Consumer Behavior: Chapter 3

Learning
A change in behavior resulting from the interaction between a person and a stimulus. For example, we know the “swoosh” stands for Nike, and we know there’s an arrow in the FedEx logo. Can be intentional or unintentional.
Perception
A consumer’s awareness and interpretation of reality. Value involves learning, and consumer learning begins with perception. The example was a hidden message on the backs of playing cards – most don’t see it because they are focused on something else.
Steps in the Perceptual Process
Exposure, Attention, and Comprehension.
Exposure
The process of bringing some stimulus within proximity of a consumer so that the consumer can sense it with one of the 5 human senses.
sensation
consumers immediate response to a stimulus
sensory marketing
actively seeking to engage customers senses as the primary aspect of the value proposition.
Attention
The purposeful allocation of information processing capacity toward developing an understanding of some stimulus. Simply put, it’s the learning that one thing represents or signifies another.
Comprehension
The attempt to derive meaning from information. If you do not know something, you must be sure to arrive at the right understanding.
Consumer Perception Phases
Sensing, Organizing, and Reacting.
Cognitive Organization
A process by which the human brain assembles sensory evidence into something recognizable.
Organization Reactions or Responses
Assimilation, Accomodation, and Contrast.
Assimilation
Occurs when a stimulus has characteristics such that individuals readily recognize it. Example: A picture of a donut gets put into the “donut” section of our brain.
Accomodation
Occurs when a stimulus shares some, but not all, of the characteristics that would lead it to fit neatly into an existing category. Example: A picture of a benyay from New Orleans may look like a pillow or a scrubber at first, but with more information, we can put it into the right category.
Contrast
Occurs when a stimulus does not share enough in common with existing categories to allow categorization. Example: A picture of pig snouts that is unrecognizable at first gets processed into the dessert category when we realize it’s a delicacy in foreign nations.
anthropomorphism
giving humanlike characteristics to inanimate objects
Selective Perception
Because we’re bombarded by so much information, we do not remember everything we take in. Involves Selective Exposure, Selective Attention, and Selective Distortion.
Selective Exposure
When a consumer notices certain stimuli and ignores or screens out others.
On average, how many advertising messages do we encounter each day?
2,500.
Selective Attention
Paying attention to only certain stimuli – only messages that address a specific need or interest.
Selective Distortion
Consumers interpret information in ways that are biased by their previously held beliefs. You remember what you want to remember. Example: Cigarettes – we know the dangers of smoking, but we don’t think it will happen to us.
Subliminal Stimuli
Those that occur below the absolute threshold of perception. Example: There’s a dollar bill in the lettuce on the KFC Snacker commercial.
Just Noticeable Difference
Represents how much stronger a stimulus has to be relative to another so that someone can notice that the two are not the same. Example: Coke changed their formula, and Pepsi took advantage of it. You must know how and when to change.
Weber’s Law
The ability to detect differences between two levels of a stimulus is affected by the original intensity of the stimulus.
JND in Pricing
Small increase in price is okay, but a large change in price is bad.
JND in Quantity
Small decrease in quantity is okay, but a large change in quantity is bad.
JND in Add-on Purchases
Small add-on is okay, but if you try to sell a large add-on, it is bad.
JND in Quality
Small improvement in quality is bad, but a large change can be good.
Just Meaningful Difference (JMD)
Represents the smallest amount of change in a stimulus that would influence consumer consumption and choice.
What is the prime offer that will attract people and cause them to purchase?
20%
Mere Exposure Effect
Consumers will prefer an object to which they have been exposed. Example: Ghostbusters didn’t get favorable reviews during screenings, so they released the song and music video. They played it everywhere for 4 months before re-releasing the movie, and it became a blockbuster!
Implicit Memory
Things you did not try to remember, as with things learned passively and unintentionally.
Product Placement
Branded products being shown conspicuously.
Explicit Memory
Memory that developed when the person was trying to remember something. Example: Studying for an exam.
Attention
The purposeful allocation of cognitive capacity toward understanding some stimulus.
Involuntary Attention
Attention that is beyond the conscious control of the consumer. Occurs as a result of exposure to surprising or novel stimuli.
6 Ways to Enhance Attention
Intense Stimuli, Contrast, Movement, Surprise, Size, and Involvement.
Intense Stimuli
Loud, flashing, and in your face.
Contrast
Take something that’s normal and change it, make it unique.
Movement
Neon lights, flashing or moving billboards.
Surprise
Advertising vehicles – live displays or TV screens on cars and trucks.
Size
Things like the huge Adirondack chairs outside of Beaver Bay, MN.
Involvement
The personal relevance toward or interest in a particular product. Example of to increase involvement: There’s a bus stop tanning ad with a darkness slider. It gets people involved.
Intentional Learning
Consumers set out to specifically learn information devoted to a certain subject. Example: Carfax – we are deliberately trying to learn about a car’s history.
Unintentional Learning
Consumers simply sense and react (or respond) to the environment.
Learning Theories
Behaviorism and Information Processing Perspective.
Behaviorism
Focuses on the changes in behavior that occur through responses to stimuli without concern for the cognitive mechanics of the process. The mind is of little concern, and we are focused more on impulses and reflexes.
Information Processing Perspective
This perspective focuses on the cognitive processes associated with comprehension that lead to consumer learning. Mind is used to process information for the consumer.
Major Approaches Found in the Behavioral Learning Theory
Classical Condition and Instrumental Conditioning.
Classical Conditioning
A change in behavior that occurs simply through associating some stimulus with another that naturally causes a reaction. Example: Pavlov’s dogs.
Instrumental Conditioning
Behavior is conditioned through reinforcement. Example: Sheldon using chocolates to change Penny’s behavior on the Big Bang Theory.
Positive Reinforcement
Often takes the form of some type of reward.
Negative Reinforcement
Often takes the form of removing some sort of harmful or bad stimuli as a way of encouraging behavior. For example, by using Head and Shoulders you won’t be embarrassed by dandruff on your shirt.
Extinction
Process by which behaviors cease because of lack of enforcement. For example, students sign up for a TCIF bank account because they get a free UMD sweatshirt. If the free sweatshirt is removed as part of the offer, students stop signing up for a bank account.
Punishers
Stimuli that decrease the likelihood that a behavior will persist. For example, if someone purchases a DVD and it does not play Blueray, the consumer is punished.