Buyer Behavior MKTG 407

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Buyer BehaviorMKTG 407

• What is Consumer Behavior? (Ch1-Ch2)
• Affect Cognition (Ch3)

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What is Marketing?

• American Marketing Association Definition
• Marketing is an organizational function and a set
  of processes for creating, communicating, and
  delivering value to customers and for managing
  customer relationships in ways that benefit the
  organization and its stakeholders.
• In sum,
• Marketing is about delivering value to all people
  affected by a transaction.
• Marketing is about meeting needs.

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What is Consumer Behavior?

• American Marketing Association (and Book)
  Definition
• The dynamic interaction of affect and cognition,
  behavior, and the environment by which human
  beings conduct the exchange aspects of their
  lives. (p. 5 in text).
• Dynamic
• Always changing with faster product cycles and
  greater need for continued innovation
• Involves Interactions
• Among cognition, affect, behavior and the
  environment
• Involves Exchanges
• Exchanging value for value

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What is Consumer Behavior?

• Another Nice Definition (Hoyer MacInnis)
• The totality of consumers decisions with respect
  to the acquisition, consumption, and disposal of
  goods, services, activities, experiences, people,
  and ideas by (human) decision-making units (over
  time). (cf. Jacoby, 1976)

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What is Consumer Behavior?
Consumer Behavior

• Consumer Activities
• Purchase
• Use/Consumption
• Disposal

• Consumer Responses
• Emotional
• Cognitive
• Behavioral

Kardes et al. (2008)
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Consumer Influences
Organizational Influences
Culture, Ethnicity, Personality, Family, Life
Stage, Values, Attitudes, Motivations, Feelings,
Knowledge
Brand, Advertising, Promotions, Price, Product
Features, Packaging, Service, Loyalty Programs,
Store Atmosphere
Obtaining
Consuming
Disposing
What to buy? Where to buy? How to pay? Purchase
other products?
How do you use product? How much do you use? Does
product match expectations?
How do you get rid of product? How much do
dispose? Do you recycle?
Blackwell et al. (2006)
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Approaches to Studying CB (1.1)
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Why Study Consumer Behavior?

• Improve Business Performance
• Become a Better Consumer
• Help Other Consumers to Make Better Choices

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The Wheel of Consumer Analysis
Reciprocal Determinism
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Affective or Cognitive?
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The Affective System

• Five Characteristics
• Largely reactive
• Little direct control over affective responses
• Felt physically in the body
• Responds to virtually any type of stimulus
• Most affective responses are learned

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Types of Affective Responses
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Functions of the Cognitive System

• Interpret Information
• Attention and Comprehension
• Integrate Information
• Evaluate and Make Decisions
• Draw on Knowledge Stored in Memory
• Once activated, influences interpretation and
  integration

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Environment
Interpretation (Attention Comprehension)
Memory (Stored Knowledge)
COGNITIVE PROCESSES
New Knowledge
Integrate Information (To Form Attitudes,
Intentions, and Choices Among Options)
Consumer Behavior
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Types of Knowledge

• General Knowledge (schemas)
• Stored as Propositions Linking Two Concepts
• Procedural Knowledge (scripts)
• Stored as Propositions Linking a Concept/Event
  with Behavior

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An Associative Network or Schema
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Accessibility of Knowledge Structures

• Priming
• Temporary activation of an associative network
  which influences interpretation, encoding,
  decision-making, behavior
• Chronic Accessibility
• Constructs which are almost always highly
  accessible (e.g., based on individual differences)

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Using Metaphors to CommunicateAffective and
Cognitive Meaning

• Metaphors
• Represent one thing in terms of something else
• Can communicate thoughts and feelings about a
  product, brand or company
• Are critical part of effective marketing
  strategies

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• Ernest Dichter (1907-1991)
• Father of Motivational Research
• Applied Freuds Psychoanalytic Approach to
  Consumer Motivations

Nothing says lovin like something from the oven
Put a tiger in your tank
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Relationship BetweenAffective/Cognitive Systems
(cont.)

• Differing Views
• Affective and cognitive systems are independent
• Affect is largely influenced by the cognitive
  system
• Affect is the dominant system
• Affective and cognitive systems are highly
  interdependent

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Relationship BetweenAffective/Cognitive Systems
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Focus on Research

• An Illustration of How Concepts
• Stored in Memory Affect Interpretation
• and Decision-Making
• (e.g., priming)

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Jiang et al. (2009, JCP, Study 4)

• Background (a Person x Situation Interaction)
• 8 is lucky in Chinese culture
• May depend on whether a person is promotion or
  prevention focused
• Promotion focused individuals focus on obtaining
  gains
• Prevention focused individuals focus on avoiding
  loses

Lucky (8) vs. Unlucky (4) Priming
Risky Consumer Behavior
Regulatory Focus(Promotion vs. Prevention Focus)
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Jiang et al. (2009, JCP, Study 4)

• Background (a Person x Situation Interaction)
• 8 is lucky in Chinese culture
• May depend on whether a person is promotion or
  prevention focused
• Promotion focused individuals focus on obtaining
  gains
• Prevention focused individuals focus on avoiding
  loses
• Method
• Hong Kong University Students
• Independent Variable (evaluate how much they like
  20 numbers)
• Good Luck Priming Condition
• 12 of 20 numbers have an 8 in them
• Bad Luck Priming Condition
• 12 of 20 numbers have a 4 in them
• Dependent Variables
• Participation in Lottery (for a chance to win
  expensive dinner)
• Investment in on-line stock trading

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Environment
Interpretation (Attention Comprehension)
Memory (Stored Knowledge)
COGNITIVE PROCESSES
New Knowledge
Integrate Information (To Form Attitudes,
Intentions, and Choices Among Options)
Consumer Behavior
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Apply the PrecedingInformation-Processing
Model(Including Activationof Knowledge) to a
Recent Consumer Decision
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Cognitive Processing Ability is Limited

• Implications
• Consumers may base decisions on only a few
  attributes
• Consumers may base decisions on heuristics (or
  rules of thumb)
• Processing may become automatic (and behavior
  habitual)

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Focus on Research

• An Illustration of How Heuristics
• Affect Consumer Behavior

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Valenzuela et al. (2009, JCP)
The Center Stage Effect
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• Effect stronger when choice will be evaluated
  (by others)
• Effect does not occur due to increased attention
• Rather, effect occurs because people believe the
  middle option is more popular
• Effect does not occur if told the arrangement of
  the options is random

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Think of a Recent Example ofHow a Simple
HeuristicAffected Your Consumer Behavior
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Take Home Points

• CB is an interaction between affect/cognition,
  behavior, environment each can affect the
  others (reciprocal determinism)
• Affect and cognition are interdependent
• Affect is a physical sensation which is largely
  learned, not under our control, and reactive
• Cognitive system helps us interpret and integrate
  information and draw on existing knowledge to
  form preferences, intentions and decisions
• General knowledge (schemas) and procedural
  knowledge (scripts) are stored as propositions
  and are organized in associative networks
• Much of marketing (CB) is about building up
  propositions (associations) and making them
  highly accessible
• Accessibility can vary as a function of priming
  or chronic accessibility
• Because consumer has limited cognitive capacity,
  much cognitive processing is relatively simple
  and can be based on heuristics, and much
  processing/decision-making can become automatic
  or habitual