of cognitive dissonance, where a person experiences doubts about the wisdom of a decision.

POSTACQUISITION

A consumer has low-performance expectations for a product, and after use, performance is perceived as worse than expected. This consumer will be dissatisfied.

A consumer has low-performance expectations for a product, and after use, performance is perceived as better than expected. This consumer will be satisfied.

PURCHASE BEHAVIOR

impulse purchasesoccur when a consumer experiences a sudden urge to buy something immediately without a buying intention formed prior to entering a store

compulsive consumptiona response to an uncontrollable drive to use or experience something that leads to a repetitive behavior that will ultimately cause harm to the person or others

variety-seeking purchasesassociated with the tendency of consumers to buy a new brand of product even though satisfied with the previously purchased brand

PURCHASE INVOLVEMENTlevel of concern for, or interest in, the purchase process relevant to a particular purchase

Habitual decision making:

a problem is recognized long term memory provides a single preferred brand that brand is purchased only limited postpurchase evaluation occurs associated with low involvement associated with repeat purchases and brand loyalty

Limited decision making

Extended decision making:

increased information search more extensive and complex alternative evaluation more thorough postpurchase evaluation associated with high involvement

 

ENVIRONMENTAL AND SITUATIONAL INFLUENCES

CONSUMER ENVIRONMENTthose factors existing independently of individual consumers and firms that influence the exchange process

MARKETING SITUATIONS

information acquisition shopping purchasing consumption/usage disposition

PERSON, SITUATION, PRODUCT INTERACTIONS

Do you like grapes? Peas?

on your morning cereal?

Do you like oatmeal?

as a desert after dinner?

When are grapes most likely to be consumed and enjoyed? Peas? Oatmeal?

EXAMPLES OF SITUATIONS / SITUATIONAL INFLUENCES

Information acquisition:

Watching a TV commercial during a football broadcast at a party in a dorm room at 1:00 p.m. Saturday afternoon

Watching a TV commercial alone during a zombie movie at 1:00 a.m. Tuesday morning.

Consumption:

Eating at an expensive restaurant with date at 6:30 p.m. Saturday evening Eating at McDonald's at 6:30 a.m. Tuesday morning on the way to work.

Shopping:

Shopping at the mall for an interview suit. Shopping at Salvation Army for a dorm room sofa.

SITUATIONAL INFLUENCEStemporary environmental factors that form the context within which a consumer activity occurs at a particular time and place

a set of factors outside of and removed from the individual consumer

GROUP INFLUENCES

GROUPtwo or more individuals who share a set of norms, values, or beliefs

a set of individuals who interact with one another and who share some common need or goal; their behaviors are interdependent

Note: almost all consumer behavior takes place in a group setting of some sort.

REFERENCE GROUPa group whose values, norms, attitudes, or beliefs are used as a guide for behavior by an individual

a group whose presumed perspectives or values are being used by an individual as the basis for her/his current behavior in a specific situation

Note: as the situation changes, so do reference groups and so does out behavior.

E.g.:

colleagues at work friends at school roommates members of clubs, church, fraternities/sororities, etc.

GROUP INFLUENCE

aspiration group:a group to which an individual would like to belong

o What is the attraction of a Harley to different age groups?Does a Harley have a Forbes or Hell's Angels image?

o What is the attraction of a "gold card" or an American Express card?What are the long term strategic implications?

dissociative group:a group with which a person does not wish to be associated

o Does a Harley have a Forbes or Hell's Angel's image?

Conformity:the tendency to want to be like relevant and significant others

a change in behavior or belief toward a group as a result of real or imagined group pressure

Conformity is often viewed as following the crowd, not acting and thinking as an individual.

compliance:the person merely conforms to the wishes of the group without really accepting the group's dictates

private acceptance:the person actually changes his/her beliefs in the direction of the group

Group norms:general expectations about behaviors that are deemed appropriate

Violation of norms can result in sanctions.

Conformity: the Asch experiment

Eight subjects are asked which of three unequal lines is closest in length to a fourth line.

Seven subjects (who actually are 'cohorts') announce incorrect answers. These subjects are actually working for the experimenter, but this is unknown to the eight subject.

If the eighth subject makes a decision without prior knowledge of the other's choices, then the eighth subject is likely to make a correct choice.

If the eighth subject makes a decision after hearing the incorrect choices of the other seven subjects, then the eighth subject is very likely to make an incorrect response that is in agreement with the group.

C.f., Latane's social loafing experiments.

SOCIAL COMPARISONthe process through which people evaluate the 'correctness' of their opinions, the extent of their abilities, and the appropriateness of their possessions

GROUP INFLUENCE

Roleprescribed pattern of behavior expected of a person in a given situation by virtue of the person's position in that situation

Sanctionspunishments imposed on individuals for violating role parameters

Role parametersrange of behavior acceptable within a given role

Role overloadresults when a person attempts to fill more roles than the available time, energy, or money allows

Role conflictresults when a person faces incompatible role demands in which roles demand different behaviors

Role stereotypea shared visualization of the ideal performer of a given role

What sorts of products might a 'supermom' buy? How do product choices differ between a traditional mom of the 1950s and a working mom, going to college, in the 1990s?

Word of Mouth (WOM) communicationsrefer to exchanges of comments, thoughts, or ideas between two or more consumers, none of whom represent a marketing source

Joe Girrard: we each have about 250 friends, relatives, and acquaintances and will tell them about good or bad experiences

OPINION LEADERSthose consumers who influence the purchase decisions of others

a group member who consistently filters, interprets, or provides information for others

direct flow of information:a marketing communication flows directly from the marketing organization to a relevant market segment

multistep flow of information:a marketing communication is processed by opinion leaders and others as it flows to a relevant market segment

Opinion leaders are likely to be used under conditions where an individual has low knowledge but is in a high involvement situation. E.g., interview outfit.

DIFFUSION OF INNOVATION

continuous innovation

usually modifications of existing products to improve performance, taste, reliability, etc. requires little change of behavior requires little learning low perceived risk

dynamic continuous innovation

discontinuous innovation

innovations that produce major changes in the lifestyles of consumers requires great change in behavior requires much new learning much perceived risk

Turning a discontinuous innovation into a continuous innovation, or, the best marketing move that I've ever seen:

George Eastman couldn't sell his new strippable film to even photography amateurs of the day: it was too difficult to develop and print.

His solution: the world's first 'disposable' camera. A box camera came loaded with enough strippable film for 100 pictures. The user paid $25 for the preloaded box and sent the whole box back to the factory when all of the pictures had been taken. The promotion: "You press the button; we do the rest."

Teletronix has just introduced a new wristwatch which contains a "personal communicator." It will transmit and receive picture and voice signals with another wristwatch on the same frequency code within a half-mile distance.

Picture and voice clarity is constrained due to the small physical size of the device. In size, the wristwatch is a little larger and about twice as thick as a standard wristwatch. Price: $999; not discounted due to limited distribution channels.

1. Would you buy one of these? 2. Do you know anyone who would?

CATEGORIES OF PRODUCT ADOPTERS

innovators early adopters early majority late majority laggards

 

HOUSEHOLD AND FAMILY DECISION MAKING

householdall people who occupy a living unit

family nonfamily

familyhousehold in which at least two people are related

What are some changes in the "typical" American family?

nuclear familytwo adults of opposite sex living in a socially approved relationship with their own or adopted children

extended familythe nuclear family plus other relatives, such as the parents of the husband or wife

FAMILY LIFE CYCLEthe idea that families move through a series of stages in a developmental fashion

Stages in the traditional family lifecycle:

young/single==>young/married==>married/children==>empty nester

Each stage presents people with different problems to solve.

Each stage presents the marketer with different opportunities.

How typical is this traditional family life cycle?

Recall the notion of the Buying Center or Decision Making Unit:

Users Influencers Deciders Buyers Gatekeepers

What are some similarities in the roles of these constituents in organizational decision making and in household and family decision making?

Recall the notion of organizational buy classes (straight rebuy/new buy). How does this relate to the notion of routinized vs. extended decision making in household buying behavior?

 

CULTURAL INFLUENCES

CULTURErefers to the learned meanings, values, and behavior patterns that are shared by a society

includes the knowledge, beliefs, art, law, morals, customs, and habits acquired by a person as a member of society

e.g.:

different perceptions of time, poly. vs. monochronic different perceptions of the role of women, men

different perceptions of right vs. wrong, as in "lubrication"

CULTURE

Culture is comprehensive: it includes almost everything that influences an individual's thought processes and behaviors

Culture is acquired or learned: it does not include inherited responses or predispositions. Values and behaviors are learned from cultural influences.

Culture supplies boundaries within which individuals think and act. We are seldom aware of cultural influences; we generally take these influences for granted.

CULTURE

Culture provides loose boundaries for individual behavior.

These boundaries are called norms.

normsrules that specify or prohibit certain behaviors in specific situations; expectations of behaviors regardless of position

cultural valueswhat is right, good, and important; widely held beliefs that affirm what is desirable

customsbasic actions such as what ceremonies are held and the roles played by the sexes

morescustoms that emphasize the moral aspects of behavior

NORMS: Nonverbal Communication

Time

polychronic vs. monochronic promptness lead time

Space

office size and location personal space

Friendship

fast vs. slow

Agreements

verbal vs. written

Things

terminal materialism:acquisition of goods as an end in itself

instrumental materialism:acquisition of goods to enable one to do something

Symbols

pink vs. blue identifiers

Etiquette

generally accepted ways of behaving in social situations

SOME CULTURAL VALUE ORIENTATIONS

individual vs. collectivethe extent to which a culture values more - the individual or the group

masculinity/femininitythe extent to which the characteristics of one sex are valued over those of another

time orientationthe extent to which the members of the society are oriented to the past, present, or future

uncertainty avoidancethe extent to which members of the society are willing to tolerate ambiguity and unusual behavior

activity orientationthe extent to which the society values action versus reflection

relationship to naturethe extent to which the society lives in harmony with nature or attempts to dominate nature

PROBLEMS IN TRANSLATION The following are "urban legends" which, for the most part, probably have no basis in fact.  Nonetheless, these are repeated here because they help to make an important point.

US: "Body by Fisher" Japan: "Corpse by Fisher"

US: Chevrolet "Nova" = "Star" Puerto Rico: "No Va" = "it doesn't go"

U.S.: Pepsi "come alive" Germany: "come out of the grave" Asia: "bring your ancestors back from the death"

LESSON: translate back and forth a few times!

If people can't read your English labels and rely on the picture to indicate what is the contents of a jar, would you attempt to distribute baby food with the picture of a baby on the jar?

 

SUBCULTURAL INFLUENCES

SUBCULTUREsegment of a culture which shares distinguishing patterns of behavior and values different from the overall culture

Subcultures can be identified on the basis of:

race nationality religion age geographic location gender social class - etc.

e.g.,baby boomers: people in the U.S. born between 1946 and 1964mature market: increasing in size in the U.S.

Note that many characteristics of subculture can be measured with demographics.

DEMOGRAPHICS

How would you estimate the number of potential consumers for a new type of diaper?

demographicsthe study of human populations on the basis of age, gender, geographic location, etc.

Using demographics, we are interested in estimating:

market size - how many potential consumers? market composition - who buys and who doesn't? market location - where are the buyers? market trends - what will the future bring?

Demographic Profilea listing of the characteristics of the audience for a particular television show, magazine, or other medium

CAUSES OF POPULATION GROWTH

Birth rate: fertility; number of births Death rate: mortality; number of deaths Net immigration: the number of people moving into or out of a country

What was the single most significant factor contributing to U.S. population growth prior to the baby boom era?

What are some public policy changes in different countries that affect these factors?

AGE SUBCULTURES

American baby boom1946-1964; high birth rate

American baby bust1965-1980; low birth rate. A.k.a. "generation X".

"Because of the group's relatively small size, employers must compete for them in the job market." Do you agree or disagree with the claim that is made by several baby-boomer textbook writers?

Mature consumerWoopies?

SOCIAL CLASS SYSTEMa hierarchical division of society into relatively distinct and homogeneous groups with respect to status, wealth, education, possessions, and values

social classdistinguished in terms of esteem and prestige

Most frequently used measures:

education occupation income

These make up the U.S. Bureau of Census Index of Socioeconomic Status (SES)

The average of these scores results in an index with four classifications:

upper class upper-middle class lower-middle class lower class

PROBLEMS IN THE USE OF SOCIAL CLASS

problem of definition choice-behavior fallacy husband-only fallacy present social class fallacy effect of aspirations and disdain

status crystallizationhow consistent an individual is on various status dimensions

In the U.S.: which job has more prestige, a plumber or a professor? Which has higher education? Education? Which pays a higher "occupational privilege" tax in Pennsylvania?