Consumer behavior-session 4

Consumer behavior session 4

Lecture notes are available at:http://Arash-management.blogspot.com

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Consumer behavior (CB)

Arash Najmaei

[email protected]@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:

1. Stimulus2. Drive3. Response4. Reinforcement

Motivation and Attitudes

Definitions of motivation and attitude

Differentials Cognitive dimensions Affective dimensions Behavioral dimensions

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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,Consumer Behavior,Eighth EditionEighth Edition

SCHIFFMAN & KANUK5

Importance of Learning

• Marketers must teach consumers:

where to buyBy whom and for whomhow to use ,feel and perceivehow to maintain how to dispose of products

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Learning Taxonomy

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Learning Theories

• Behavioral Theories: Theories based on the premise that learning takes place as the result of observable responses to external stimuli. Also known as stimulus response theory.

• Cognitive Theories: A theory of learning based

on mental information processing, often in response to problem solving.

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Learning Processes

• Intentional: learning acquired as a

result of a careful search for information

• Incidental: learning acquired by

accident or without much effort

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Elements of Learning Theories

1. Motivation2. Cues3. Response4. Reinforcement

StimulusDriveResponseReinforcement

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Reinforcement

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 Stimulus GeneralizatiGeneralizati

onon

The inability to perceive differences between slightly dissimilar stimuli.

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Reinforcement

• Positive Reinforcement: Positive outcomes that strengthen the likelihood of a specific response

• Example: Ad showing beautiful hair as a reinforcement to buy shampoo

Negative Reinforcement: Unpleasant or negative outcomes that serve to encourage a specific behavior

• Example: Ad showing wrinkled skin as reinforcement to 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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ObservationObservational Learningal 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 COMPONENTS OF OBSERVATIONAL LEARNING LEARNING

ATTENTION PRODUCTION PROCESSRETENTION MOTIVATION

OBSERVATIONAL LEARNING

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Cognitive Cognitive Learning Learning TheoryTheory

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 Classical ConditioningConditioning

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 Models of Classical ConditioningConditioning

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Instrumental Instrumental (Operant) (Operant)

ConditioningConditioning

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 . . .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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Stimulus

Response

Can you explain

Reward habit ?

Reinforcement

Operant (or instrumental) Operant (or instrumental) conditioning conditioning

Evans, Jamal, Foxall, Consumer Behaviour© 2006 John Wiley & Sons, Ltd 23

Observational Observational LearningLearning

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 . . .Vicarious Learning . . .

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

Consumers Learn by Modeling

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Factors Increasing a Model’s Factors Increasing a Model’s EffectivenessEffectiveness

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 Social-Three Major Uses of Social-Learning TheoryLearning 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 BehaviorsExtinction & 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 ReinforcementTypes of Reinforcement

1. Positive2. Negative3. Forgetting4. Extinction

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INSTRUMENTAL (OPERANT) INSTRUMENTAL (OPERANT) CONDITIONINGCONDITIONING

BEHAVIOR

REINFORCEMENT

NEGATIVEREINFORCEMENT

PUNISHMENT

LIKELIHOODOF BEHAVIOR

LIKELIHOODOF BEHAVIOR

{NOT thesame thing!

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Reinforcement: An ExampleReinforcement: An Example

You eat a cake (behavior)

----> good taste (reward) ----> more likely to eat cake

on another occasion

ExtinctionExtinction

Behavior which is not reinforced tends to

become extinct gradually

Ehrenberg Ehrenberg ATRATR Model Model

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

Awareness

Trial

Reinforcement

Repeat purchase

Advertising

The thicker lines denote the major effects.

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Trial

learning/experience

repeat purchasing

commitment

involvement

loyalty

Behavioural Loyalty

Attitudinal

loyalty

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

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Brand Loyalty vs. HabitBrand Loyalty vs. Habit

• Habit: consumer picks product without much thought; may be due to convenience

• Loyalty: consumer actively seeks out product

Brand LoyaltyBrand Loyalty

Function of three groups of influences1. Consumer drivers2. Brand drivers3. Social drivers

Four types of loyalty1. No loyalty2. Covetous loyalty3. Inertia loyalty4. Premium loyalty

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Developing Brand Loyalty: Tricks and Developing Brand Loyalty: Tricks and TrapsTraps

1. Product quality ---> satisfaction2. Sales promotions3. Stealing loyal consumers away from

others4. Price

– value– exclusiveness

Information Processing and Memory Information Processing and Memory StoresStores

Sensory Store

Sensory Store

Working Memory (Short-term Store)

Working Memory (Short-term Store)

Long-term Store

Long-term Store

Sensory Input Rehearsal Encoding Retrieval

Forgotten; lost

Forgotten; lost

Forgotten; unavailable

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MemoryMemory

• 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

RetentionRetentionInformation is stored in

long-term memory

Episodically: by the order in which it is acquired

Semantically: according to significant concepts

Total package of associations is called a schema

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Role of memory in learningRole of memory in learning

Stages:1. Encode2. Storage3. 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 The Cycle of RememberingRemembering

Long-term Long-term MemoryMemory

Short-term Short-term MemoryMemory

Retrievall

Learning

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We now associate this product with

strength.

The consumer observes a

positive response by two teens.

Information ProcessingInformation 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 Information Processing and Memory StoresStores

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Information ProcessingInformation Processing

• Movement from short-term to long-term storage

• depends on1. Rehearsal- cognitive practice2. Encoding- memory’s associations or the way

through which information is stored.

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Consumer motivation

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“Marketing Creates Needs”

Do you agree, or disagree……..??

Customer motivationCustomer motivation

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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 NeedsNeeds can be either innate or learnedNeeds can be expressive( emotional)Needs can be utilitarian( practical and

functional).Needs can be hedonic

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Consumer motivationsConsumer 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 NeedsCharacteristics of Needs

1. Needs are dynamic2. Needs have hierarchy3. Needs can be internally and externally aroused4. Needs can conflict

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Maslow’s Hierarchy of needs Maslow’s Hierarchy of needs

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Motivated Purchase…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 motivationDifferent kinds of motivation

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Positive motivationPositive motivation

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Motivational Conflict and Motivational Conflict and Need PrioritiesNeed 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 ConflictTypes 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 IntensityMotivational 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 The Challenge of Understanding Consumer MotivationConsumer 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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AttitudesAttitudes

Global evaluative judgments

Relationships between Consumer Beliefs, Feelings, Attitudes, and Intentions

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Properties of Attitudes

Consumer AttitudesConsumer Attitudes

1. Valence: Whether the attitude is positive, negative or neutral

2. Extremity: The intensity of liking or disliking

3. Resistance: Degree to which the attitude is immune to change

4. Confidence: Belief that attitude is correct

5. Accessibility: How easily the attitude can be retrieved from memory

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Attitude towards the object (Ao) represents the evaluation of the attitude object.

Attitude towards the advertisement (Aad) represents the global evaluation of an advertisement.

Types of AttitudesTypes of Attitudes

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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

Types of AttitudesTypes of Attitudes

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Attitude toward the object:How much do you like/dislike Dell computers?

Like very much 1 2 3 4 5 Dislike very much

Attitude toward the behavior:Buying a Dell personal computer would be:

Very good 1 2 3 4 5 Very badVery rewarding 1 2 3 4 5 Very punishing Very wise 1 2 3 4 5 Very foolish

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 GridStimulus Importance-Performance Grid

HIGH

LOW

POOR

GOOD

POOR

GOOD

Neglected Opportunity

Competitive Disadvantage

Competitive Advantage

Head-to-head competition

Null Opportunity

False Alarm

False Advantage

False Competition

Poor

Good

Poor

Good

Poor

Good

Poor

Good

Attribute Our Competitor’s Simultaneous Importance Performance Performance Result

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Changing Consumer Attitudes: Changing Consumer Attitudes: Changing BeliefsChanging 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 Consumer Attitudes: Changing Attribute ImportanceChanging 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 Consumer Attitudes: Changing Ideal PointsChanging 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 76

Moral and logical lessonMoral 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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Post-purchase

Action

Attitude

LearningPerception

Attention

Exposure

Behavioral SequenceBehavioral Sequence

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

Sequential model of purchase and repurchase

behavior in marketing

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Summary….Summary….

1. Different theories in Learning 2. Memory and its role in learning process 3. Motivation and its relationship with needs4. Attitudes5. Relationship existing amongst attitude, feeling

and behavior6. ATR model7. Brand loyalty8. Behavioral Sequence

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