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Consumer Behavior: Review Mid-term ExaminationDefinitions of consumer behavior and consumer psychology - Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, experiences, people, and ideas by (hu...

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Consumer Behavior: Review Mid-term Examination Definitions of consumer behavior and consumer psychology - Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition, consumption, and disposition of goods, services, activities, experiences, people, and ideas by (human) decision-making units [over time]. - the study of psychological factors which underlie and determine consumer behavior ... it uses psychology’s concepts, theories, and methods to understand consumption in the marketplace. Veblen’s notion of conspicuous consumption - The term refers to consumers who buy expensive items to display wealth and income rather than to cover the real needs of the consumer - refers to a psychological state that is created by the activation of attitudes that are linked to important values.(Ie environmental issues) Various business orientations and the marketing concept - Product orientation and Sales orientation - Product: early 1950’s focus on making products available and affordable. Little consideration to marketing research and product planning. - Sales Orientation: Focus is on volume, not profit. Consumers won’t buy unless aggressive sales approach. - Marketing orientation: focus on marketplace customers, competition, and distribution. Change is inevitable but manageable. Economics’ early impact on consumer behavior (three bold assumptions) - Classical Utility theory Models of both high and low-involvement - Limited ability to process information. High→ high road activation of stored feelings. Environmental cuts. Triggers extensive problem solving. (Decision making and information processing stages) - Extensive decision making. (substantial search, comparisons and contrasts) - Limited decision making. (low to moderate amount of search) - Routinized choice behavior. (relatively automatic process.) Johnson & Eagly’s conceptions of involvement (Value-Relevant, Outcome-Relevant, Impression-Relevant) - value:refers to a psychological state that is created by the activation of attitudes that are linked to important values.(Ie environmental issues) - Outcome: is supposed to lead to message-relevant thinking. The quality of presented arguments moderates the relationship of outcome relevant involvement and attitude change. (ex. want the glue to stick) - Impression: can be viewed as a concern with holding a position of what other people think of him/her. (ex fashion)

Freud’s Theory of Motivation (note his search for human mainsprings, marketing’s misuse of his theory via motivation research, iceberg model of the mind, 3 entities of the psyche, symbolism) - Is used to discover the most effective means of exploiting hidden or inner impulses of consumer, to trigger Id-dominated behavior. - Mansprings: The Irrational forces in man's life were so strong that rational forces had little change of success - Marketing misuse: Most human motives are unconscious, but behave purposely. Hence our subconscious dictates our behavior, and our conscious mind has no chance for dominance. - Iceberg: conscious (small): this is the part of the mind that holds what you're aware of. - preconscious (small-medium): this is ordinary memory. So although things stored here aren't in the conscious, they can be readily brought into conscious. - unconscious (enormous): Freud felt that this part of the mind was not directly accessible to awareness. In part, he saw it as a dump box for urges, feelings and ideas that are tied to anxiety, conflict and pain. These feelings and thoughts have not disappeared and according to Freud, they are there, exerting influence on our actions and our conscious awareness. This is where most of the work of the Id, Ego, and Superego take place - Freud's Theory of Motivation - Id: the primary process that releases/discharges quantities of energy or excitation. - Pleasure principal: hedonistic by nature. Childlike, immature, impulsive, seeks immediate gratification. Omnipotent - fulfills wishes by imagination, fantasy, and dreams - Ego: a secondary process that maintains equilibrium between the environment and the impulsiveness of the id. Reality principle: delays discharge of energy until appropriate - Superego: moral or judicial branch of personality. Results from parental and societal standards. It enforces its moral rules by rewards and punishments. It regulates uncontrolled impulses that threaten society; namely, sex and aggression Maslow’s hierarchy of needs - Maslow proposed that needs can be categorized into basic hierarchy. People generally fulfill lower order needs before they fulfill higher order needs. - : (1) physiological (the need for food, water, and sleep); (2) safety (the need for shelter, protection, and security); (3) social (the need for affection, friendship, and to belong); (4) egoistic (the need for prestige, success, accomplishment, and self-esteem); and (5) self-actualization (the need for self-fulfillment and enriching experiences).

Measuring motives in consumer behavior (Note the use of indirect or projective techniques by Dichter, Haire) - Our possessions are extensions of our own personalities, which serve as a "kind of mirror which reflects our own image". Dichter's message to advertisers was: figure out the personality of a product, and you will understand how to market it. Soaps could be old or young, flirty or conservative Assumptions underlying the effects of subliminal messages (Key’s claims, Moore’s review of evidence, Janiszewski’s pre-conscious processing) - Key's claim - "Advertisers embed messages in ads that are too small or lack clarity to be consciously perceived. Yet these messages are received by the subconscious and stimulate and emotional response and an identification with the advertised brand" - •Subliminal stimuli - unconscious - emotional reaction - behavior - •Must be presented to an unconscious wish - •Message itself must be subliminal - •There has to be a match between the subliminal stimulus and unconscious wish - •Universal, cultural, or individual symbols - Moore's review of evidence - "subliminal advertising: what you see is what you get" - •Sub - below - •Limen - threshold - •Weak view: subliminal messages may produce affective reactions, but do not appear to influence behavior or choice. - •Strong view: even if consumers did attend to a subliminal stimulus, it is doubtful that the stimulus is powerful enough to influence behavior. - •Affect precedes cognition - Janiszewski's pre-conscious processing: fur coat experiment, to demonstrate the lack of relationship between conscious thoughts and attitude change Information search (dimensions; extent of search for durable & nondurable goods) Jacoby et al. information acquisition experiments (i.e., information display boards) - -Results: Too much information is overwhelming and bad - -Experiment: Provided many products without there names and gave consumers opportunity to find their product with as much information needed. - -If you already have existing internal information you will come to a decision on your purchase faster. Presearch decision making and external information search (Punj) Buyer uncertainty and information search (Knowledge & Choice Uncertainty, Urbany, Dickson, & Wilkie)

Shopper profiles (Westbrook & Fornell) Individual differences factors related to search (Dogmatism, NFC, NFE, NFU, CVPA, market mavens, purchasing involvement, frugality) Knowledge uncertainty Don't know about attributes or performance, outside search is less likely to occur. Choice uncertainty: Don't know which alternative to choose, outside search is more likely to occur. Dogmatism: Ideas set in stone, personal beliefs, will not listen to others regardless of facts. NFC (Need for Cognition): The extent a person is willing to search and obtain information. A consumer high in need for cognition demonstrates an enjoyment in research and wants to obtain information about a product. NFE (Need for evaluation): If a person is high in NFE he engages in the assessment of the positive and negative qualities of an object. NFU (Need for uniqueness): A person is high in need to posses unique things, and does not enjoy seeing that someone else has the same things, therefore those thing lose their value if he/she sees them as popular. CVPA (Centrality of Visual product Aesthetics): Consumer enjoys beauty in a product and tends to purchase on looks. An extended view of consumer search (Pre-Purchase vs. On-Going Search, Bloch, Sherrell, & Ridgway) - Pre-purchase : internal and external search - On-going search: browsing because we like to stay up to date in the market place. Alternative evaluation -- components and process (evaluative criteria, beliefs, attitudes, intentions Market Maven: into shopping and aware whats happening in the marketplace. Frugal: Foregoes today's small things for tomorrow's big thing. Tightwad: Experiences pain of paying. Spendthrift: Experiences pain of saving. Pre purchase decision making: A consumer makes up his mind about purchase before any outside search occurs. On Going search: a consumer is always searching, and making a mental bank of the products. Pre purchase search: When a person has a need, and engages in search to satisfy that need. Components of alternative evaluation Evaluative criteria: standards and specifications consumers use to compare and contrast products. Beliefs:The perceived relationship between an attitude object and some attribute. Beliefs should lead to attitude and intentions which then leads to behavior.

Attitude: cognition, thoughts, beliefs, affect→ evaluations. Conations → intentions and natural behavior. 1. Evaluative criteria- Standards and specifications consumers use to compare and contrast products. 2. Beliefs- The perceived relationship between an attitude object and some attribute. An alternative's performance on important evaluative criteria 3. Attitudes- The extent to which one feels favorable or unfavorable towards some object. The overall evaluation of an alternative. 4. Intentions- The likelihood that a particular action will be taken. Structural vs. current view of attitudes - Structural vs. Current view of attitudes. A weakness in one attribute is not compensated by the strength of another. Traditional assumption of attitude-behavior relationship Components of Fishbein’s original and extended models - Fishbein original model, that has limitations of - -Do attitudes really predict behavior? - -What is the rule of significant others? - Extended model→ see last page (also computations of attitude, Aact, SN, BI) Consumers’ use of compensatory and noncompensatory models (Lussier & Olskavsky) - Non-compensatory decision rules. A weakness in one attribute is not compensated by the the strengths of another attributes. Compensatory decision rules: A perceived weakness of one attribute may be compensated by strengths on others. Post-purchase dissonance - An inconsistency among our attitudes and our behavior. - Produces an unpleasant state known as dissonance. - Characteristics of the dissonance situation. - Engage in behavior, public, freedom of choice. Consumers’ use of choice tactics/heuristics (Hoyer) Elaboration Likelihood Model -- Petty, Cacioppo, & Schumann - model of how attitudes are formed and changed -deals with how much thought you will put into making a particular attitude central route: lots of thought peripheral route: little thought which route taken: personal relevance of message, relevant knowledge, cognitive resources, need for cognition. (i.e., information processing under high & low involvement conditions) - THE NEED FOR COGNITION- Some individuals have a need to understand and make reasonable sense of the experiential world. They derive intrinsic enjoyment from engaging in effortful information processing. They are willing to engage in prolonged episodes of effortful problem solving. Weapons of Influence -- Cialdini, Chpts. 1, 7; (marketing tactics used to encourage consumers’

use of heuristics)

Expectancy-value model: Ao = attitude toward the object, bi= the ith belief about the object ai=the evaluation of the belief, N= the total number of beliefs. 7 7 7 6 7

7 7 5 4 1

=44 =44 =35 =24 =7 154

Extended Model (Theory of Reasoned Action) 1. Predicting behavior- just ask person what they are going to do a. Intentions are a feeling of your attitude towards the act b. If “yes” then he/she will perform c. If “no” then he/she will not perform 2. But intention- behavior relationship is not so simple a. Factors may intervene between intention and behavior i. Time interval ii. Exposure to new info iii. Ability iv. Dependence on others v. Habit...