AMB200 Tutorial PDF

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Tutorial notes from Semester 2 Weeks 1 - 10, 2019. ...

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AMB200 Consumer Behaviour Tutorial Name: Scott Murray Email: [email protected] Consultation time: Email to arrange time Tutes Available to attend: 12-1pm (S304), 1-2pm (S407), 2-3pm (S407)

Week 2 Is CB Art, Science or Philosophy?    

Consumer behaviour theories have their origins in philosophy Philosophy is applied through science and art o Science is main focus at the beginning of the semester, but will move on to art later on Consumer behaviour theories (based on paradigms) help us understand the way consumers think, feel, and behave This course is quite theory based – but it’s practical. We are encouraging you to develop your understanding of how theory is applied to a practical problem.

If you believe that consumers act on free will, your philosophical assumption appeals to the cognitive/affect paradigm most. If you believe that consumers are highly influenced, the behavioural paradigm has the most appeal. The outcomes are not always different, it’s the reasoning and theories that are used that are different. Week 3 Assignment 1 – buying an outfit for the races, choosing the store was limited BUT the actual process was extended MAKE SURE YOU DISCUSS ONLY ONE PHASE     

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Convert the assignment into PDF before uploading Have to submit Worksheet 2 – the other two use the ones you’re confident with Pick the ones where you have the most confident grasp and where you can provide some insight They expect a similarity of 60-75% Include lots of information in the introduction to make sure that the worksheets flow nicely and have a general narrative o Consumer behaviour decision  Buying a fashion item, new outfit for a friend’s wedding, only going to wear it once, etc. o Key points to take away from each worksheet – don’t say that they all fit together because they follow the same behaviour  Theoretical link – risky purchase? o 100 words (1 – 2 paragraphs) Worksheets o Part A is knowledge – establish the knowledge necessary to discuss in Part B  Should be short and sweet  Nominate what you’re agreeing with  Do not spend more than 30 words in this section o Part B is applying theory to explain the knowledge you’ve established in Part A.  Go into theoretical information from textbook, journal article etc. Need about 4 references in your reference list – have the textbook and then a new source for each worksheet. o Use the readings that have been provided on Blackboard – not much research required for this assignment

Extended Problem Solving usually relates to “risky” purchases. Converts into Rational Decision-Making – weigh up positive and negatives and people can offer a rational explanation as to why they made that decision. Consumers are able to remember how and what they did to evaluate it. 

This makes consumers measurable/trackable for marketers.

If not, it was Automated Decision-Making – getting insight into automated is a lot more costly than rational, have to ask them what made them choose that product in particular and market research is very expensive. 

Consumers often aren’t consciously aware or in control (don’t look at anything other than the price tag if just looking at price)

Limited Problem Solving relates to when consumers aren’t motivated to go through a lengthy search – water, toothpaste, milk.  

Uses decision rules (heuristics) – brand, price, size, familiarity Don’t care about product features, marketers have to come up with a different way to be memorable (humorous ads)

This makes it difficult for marketers – consumers have different willingness to look at ads and information. We love extended problem solving and not so much limited problem solving. There is no point hitting them with product features. Week 5 Dissatisfaction and Complaint Behaviour Complaint behaviour does not necessarily mean negative attitudes – it can be simply going up to someone and letting them know you weren’t happy with the service (don’t need to be angry) Customer dissatisfaction is usually due to expectations exceeding the company’s ability to deliver. 

Not always good to continuously undersell what you’re providing and end up providing more – consumers tend to get turned off by it over time.

Acting on Dissatisfaction – Three ways to be active on voicing dissatisfaction   

Voice response (provides better feedback) – direct consumer to company Private response – consumer to friends/family Third-Party response – consumer to someone who isn’t connected to me or company (press) o United Airlines breaks guitars (music video) – weren’t able to respond to it and is a one-way, distorted view of the event that happened  Unable to handle the voice response properly – he left the company wanting to use someone else and made a music video about the ordeal o Optus World Cup streaming – people got on social media and posted about their dissatisfaction  Came up with the hashtag #floptussport  Forced Optus to apologise and try to fix it (weren’t able to), Optus sold back to SBS who broadcasted it on TV.  Optus replied on a public platform and didn’t send a private message to the complaining consumers – means everyone could see what they were promising

Important for marketers to have channels in place that allow for and encourage voice response – otherwise can’t get a sense of why the consumer was unhappy (can be distorted), can follow up with them and can provide a solution to the issue. 

Can do all three ways in one hit on social media o Voice response by posting on the company’s page o Private and third-party response by others being able to see the post

Week 6 Tutorial Motivation is an internal driving force that influences our external actions – can never see people’s motivations but will see their behaviour. Needs:  

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Motivation occurs when a need arises that a consumer wishes to satisfy Innate Needs – Everyone has them o Physiological (or biogenic) needs that are considered primary needs or motives. They are required to sustain life. E.g. a person is motivated to seek food, shelter, sex, etc. Acquired Needs – differ from person to person o Generally psychological (or psychogenic) needs that are considered secondary needs or motives. We have acquired or learned them in response to our environment and culture. E.g. a person is motivated to seek self-esteem, prestige, affection etc. Utilitarian need: provides functional or practical benefit. E.g. toothbrush Hedonic need: an experiential need involving emotional responses or fantasies. E.g. theme parks

The Fun Theory   

Everyone needed to get to the top of the stairs/escalator Once Volkswagon added hedonic value to the stairs (made it a piano) meant 66% more people chose the stairs They managed to change the sort of need that the stairs could fulfil (if someone needed fun)

Classifying Consumer Needs – McClelland 1995 1. Need for achievement: to attain personal accomplishment  Conspicuous consumption of status products i.e. “I’ve made it” 2. Need for affiliation: to be in the company of others  Products that are consumed with others i.e. team sports, shopping centres 3. Need for power: to control one’s environment  Products that give a feeling of mastery i.e. Hotted-up cars 4. Need for uniqueness: to assert one’s individual identity  Products that allow consumers to emphasise their distinctive qualities Maslow’s Hierarchy of Needs

Means End Theories Maslow and McClelland’s theories may help us to understand basic drivers but we need to know more. Means-end theory Laddering technique – identify an attribute, consequence and value linked to your behaviour. Laddering is a means end where consumers associations between specific attributes and general consequences are uncovered. Consumers help climb up the ladder of abstraction that connects functional products. 

One on one interview technique

Hierarchical Value Map

Week 8 Tutorial: Perception & Learning Perception:     

The process by which sensations are selected, organised and interpreted Inputs (sensory stimuli) picked up by our five senses (sensory receptors) are the raw data that begin the perceptual process Exposure occurs when a stimulus comes within the range of someone’s sensory receptors Attention is the assignment of processing activity to the selected stimulus Interpretation refers to the meaning assigned to the stimulus

Distortions in Perceptual Interpretation      

Physical appearances – making judgements on people’s or objects’ appearance or other attributes Stereotypes – mental shorthand, mental “pictures of meaning”, of product or brand – or people, i.e. who might use the product? Irrelevant cues – distractions from main stimulus First impressions – usually lasting – based on random attention Jumping to conclusions – tuning out because message is not relevant to self (could be perceptual defence or lack of experience) Halo effect – making a judgement based on one or two (positive/negative) criterion (i.e. brand name) and not considering other criteria (selective perceptions)

Learning: a relatively permanent change in behaviour caused by experience 

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Behavioural learning theories o Instinctive o Low levels of thinking o Focus on actions and behaviours Cognitive learning theories o Reasoned o Higher level thinking o Focus on mental activities

Classical conditioning: people do not know they are being conditioned (associate Taylor Swift and Pepsi so you may think Taylor Swift is fun and then because of this you will be conditioned to think that Pepsi is fun)  

Sound and mint Sound and nerf gun

Instrumental (Operant) conditioning: every time someone exhibits a behaviour we want, we reward them and if they don’t, we punish them. (Merlo coffee loyalty cards) 

Sheldon training Penny with chocolate

Cognitive learning theories  

Observational: observe someone getting the outcome we want so we model ourselves in a hope to get that same outcome. Rote Learning: cram as much information as possible into short term memory for a specific reason and time you will need that information

EXAM PREP: 90-minute exam Covers: Week 1 to Week 8 (Lecture slide, book chapters, assigned reading ABSTRACT, and posted video clips) Q1: Which of the following is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires? A. B. C. D.

Lifestyle marketing Role theory Consumer behaviour Marketing research

Q2: A basic biological motive is called a ________. A. B. C. D.

Want Demand Need Response

Q3: Ben is driving along a country highway. In the distance, he sees a road crew working on a fallen tree that has blocked the highway. When Ben first sees the road crew, which of the following perceptual processes has been engaged? A. B. C. D.

Exposure Attention Adaptation Interpretation

Week 10 Tutorial CB REPORT: STRUCTURE Context and Problem/Opportunity ~100 words - must include something like “this is conducted on behalf of ____" - select one problem/ opportunity that is of interest to you in the chosen topic. State perspective and illustrate a real, plausible situation. - Do not repeat the case. What is the reason as to why these are the behaviour of the target market? - what might be the consumer behaviour related problem that leads to case being developed? - address all the key points. Literature Review ~700 words - Using both academic and business press, synthesis the literature in your own words - what is their motivation? - you must use 7 peer reviewed scholarly sources + press sources (B&T magazine https://www.bandt.com.au/ marketing centric) mumbrella.com.au https://mumbrella.com.au/ advertising approach) AdNews https://www.adnews.com.au/ advertising focus trade publication. Similar to mumrbella) Financial review https://www.afr.com/ Newspaper - press source) Theory/Model/Framework ~450 words - choose a consumer behaviour theory, model or framework and apply it to your chosen topic (ensure you reference original sources) - explain how the theory relates to literature review? - “the purpose for this literature review is…” is not needed -EG. Targeting Young people - what are they like? What are their behaviours? How do they respond? What their extinct and instruct motivation? Recommendations ~1000 words - present three marketing recommendations to address the identified problem/ opportunity, whilst applying the T/M/F and linking it to the literature - link your recommendation to literature review, which links with the problem. - must align with their aims and objectives (eg. Pop orchestra is to reduce their marketing costs) - no budget needed - 3 recommendations can happen in order (once recommendation 1 is done, 2 will start… so on) or can be done all at the same time

References (not included in word limit) - any style but APA is recommended - Must cite the original source, also source something that has been using it in a contemporary way (how is this theory being applied in the modern times?) eg. Maslow’s theory, cite the original source from 19xx, and see how its been used in the recent years. Appendix (not included in word limit) - max 2 pages with supporting info....