QUIZ 1 Study - Summary Consumer Behaviour PDF

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QUIZ 1 STUDY – FIRST 5 WEEKS CHAPTER 1,8,9,10,11 Consumer behaviour; the dynamic interaction of cognition, behaviour & environmental events by which human beings conduct the exchange aspects of there lives Week 2; lecture notes – PERCEPTION  Nature ; exposure, attention, interpretation, memory  Exposure; when a stimulus comes within a range of receptor nerves  Must be detectable by senses o Deliberate exposure to stimuli  Consumers seek information that will help achieve certain goals  Immediate, e.g. find out info to get lunch  Long-range, e.g. study text for exam  Attention; when perceived stimulus goes to brains for processing  Atimulus factors  Individual factors  Interests and motivations influence our perceptual vigilance for stimuli o Interest; golfers will notice a billboard for a golf club more than non golfers o Motivation; you more likely to notice fast food ads if you are hungry  Situation factors  Involvement  Non-focused attention o Hemispheric laterilisation o ‘sublimal messages’ o  Stimulus factor; size and intensity o Ads – what gets your attention, how does it hold your attention o Attention change stimuli – consumers become accustomed to seeing something o E.g. VB dropped alcohol % to 4.6, trusted sonsumer loyalty  resulted in drop in market share. - Attention; interests & motives influence our perceptional vigilance for stimuli  Will never get interpretation if your attention is not gained  Absolute threshold; the point to which people will recognise stimulus – font size.  Differential threshold; drawing attention through a comparison o Perception and markettting strategy;  Retail strategy  Brand name & logo development  Media strategy  Advertisement & package design  Retaill strategy; o Store layout – cold & hot zones.

o Lighting and fitout o Placement of product on shelves Key chapter 8 definitions; Perception; the process by which we notice, attend to and interpret the stimuli – objects, messages and events – that we encounter in the world around us Information processing; a series of interlinked activities by which stimuli are formed into transformed and stored Absolute threshold; the lowest level of stimulation necessary for detection by a persons sensory receptors Stimulus factors; the physical characterstics of a stimulus itself Differential threshold; a consumers ability to notice changes or differences in levels of stimulation Cognitive interpretation; a process whreby stimuli are placed within existing categories of meaning Chapter 8, summary 8.1; what is the nature of perception; Perception consists of those activities by which an individual acquires and assigns meaning to stimuli. Critical to information processing system. 8.2; what are the steps involved in information processing 1. Exposure; occurs when stimulus comes within a range of ones primary sensory receptors 2. Attention; occurs when the stimulus activates one or more of the sensory receptors 3. Memory; how the meaning is recorded either for short term use or longer term use. 8.3; which stimulus factors influence this process Stimulus factors are physical characteristics of the stimulus itself; contrast, size, intensity, colour and movement, position. 8.4; which individual factors influence this process Interests and needs, as well as prior learning and expectations.

Week 3 lecture notes; learning and memory  Learning; o Any change in the connect or organisation of long term memory. o Result of information processing o Consumer behaviour is largely learned behaviour o Learning results from information processing, causing memory changes  Involvement & learning o High involvement conditions o High motivation to learn o Seeking out information - Fascilitating high involvement o Literally ‘involvement’ consumers in the advertising can increase involvement o Creating apps & using social media can increase involvement  Types of learning

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o Conditioning – association of a stimulus with a response o Classical conditioning  Establishing a relationship between stimulus & response to bring about the learning of the same response to a different stimulus  It is most common in low involvement situations  Learning Is more often a feeling or emotion o Operant conditioning;  Trial precedes liking  Reverse is often true for classical conditioning  Product sampling is an example of this type of learning Reinforcement of conditioning; o Rewards are good things that can reinforce purchasing behaviour Cognitive learning o Iconic wrote learning – association between two or more concepts in the absence of conditioning o Reasoning; most complex form of cognitive learning – most involvement decisions generate some reasoning o Vicarious; observing ones behaviour & adjusting ones own accordingly (high and low involvement) General charactersitcs of learning - Strength of learning is influenced by o Importance & relevance o Involvement o Mood Extension o Forgetting occurs when reinforcement for learning is withdrawn Stimulus generalisation o Brand equity and/or leverage o Used by brands to mimic prestige brands  Tommy Hilfiger bumbags mimic Gucci o Supermarket homebrands  Same packaging only difference is price Memory o Short term memory  Working memory

Chapter 9 key definitions; Learning; any change in the content or orginisation of long term memory; the result of information processing High involvement learning; a situation in which the consumer is motivated to learn or process the material Low involvement learning; a situation in which the consumer has little to no motivation Conditioning; learning that is based on the association of a stimulus and a response. Classical conditioning; the process of using an established relationship between a stimulus and a response to bring about the association of that same response to a different stimulus

Operant conditioning; the process of learning wherby the consumers response to a stimulus is either reinforced by a reward or discouraged by a punishment Cognitive learning; the mental activities of humans as they work to solve problems or cope with situations Iconic rote learning; leanring the association between two or more concepts, in the absence of conditioning. Vicarious learning; a type of learning based on the observation and imitation of the behaviour of others General characteristics of learning 1. Strength of learning 2. Extinction 3. Stimulus generalisation 4. Stimulus discrimination 5. Response environment Chapter 9 summary 9.1 what is the nature of learning Defined as any change in the content or organisation of long term memory or behaviour. Managers are very interested in the nature of consumer learning – two basic types (cognitive and conditioning). 9.2 what are the differences between classical conditioning, operant conditioning and cognitive learning. 9.3 what are the main characteristics of learning and memory. Several characteristics of learning are relevant to marketing managers, 1. Strength of learning 2. Extinction 3. Stimulus generalisation 4. Stimulus discrimination 5. Response environment. Memory; total accumulation of prior learning experiences - Short term memory - Long term memory 9.4 how can knowledge about learning be incorporated into marketing strategies. o Leveraging brand equity is an example of the use of stimulus generalisation by marketers. o Stimulus discrimination (opposite process) – learning to respond differently to somewhat similar stimuli. o Marketers look to build a loyal customer base. o Extinction related to the strength of original learning and can be modified by continued repetition. 9.5 what is the importance of brand image and product positioning. Brand image is what we think of and feel when we hear or see a brand name. Successful consumer marketers have recognised that establishing and maintaining a strong brand image is crucial to brand success

Week 4 lecture notes; motivation Nature of motivation; The energising force that activates or triggers behaviour Provides purpose, direction & drive to that behaviour. Theories of motivation Maslows heirachy of needs – macro theory Mcguire psychological motives – more detailed 1. Cognitive preservation motives a. Need for consistency – we want things to make sense b. Need to attribute causation – externally or internally – determined who or what caused events. c. Need to categorise – established frames of reference d. Need for cues – symbols & cues to help us make meaning 2. Cognitive growth motives a. Need for independence – to be in control & have self worth b. Need for novelty – we like variety and change c. Technological need – we want things to go the way we think they will d. Utilitarian need learn new infor to solve problems 3. Affective preservation motives a. Need for tension reduction – look to reduce stress and have leisure b. Need for self expression – show others our identity & self concept c. Need for ego defence – protect our self concept or ego d. Need for reinforcement – act in ways that will be reinforced 4. Affective growth motives a. Need for assertion – increase self – esteem b. Need for affiliation – have social relationship c. Need for identification – adopting new rules d. Need for modelling – copying others behaviours. o Manifest motives  motives that are known & admitted by the consumer o Latent motives –” when consumers are unable or uwilling to admit motives are influencing them.  Motivation research techniques o Association techniques  word association/successive word association o Completion techniques  sentence & story completion  Marketing strategies based on motivation conflict o Approach motivational conflict  Two attractive alternatives (choice)  Dissonance around making the right choice o Avoidance  Positive and negative consequences for consumer  The basis for diet drinks  Personality o Individual personality theories o Social learning theories

o A combined approach  Single trait theories o Using one specific trait to explain the behaviour at hand  5 factor model of personality o Extroversion – prefer to be in a group o Instability – moody, tempremental o Agreeableness – sympathetic o Openness to experience – imaginative o Conscientioness – careful, precise  the use of personality in markets o brand personality – set of human characteristics that become associated with a brand  emotions and marleting strategy o emotion arousal as a product benefit o sad movies chapter 10 key definitions chapter 10 summary week 5 lecture notes; attitude an attitude; combination of (motivational, emotional, perceptual & cognitive process) respect to environment learned predisposition to respond in a consistently positive or negative way to an objective terminology; o favourability o positive or negative evaluation of the object or event o intensity o the strength which the consumer can hold an attitude o confidence o the degree to whoch the consumer believes their attitude is right  

cognitive component; the consumers beliefs & knowledge about the attributes of a particular brand, product or outlet o many beliefs relate to the evaluation of attributes o the cognititve component represents the summation of evaluation o multi attribute model

week 7 chapter 4 information search. Second stage of consumer decision making process - internal search o firsts tep in information gathering o memory and personal experiences - external seach o pre-purhcase research (if internal search fails to solve the problem) o e.g. other people, advertisemnts o focus is on external stimuli - different types of information sources; o internal – most often – info from pasr searches or personal experience o external –  personal – friends and family  independent – consumer groups  marketing – advertising - ongoing search o searching without specific problem o e.g. a fashion conscious consumer might:  browse local fashion predints  signup for online newsletters  read fashion magazines.

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evaluate criteria o what characteristics are important enough to change an opinion appropriate alternatives o the brands you are aware of from the awareness set.  Evoked (consideration)  Brands you seriously consider

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External search may add brands to this set

Characteristics of alternatives - External search Is directed towards the consideration brands and the evaluative criteria •

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Online sources have increased dramatically: • brand websites • social media • blogs • advertising • review sites e.g. Urbanspoon • local mobile sources. Need to understand mobile users: especially in-store.

Marketing strategy and online search. Need to ask - Should we have a website - What is purpose of site o Information onluy o Co and product/service information o Actively attract customers o A shopping site o Create a brand community -

Amount of external information search Measures used o number of stores visited o number of alternatives considered o number of personal sources used o overall or combination measures.

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extent of search depends o the market characteristics o the product itself o consumer as individual market characterstics o number of alternatives  more choice/more search o price range  lots of price variance causes uncertainty o store distribution  cost vs benefits product characteristics  price, differentiation, positive products consumer characteristics  learning and experience, shopping orientation, social status, demographics situational characteristics  time, recipient, physical surrounding.

Practice test 6; In an information search, recalling information from memory is called an ‘internal search’ The awareness set is the sum of the evoked set plus the inert set plus the inept set.

Another term for ‘evoked set’ is the ‘consideration set’ Students are asked to rate the importance of various aspects of their university (e.g. teaching quality, accommodation, restaurants and banking facilities on campus). They are asked to allocate 100 points across a list of factors so as to reflect the relative importance of each factor to themselves. This is an example of a constant-sum scale. The features the consumer believes a product should have to meet their needs are referred to as evaluative criteria

Week 8 outlet selection and product purchase – chapter 6 ; 

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consumer outlet selection; o consumer characteristics o store characteristics o in store decision alterations. Outlet choice vs brand. o Brand first retail outlet second  Marketing around prodyct features o Outlet frist brand second  Store sale catalogue, sales staff incentives. o Brand and retail outlet simultaneously

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The retail scene In retail stores or online o Other outlets, non-store outlet markets, direct sales. Major issue is brick vs click Multi channel strategies o Consumers blur boundaries between bricks and clicks  E.g. search online then buy in store.  Buy some things in stores, others online

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Increasingky incuding mobile sources as well  E.g. find a ps3 game on a sale at EB, check review on your ohone, check prices at nearby stores Attributes affecting retail outlet selection Retail format o Low involvement, e.g. mass merchandisers, vending machines o High involvement, e.g. speciality stores. Outlet image o A consumers or target markets perception of all the attributes associated with a retail outlet. Store brands o Exclusive brands e.g. lush o Home brands. Retail advertising o Price of advertising o Size of discount o Reference/comparison o Words accompanying the price information

Consumer characteristics and outlet choice o Shopping orientation o Perceived risk  Rinancial risk  Online has risk because you can’t see or touch the actual merchandise before buying  in store extended warranties: useful or expensive pieces of paper o social risk  self concept related e.g. clothing

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nature of unplanned purchases o reminder purchases o impulse purchases o specifically planned decisions o generally planned decisiojns point of purchase displays o in store promotional device  often elaborate or attention grabbing o designed to quickly communicate to get unplanned sales  special features  price discounts. Impact of stockout situation o Can negate loyalty and habit o Lost or substitute sale o Negative consequences for the brand and the retail outlet o Attitudes/word of mouth. Post-purchase dissonance o Post purchase dissonance is doubt or regret about a purchase (buyers remorse) o Probability and magnitude of dissonance is a function of the:  Degree of commitment and/or whether the decision can be revoked  Importance of the decision to the consumer  Difficulty of choosing among the alternatives  Individuals tendancy to experience anxiety Reducing dissonance o Internal re-evaluation o Post-puchase information search; to confirm decision, salesperson follow-ups help, warranties and guarantees, advertising.

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Product use  use innovativeness, multiple uses, multiple products, regional variations. Packaging Defective products  product recalls. Product disposal and marketing strategy o Consumption, recycling (product, package) o Trade-ins/exchanging (to motivate replacement) o Second-hand markets (textbooks, clothes. Cahs converters) Disposal and the environment o Eco-friendly disposal options are increasingly important; both for consumers and the finances of companies. o Brand use this as a point of difference. o Pro-environmental organisations do too. (green peace stop coca-cola trashing asutralia campaign) Satisfaction o Evaluation of a purchase is defined by perceived performance relative to expecatitions.  Satisfaction if expectations areexceeded  Dissatisfaction if expectations are not met. o Expectations are often set by brand communications  Marketers need to be aware of consumer expectations. Types of performance o Instrumental  Does the product actually achieve its purpose o Symbolic  Does it enhance the consumers self-concept in the desired way. o Affective  Did the product make you feel good 4 types of response styles associated with dissatisfaction o Passives (14%)  Seldom take action, don’t see a benefit from complaining o Voices (37%)  Usually complain directly to the firm, believe they are providing a social benefit o Irates (21%)  Take above average levels of private response and average levels of direct action, but low levels of public action. o Activists (28%)  Likely to get involved in private, direct and public action, believe they are providing social beneifts by complaining Complaining/reviewing online  feedback loop o Does a high rating urban spoon create higher expectations in turn o Twitter allows instant voice and direct contact. Marketing strategy and dissatisfied consuemrs o Marketers need to satisfy consumer expectations  Creating reasonable expectations through promotional effors

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Maintaitning consistent quality so that these reasonale expectations are fulfilled Brand loyalty; implies a psychological commitment to the brand o Biased, a behavioural response, expressed over time, a consumer selects a brand over alternative brands, a function of psychological processes. Repeat purchase behaviour; simply involves the frequent repurchase of the brand - Customer loyalty o Increased purchases of the existing product o Cross-purchases of your other products o Price premium o Reduced operating cost because of familiarity with your service system.  5 key elements in relationship marketing. 1. developing a core product/service on which to build 2. customising the relationship to the individual customer 3. augmenting the core product/service with extra benefits 4. pricing in a manner that encourages loyalty 5. marketing to e...