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Consumer Learning CHAPTER SEVEN. Learning The process by which individuals acquire the purchase and consumption knowledge and experience that they apply.

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Presentation on theme: "Consumer Learning CHAPTER SEVEN. Learning The process by which individuals acquire the purchase and consumption knowledge and experience that they apply."— Presentation transcript:

1 Consumer Learning CHAPTER SEVEN

2 Learning The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall2Chapter Seven Slide

3 Elements of Learning Theories Motivation – Unfilled needs lead to motivation Cues – Stimuli that direct motives Response – Consumer reaction to a drive or cue Reinforcement – increases the likelihood that a response will occur in the future as a result of a cue

4 Two Major Learning Theories Behavioral Learning Based on observable behaviors (responses) that occur as the result of exposure to stimuli Cognitive Learning Learning based on mental information processing Often in response to problem solving 4Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

5 Behavioral Learning Classical Conditioning: A stimulus is repeatedly paired with another stimulus that elicits a known response. After some time the new stimulus produces the same response when used alone. Instrumental (Operant) Conditioning: Based on a trial-and-error process. Repetitions and their positive outcomes result in the formation of a habit. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall5Chapter Seven Slide

6 Strategic Applications of Classical Conditioning Repetition: Increases the association between the conditioned and unconditioned stimulus; Slows the pace of forgetting; Advertising wearout is a problem Stimulus generalization: Having the same response to slightly different stimuli; Helps me-too products to Succeed; Useful in: product extensions, family branding; licensing Stimulus discrimination: Selection of a specific stimulus from similar stimuli; Opposite of stimulus generalization. This Discrimination is the basis of positioning which looks for Unique ways to fill needs

7 A Model of Instrumental Conditioning Figure 7.9 7Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

8 Reinforcement of Behavior Positive reinforcement strengthens likelihood of repeat behavior Negative reinforcement encourages alternative behaviors Extinction: When a learned response is no longer reinforced, the link between stimulus and reward is broken Forgetting: The reinforcement is forgotten

9 Reinforcement of Behavior Customer Satisfaction (Reinforcement) Reinforcement Schedules Shaping Massed versus Distributed Learning 9Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

10 Observational Learning (modeling or vicarious learning) A process by which individuals learn behavior by observing the behavior of others and the consequences of such behavior 10Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

11 Information Processing and Memory Stores - Figure 7.10 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall11Chapter Seven Slide

12 Retention Information is stored in long-term memory – Episodically: by the order in which it is acquired – Semantically: according to significant concepts Total package of associations is called a schema

13 Associative Knowledge Network. Hamburgers McDonalds Burger King Big Mac Wendys Double Quarter Pounder Fries Whopper Tasty Frosty Single Chicken McNuggets Best Combination Had it last night

14 Involvement and Passive Learning Topics Definitions and Measures of Involvement Marketing Applications of Involvement Central and Peripheral Routes to Persuasion Hemispheral Lateralization and Passive Learning Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall14Chapter Seven Slide

15 Involvement Degree of personal relevance that the product or purchase holds for that customer. High involvement purchases are very important to the consumer Low-involvement hold little relevance, have little perceived risk, and have limited information processing 15Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

16 Marketing Applications of Involvement Ads in video games Avatars Sensory appeals in ads to get more attention Forging bonds and relationships with consumers 16Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

17 Central and Peripheral Routes to Persuasion Central route to persuasion For high involvement purchases Requires cognitive processing Peripheral route to persuasion Low involvement Consumer less motivated to think Learning through repetition, visual cues, and holistic perception 17Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

18 Hemispheral Lateralization and Passive Learning Hemispheral lateralization – Also called split-brain theory Left Brain – Rational – Active – Realistic Right Brain – Emotional – Metaphoric – Impulsive – Intuitive 18 Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide

19 Measures of Consumer Learning Brand Loyalty Personal degree of risk aversion or variety seeking; Reputation and availability of the brand; Social group influences No loyaltyBrand Equity – the value Covetous loyalty inherent in a well-known Inertia loyalty brand Premium loyalty

20 Consumer Attitude Formation and Change CHAPTER EIGHT

21 Attitude A learned predisposition to behave in a consistently favorable or unfavorable manner with respect to a given object. 21Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

22 What Are Attitudes? The attitude object Attitudes are a learned predisposition Attitudes have consistency Attitudes occur within a situation 22Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

23 Structural Models of Attitudes Tricomponent Attitude Model Multiattribute Attitude Model The Trying-to-Consume Model Attitude-Toward-the-Ad Model Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 23Chapter Eight Slide

24 Cognition A Simple Representation of the Tricomponent Attitude Model - Figure 8.3 24Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

25 The Tricomponent Model Cognitive: K nowledge and perceptions acquired by a combination of direct experience with the attitude object and related information from various sources Affective: E motions or feelings about a particular product or brand (attitude object) Conative: The likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object

26 Functional Theory of Attitude Primary functions performed by attitudes : – Adjustive or utilitarian function – Ego defensive – Value expressive – Knowledge defensive

27 Multiattribute Attitude Models examine the composition of consumer attitudes in terms of selected product attributes or beliefs. 27Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

28 Multiattribute Attitude Models The attitude-toward-behavior model: Is the attitude toward behaving or acting with respect to an object, rather than the attitude toward the object itself Corresponds closely to actual behavior Theory-of-reasoned-action model: Includes subjective norms in addition to attitude

29 The Fishbein Model where, A = Attitude towards a brand B i = Belief that the brand possesses attribute i E i = Evaluation or desirability of attribute i I = attribute 1, 2, … m

30 Example of TC/MA Model.

31 Theory of Trying to Consume for the many cases the action or outcome is not certain but instead reflects the consumers attempt to consume (or purchase). 31Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

32 Attitude- Toward-the- Ad Model a consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure to an advertisement, which, in turn, affect the consumers attitude toward the ad and attitude toward the brand. 32Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

33 A Conception of the Relationship Among Elements in an Attitude-Toward-the-Ad Model - Figure 8.6 33Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

34 Issues in Attitude Formation How attitudes are learned – Conditioning and experience – Knowledge and beliefs 34Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

35 Issues in Attitude Formation Sources of influence on attitude formation – Personal experience – Influence of family – Direct marketing and mass media Personality factors 35Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

36 Attitude Change Altering Components of the Multiattribute Model – Changing relative evaluation of attributes – Changing brand beliefs – Adding an attribute – Changing the overall brand rating Changing Beliefs about Competitors Brands 36Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

37 Elaboration Likelihood Model (ELM) Customer attitudes are changed by two distinctly different routes to persuasion: a central route or a peripheral route. 37Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

38 Elaboration Likelihood Model 38Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

39 Behavior Can Precede or Follow Attitude Formation Cognitive Dissonance Theory Holds that discomfort or dissonance occurs when a consumer holds conflicting thoughts about a belief or an attitude object. Attribution Theory A theory concerned with how people assign causality to events and form or alter their attitudes as an outcome of assessing their own or other peoples behavior. 39Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

40 Attribution Theory Internal attribution External attribution – Towards others – Towards things Defensive attribution 40Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eight Slide

41 Communication and Consumer Behavior CHAPTER NINE

42 Basic Communication Model Figure 9.1 Noise

43 The Communications Process The Source/Sender (Message Initiator) – Formal sources (marketers) – Informal sources (friends, family, reference groups, etc.) Encoding The Message The Medium The Receiver/Target audience (Decoding) Feedback - the Receivers Response Noise

44 Issues with Credibility Credibility of Informal Sources: Word of mouth or opinion leadership (not always credible), Buzz agents, viral marketing… Credibility of Formal Sources: role, affiliations, intentions, past performance, reputation, appearance, etc. Neutral sources have the greatest credibility Spokesperson/Endorser Credibility: Synergy between endorser and type of product, demographic characteristics of endorser, corporate credibility Media Credibility: Perception of magazines, TV/radio shows Message Credibility: Topic, Appeals, Arguments, Style, etc. Receiver variables: Involvement, motives, congruency, mood,… Sleeper Effect: Consumer forgets the source over time

45 Overcoming Psychological Noise Repeated exposure Contrast Customized promotional messages Effective positioning Offering unique value propositions Using non-traditional media Etc.

46 Message Structure and Presentation Message framing: Positive/Negative framing One-Sided versus Two-Sided Messages: Depends on nature of the audience and nature of competition First or last: Order Effects: Primacy, Recency, Order of benefits, Brand name

47 Advertising Appeals Comparative Fear Humor Abrasive Sex Audience participation Timely Celebrities (Testimonial, Endorsement, Actor, Spokesperson) 47 Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Nine Slide

48 Feedback Determining Effectiveness Exposure Effects (how many received the message) – People meters Persuasion Effects (was the message received and interpreted correctly?) – Message Attention, Interpretation, and Recall – Physiological measures – Attitudinal measures – Recall and recognition measures Sales Effect: Did the ads increase sales? 48Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Nine Slide

49 The Family and Its Social Class Standing CHAPTER TEN

50 The Changing U.S. Family Types of families – Nuclear – Extended (including joint) – Single-parent Changes in household spending patterns 50Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

51 Consumer Socialization The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers. 51Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

52 Other Functions of the Family Economic well-being Emotional support Suitable family lifestyles 52Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

53 Family Decision Making Dynamics of Husband-Wife Decision Making – Husband-Dominated – Wife-Dominated Expanding Role of Children In Family Decision Making – Choosing restaurants and items in supermarkets – Teen Internet mavens – Pester power 53Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

54 The Family Life Cycle Traditional Family Life Cycle – Stage I: Bachelorhood – Stage II: Honeymooners – Stage III: Parenthood – Stage IV: Postparenthood – Stage V: Dissolution Modifications - the Nontraditional FLC 54Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

55 Nontraditional FLC Family Stages Alternative FLC StageDefinition/Commentary Childless couplesIncreasingly acceptable with more career- oriented married women and delayed marriages Couples who marry later in lifeLikely to have fewer or no children Couples with first child in late 30s or laterLikely to have fewer children. Want the best and live quality lifestyle Single parents IHigh divorce rate - about 50% lead to this Single parents IIChild out of wedlock Single parents IIISingle person who adopts Extended familyAdult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws. 55Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

56 Social Class The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes. 56Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

57 Social Class Measure and Distribution Table 10.8 SOCIAL CLASSES and PERCENTAGE Upper 4.3%Upper-middle 13.8%Middle 32.8%Working 32.3%Lower 16.8% 57Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

58 Social Class Measurement Subjective Measures – Self-Reporting: individuals are asked to estimate their own social-class positions – Reputational method: individuals are asked to estimate social-class positions of people they know Objective Measures – individuals answer specific socioeconomic questions and then are categorized according to answers 58Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

59 Objective Measures Single variable indices: Occupation, Education, Income Composite variable indices: 1.Index of Status Characteristics: weighted index of Occupation, Source of income, House Type and Dwelling Area 2.Socioeconomic Status Score (Census Bureau): Occupational status, family income, educational attainment

60 Geodemographic Clusters A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic variables (e.g., income, occupation) to identify target markets

61 The Affluent Consumer Growing number of households can be classified as mass affluent with incomes of at least $75,000 Some researchers are defining affluent to include lifestyle and psychographic factors in addition to income 61Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

62 The Mass Market Lower Middle Class (non-professional white collar) The middle 50% of household incomes - households earning between $25,000 and $85,000 Emerging markets middle class Moving up to more near luxuries + Working Class Households earning $40,000 or less control more than 30% of the total income in the U.S. Tend to be more brand loyal than wealthier consumers. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 62Chapter Ten Slide

63 The Techno Class Having competency with technology Those without are referred to as technologically underclassed Parents are seeking computer exposure for their children Geeks now viewed as friendly and fun 63Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

64 Consumer Behavior and Social Class Clothing, Fashion, and Shopping: lower classes – logo T-shirts, caps etc., upper classes – subtle fashions; preference for stores where similar social classes shop. The Pursuit of Leisure: upper classes – concerts, museum, college football; lower classes – fishing, baseball, DIY; middle classes: increasing emphasis on experiences that bring family together, etc. Saving, Spending, and Credit: convenience vs. necessity Social Class and Communication: middle classes – broader and longer point of view 64Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Ten Slide

65 Influence of Culture on Consumer Behavior CHAPTER ELEVEN

66 Culture The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society. The Invisible Hand of Culture: Each individual perceives the world through his own cultural lens

67 Nature of Culture Culture Satisfies Needs: Culture Is Learned: Enculturation; Acculturation; Language and Symbols; Rituals Culture in Inculcated: Passed on from one generation to the next Culture is Dynamic: Evolves because it fills needs; Certain factors change culture (technology, population shifts, economic development, wars, changing values, influences from other countries)

68 The Measurement of Culture Content Analysis: systematically analyzing the content of verbal and/or pictorial communication. Is frequently used to determine prevailing social values of a society. Consumer Fieldwork: Field Observation (natural setting, subject unaware, focus on observation of behavior); Participant Observation Value Measurement Instruments: Rokeach Value Survey (RVS); List of Values (LOV); VALS 68Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eleven Slide

69 Value Measurement Survey Instruments Rokeach Value Survey (RVS) A self-administered inventory consisting of eighteen terminal values (i.e., personal goals) and eighteen instrumental values (i.e., ways of reaching personal goals) List of Values (LOV) A value measurement instrument that asks consumers to identify their two most important values from a nine- value list that is based on the terminal values of the Rokeach Value Survey Values and Lifestyles (VALS) A value measurement based on two categories: self-definition and resources 69Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eleven Slide

70 American Core Values (Values must be pervasive, enduring & Customer-related) Achievement and success Activity Efficiency and practicality Progress Material comfort IndividualismFreedom External conformity HumanitarianismYouthfulness Fitness and health 70Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Eleven Slide

71 Subcultures and Consumer Behavior CHAPTER TWELVE

72 Subculture A distinct cultural group that exists as an identifiable segment within a larger, more complex society. 72Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

73 Relationship Between Culture and Subculture - Figure 12.2 73Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

74 Nationality Subculture - Hispanic Stronger preference for well-established brands Prefer to shop at smaller stores Some are shifting food shopping to non- ethnic American-style supermarkets Youths are more fashion conscious than non-Hispanic peers 74Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

75 Religious Subcultures 200+ organized religious groups in the U.S. Primary organized faiths include: – Protestant denominations – Roman Catholicism – Islam – Judaism Consumer behavior symbolically and ritualistically associated with the celebration of religious holidays. 75Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

76 Regional Subcultures Many regional differences exist in consumption behavior – Westerners have a mug of black coffee – Easterners have a cup of coffee with milk and sugar – White bread is preferred in the South and Midwest – Rye and whole wheat are preferred on the East and West coasts 76Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

77 Major Racial Subcultures African American The African American Consumer – 13 percent of the U.S. population – Purchasing power estimated at $845 billion 77Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

78 Major Racial Subcultures African American Prefer leading brands over private-label brands Brand loyal Higher than average trips to grocery store and higher spending Spend more then other segments on telephone services 78Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

79 Major Racial Subcultures Asian American Fastest growing racial segment Diverse group including 6 major ethnicities: – Chinese, Filipino, Indian, Vietnamese, Korean, and Japanese 95% live in metropolitan areas and business ownership is high 79Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

80 Region of Residence for Selected Subcultural Groups – Figure 12.7 80Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

81 Major Age Subcultures Generation Y Generation X Baby Boomers Seniors 81Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

82 Generation Y According to sources, born 1977-1994 OR 1982-2000 Three groups – Gen Y Adults – 19-28 – Gen Y Teens – 13-18 – Gen Y Tweens 8-12 Twixters – 21-29 and live with parents 82Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

83 Generation X Born between 1965 and 1979 Also referred to as Xers, busters, or slackers Do not like labels, are cynical, and do not want to be marketed to 83 Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

84 Baby Boomers Born between 1946 – 1964 More than 40 percent of the adult population Motivated consumers Not anxious to retire and handle it as: – Opportunity for a new start – A continuation of preretirement life – Unwelcome disruption – Transition to old age 84 Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

85 Older Consumers Roughly 65 years and older Growing segment due to better medical care, declining birthrate and the aging of the large baby boomer segment Three segments by age – The Young-Old (65-74) – The Old (75-84) – The Old-Old (85 and older) 85Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

86 Older Consumers Segmentation can also be done on motivations and quality-of-life orientation Cyberseniors 86Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

87 Issues in Understanding Gender as a Subculture Sex Roles and Consumer Behavior – Masculine vs. Feminine Traits Consumer Products and Sex Roles Women as depicted in Media 87Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

88 Working Women Segments of ALL women – Stay-at-home – Plan-to-work – Just-a-job working – Career-oriented working 88 Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

89 Subcultural Interaction Marketers should strive to understand how multiple subcultural memberships jointly influence consumers behavior 89Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Twelve Slide

90 Consumer Decision Making and Beyond CHAPTER FIFTEEN

91 Levels of Consumer Decision Making Extensive Problem Solving – A lot of information needed – Must establish a set of criteria for evaluation Limited Problem Solving – Criteria for evaluation established – Fine tuning with additional information Routinized Response Behavior – Usually review what they already know 91Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

92 Models of Consumers: Four Views of Consumer Decision Making An Economic View A Passive View A Cognitive View An Emotional View 92Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

93 Consumer Decision Making Figure 15.3 93Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

94 Process - Need Recognition Usually occurs when consumer has a problem, i.e., perceives a difference between an Actual state and Desired state Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall94 Chapter Fifteen Slide

95 Prepurchase Search Begins with internal search and then moves to external search The impact of the Internet There are many factors that increase search – Product factor – Situational factors – Social acceptability – Consumer factors 95Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

96 Evaluation of Alternatives Evoked set Criteria used for evaluating brands Consumer decision rules Decisions by functionally illiterate population Going online for decision-making assistance Lifestyles as a consumer decision strategy Incomplete information Applying decision rules Series of decisions Decision rules and marketing strategy 96Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

97 The Evoked Set Figure 15-5 97Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

98 Issues in Alternative Evaluation Evoked Set Criteria used for evaluating brands Consumer decision rules and their application Decisions by functionally illiterate population Going online for decision-making assistance Lifestyles as a consumer decision strategy Incomplete information Applying Decision Rules Series of decisions Decision rules and marketing strategy 98Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

99 Consumer Decision Rules Compensatory – evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score. Noncompensatory – positive evaluation of a brand attribute does not compensate for a negative evaluation of the same brand on some other attribute – Conjunctive, disjunctive, or lexicographic 99Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

100 Hypothetical Use of Decision Rules Table 15.7 Decision RuleMental Statement Compensatory ruleI selected the netbook that came out best when I balanced the good ratings against the bad ratings Conjunctive ruleI selected the netbook that had no bad features Disjunctive ruleI picked the netbook that excelled in at least one attribute Lexicographic ruleI looked at the feature that was most important to me and chose the netbook that ranked highest on that attribute Affect referral ruleI bought the brand with the highest overall rating 100 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

101 Issues in Alternative Evaluation Evoked Set Criteria used for evaluating brands Consumer decision rules and their application Decisions by functionally illiterate population Going online for decision-making assistance Lifestyles as a consumer decision strategy Incomplete information Applying Decision Rules Series of decisions Decision rules and marketing strategy 101Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

102 The Decision Process for Functionally Illiterate Consumers - Figure 15.6 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall102 Chapter Fifteen Slide

103 Issues in Alternative Evaluation Evoked Set Criteria used for evaluating brands Consumer decision rules and their application Decisions by functionally illiterate population Going online for decision-making assistance Lifestyles as a consumer decision strategy Incomplete information Applying Decision Rules Series of decisions Decision rules and marketing strategy 103Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

104 Coping with Missing Information Delay decision until missing information is obtained Ignore missing information and use available information Change the decision strategy to one that better accommodates for the missing information Infer the missing information 104Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

105 Issues in Alternative Evaluation Evoked set Criteria used for evaluating brands Consumer decision rules and their application Decisions by functionally illiterate population Going online for decision making assistance Lifestyles as a consumer decision strategy Incomplete information Applying Decision Rules Series of decisions Decision rules and marketing strategy 105Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

106 Output of Consumer Decision Making Purchase behavior – Trial purchases – Repeat purchases – Long-term commitment Postpurchase evaluation 106Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

107 Postpurchase Evaluation Actual Performance Matches Expectations – Neutral Feeling Actual Performance Exceeds Expectations – Positive Disconfirmation of Expectations Performance Is Below Expectations – Negative Disconfirmation of Expectations 107Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

108 Gifting Behavior Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance. 108Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

109 CIRCUMSTANCES Personal accomplishment Feeling down Holiday Feeling stressed Have some extra money Need Had not bought for self in a while Attainment of a desired goal Others MOTIVATIONS To reward oneself To be nice to oneself To cheer up oneself To fulfill a need To celebrate To relieve stress To maintain a good feeling To provide an incentive toward a goal Others Reported Circumstances and Motivations for Self-Gift Behavior Table 15.13 109Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

110 Gifting Relationships - Table 15.14 GIFTING RELATIONSHIP DEFINITIONEXAMPLE IntergroupA group giving a gift to another group A Christmas gift from one family to another family IntercategoryAn individual giving a gift to a group or a group giving a gift to an individual A group of friends chips in to buy a new mother a baby gift IntragroupA group giving a gift to itself or its members A family buys a VCR for itself as a Christmas gift InterpersonalAn individual giving a gift to another individual Valentines Day chocolates presented from a boyfriend to a girlfriend IntrapersonalSelf-giftA woman buys herself jewelry to cheer herself up 110Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

111 Consuming and Possessing Consumers find pleasure in possessing, collecting, or consuming Products have special meanings and memories 111 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

112 Relationship Marketing Marketing aimed at creating strong, lasting relationships with a core group of customers by making them feel good about the company and by giving them some kind of personal connection with the business. 112Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide


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