Download The central concept states that the behavior that is

MICHAEL ADAMS, CHEN KONG,
MADIHA AHSAN , KIM FETTKETHER
Agenda
 Perception
 Learning
 Personality and Lifestyle
 Attitude and Changing Attitude
 Consumer Decision Making
Perception Is Reality
Perception Is Reality
 Lens
 Ours, Others, World around us
 Reality is the true state of things
 We supply the perceptions and build our beliefs with
them
 Reality 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
Perception
Sound, smell,
taste, sight, feel
2014 BMW M5 model
Sound, feel
Perception
Evolution of Communications with customers
 Monologues – companies ‘talking at’ consumers.
Soap box
 Dialogues - customers providing feedback
 Multi-dimensional conversations – products having
own voice and consumers responding subconsciously
Perception
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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
Learning
THE CENTRAL CONCEPT STATES
THAT THE BEHAVIOR THAT IS
POSITIVELY REINFORCED IS MORE
LIKELY TO RECUR THAN THE NONREINFORCED BEHAVIOR.
•
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BEHAVIORAL LEARNING
COGNITIVE LEARNING
Behavioral Learning
 Classical conditioning
 Ivan Pavlov
 Operant conditioning
 Skinner
Classical Conditioning
 Respondent conditioning
 Ivan Pavlov
 When 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 Mitchell
 Uses two dimensions such as resources and
innovation to segment consumers into eight
mutually exclusive psychographic groups
Lifestyle and values and Marketing
 Find niche markets easily
 Locate target groups
 Improve and introduce products according to
customers values
 Accurate 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 Attitudes
1. They are learned
2. They are predispositions
3. They are consistent
4. They are what links perception to behavior
5. 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:
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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.
2.
3.
4.
5.
Sadness
Fear
Anger
Surprise
Disgust
Fear?
 In class we talked about the Mob and their
“Protection”. That can’t be real right? Wrong…..
The rest?
Sadness
Anger
Disgust
Surprise
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
Problem
Recognition
• CK feels his dumb phone does not match his needs
and wants to buy a smartphone
Information
Search
• CK conducts online research and recalls his experience
with various mobile phone manufacturers
Evaluation of
Alternatives
• CK compares several models in terms of design, price,
and features
Purchase
• CK makes the decision based on features that he was
looking for
Post
Purchase
• 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
Consumer Decision-Making Process
 Buying decision-making
 The process of selection and final selection
 Youtube video,
https://www.youtube.com/watch?v=sCblG8OYeIM
 Need recognition
 Pre-purchase search
 Evaluation 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 Festinger
1919-1989
Cognitive Dissonance – cont’d
 Implication
 Discontinue future purchases
 Complain
 Negative word of mouth
 Help consumers
 Reduce
 Avoid
Questions?