marketing-consumer behavior

consumer behavior depends on what (5)
exposure
perception
attention
memory
learning
perceptions relies on what
5 senses
vision
wrapping color indicating flavors or scents
smell
scratch offs
store having scent-abercombie
sound
jingles
types of music played/volume
touch
samples, textures, holding bottle
exposure
“The process by which the consumer comes into contact with the stimulus.”
“contact”
interacting with 5 senses
“stimulus”
seeing the product or smelling the product
mere exposure
The mere presentation of a cue (e.g. a brand) leads to increased liking of that cue even without people being aware
fluency
easier to process information
What if the target product is not the “highest quality” product?
you will start to like it because exposed to it alot
consequence of too much mere exposure
Sub-optimal consumer choice
product placement
put product in tv/movies
subliminal perception
Stimuli are presented below the threshold of recognition
popcorn experiement
-45,699 persons
-Subliminal Advertising Experiment in movies
-Stimuli: Drink Coca Cola and Eat Popcorn
-Behavior: 57.8 % increase in sales of Popcorn, 18.1% increase in sales of Coca-Cola

-However…. proved to be false but plenty of work in Marketing on unconscious processing

what do we percieve?
Just-noticeable (meaningful) difference (JND)/ Weber’s Law
Weber’s Law
The amount by which two stimuli must differ before a person can perceive that they are different.
weber law example
notice $1 change in price more on $3 product than on $1,000 product
Just-noticeable (meaningful) difference (JND)/ Weber’s Law AKA
differential threshold
how do you test limits
-Increase the difference between two identical stimuli until the person says “they’re different.”
-Decrease the difference between two stimuli until the person says “they’re the same.”
When raising price, do it in small steps when…
below JND
When lowering price, do it in big steps when ..
above JND
JND package size
-Decrease package size by small amount
-Increase package size by large amount
JND product quality
Decrease quality by small amount
packaging changes
-If you want to maintain image, make many small changes

-If you want to change image, make fewer large changes

perception map tells us
-Compare your brands to other brands
-Find out who your competitors are
-What are your strengths? How do you position yourself?
how do you create perceptual map
Ask your customers what attributes are important to them and how they feel about your product AND your competitors product
Once you know what consumers think what do you do
you must decide how to move consumers actual perception toward desired perception.
attention
The processes by which we devote mental activity to a stimulus
characteristics of attention
-Can be voluntary or involuntary.
-Can be divided (with varying degrees of success).
-Is limited, therefore must be selective.
how many commercials do we see in a week
700
how do messages get through
Novelty/ Expectation violation
POsition
Novelty/ Expectation violation
-Unexpected ad or product format
-Unexpected ad placement

*we pay more attention to things we dont expect to see

position
Ex: Placement within magazine
Back cover
Near front, right of page

Ex: Placement on store shelves

adaptation
We adapt, or habituate, to stimuli which leads to innattention
what does adaptation tell marketers
need to keep ad campaigns current and fresh
Interpretational Biases
Refers simply to the meaning we assign to sensory stimuli

trying to “make sense” of things

ambiguousness and perceptual bias
The more ambiguous/uncertain the stimuli, the higher the likelihood of perceptual biases (very subjective)
ex ambiguous
clothing, food —more taste guided
ex unambiguous
laptop: facts on variety, memory, can rank a product
Consumers can be biased by (5)
-Their schemas or set of beliefs
-The country of origin
-Their affective states – mood and emotions
-Their preferences for specific brands
-Price
Their schemas or set of beliefs
French wines are better; darker coffees are stronger
the country of origin
Made in France? Made in Italy? Made in U.S.A
Their affective states – mood and emotions
humor in ads
Their preferences for specific brands
Can you notice the differences in taste between Coke and Pepsi, Gatorade and PowerAde, etc.? Are you sure?
price
Does price imply quality?
learning
A relatively permanent change in behavior caused by experience and developing automatic responses to a situation built up through repeated exposure to it
experiences are shaped by what
feedback they recieve as they go through life
actions result in what
rewards and punishments, which influences future responses to similar situations
Classical Conditioning- Pavlov
Stimulus (unconditioned stimulus – UCS) that elicits a response is paired with another stimulus (conditioned stimulus – CS) that initially does not elicit a response on its own.

Over time, this second stimulus (CS) causes a similar response because it is associated with the first one (UCS).

mcdonalds classical consitions
UCS- the smell
CS-the logo
CR- getting hungry
conditiong success
Repeated CS + UCS pairings are important.
CS should not be presented too often without UCS.
Conditioned Product Associations
Ads often associate a product with a positive stimulus to create a desirable association

E.g., Pleasant atmosphere at a Starbucks coffee shop (UCS) over time can be associated with the coffee (CS).

extinction
Danger of Extinction exists if the association is not there anymore

E.g., Selling Starbucks products
at the supermarkets.

Stimulus Generalization
-Similarity in product leads to similarity in response

-Positive feelings associated with a product are hoped to be transferred to brand extensions and private brands

-Licensing

Stimulus Discrimination
Refers to situations when we respond differently to the stimuli (i.e. products) because we can notice the difference

why pepsi and coke look so different

Evaluative Conditioning in Marketing
Often evaluation of an UCS is transferred onto the CS.
pens and music
given pens to play with some heard good music others bad when asked to keep pen or get new pen good music people kept pen
Reinforcement through Feedback
-Continuous reinforcement schedule
-Fixed ratio schedule
-Variable ratio schedule
Continuous reinforcement schedule
everytime you fly people are nice
Fixed ratio schedule
you know once u get 25,000 miles you get a free flight
Variable ratio schedule
winning money on a bottle cap
Marketers can (and do) reinforce or punish consumers indirectly by
by showing what happens to desirable models who do or do not use their products
Social Learning Theory/ Observational Learning
We don’t have to be the one learning

Occurs when people watch the actions of others and note reinforcements received for their behaviors

bobo dolls

Memory involves
process of acquiring information and storing it over time so that it can be retrieved when needed.
info aquisition and purchasing time
Info acquisition time often differs from purchasing time
info storage influenced by what
Information storage is influenced by existing info in memory
Short-Term Memory
Where we encode and interpret information
short term memory storage
Holds limited amounts of information until it is:

Used in response
Stored more permanently
Lost

long term memory
Holds information more permanently after it has been transferred from STM.
long term memory storage
unlimited capacity
Knowledge is often organized how
categories-Objects that share similar concrete or abstract attributes are clustered together, usually in a hierarchical form.

(e.g., Gatorade is a beverage, but not a juice).

categorization.
The process of organizing these similar objects is called categorization.
categorization for marketers (5)
-helps positioning
-defines competition
-influences product evaluation
-influences memory
-influences expectations about product location in supermarkets
helps positioning
Is Propel “water”, “energy drink”, “soft drink”, “juice”?
defines competition
, Does Propel compete against Perrier?
influences product evaluation
Propel is Gatorade – Positive Attitude
Categorization influences memory
, When I think about water, do I think about Propel
Categorization influences expectations about product location in supermarkets
Is Propel among the energy drinks or among the bottles of water?
nodes
folders
schemas
made up of folders
how do we categorize
concrete attributes
schemas madeup of what
consideration sets
Recall versus recognition
Recognition scores tend to be more reliable than recall scores –> in reality more retrieval cues are available to consumers
Why important to measure memory of ads?
-Companies spend millions of dollars on advertising
-7 percent of television viewers can recall the product or company featured in the most recent TV commercials they watched
chunking
A group of items that can be processed as a unit
Limit is 5+/-2 items
rehearsal
Actively and consciously interacting with the material (jingle/ slogans)
Recirculation
Remembering via repetition without active rehearsal (street names/ mall stores)
Elaboration
Processing at a deeper level – relate it to existing information and past experience