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Consumer Behavior: Exam 2
Terms in this set (131)
Beliefs or ratings about product attributes and benefits
1) Capture consumers' assessments about a specific relationship between a brand and an attribute
example: Starbucks coffee is strong
2) Belief entails assessments about probability or likelihood
example: Tylenol will not harm my stomach
3) Consumers often maintain beliefs about the importance of an attribute or benefit
example: Fuel efficiency is (more) important in an automobile (than design)
Based on direct experience with a product or what we see with our own eyes or hear with our own ears
Based on indirect experience or on what other people tell us.
Go beyond the information given; consumers often draw their own conclusions, or infer beliefs about attributes and benefits based on both direct & indirect experiences.
Attitudes or ratings about "how good or bad" consumers find a personal, place, object, or issue
Two key components of attitude
1) Direction - positive, negative, neutral
2) Extremity - weak, moderate, strong
What are some characteristics of strong attitudes?
1) Highly accessible from memory
2) Maintained with confidence
3) Held with little uncertainty
4) Highly correlated with benefits "evaluative-cognitive consistency"
What is involvement?
It is the personal relevance or importance of an issue or situation
What are two types of involvement?
1) Enduring involvement
2) Situational involvement
Why is the level of involvement important in consumer behavior?
Because consumer differently form their attitudes based on the level of involvement.
What is the Theory of Reasoned Action?
It is once specific type of expectancy-value model that explains how beliefs are combined to influence attitudes and how social norms or rules and attitudes influences behavior.
Consumer is more likely to comply with a request if he has first agreed to comply with a smaller request
Person is asked for a small attractive favor and is informed after agreeing to it that it will be very costly
Person is first asked to do something extreme -- which he refuses -- then asked to do something similar
We desire consistency between our attitudes and behavior, but when they are different, we suffer from cognitive dissonance. It is a feeling of discomfort which the person is motivated to reduce.
How to reduce Cognitive Dissonance
1) Can change behavior to be in line with attitude
** this is what people believe happens
2) Can change attitude to be in line with behavior
** effort justification
Suggests that complying with a small requests leads people to label themselves as helpful, good citizens, or as reasonable people. Once people have labeled themselves as such, they have a strong desire to main this self-perception, and they are likely to continue complying.
** If you behave favorably towards the attitude object, you must have positive attitude towards it
** If you behavior unfavorably towards the attitude object, you must have negative attitude towards it
6 Principles of Persuasion
2) Social Proof
4) Commitment & Consistency
Principle of Reciprocation
Obligated to give back the form of the same behavior you were given. In the context of obligation, people say yes to those they owe. Every human society that trains its members to play be reciprocal game, gets huge gains
Principle of Scarcity
People can't have more of what they have less of but people want what they have. You need to explain something that they can't get anywhere else.
Principle of Authority
Great knowledge of expertise gains huge authority. Establish your trustworthiness in situations where they don't know you. Before they present their strongest arguments, they showcase their weaknesses and then they "HOWEVER..xyz"
Principles of Commitment & Consistency
Willing to say yes, with what has already been done, said, or experienced. Public commitment is the most powerful type
Principle of Social Proof
Look at what other are doing. The power of the crowd.
Principle of Liking
Prefer to say yes to things they prefer such as similarities, compliments, or cooperative efforts.
3 Types of Consumer Decisions
1) Routine choice
2) Intermediate problem solving
3) Extensive problem solving
Carried out automatically, with little conscious effort
Intermediate problem solving
Limited information search and deliberation
Extensive problem solving
Requires deliberate and systematic effort
What are the 2 factors that determine types of consumer decisions?
1) Processing effort (automatic vs. systematic)
2) Involvement (high vs. low)
What are the 5 categories of Perceived Risk?
The costs of the product or service will exceed the benefits
example: Real estates, automobile, graduate school
** Time & Money
The product fails to provide the desired functional benefits
example: Laptop, home security, system, automobile
** Task performance
Product failure causes physical harm
example: Pharmaceuticals, food, drinks, motorcycles
** Personal health & safety
Product will be inconsistent with a consumer's self-concept
example: Privately consumed luxury items (HDTV)
Product will not meed standards of the consumer's standards of the consumer's reference group
example: publicly consumed luxury items (fashion clothes)
How can we categorize types of decisions based on the level of involvement and the information processing effort?
1) Brand laziness
2) Brand loyalty
3) Variety seeking
4) Problem solving
A natural inertia towards a brand based on familiarity and convenience. Commodity products
low involvement, low info processing
examples: flour, cheese
Intrinsic commitment to a brand based on specific benefits or values offered. Self-concept enhancing products
high involvement, low info processing
examples: jeans, shoes, magazines
A desire to choose new alternatives over more familiar ones. Parity products
low involvement, high info processing
examples: beer, candy, breakfast cereal
A deliberated effort to collect information and carefully evaluate a variety of brands. Complicated, big-ticketed items
high involvement, high info processing
examples: cars, airlines, phones
5 Sequential Stages of Consumer Problem Solving
1) Problem Recognition
2) Information search
3) Evaluation of alternatives
4) Purchase decision
5) Post-purchase evaluation (feedback)
Internal Information Search
Deliberate retrieval of information from memory
External Information Search
Engaging "personal" and "market" sources of information
Ongoing Information Search
External Information search activities "independent" of solving an immediate purchase problem
When do consumers engage in ongoing search?
1) Acquire a data bank of production information for future use; consumers' desire for product knowledge
2) Pleasure or recreation; consumers' consumption experience
What are the motivations to search?
1) Pre-purchase search: To make a better purchase decision
2) Ongoing search: To acquire a data bank of product info & pleasure or recreation
The products or brands that consumers evaluate when purchasing
The products or brands that consumers exclude
from purchase consideration because they are perceived as unacceptable or inferior
The products or brands consumers are
indifferent to because they do not perceive any
Consumers try to make the best choice, given limited information search
What are the sources of consumer external uncertainty?
1) incomplete information
2) measurement error
3) relative error
What are the sources of consumer internal uncertainty?
1) absolute error
2) relative error
Simple, straightforward, NO trade-off consideration
Difficult, more information, effort, requires weight trade-off
Why do consumer use this two-stage process? (non-compensatory vs. compensatory)
When faced with many competing brands, the consumer is confronted with the conflicting goals of making a decision with little effort and making an optimal decision. The consumer balances these two conflicting goals by employing a non-compensatory process so as to "whittle down" the field of competing brands to a manageable subset. The consumer then applies a compensatory process to the smaller set of brands to select a single brand for purchase
Outcomes of customer satisfaction
1) Repeat purchase
2) Positive word of mouth
3) customer loyalty
Outcomes of consumer dissatisfaction
1) Switching behavior
2) negative word of mouth
Dissonance Reduction Model
Consumers attempt to reduce post-purchase feelings of uneasiness regarding their choices by comparing the selected brand to a rejected alternative.
How to reduce post-purchase dissonance?
1) increasing the perceived attractiveness of the chosen alternative
2) decreasing the perceived attractiveness of the rejected alternative
3) increasing the perceived similarity among alternatives
4) revoking the decision
According to the expectancy disconfirmation model, when are consumers satisfy with their choice?
Performance = Expectations
According to the expectancy disconfirmation model, when are consumers dissatisfied with their choice?
Performance < Expectations
What is "consumer delight"?
Performance > Expectations
Should a marketer encourage consumers to complain about his/her brand/product? Why?
Yes, because it costs 7-9 times more for a company to attract a new customer than to retain one. Understanding the processes consumers go through after product choice is critical to marketing
A group of brands that consumers think about buying when they need to make a purchase
How can marketers influence consumers' consideration set?
One way marketers get consumers to consider brands is by drawing attention to the brand and making it memorable. When a marketer uses the principles of attention, learning, and memory to increase the likelihood that a brand is included in a consumer's consideration set, the marketer is one step closer to a potential sale.
Reducing the number of brands by presenting the names of just some brands when consumers are trying to recall as many brands as possible
A target brand seems more attractive when it is compared to inferior brands and less attractive when compared to superior brands.
This can be done in a selling situation or by using comparative advertising and promotion that show the target brand as superior to other brands on some dimension
A consumer is more likely to choose the middle option of a selection
set rather than the extreme options
how does the compromise effect work?
Make the brand appear as an average (or a good compromise) brand against other brands in the consideration set
Consumers directly and physically observe all relevant brands in the consideration set
Example: in a grocery store, it is easy to compare brands and attributes simply by examining the different packages on a shelf.
None of the considered brands are physically or directly observable
Example: a consumer at home trying to decide what restaurant to go to for dinner
When consumers perform "mixed choice", which one, between stimulus brands and memory brands, is superior in general?
Stimulus brands is superior in general. Because consumers tend to forget specific details about memory brands
Consumer form overall evaluations and general impressions of brands in the consideration set based on a combination of everything they know about all the brands, and then select the one with the highest evaluation
Consumers compare the specific attributes or features of each brand and select the one that performs best on key attributes.
When do consumers use attitude-based versus attribute-based choice strategies?
Attitude - Accessibility (ease of retrieving information)
Attribute - Diagnosticity (Usefulness of information)
Motivation and Opportunity to DEliberate - Motivation and Opportunity to deliberate are key DEterminants of the processes that influence consumer choice
The decision to do nothing
When and why does choice deferral happen?
1) Too many options
2) Too many trade-offs
3) Missing information
4) Increasing choice difficulty = increasing uncertainty
lexicographic choice heuristic
Consumers compare brands on one key attribute and choose the brand that performs best on this single attribute
consumers reject all brands that do not have a key feature that they want
consumers set a minimum value for all relevant attributes and select the first brand that meets the minimum on all attributes
consumers compare two brands at a time, one attribute at a time, and subtract the evaluative differences
frequency of good and bad feature heuristic
Consumers form a simple attitude toward each brand
alternative by counting the number of good and bad product features and choosing the brand with the greatest difference between good product features and bad product features
Expected utility theory
According to expected utility theory, people should think about uncertain events in terms of "gambles."
How to calculate Expected Utility
EV = p * v
p = probability
v = value
4 Principles of Rationality
1) Choices are transitive
2) Choices are independent of irrelevant alternatives
3) Choices are 'regular' (principle of regularity)
4) Choices are consistent over time
Choices are Transitive
If A is preferred to B
B is preferred to C
A is preferred to C
Choices are Regular - Principle of Regularity
Adding an option to a choice set should not increase the probability of choosing a member of the original set
Choices are Independent of Irrelevant alternatives
Adding an option that no one chooses should not impact the choices consumer make - "attraction effect"
The Similarity Effect
When a new option takes disproportionately more market share from similar items than dissimilar items
Choices are Consistent Over Time - Temporal Discounting
The tendency to discount the subjective value of future goods as a function of the delay to receiving them. In other words, we value the present more than the future
The way we frame a choice, or the way attributes are described, can impact what people choose.
When problems are framed positively, people are risk averse
When problems are framed negatively, people are risk seeking
Consumers deferentially value gains and losses
Losses loom larger than gains (Loss aversion)
Framing helps consumers interpret choice as either a gain or a loss
A tendency to view a product as more valuable if one owns it than if one does not own it
Why does the endowment effect occur?
Consumers underestimate the importance of opportunity costs
Sunk cost effect
as the amount of time or money invested in a project increases, people are more reluctant to give up the project.
How to apply the concept of loss aversion in marketing?
Loss aversion implies that marketers should segregate gains and aggregate losses
Judging or evaluating brands or products one at a time. Familiar attributes that are easy to evaluate have a greater impact on preferences
Judging or evaluating two or more products concurrently. Unfamiliar attributes are difficult to evaluate and carry more weight in judgement
Construal Level theory
Everyday life evaluations and choices often pertain to event that take place in some point in near or distanct future. The way people evaluate options changes in a systematic manner with temporal distance.
Feasibility - How - Considerations (i.e. ease or difficulty in reaching the desired end-state), received more weight in a near future decision
Desirability - Why - Considerations (i.e., the value of an action's end state) receive more weight in a distant future decision
What are three dimensions that determine consumers' self-concept?
1) Role Identities
2) Personal qualities
3) self evaluations
the totality of a consumer's individual thoughts and feelings about themselves
the numerous positions that consumers occupy in society
example: education, occupation, and social groups
modes of interpersonal behavior
example: personality traits or tendencies
measure of adequacy
example: competence, morality, social unity
How do self-evaluations affect consumers' self-esteem?
The overall evaluative component of a person's self-concept. High level of adequacy leads to higher self-esteem.
Considered a person's general attitude toward themselves
High self esteem
active and comfortable social interactions - virtuous cycle
Low self esteem
depressing and debilitating -vicious cycle
What are two key dimensions of self-concept?
1) Focus (actual vs ideal)
2) Domain (private vs public)
Actual focus - Private domain
"who I think I am"
Ideal focus - Private domain
"who I want to be"
Actual focus - Public domain
"who they think I am"
Ideal focus - Public domain
"who I want them to think I am"
Actual vs. Ideal
The relationship between a consumer's self-concept and his or her possessions
Example: belongs represent an extension of ourselves - bodies, personal space, consumable goods, durable goods, home & property, significant others, friends & children, mementos, pets
The extent to which consumers use situational cues to guide their social behavior
routinely modify their behavior to match the expectation of others
act primarily on their own beliefs and attitudes
Impression management - Why do people want to manage their impressions (images)?
The process of creating desirable images of ourselves for others.
People do impression management because they want: praise, approval, sympathy, favors
controlling clothes, grooming, verbal communications, and possessions
a set of strategic behaviors designed to gain benefits or favors from other people
comments that attempt to realign behavior with norms
A set of unique psychological characteristics that influence how a consumer responds to his or her environment
The nature of personality
1) Personality reflects invidual differences
2) personality is consistent and enduring
3) personality can change
According to the Five Factor model, what are the five basic human personality traits?
1) Surgency (outgoingness)
4) Emotional Stability
Five Factor model
Allows marketers to focus categorize consumers into different groups based on several traits. Provides a framework to tap the dimensions of a brand's personality.
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