ConsumerPsychology.pptx -

Consumer Psychology:Retrospect and Prospect

Hans BaumgartnerPenn State University

Consumer Psychology

Overview Retrospect

□ Influential streams of research in consumer psychology (1956-2007)

□ Types of influential articles Prospect

□ Consumer psychology in the third millennium□ Examples of recent research originating in the

substantive, conceptual and methodological domains

Consumer Psychology

Which research streams and articles have had an impact?

Citation analysis (based on SSCI) for all articles published in JCR (1974-2007), JMR (1964-2007), and JM (1956-2007)

For articles published since 1974:

(1)

Total # of articles

(2)

Total # of citations

(3)

(2) ÷ (1)

(4)

# of articles

cited ≥ 100

(5)

# of citations of

articles cited ≥ 100

(6)

(4) ÷ (1)

(7)

(5) ÷ (2)

JCR 1,503 58,232 39 125 22,285 8% 38%

JMR 1,646 57,966 35 112 23,512 7% 41%

JM 1,374 58,279 42 150 32,373 11% 56%

Overall 4,523 174,477 39 387 78,170 9% 45%

Consumer Psychology

Categorization of influential articles

Articles were classified using the scheme shown on the next slide;

Articles in JCR, JMR, and JM were categorized; Articles with at least 100 citations are shown (the

number of citations follows each article), although articles with a smaller number of citations were also classified;

Articles reporting empirical studies are underlined;

Consumer Psychology

The purchase process

Marketing influences

Psychologicalfoundation

Environmentalinfluences

• Physical environ-mental influences

• Social environ-mental influences

• Cognition• Affect• Motivation &

personality

• Product programs• Price programs• Marketing communication programs• Distribution programs

• Types of purchase behavior

• Decision making and choice

• The consumption experience

• Post-purchase processes

Categorization of research streams

Consumer Psychology

Consumer knowledge, expertise and familiarityAlba and Hutchinson (1987) 579

Consumer memoryLynch and Srull (1982) 172

Consumer inferencesMeyer (1981) 108 , Huber and McCann (1982) 142 , Folkes (1988) 135 , Kardes (1988) 100

Imagery processingMacInnis and Price (1987) 114

Consumer learningHoch and Ha (1986) 193 , Johnson and Russo (1984) 190 , Hoch and Deighton (1989) 165

Psychological foundation research: Cognition

Consumer Psychology

Mood□ Gardner (1985) 200

Consumption emotions□ Richins (1997) 103

Psychological foundation research: Affect

Consumer Psychology

Perceived risk □ Roselius (1971) 118

Involvement□ Conceptual essays: Bloch and Richins (1983) 129 , Greenwald and Leavitt

(1984) 213□ Scales: Zaichkowsky (1985) 470 , Laurent and Kapferer (1985) 215□ Effects on attention and comprehension: Celsi and Olson (1988) 277

Psychographics and values□ Psychographics: Wells (1975) 123 □ Materialism: Belk (1985) 189 , Richins and Dawson (1992) 219

Psychological foundation research: Motivation & personality

Consumer Psychology

Purchasing motives□ Shopping motives: Tauber (1972) 108□ Means-end chains: Gutman (1982) 195

Consumer personality□ Review of theories: Kassarjian (1971) 128 □ Innovativeness: Midgley and Dowling (1978) 141 , Hirschman (1980) 117 ,

Dickerson and Gentry (1983) 117 □ Scales: Raju (1980) 143 , Shimp and Sharma (1987) 152 , Bearden,

Netemeyer, and Teel (1989) 146 The self

□ Self-concept: Sirgy (1982) 181□ Products as social stimuli: Solomon (1983) 195 □ Possessions and the extended self: Belk (1988) 495

Psychological foundation research: Motivation & personality (cont’d)

Consumer Psychology

Types of purchase behavior:□ Hedonic consumption: Holbrook and Hirschman (1982) 414 , Hirschman and

Holbrook (1982) 279□ Utilitarian/hedonic shopping value: Babin, Darden, and Griffin (1994) 171 □ Variety seeking: McAlister and Pessemier (1982) 140□ Impulsive and compulsive buying: Rook (1987) 171 , O’Guinn and Faber

(1989) 186 Decision making and choice:

□ Consumer search Amount of search: Newman and Staelin (1972) 124 , Punj and Staelin (1983)

127 , Brucks (1985) 251 , Bloch, Sherrell, and Ridgway (1986) 160 , Beatty and Smith (1987) 170

Information overload: Jacoby, Speller, and Berning (1974) 140 , Jacoby, Speller, and Kohn (1974) 169 , Malhotra (1982) 111

The purchase process

Consumer Psychology

Decision making and choice (cont’d):□ Preference formation:

Multi-attribute model: Wilkie and Pessemier (1973) 320 Affective influences: Zajonc and Markus (1982) 196 Schemas: Sujan (1985) 253 , Meyers-Levy and Tybout (1989) 159 Time-inconsistent preferences and affect vs. cognition in choice:

Hoch and Loewenstein (1991) 134 , Shiv and Fedorikhin (1999) 125 Pioneering advantage: Carpenter and Nakamoto (1989) 193

□ The decision making process: Decision-making strategies and constructive choice processes:

Wright (1975) 157 , Bettman and Kakkar (1977) 179 , Lussier and Olshavsky (1979) 121 , Bettman and Park (1980) 281 , Park and Lessig (1981) 113 , Bettman, Luce, and Payne (1998) 225 , Luce (1998) 106

Lack of decision making: Olshavsky and Granbois (1979) 131 Cost of thinking: Shugan (1980) 205 Noncomparable alternatives:

Johnson (1984) 126 , Bettman and Sujan (1987) 126

The purchase process (cont’d)

Consumer Psychology

Decision making and choice (cont’d): Consideration sets:

Nedungadi (1990) 156 , Hauser and Wernerfelt (1990) 144□ Consumer choice:

Memory-based choice: Lynch, Marmorstein, and Weigold (1988) 120 Attraction and compromise effects:

Huber, Payne and Puto (1982) 256 , Huber and Puto (1983) 106 , Simonson (1989) 255 , Simonson and Tversky (1992) 259

Regret and choice deferral: Simonson (1992) 126 , Dhar (1997) 102

Post-purchase processes□ Consumer satisfaction

Expectations: Cardozo (1965) 104 , Anderson (1973) 149 ED models: Oliver (1980) 593 , Churchill and Surprenant (1982) 314 Repurchase and switching: LaBarbera and Mazursky (1983) 113 Alternative comparison standards:

Cadotte, Woodruff, and Jenkins (1987) 149 , Tse and Wilton (1988) 205

The purchase process (cont’d)

Consumer Psychology

Post-purchase processes (cont’d)□ Consumer satisfaction (cont’d)

Equity theory: Oliver and Swan (1989) 104 , Oliver and Swan (1989) 186 Comparison of theories: Oliver and DeSarbo (1988) 191 Desires congruency: Spreng, MacKenzie, and Olshavsky (1996) 160 Positive/negative performance: Mittal, Ross, and Baldasare (1998) 106 Affective influences:

Westbrook (1987) 183 , Westbrook and Oliver (1991) 165 , Oliver (1993) 213 , Mano and Oliver (1993) 163

Satisfaction indices: Fornell (1992) 239 , Fornell et al. (1996) 220 □ Satisfaction, loyalty, and repurchase

Oliver (1999) 197 , Garbarino and Johnson (1999) 219 , Mittal and Kamakura (2001) 112

□ Consequences of dissatisfactionBearden and Teel (1983) 176 , Richins (1983) 168 , Folkes (1984) 151

The purchase process (cont’d)

Consumer Psychology

Situational influencesBelk (1975) 225 , Milliman (1982) 118

Adoption of innovationGatignon and Robertson (1985) 181 , Steenkamp, ter Hofstede, and Wedel (1999) 112

Interpersonal influences□ WOM influence: Arndt (1967) 109 , Brown and Reingen (1987) 106, Herr,

Kardes, and Kim (1991) 135 □ Reference group influence: Bearden and Etzel (1982) 129□ Market mavens: Feick and Price (1987) 114

Household and group decision makingDavis and Rigaux (1974) 113 , Davis (1976) 133

Consumer socializationWard (1974) 131

Environmental influences

Consumer Psychology

Quality and value□ Expectations and quality: Olshavsky and Miller (1972) 107□ Quality, price, and value: Zeithaml (1988) 568 □ Extrinsic cues: Rao and Monroe (1988) 137 , Rao and Monroe (1989) 156 ,

Dodds, Monroe, and Grewal (1991) 229 □ Corporate associations: Brown and Dacin (1997) 119

Brands, brand equity, and brand relationships□ Brand concept management: Park, Jaworski, and MacInnis (1986) 135 □ Brand equity: Keller (1993) 387 □ Brand personality: Aaker (1997) 133 □ Brand relationships: Fournier (1998) 254

Brand extensionAaker and Keller (1990) 232 , Boush and Loken (1991) 125 , Park, Milberg, and Lawson (1991) 122 , Keller and Aaker (1992) 138 , Loken and John (1993) 106 , Broniarczyk and Alba (1994) 122

Marketing influences: Product programs

Consumer Psychology

The service encounter and servicescapes□ Service encounter: Solomon and Surprenant (1985) 184 , Surprenant and

Solomon (1987) 102 , Arnould and Price (1993) 163 □ Servicescapes: Bitner (1990) 368 , Bitner (1992) 262□ Crowding and delays: Hui and Bateson (1991) 111 , Taylor (1994) 114

Service quality, value, satisfaction and loyalty □ SERVQUAL: Parasuraman, Zeithaml, and Berry (1985) 980 , Brown and Swartz

(1989) 129 , Cronin and Taylor (1992) 526 , Teas (1993) 167, Parasuraman, Zeithaml, and Berry (1994) 230 , Cronin and Taylor (1994) 202 , Zeithaml, Berry, and Parasuraman (1996) 381

□ Dynamic models: Bolton and Drew (1991) 235 , Bolton and Drew (1991) 124 , Boulding, Kalra, Staelin, and Zeithaml (1993) 321 , Bolton and Lemon (1999) 101

□ Critical incidents: Bitner, Booms, and Tetreault (1990) 385 , Keaveney (1995) 168 , Meuter, Ostrom, Roundtree, and Bitner (2000) 128

□ Failure, complaints, recovery, trust and loyalty: Tax, Brown, and Chandrashekaran (1998) 123 , Smith, Bolton, and Wagner (1999) 110 , Sirdeshmukh, Singh, and Sabol (2002) 101

Marketing influences: Product programs

Consumer Psychology

Price knowledgeDickson and Sawyer (1990) 180

Price perception and reference prices□ Price perception: Monroe (1973) 184□ Reference prices: Winer (1986) 194 , Urbany, Bearden, and Weilbaker

(1988) 122 , Grewal, Monroe, and Krishnan (1998) 111 Unit prices

Russo (1977) 128 Price-oriented sales promotions

□ Loyalty and brand switching: Dodson, Tybout, and Sternthal (1978) 111 □ Deal-prone consumers: Blattberg, Buesing, Peacock, and Sen (1978) 103 ,

Blattberg, Eppen, and Lieberman (1981) 122 □ Promotion signals: Inman, McAlister and Hoyer (1990) 123

Marketing influences: Price programs

Consumer Psychology

Advertising in generalResnik and Stern (1977) 124 , Pollay (1986) 169 , Richins (1991) 142

Information processing of adsMacInnis and Jaworski (1989) 161 , MacInnis, Moorman, and Jaworski (1991) 131

Information processing of pictures in adsEdell and Staelin (1983) 155 , Kisielius and Sternthal (1984) 107 , Childers and Houston (1984) 111

Affect in advertisingGorn (1982) 180 , Aaker,Stayman, and Hagerty (1986) 126 , Batra and Ray (1986) 210 , Edell and Burke (1987) 224 , Holbrook and Batra (1987) 197 , Goldberg and Gorn (1987) 106 , Burke and Edell (1989) 126

Attitude toward the adMitchell and Olson (1981) 347 , MacKenzie, Lutz, and Belch (1986) 254 , Mitchell (1986) 114 , MacKenzie and Lutz (1989) 213 , Brown and Stayman (1992) 138

Marketing influences: Advertising programs

Consumer Psychology

Attitudes and persuasion□ Hierarchy of effects: Lavidge and Steiner (1961) 213 □ Expectancy-value model: Lutz (1975) 100□ Cognitive responses: Wright (1973) 181 , Wright (1980) 128 □ ELM: Petty, Cacioppo, and Schumann (1983) 601 , Park and Young (1986) 151□ Framing: Levin and Gaeth (1988) 155 , Maheswaran and Meyers-Levy (1990) 135□ Persuasion knowledge model: Friestad and Wright (1994) 208

Attitudes and behavior□ Fishbein model and alternatives: Ryan and Bonfield (1975) 112 , Bagozzi

(1982) 116 , Shimp and Kavas (1984) 118 , Sheppard, Hartwick, and Warshaw (1988) 535 , Bagozzi and Warshaw (1990) 123

□ Direct experience: Smith and Swinyard (1983) 123 , Fazio, Powell, and Williams (1989) 135

Marketing influences: Advertising programs

Consumer Psychology

Buyer-seller relationshipsSchurr and Ozanne (1985) 137 , Crosby and Stephens (1987) 136 , Crosby and Evans (1990) 359

Electronic shoppingAlba et al. (1997) 273 , Hoffman and Novak (1996) 409

Marketing influences: Personal selling and distribution programs

Consumer Psychology

Cultural/interpretive papersSherry (1983) 127, McCracken (1986) 230 , Belk, Wallendorf, and Sherry (1989) 231 , Mick (1986) 152 , Belk, Sherry, and Wallendorf (1988) 134 , Wallendorf and Arnould (1988) 138 , McCracken (1989) 105 , Mick and Buhl (1992) 111 , Celsi, Rose, and Leigh (1993) 130 , Schouten and McAlexander (1995) 122 , Firat and Venkatesh (1995) 120 , Muniz and O’Guinn (2001) 115

Methodological papers Conjoint analysis: Green and Srinivasan (1978) 627 , Green (1974) 114 SEM: Gerbing and Anderson (1984) 109 , Steenkamp and Baumgartner

(1998) 307 , Jarvis, MacKenzie, and Podsakoff (2003) 141 Qualitative approaches: Kassarjian (1977) 297 , Thompson, Locander, and

Pollio (1989) 170 , Kolbe and Burnett (1991) 122 , Spiggle (1994) 107 Other papers: Calder, Phillips, and Tybout (1981) 243 , Blair and Burton

(1987) 121 , Peter, Churchill, and Brown (1993) 106 , Peterson (1994) 155

Miscellaneous research in JCR

Consumer Psychology

Proportion of total citations accounted for by different areas and journals

JCR JMR JM All

Psychological Foundations 12 2 2 17

Prepurchase processes 15 3 1 19

Postpurchase processes 3 6 4 12

Environmental influences 3 0 1 4

Product programs 3 4 17 23

Price programs 1 1 1 4

Advertising programs 10 4 3 17

Distribution programs 0 0 3 3

Total 48 21 31 100

Consumer Psychology

Types of influential articles Methodological articles:

□ New methodological techniques and procedures(e.g., Fornell and Larcker 1981; Thompson, Locander, and Pollio 1989; Bitner, Booms, and Tetreault 1990)

□ Guidelines on how to use particular techniques and procedures

(e.g., Green and Srinivasan 1978; Kassarjian 1977; Steenkamp and Baumgartner 1998; Calder, Phillips, and Tybout 1981)

□ Syntheses of research evidence on a particular technique(e.g., Peterson 1994)

Consumer Psychology

Conceptual articles:□ New perspective/idea essays

(e.g., Lavidge and Steiner 1961; Holbrook and Hirschman 1982; Zajonc and Markus 1982; Belk 1988; Friestad and Wright 1994)

□ Minitheories of particular substantive phenomena(e.g., Parasuraman, Zeithaml, and Berry 1985; Zeithaml 1988; Keller 1993; Fornell et al. 1996)

□ Analytical frameworks(e.g., Shugan 1980; Hauser and Wernerfelt 1990)

□ Propositional reviews of a research area(e.g., Gatignon and Robertson 1985; Alba and Hutchinson 1987; Bettman, Luce, and Payne 1998)

□ Quantitative and qualitative syntheses of research evidence(e.g., Sheppard, Hartwick, and Warshaw 1988; Gardner 1985; Wilkie and Pessemier 1973)

Types of influential articles (cont’d)

Consumer Psychology

Empirical articles:□ Studies that introduce a new concept, effect, or model

Mitchell and Olson (1981); Winer (1986); Aaker and Keller (1990); Fournier (1998)

Huber, Payne, and Puto (1982); Simonson (1989) Oliver (1980); MacKenzie, Lutz, and Belch (1986)

□ Studies that test, extend, or challenge prior concepts, effects, or models

Petty, Cacioppo, and Schumann (1983) Sujan (1985); Simonson and Tversky (1992) Cronin and Taylor (1992)

□ Studies in popular research areas Bettman and Park (1980); Brucks (1985); Edell and Burke (1987); Celsi

and Olson (1988) □ Scale development studies

Zaichkowsky (1985); Richins and Dawson (1992)

Types of influential articles (cont’d)

Consumer Psychology

Consumer psychology in the third millennium

Fragmentation of the field□ Behavioral, managerial and quantitative□ Positivistic vs. interpretive□ BDT vs. information processing/social cognition

Many empirical findings – few integrative theories Some personal thoughts on needed research

□ What we don’t need more of□ What we need more of

Consumer Psychology

What we don’t need more of Phenomenon-, theory-, and method-of-the-month

papers Preoccupation with esoteric phenomena, theories,

and methods Counter-intuitive or theory-inconsistent findings that

are not germane to consumer behavior Studies that are more relevant to a foundational

discipline than to consumer behavior and marketing

Consumer Psychology

What we need more of CB-relevant substantive phenomena as the starting

point of research Greater concern with ecologically valid manipulations,

measures, and research settings Contextualized theories of the middle range that

integrate empirical findings□ ELM□ Extended ED model of consumer satisfaction□ GAP model of service quality

Consumer Psychology

The purchase cube

Low purchaseinvolvement

High purchaseinvolvement

Functionalpurchases

Psycho-socialpurchases

Spontaneous purchases

Deliberate purchases

Based on Baumgartner (2002, forthcoming)

Consumer Psychology

The purchase cube (cont’d)

Spontaneous purchases

Promotionalpurchasebehavior

Exploratorypurchasebehavior

Casualpurchasebehavior

Impulsivepurchasebehavior

Deliberate purchases

Extendedpurchasedecisionmaking

Symbolicpurchasebehavior

Repetitivepurchasebehavior

Hedonicpurchasebehavior

Based on Baumgartner (2002, forthcoming)

Consumer Psychology

Recent research streams Substantively-motivated research

□ Price fairness□ The mere-measurement effect□ Other examples

Conceptually-motivated research□ Promotion and prevention focus□ Other examples

Methodologically-motivated research□ Consumer neuroscience□ Implicit association test

Consumer Psychology

Price fairness as a prototype of recent substantively-motivated research

Price fairness as a “consumer’s assessment and associated emotions of whether the difference (or lack of difference) between a seller’s price and the price of a comparative other party is reasonable, acceptable, or justifiable” (Xia, Monroe, and Cox 2004; see also Bolton, Warlop, and Alba 2003)

Xia et al. (2004) list 21 studies relevant to price fairness (including research outside marketing and non-price research);

Consumer perception of price fairness is a topic uniquely suited to consumer research;

Rich literature base related to fairness in other areas; Potential for theory building in the pricing area is huge; Implications for pricing management are substantial;

Consumer Psychology

Asking questions about future behavior can change the behavior in question;

Morwitz, Johnson, and Schmittlein (1993) showed that asking respondents once whether they planned to buy an automobile (PC) in the next 6 months increased the incidence of purchase by 37 (18) percent;

Similar results for voting, volunteering, recycling, etc. Theoretical explanations include increased accessibility of

attitudes, avoidance of dissonance, etc. Fitzsimons and Moore (2008) discuss the implications of this

research for screening adolescents for risky behaviors such as drug and alcohol use or sexual behaviors;

The mere-measurement effect as a prototype of recent substantively-motivated research

Consumer Psychology

Other substantively-motivated research developments

□ New marketing technologies (internet recommendation systems, on-line communities, design of web pages, virtual product experiences, customization, self-service technologies)

□ Customer relationship management□ Financial consequences of satisfaction□ Cross-cultural consumer behavior□ Really new products□ Brand communities□ Identity signaling□ Sales promotion (loyalty and frequency programs)□ Product assortments□ Transformative consumer behavior and consumer welfare□ Corporate social responsibility and consumer boycotts

Consumer Psychology

Two types of regulatory focus (Higgins 2002):□ Promotion focus as self-regulation w/r/t the presence or

absence of positive outcomes; concern with ideals and accomplishments; preferred means of goal attainment is eagerness; emotional reactions of cheerfulness and dejection;

□ Prevention focus as self-regulation w/r/t the presence or absence of negative outcomes and a concern with oughts and security; preferred means of goal attainment is vigilance; emotional reactions of quiescence and agitation;

Regulatory focus theory as a prototype of recent conceptually-motivated research

Consumer Psychology

□ The unconscious consumer and automaticity (Bargh 2002; Dijksterhuis et al. 2005)

□ Self-control and ego-depletion (Baumeister et al. 2008; Vohs and Faber 2007);

□ Construal Level Theory (Trope, Liberman and Wakslak 2007)

□ Terror management (Arndt, Solomon, Kasser, and Sheldon 2004)

□ Metacognitive experiences (Schwarz 2004)□ Regret theory (Zeelenberg and Pieters 2007)

Other conceptually-motivated research developments

Consumer Psychology

In the brand personality literature, humanlike traits are ascribed to brands;

Yoon et al. (2006) investigated, using fMRI, whether trait judgments about people and products (both self-relevant and nonself-relevant) are processed in similar regions of the brain;

the findings indicated that brand personality was processed differently from human personality;

Consumer neuroscience as a prototype of recent methodologically-motivated research

Consumer Psychology

IAT as a measure of implicit consumer social cognition (Brunel, Tietje, and Greenwald, 2004);

Useful when people are unable (e.g., because of lack of conscious awareness) or unwilling (e.g., because of social desirability concerns) to reveal their opinions;

Disguised, unstructured procedure for assessing the strength of automatic associations between concepts (e.g., brand attitudes, consumer-brand relationships, attitudes toward ethnic spokespeople in ads);

IAT as a prototype of recent methodologically-motivated research

Consumer Psychology

JCP as the outlet for “extraordinary ideas” about consumer psychology

CW Park suggests the following under-researched areas:

□ The role of learning in consumer behavior□ Aesthetic experience in consumption□ Perspectives on consumers’ cognitive flexibility beyond the

cognitive miser view□ Hedonic consumption□ Consumers’ relationships with brands□ Culture and consumer psychology□ Neuroscience approaches□ Temporal interdependencies between purchase and

consumption activities□ Joint decision making of users, deciders, disposers, and

purchasers

Consumer Psychology

Additional readings Haugtvedt, Curtis P., Paul M Herr, and Frank R.

Kardes, eds. (2008), Handbook of Consumer Psychology, New York, NY: Lawrence Erlbaum.

Loken Barbara (2006), “Consumer Psychology: Categorization, Inferences, Affect, and Persuasion,” Annual Review of Psychology, 57, 453-485.

Simonson, Itamar, Ziv Carmon, Ravi Dhar, Aimee Drolet, and Stephen M. Nowlis (2001), “Consumer Research: In Search of Identity,” Annual Review of Psychology, 52, 249-275.

Consumer Psychology

The three domains of research(Brinberg and McGrath 1985; Lutz

1989)

Conceptualdomain

Substantivedomain

Methodological domain

Consumer Psychology

ELM as a prototype of conceptually-motivated research

persuasivecommunication

motivationto process ?

abilityto process ?

nature of cognitive processing ?

favorablethoughts

predominate

unfavorablethoughts

predominate

neither orneutral thoughts

predominate

central positiveattitude change

central negativeattitude change

yes yes

no no

peripheralattitude shift

peripheralcue present ?

yes

yes

yes yes

Based on Petty and Cacioppo (1986)

Consumer Psychology

Conceptually sophisticated theory of the middle range that integrates many disparate persuasion findings;

Useful mental model for thinking about persuasion problems in practice – variables can influence the extent and direction of attitude change by:

□ serving as persuasive arguments (e.g., weak vs. strong arguments);

□ serving as peripheral cues (e.g., source expertise or attractiveness, number of arguments);

□ affecting the extent and direction of message elaboration (e.g., involvement as a determinant of motivation to process and distraction as a determinant of ability to process);

ELM (cont’d)

Consumer Psychology

perceivedquality

customerexpectations

perceivedvalue

customersatisfaction

customercomplaints

customerloyalty

American Customer Satisfaction Index

(Fornell et al. 1996)

Consumer Psychology

The GAPS modelWOMPersonal NeedsPast Experience

External Communicationto Consumers

Expected Service

Perceived Service

Service Delivery

Translation of Mgmt.Perceptions into SQ specs

Management Perceptionsof Consumer Expectations

GAP 3

GAP 2

GAP 5

GAP 1

GAP 4

CONSUMER

MARKETER

Consumer Psychology

Purchase motives underlying the purchase cube

curiosity trial

time pressure

convenience

thoughtlessmindless

randomimpulse

unplanned

fun

change

variety

sale

price

replacement

valuequality

comparison

logicproblemsolving

utilitarian

performance

preferencesatisfaction familiarity

loyaltypast purchase

habitusual routine

likingw ant

brand name

feelgoodself-esteem

personality

emotionreputation

senses fashionsocial approval

styleimage status

Consumer Psychology

Price fairness as a prototype of recent substantively-motivated research

Bolton, Warlop, and Alba (2003) show that□ Consumers underestimate the effects of inflation and attribute

rising prices to vendor price gouging;□ Consumers attribute price differences across competitors more to

profit than cost; even when profits are equal, cost differences matter (e.g., quality differences are considered fair, use of a margin strategy as unfair);

□ Consumers have poor mental models of a firm’s cost structure; less salient costs (with the exception of COGS) are often ignored and perceptions of profit margins are too high; certain costs (e.g., promotional costs) are deemed unfair;

Consumer PsychologySchematic representation of the

IATMan United or Pleasant Chelsea or Unpleasant

√ Love Χ

Χ √

Χ Vomit √

√ Χ

Man United or Unpleasant Chelsea or Pleasant

Χ Freedom √

Χ √

√ Sickness Χ

√ Χ