Consumer Behavior

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Consumer Behavior

• GBA 633

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Consumer Buying Decision Process
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Step 2 Information Search

• Internal search
• Evoked set
• External search

• Ability to search
• Motivation
• Level of involvement
• Need for cognition
• Shopping enthusiasm
• Perceived cost/benefit
• High involvement
• Low involvement

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Information Processing
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Motivation Enhanced When Something Is . . .

• Personally relevant
• Self concept
• Moderately inconsistent with prior attitudes
• Consistent with values, goals and needs
• Risky

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Types of Perceived Risk

• Performance
• Financial
• Physical or safety
• Social
• Psychological
• Time

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Attitudes and Values

• Attitudes
• Attitude sequence
• Affective ? Cognitive ? Conative
• Affective ? Conative ? Cognitive
• Conative ? Cognitive ? Affective
• Values

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If Message Is to Be Processed. . .

• Must consist of sights, sounds ad experience that
  can be transformed easily into concepts and then
  categorized.
• Must be clearly identifiable and catagorizable.
• Must fit into categories that people have already
  created.
• Must avoid conflicting with known information.

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Attention

• The process by which an individual allocates part
  of all of his/her mental ability to a stimulus.
• Characteristics
• Selective
• Can be divided
• Limited

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Types of Memory

• Short-term memory (STM)
• Long-term memory (LTM)

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How Memory Is Enhanced

• Chunking
• Rehearsal
• Recirculation
• Elaboration

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Key Implication

• Marketers need to build strong associations and
  knowledge structures in consumers memory so that
  the brand is activated when a related concept is
  activated

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Retrieval

• Trace strength
• Accessibility
• Spreading of activation
• Priming
• Retrieval failures
• Decay
• Interference
• Primacy and recency effects

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How Retrieval Is Enhanced

• Characteristics of the stimulus
• Salience
• Prototypicality
• Redundant cues

• What the stimulus is linked to
• Retrieval cues
• Where do retrieval cues come from?
• The brand name as a retrieval cue
• Other retrieval cues

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How Retrieval Is Enhanced

• How a stimulus is processed in short-term memory
• Dual coding
• Consumer characteristics affecting retrieval
• Mood
• Expertise

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Step 3 Evaluation of Alternatives

• Evoked set method.
• Consideration set
• Evoked set
• Inept set
• Inert set
• Multiattribute approach.
• Affect referral

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Making Choices
All brands in product class
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High-EffortFeeling-Based Decisions

• Affective decision making
• High touch products
• Personal opinion products
• To remove negative feelings
• Just because
• To reduce negative decisions with difficult
  choices

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Decision Making When Alternatives Cannot Be
Compared

• Noncomparable decisions
• Alternative-based strategy
• Attribute-based strategy

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Low-Effort Judgment Processes

• Shortcuts in making judgments
• The representativeness heuristic
• The availability heuristic
• Base-rate information
• Law of small numbers

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Low-Effort Decision-Making Processes

• Satisfice vs. Optimize
• Choice tactics
• Price
• Affect
• Performance
• Normative
• Habit
• Brand loyalty
• Variety-seeking

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Cognitive/Low-Effort Decision Making
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Cognitive/Low-Effort Decision Making
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Step 4 Purchase Decision

• Alternate purchases
• Temporary change in consumers situation.
• Desire for variety.
• Impulse purchase.
• Marketing communication material.
• Influence of friend or relative.

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Step 5 Postpurchase Evaluation

• Evaluation of product performance.
• Cognitive dissonance.
• Impacts future purchases.
• Impacts word-of-mouth communications.

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Possible Influences on Consumer Buying Decisions
Consumer Buying Decision
Social Environ-ment
Individual Differences
Situational Influences
Outcomes
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Spokespersons

• Celebrities
• CEOs
• Experts
• Typical persons

• Source Characteristics
• Attractiveness
• Physical
• Personality
• Likability
• Trustworthiness
• Expertise
• Credibility

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Recent Trends AffectingConsumer Buying Behavior

• Changes in cultural values and attitudes
• Time pressure and busy lifestyle
• Cocooning
• Indulgences and pleasure binges
• Desire for excitement, fantasy
• Emphasis on health
• Clanning

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Outcomes

• Consumer learning
• Disconfirmation
• Consumer satisfaction, dissatisfaction and
  complaint behavior
• Exit, voice, loyalty
• Cognitive dissonance

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Hierarchy of Effects Model
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Achieving Advertising Objectives

• Three-exposure hypothesis
• Effective frequency
• Effective reach
• Recency theory
• Intrusion value
• Media multiplier effect

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Means-End Chain
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Verbal and Visual Elements

• Central vs Peripheral route processing
• Visual processing
• Radio visual imagery
• Visual esperanto
• B-to-B advertisements

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The Creative Brief

• The objective
• The target audience
• The message theme
• The support
• The constraints

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Message Strategies
Cognitive
Affective
Conative
Brand

• Generic
• Preemptive
• Unique Selling Proposition
• Hyperbole
• Comparative

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Message Strategies
Cognitive
Affective
Conative
Brand

• Resonance
• Emotional

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Message Strategies
Cognitive
Affective
Conative
Brand

• Action-inducing
• Promotional support

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Message Strategies
Cognitive
Affective
Conative
Brand

• Brand user
• Brand image
• Brand usage
• Corporate

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Message Strategies and Hierarchy of Effects Model
Awareness
Knowledge
Liking
Preference
Conviction
Purchase