Customer Attitudes and Behaviors

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Customer Attitudes and Behaviors

• Stowe Shoemaker, PhD
• Cornell University Executive Education Faculty
• University of Houston
• sshoemaker_at_uh.edu
• www.stoweshoemaker.net

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Who Are You, and Why Are You Taking This Course?

• Answer Questions on next couple of slides and
  turn into me after lunch today. Use separate
  paper.

Consumer Attitudes and Behaviors (2008) (c) Stowe
Shoemaker, Ph.D.
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Please answer these questions

• What do you hope to learn from this class?
• What specific issues would you like discussed in
  this class?
• Do you understand what your customers behaviors
  and attitudes?
• How does your company use the knowledge of
  customer behavior to develop communication
  strategies?

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Please answer these questions - continued

• What keeps you awake at night?
• Please tell me something unique about yourself

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Class Times

• To be addressed

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An Organizational Framework for the Study of
Consumer Behavior
Group Influences
Perception
Learning and Memory
Family Influences
Consumer Decision Making
Beliefs and Attitudes
Personal Influences
Consumer Research
Market Segmentation
Motivation and Emotion
Social Class
Culture and Microculture
Personality Self-concept, and Lifestyle
Adoption
Diffusion
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What is Consumer Behavior?

• Involves the thoughts and feelings people
  experience and the actions they perform in the
  consumption process
• Involves behavior interaction among peoples
  thinking, feelings, actions, and the environment

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SYMIOTIC RELATIONSHIPS
OBJECT (Product)
Mirage Meeting Rooms
INTERPRETANT (Meaning)
SIGN (Image)
Size of Meeting room
Airplane
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What is Consumer Behavior? continued

• Involves exchange
• People give up value to others and receive
  something in return
• Markets need to understand
• What products and brands mean to consumers
• What consumers must do to purchase them
• What influences shopping, purchase, and
  consumption

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What Is Consumer Behavior?

• Is the study of human responses to products,
  services, and the marketing of products and
  services.
• Three types of responses
• affective,
• cognitive, and
• behavioral responses

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Products and services
Affect (feelings)
Consumer Responses
Behavior (actions)
Cognition (thoughts)
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• Consumer characteristics
• Self-concept basic values, goals, need
• Personality traits
• Expertise

Intrinsic Self-relevance

• Product characteristics
• Time commitment
• Price
• Symbolic meanings
• Potential for harm
• Potential for poor performance

• Involvement
• Affective responses and activated knowledge about
  attributes, consequences, and values

Interpretation integration processes

• Situational characteristics
• Purchase situation
• Intended-use situation
• Time pressure
• Social environment
• Physical environment

Situational Self-relevance
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AFFECT
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Types of Affective Responses
Type of Affective Response Level or Physiological Arousal Intensity or Strength of Feeling Examples of Positive and Negative Affect
Emotions High arousal and activation Stronger Joy, love Fear, guilt, anger Warmth, appreciation, satisfaction Disgust, sadness Alert, relaxed, calm Blue, listless, bored Like, good, favorable Dislike, bad, unfavorable
Specific feelings Joy, love Fear, guilt, anger Warmth, appreciation, satisfaction Disgust, sadness Alert, relaxed, calm Blue, listless, bored Like, good, favorable Dislike, bad, unfavorable
Moods Joy, love Fear, guilt, anger Warmth, appreciation, satisfaction Disgust, sadness Alert, relaxed, calm Blue, listless, bored Like, good, favorable Dislike, bad, unfavorable
Evaluations Lower arousal and activation Weaker Joy, love Fear, guilt, anger Warmth, appreciation, satisfaction Disgust, sadness Alert, relaxed, calm Blue, listless, bored Like, good, favorable Dislike, bad, unfavorable
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DIMENSIONS OF EMOTIONAL STATES
AROUSING
Exciting
Distressing
UNPLEASANT
PLEASANT
Relaxing
Gloomy
SLEEPY
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Exercise

• View the following advertisements
• Write down immediately what comes to your mind
  after watching the advertisement
• Also write down the emotions you feel

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COMMERCIALS

• Commercial 1
• Commercial 2
• Commercial 3 (on the next page)

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Affect Intensity Scale
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Affect intensity refers to "stable individual
differences in the strength with which
individuals experience their emotions" (Larsen
and Diener, 1987). To measure this construct,
Larsen developed a 40-item scale (Larsen and
Diener, 1987). Support for this hypothesis is
found in Cohen and Areni (1991) who review a
study by Srull (1983) which found that recall of
an advertisement was greater for subjects in
intense moods. Items are measured on a
six-point Likert-type scale 1 never, 2
almost never, 3 occasionally, 4 usually, 5
almost always, 6 always
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Affect Intensity Scale
1. When I accomplish something difficult I feel
delighted or elated. 2. When I feel happy it is a
strong type of exuberance. 3. I enjoy being with
other people very much. 4. I feel pretty bad when
I tell a lie. 5. When I solve a small personal
problem, I feel euphoric. 6. My emotions tend to
be more intense than those of most people. 7. My
happy moods are so strong that I feel like I'm
"in heaven." 8. I get overly enthusiastic. 9. If
I complete a task I thought was impossible, I am
ecstatic. 10. My heart races at the anticipation
of some exciting event. 11. Sad movies deeply
touch me. 12. When I'm happy it's a feeling of
being untroubled and content rather than being
zestful and aroused.
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Affect Intensity Scale - continued

• 13. When I talk in front of a group for the first
  time my
• voice gets shaky and my heart races.
• When something good happens, I am usually much
• more jubilant than others.
• 15. My friends might say I'm emotional.
• The memories I like the most are those of times
  when I
• felt content and peaceful rather than
  zestful and enthusiastic.
• 17. The sight of someone who is hurt badly
  affects me strongly.
• 18. When I'm feeling well it's easy for me to go
  from being in a good
• mood to being really joyful.
• 19. "Calm and cool" could easily describe me.
• 20. When I'm happy I feel like bursting with joy.
• Seeing a picture of some violent car accident in
  a newspaper
• makes me feel sick to my stomach.

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Affect Intensity Scale - continued

• 22. When I'm happy I feel very energetic.
• 23. When I receive an award I become overjoyed.
• When I succeed at something, my reaction is
• calm contentment.
• When I do something wrong I have strong
  feelings
• of shame and guilt.
• I can remain calm even on the most trying days.
• When things are going good I feel "on top of the
  world."
• 28. When I get angry it's easy for me to still
  be rational and not
• overreact.

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Affect Intensity Scale - continued

• When I know I have done something very well,
• I feel relaxed and content rather than
  excited and elated.
• 30. When I do feel anxiety it is normally very
  strong.
• 31. My negative moods are mild in intensity.
• When I am excited over something I want to share
• my feelings with everyone.
• 33. When I feel happiness, it is a quiet type of
  contentment.
• My friends would probably say I'm a tense or
• "high-strung" person.
• 35. When I'm happy I bubble over with energy.
• 36. When I feel guilty, this emotion is quite
  strong.

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Affect Intensity Scale - continued

• I would characterize my happy moods as closer to
• contentment than to joy.
• 38. When someone compliments me, I get so happy I
  could "burst."
• 39. When I am nervous I get shaky all over.
• When I am happy the feeling is more like
  contentment
• and inner calm than one of exhilaration and
  excitement.

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Affect Intensity Scale - continued
Reverse coding 12, 16, 19, 24, 26, 28, 29, 31,
33, 37, 40
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Products and services
Affect (feelings)
Consumer Responses
Behavior (actions)
Cognition (thoughts)
Executive Path to Hospitality Leadership Through
Learning
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Cognition

• Cognitive interpretations of physical stimuli
• This sweater is made of lambs wool.
• This car gets 28 miles per gallon
• Cognitive interpretations of social stimuli
• The salesperson was helpful
• My friends think Pizza Hut is the best

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Cognition

• Cognitive interpretations of symbolic meanings
• This car is sexy.
• This style of dress is appropriate for older
  women.
• Wearing a Rolex watch means you are successful.

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Cognition

• Cognitive interpretations of affective responses
• I love Dove ice cream bars.
• I feel guilty about not sending Mom a birthday
  card.
• I feel mildly excited and interested in a new
  store

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Cognition

• Cognitive interpretations of sensations
• Colors on a box or breakfast cereal
• Sound of a soft-drink can being opened and poured
• Sweet taste of chocolate chip cookies
• Smell of your favorite cologne
• Feel of your favorite pair of jeans

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Cognition

• Cognitive interpretations of behaviors
• I drink a lot of Diet Pepsi
• How to pay with a credit card

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Exercise

• View the following advertisements
• Write down immediately what comes to your mind
  after watching the advertisement
• Also write down what you think about

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Commercials

• Commercial 1
• Commercial 2
• Commercial 3 (on next page)

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Need For Cognition Scale -4 to 4

• 1. I really enjoy a task that involves coming
  up with solutions to
• problems.
• 2. I would prefer a task that is intellectual,
  difficult, and important to
• one that is somewhat important but does not
  require much thought.
• Learning new ways to think doesn't excite me very
  much.
• 4. I usually end up deliberating about issues
  even when they do affect
• me personally.
• 5. The idea of relying on thought to get my
  way to the top does not
• appeal to me.
• 6. The notion of thinking abstractly is not
  appealing to me.
• 7. I only think as hard as I have to.
• 8. I find little satisfaction in deliberating
  hard and for long hours.
• 9. I don't like to have the responsibility of
  handling a situation that
• requires a lot of thinking.

The Professional Development Program
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Need For Cognition Scale
10. I feel relief rather than satisfaction after
completing a task that required a lot of mental
effort. 11. Thinking is not my idea of fun.
12. I try to anticipate and avoid situations
where there is a likely chance I'll have to
think in depth about something. 13. I prefer my
life to be filled with puzzles that I must
solve. 14. I would prefer complex to simple
problems. 15. It's enough for me that something
gets the job done I don't care how or why it
works. 16. I like tasks that require little
thought once I've learned them. 17. I prefer to
think about small daily projects to long-term
ones. 18. I would rather do something that
requires little thought than something that is
sure to challenge my thinking abilities.
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Reverse scoring questions
3,5,6,7,8,9,10,11,12,15,16,17
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Consumer Environment

• Environment
• Everything external to consumers that influences
  what they thing, feel, and do

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The Relationship between the Affective and
Cognitive System
Source from Peter Olsen Consumer Behavior
Marketing Strategy
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An Organizational Framework for the Study of
Consumer Behavior
Group Influences
Perception
Learning and Memory
Family Influences
Consumer Decision Making
Beliefs and Attitudes
Personal Influences
Consumer Research
Market Segmentation
Motivation and Emotion
Social Class
Culture and Microculture
Personality Self-concept, and Lifestyle
Adoption
Diffusion
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Adoption
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WOM
The Purchase Cycle
Brand Advocate
Repeat Purchase
Satisfaction
Loyalty Circle
Trial (Initial Purchase)
Dissatisfaction

• Barriers
• Switching costs
• Perceived risks
• Lack of information

Complain
Switch
Need Recognition
Awareness/ Search/Evoked Set
Why Switch?
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Commercial

• Illustration of Need 1
• Illustration of Need 2

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Awareness Consumer Attention and Comprehension

• Product knowledge acquired through firsthand
  experience
• Product knowledge acquired through secondhand
  experience
• Limits of attention
• Attention intensity
• Selective attention
• Comprehension
• Miscomprehension

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Consumers rarely consider more than nine brands
before choosing
Brands available in the marketplace Consideration
Set Choice (gt20 brands)
(7 2 brands)
(1 brand)
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Rice cereal
Rice cereal
Bran Flakes
Rice cereal
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Bran Flakes
Rice cereal
Bran Flakes
Bran Flakes
Rice cereal
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Product and service trials
In-Store Samples
Mail Samples
Product Demonstration for Durables
Service Samples and Demonstrations
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ONGOING SEARCH
PREPURCHASE SEARCH
Determinants
Involvement in the purchase Market
environment Situational factors
Involvement with the product Market
environment Situational factors
Motives
Building a bank of information for future
use Experiencing fun and pleasure
Making better purchase decisions

• Increased product and market knowledge
• leading to
• Future buying efficiencies
• Personal influence
• Increased impulse buying
• Increased satisfaction from search and
• other outcomes

Outcomes
Increased product and market knowledge Better
purchase decisions Increased satisfaction with
the purchase outcome
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THE RELATIONSHIP BETWEEN AMOUNT OF INFORMATION
SEARCH AND PRODUCT KNOWLEDGE
AMOUNT OF SEARCH
PRODUCT KNOWLEDGE
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Barriers to Purchase

• Risk
• Switching costs
• Lack of information

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Types of Risk

• Financial risk
• Social risk
• Psychological risk
• Performance risk
• Physical risk
• Career risk

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Buyers Most Sensitive to Risk

• Risk capital consists of money and property.
  Those with relatively little income and wealth
  are most vulnerable
• Risk capital consist of alternate means of
  performing the function or meeting the need.
  Practical consumers are most sensitive.
• Risk capital consists of physical vigor, health,
  and vitality. Those who are elderly, frail, or in
  ill health are most vulnerable.
• Risk capital consist of self-esteem and
  self-confidence. Those who are insecure and most
  uncertain are most sensitive.
• Risk capital consists of affiliations and status.
  Those lacking self-respect or attractiveness to
  peers are most sensitive.

Monetary Risk
Functional Risk
Physical Risk
Social Risk
Psychological Risk
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Purchases Most Subject to Risk

• High-ticket items that require substantial
  expenditures are most subject to this form of
  risk.
• Products or services whose purchase and use
  requires the buyers exclusive commitment are
  most sensitive.
• Mechanical or electrical goods (such as vehicles
  or flammables), drugs and medical treatment, and
  food and beverages are most sensitive.
• Socially visible or symbolic goods, such as
  clothes, jewelry, cars, homes, or sports
  equipment are most subject to social risk.
• Expensive personal luxuries that may engender
  guilt, durables, and services whose use demands
  self-discipline or sacrifice are most sensitive.

Monetry Risk
Functional Risk
Physical Risk
Social Risk
Psychological Risk
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Commercials

• Indentify the type of risk
• Identify how to get through the risk

• Sundial
• Youtube 1
• Youtube 2
• Budget Hotel Inspection
• Beer Commercial

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WOM
The Purchase Cycle
Brand Advocate
Repeat Purchase
Satisfaction
Loyalty Circle
Trial (Initial Purchase)
Dissatisfaction

• Barriers
• Switching costs
• Perceived risks
• Lack of information

Complain
Switch
Need Recognition
Awareness/ Search/Evoked Set
Why Switch?
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Trial Consumer Choice
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Making Choices

• Heuristics
• Objective

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Heuristic vs. Algorithm Choice

• A heuristic is a strategy, usually a simplifying
  strategy, which provides aid and guidance in
  solving a problem
• A heuristic is the opposite of an algorithm

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Heuristic vs. Algorithm Choice

• In deciding what move to make in a chess game,
  one could systematically consider and evaluate
  every possible move. This would be an
  algorithmic strategy
• Or one could evaluate only the positions of
  pieces in the center of the board and the most
  important pieces. This would be a heuristic
  strategy.

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Making Choices

• Attitude-based (Memory) choices
• Consumers often use previously formed attitudes
  to make a product selection
• Attribute-based (Stimulus) choices
• The consumer can easily compare the attributes
  (e.g., price, ingredients, etc.) between two
  products in this case.

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Attribute-Based Heuristics

• The lexicographic heuristic
• The lexicographic semi order heuristic
• The elimination-by-aspects heuristic
• The majority of confirming dimensions heuristic
• The conjunctive heuristic

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Lexicographic Heuristic

• The lexicographic heuristic entails choosing the
  best brand on the basis of its most important
  attribute
• So, if low price was the most important aspect
  for a particular consumer then he or she should
  choose the cheapest brand available regardless of
  quality or of other features.

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Lexicographic Semi Order Heuristic

• The lexicographic semi order heuristic is similar
  to the lexicographic heuristic except that close
  attributes are considered to be ties

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Elimination-by-aspects heuristic

• Involves comparing products on attributes
  selected probabilistically and eliminating
  alternatives that do not meet a minimum cutoff
  point on the attribute of comparison. The
  process continues until only one product remains.

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Elimination-by-aspects heuristic

• For example, the price conscious consumer of
  hotels would evaluate each brand on location and
  eliminate all brands that where not in a good
  location. If brands remained in the
  consideration set, the consumer might then select
  hotels within the 4 star category. The consumer
  might then eliminate all hotels that failed to
  meet the 4 star criteria. The process would
  continue until only one brand of hotel remained.

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Majority of confirming dimensions heuristic

• This heuristic involves comparing each attribute
  of two brands. The brand with the greatest
  number of superior attributes is selected for
  purchase

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Conjunctive Heuristic

• The conjunctive heuristic sets a minimum
  acceptable cutoff level for each product feature
  and selects the first alternatives that meets the
  minimum standard for all features.
• This is a satisficing heuristic

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Determinants of Choice Strategy

• Knowledge
• Processing goals
• influenced by variables such as involvement and
  accountability
• Contextual variables
• Framing effect
• Processing load
• Influenced by what else the person is thinking
  about.

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A CONTINUUM OF BUYING DECISION BEHAVIOR
LIMITED PROBLEM SOLVING
ROUTINE RESPONSE BEHAVIOR
EXTENSIVE PROBLEM SOLVING
More Expensive Products
Low-Cost Products
Infrequent Purchasing
Frequent Purchasing
High Consumer Involvement
Low Consumer Involvement
Unfamiliar Product Class and Brands
Familiar Product Class and Brands
Extensive Thought, Search, and Time Given to
Purchase
Little Thought, Search, or Time Given to Purchase
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CHARACTERISTICS OF LIMITED VERSUS EXTENDED
PROBLEM SOLVING
Limited Problem Solving
Extended Problem Solving
Low risk and involvement Little
search Information processed passively In-store
decision likely
High risk and involvement Extensive
search Information processed actively Multiple
sources consulted prior to store visits
Motivation Information Search
Weakly held beliefs Only most prominent criteria
used Alternatives perceived as basically
similar Non compensatory strategy used
Strongly held beliefs Many criteria
used Significant differences perceived among
alternatives Compensatory strategy used
Alternative Evaluation
Many outlets shopped if needed Communication with
store personnel often desirable
Limited shopping time may prefer
self-service Choice often influenced by store
displays
Purchase
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Three hierarchies of effect
Type of Hierarchy HIGH-INVOLVEMENT LOW INVOLVEMENT EXPERIENTIAL Sequence Beliefs Evaluation Behavior Beliefs Behavior Evaluation Evaluation Behavior Beliefs Nature of Information processing Active, purchase-specific processing Passive, purchase-specific processing Active, ongoing processing
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Commercials to Illustrate

• Commercial 1

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PRODUCT
Weak reference group influence (-) on product
purchase
Strong reference group influence () on product
purchase
PUBLIC NECESSITIES Influence Weak for
product and strong for brand Examples
Wristwatch, automobile, mans suit
PUBLIC LUXURIES Influence Strong for product
and for brand Examples Golf clubs, Snow skis,
sailboat
Strong reference group influence () on brand
selected
BRAND
PRIVATE NECESSITIES Influence Weak for
product and weak for brand Examples Mattress,
floor lamp, refrigerator
PRIVATE LUXURIES Influence Strong for product
and weak for brand Examples TV game,
trash Compactor, icemaker
Weak reference group influence (-) on brand
selected
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Post Purchase Behavior

• Cognitive Dissonance
• state of mind in which attitudes and behaviors
  don't mesh -- in other words, when what we did is
  not the same as our present attitude toward it.
  This state causes us to have second thoughts or
  doubts about the choice that we made

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How to reduce cognitive dissonance?

• Seeking or choosing to perceive information that
  supports the correctness of the decision
• Finding fault with the alternatives so that they
  look less favorable
• Downplaying the negative aspects of the choice
  and enhancing the positive elements

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Post purchase Evaluation
The Individual Consumer
Choice Models Types of Involvement
Affect Cognition
Consumer Decision Making
Consumer Response
Environmental Influences
Feedback to Environment
Culture Sub culture Cross cultural
influences Reference groups
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Question

• In general, when are consumers likely to use a
  heuristic for a purchase decision? When are they
  unlikely to do so? Provide some examples.

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Question

• In general, how should one increase involvement?
  Provide some examples.