Lecture 8 (Consumer Behavior)

7/18/2019 Lecture 8 (Consumer Behavior)

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Are You Ready?

• Brief Write-up of Case – PreetiMeets Venkat Through Shaadi.com

in the booklet only• Practical Notebook - Specify about

the consumer profile of the target

consumer

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RECAP

• CONSUMER DECISION MAKINGPROCESS

• MASLOW’S NEED HIERARCHY

THEORY

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LEARNING OBJECTIVES

• To understand the consumerdecision making process

• To explore the psychologicalprocesses involved in consumerdecision making

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Individuals Products

Brands

Companies

OrganizationsRetailers

Media

Media

Retailers Organizations

Companies

Brands

ProductsIndividuals

Ads

Consumer Attitudes Focus on Objects

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AttitudesToward:

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CASE

• What beliefs did Venkat andPreethi hold regarding online

matrimonial portals? What wastheir attitude towards Shaadi.com?Why?

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Change perceptions or beliefs abouta competing brand

Add a new attribute to theattitude formation mix

Change perceptions of the

value of an attribute

Change beliefs about an important attribute

Add a new attribute to theattitude formation mix

Change perceptions of the

value of an attribute

Change beliefs about an important attribute

Ways to Change Attitudes

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Adding Attributes Changes Attitudes

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Purchase Decision and Evaluation

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integration

processes

Pre-

evaluation

Heuristics

Affectreferral

decision rule

Decision

Purchase

intention

Brand loyalty

Post

evaluation

Satisfaction

Cognitivedissonance

Dis-satisfaction

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Conditioning

Based onconditioning

through

association or

reinforcement

Thinking

Intellectualevaluation

comparing

attributes with

values

ConditioningThinking

How Consumers Learn

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Modeling

Based onemulation

(copying) of

respected

examples

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Unconditionedstimulus(grapes)

Conditionedstimulus(Lancôme

moisturizer)

Unconditionedresponse

(fresh and moist)

Unconditionedstimulus(grapes)

Conditionedstimulus(Lancôme

moisturizer)

Unconditionedresponse

(fresh and moist)

Classical Conditioning Process

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Association develops throughcontiguity and repetition

Conditionedresponse

(fresh and moist)

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Increase or decreasein probability ofrepeat behavior

(purchase)

Positive or negativeconsequences occur

(reward orpunishment)

Positive or negativeconsequences occur

(reward orpunishment)

Instrumental Conditioning Process

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Behavior(consumer uses

product or service)

Behavior(consumer uses

product or service)

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Schedule of Reinforcement

• Continuous

• Intermittent

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CASE

• What communication factors seemto be reinforcing purchase

decision? Do you think consumerswould experience cognitivedissonance after subscribing to

Shaadi.com? Visit Shaadi.com’swebsite and identify ways in whichit may be trying to alleviate anypossibility of cognitive dissonance

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Purposive behavior

Insight

Goal achievement

Goal

Insight

Purposive behavior

Goal

Cognitive Learning Process

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Culture Subculture 

Social class 

Referencegroups Situational

determinants

Culture Subculture 

Social class 

Referencegroups 

External Influences on Consumer Behavior

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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CASE

• Based on the case, identify thevarious cultural and social factors

that influence the decision ofmatchmaking through onlinematrimonial portals.

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Hometask

• WRITEUP OF CASE ON RELIANCE

BAKING SODA IN CASE READINGBOOKLET ONLY