Post on 18-Jan-2016
MICHAEL ADAMS, CHEN KONG,
MADIHA AHSAN , KIM FETTKETHER
Agenda
PerceptionLearningPersonality and LifestyleAttitude and Changing AttitudeConsumer Decision Making
Perception Is Reality
Perception Is Reality
Lens Ours, Others, World around us
Reality is the true state of thingsWe supply the perceptions and build our
beliefs with themReality transcends both expectations and
beliefs
Perception
Using the Five Senses
Visual
Visual/sight primary way companies market
Perception
Experts suggest more thought be put into other four senses
Aradhna Krishna – University of Michigan. Considered a sensory expert
2014 BMW M5 modelSound, feel
Perception
Sound, smell, taste, sight,
feel
Perception
Evolution of Communications with customersMonologues – companies ‘talking at’
consumers. Soap boxDialogues - customers providing feedbackMulti-dimensional conversations – products
having own voice and consumers responding subconsciously
Perception
Focus on Innovation Physiologists and experts in perception on staff Applying unconscious behaviors & human cognitive &
physical processing How apply to Sharpie pens and pliers
Perception
https://www.youtube.com/watch?v=i7YwwH5RkHo
THE CENTRAL CONCEPT STATES THAT THE BEHAVIOR THAT IS POSITIVELY REINFORCED IS MORE LIKELY TO RECUR THAN THE NON-REINFORCED BEHAVIOR.
• BEHAVIORAL LEARNING• COGNITIVE LEARNING
Learning
Behavioral Learning
Classical conditioning Ivan Pavlov
Operant conditioning Skinner
Classical Conditioning
Respondent conditioningIvan PavlovWhen a neutral stimulus is paired with an
unconditional stimulus elicit a response similar to response originally obtained by the unconditional stimulus.
Operant Conditioning
Skinner (1953) also called Skinnerian conditioning
Responses are usually voluntary controlled by their consequences
Thorndike further explored and coined the term instrumental conditioning
Law of effect: Satisfying results will strengthen association between response and stimulus and vice versa
https://www.youtube.com/watch?v=RTVQHhbhYbA
Cognitive Learning
Brain is most incredible network of information
Focuses on unobservable changes in human brain
Refining of knowledge by adding more knowledge
Cognitive Learning
Social Cognitive Behavioral factors Environmental factors Personal factors
Cognitive behavioral The self The world The Future
Personality and Lifestyle
Personality- Qualities and traits that can explain character or behavior of a specific person. Its what makes you the way you are
Lifestyle- Set of shared values or tastes common to a group of consumers
Personality
Sigmund Freud Unconscious needs and drives are at the
heart of human motivation Id – primitive and impulsive drive Superego – internal expression of moral and
ethical code of conduct Ego – conscious control
Personality and Marketing
Targeting consumers with relevant personality traits
Developing promotional ads that would appeal to consumers with specific personality traits
Develop brand personality (attribution of human personality traits to brand/product in order to develop relationship with customer)
Lifestyle and values
VALS – Arnold MitchellUses two dimensions such as resources and
innovation to segment consumers into eight mutually exclusive psychographic groups
Lifestyle and values and Marketing
Find niche markets easilyLocate target groupsImprove and introduce products according to
customers valuesAccurate positioning of the product For effective and more accurate marketing
and advertising campaigns
Weber and “The Good Deal”
Linking back to the perception section, we covered Ernst Weber’s Law.
Perception of a “Good Deal” is about 20%.
Black Friday?
A term coined to describe what is generally the first day of a calendar year where a retailer will “run in the black”
In the 1960’s is when the term was used to describe the kickoff for holiday shopping.
Retailers found they had much better profits if they focused on deep discounts early in the shopping season rather than last minute deals.
Consumer Misbehavior and Black Friday
Studies found deep discounts over a small time frame will induce “Consumer Misbehavior”.
A number like Weber’s is not available but research concluded that a buyer’s sense of entitlement to a “Good Deal” will emphasize a narcissistic personality and can lead to increased aggression.
Lennon, S., Johnson, K., & Lee, J. (2011). A Perfect Storm for Consumer Misbehavior: Shopping on Black Friday. Clothing & Textiles Research Journal, 29(2), 119-134. doi:10.1177/0887302X11401907
Class Experience w/ Black Friday
Did anyone go shopping on Black Friday?People that did, see any aggressive behavior
trying to get a “Good Deal”?Any one work a retailer during Black Friday?Does the class think we have a number on
how much of a discount will cause “Black Friday” like aggression?
Did you get aggressive?
Attitudes and Attitude Change
5 Key Descriptors of Attitudes1. They are learned2. They are predispositions3. They are consistent4. They are what links perception to
behavior5. They are a hypothetical construct
Class Experience Tie Back
When looking back at the discussion, #4 explains a lot.
Since everyone’s attitudes will be different, even if everyone has the same perception of a “Good Deal”, their behavior will be different as a result of their attitudes.
Closer Look at Emotions on Black Friday
Attitude towards the product
Part of marketing’s job is to promote a positive attitude towards your company.
Ways to help lead towards a positive attitude is: Source Credibility – Expert Testimonials and Big Name
Reviews Source Physical Attractiveness – A pretty face can sell
anything Source Likeability – Tailor to fit the target audience or
build on known factors Message Factors – Word/Pictures and Repetitions (3rd
times the charm) Receiver Emotions – psychology kicks in now leverage
sex, fears, loves, humor
Receiver Emotions (aka Subliminal Advertising)
Subliminal Advertising is where the advertisement will build off of your base emotions:
1. Sadness2. Fear3. Anger4. Surprise5. Disgust
Fear?
In class we talked about the Mob and their “Protection”. That can’t be real right? Wrong…..
The rest?
SadnessAnger Surprise
Disgust
Source: Schiffman L., & Kanuk L., (2004) Consumer Behavior, International 8th Edition, New Jersey Pearson Prentice Hall
Types of Decision-Making
Example of Decision-Making Process
•CK feels his dumb phone does not match his needs and wants to buy a smartphone
Problem Recognition
•CK conducts online research and recalls his experience with various mobile phone manufacturers
Information Search
•CK compares several models in terms of design, price, and features
Evaluation of Alternatives
•CK makes the decision based on features that he was looking forPurchase
•CK makes the purchase and finds out he spends more time trying to find a power outlet than using his new phone thus feels regret of buying a smartphone
Post Purchase
Consumer Decision-Making Process
Buying decision-making The process of selection and final selection
Youtube video, https://www.youtube.com/watch?v=sCblG8OYeIM
Need recognitionPre-purchase searchEvaluation of alternatives
Need Recognition
The magnitude of discrepancy between ideal and actual states
Information Search
Evaluation of Alternatives
Decision rules: Compensatory and non-compensatory Hypothetical use of popular decision rules in making a decision
to purchase an ultralight laptop
Decision Rule Mental Statement
Compensatory rule
”I selected the computer that came out best when I balanced the good ratings against the bad ratings.”
Conjunctive rule ”I selected the computer that had no bad features.”
Disjunctive rule ”I picked the computer that excelled in at least one attribute.”
Lexicographic rule
“I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute.”
Affect referral rule
”I bought the brand with the highest overall rating.”
Purchase
Three types of behavior Trial Repeat Long-term commitment
Post Purchase Stage
Four types of results Learns perception about the product Acquires knowledge and information about the
product Satisfaction Disposition after the product is used
Cognitive Dissonance (Leon Festinger, 1919-1989)
Cognitive Dissonance
Mental discomfort Contradictory beliefs, ideas, or values Action contradictory to beliefs, ideas,
or values Confrontation with new information
conflicting with existing beliefs, ideas, or values
Happens when… High involvement (Monetary cost,
psychological cost, relevancy) Freedom in selecting among
alternatives Irreversible decision
Leon Festinger1919-1989
Cognitive Dissonance – cont’d
Implication Discontinue future purchases Complain Negative word of mouth
Help consumers Reduce Avoid
Questions?