1. Review Day 1 Definition of consumer behavior Affect (dimensions of affect) Cognition Behavior The purchase cycle – Creating needs, identifying problems – Awareness/search 1Consumer Behavior 2008

2. Review Day 1 Awareness: – Web 2.0 – Social networking – Mashups – Travel applications (user generated editorials, etc) 2Consumer Behavior 2008

3. Review Day 1 Barriers – Perceived risk Types of risks (buyers most sensitive to risk: purchases most sensitive to risk) – Switching Costs – Lack of information 3Consumer Behavior 2008

4. What To Do When We Get Home 1.For each market segment identify: how needs/problems are identified by the organization – by the consumer; investigate ways to facilitate this identification by the consumer 2.Ask guests at check-in: if you had not come here, where would you have gone? What other brands did you consider? What words did you use to find us? 4Consumer Behavior 2008

5. What To Do When We Get Home 3.Examine Bill’s notes re: social networking, WEB 2.0 What is being done to create the awareness? 4.Get in habit of looking at commercials to determine what part of purchase cycle trying to influence 5. Complete chart on next page. 5Consumer Behavior 2008

6. Potential Risk by Segment RiskExamplesHow to Remove Financial/monetary Social Functional/Performance Risk Physical Risk Psychological Risk 6Consumer Behavior 2008

7. Review Day 2 Heuristics versus Algorithm in Choice Making choices (attitude base versus attribute based) Different types of attribute based heuristics: – Lexicographic, lexicographic semi order, elimination by aspects, majority confirming, conjunctive Determinant of Choice Behavior 7Consumer Behavior 2008

8. Review Day 2 Choice strategy based on: – knowledge – Processing goals – Contextual variables – Processing load Influence of high involvement, low involvement, and experiential 8Consumer Behavior 2008

9. Three hierarchies of effect Type of Hierarchy HIGH- INVOLVEMENT LOW INVOLVEMENT EXPERIENTIAL Sequence Beliefs Evaluation Behavior Beliefs Behavior Evaluation Behavior Beliefs Nature of Information processing Active, purchase- specific processing Passive, purchase- specific processing Active, ongoing processing 9Consumer Behavior 2008

10. Review Day 2 Cognitive Dissonance Memory (explicit and implicit) Short Term versus Long Term How to get memory into long term – Organizational principle – Encoding-specificity – Association principle (issue of refuting ads) 10Consumer Behavior 2008

11. Review Day 2 Bias that can occur – Hindsight biases – Availability biases – Representativeness biases – Anchoring and Adjustment Classical Conditioning Operant Conditioning 11Consumer Behavior 2008

12. Things to Do When Get Home 6.Complete the chart on next slide for each bias we discussed. Ask, are assumptions we have always used valid? 7.Test impact of using anchors on your web page. For example, rates range from Y to X (high to low) depending upon room time, time of visit, etc. 12Consumer Behavior 2008

13. Representative Bias 13Consumer Behavior 2008

14. Things to Do When Get Home 8.Undertake study to investigate revenue generated by booking channel. Is REVPAC higher with interviewers? 9.When guests give you great comment cards, give them copy of comments back along with web address for trip advisor 10.Get negative comment on trip advisor ask other customers to comment on it 14Consumer Behavior 2008

15. Things to Do When You Get Home 11.Interview different guests from different segments and walk them through their buying process. What lexicographic method (if any) did they use? 12.Ask what words they used to find us, what other brands they searched etc. 13.Listen to call center re: anchoring 14.Examine how theory of reasoned action pertains to your customers 15Consumer Behavior 2008

16. Things to Do When You Get Home 14.Examine how theory of reasoned action pertains to your customers; specifically who is “the decider.” 15.Make sure all surveys investigate the specificity 16.Make sure all surveys address distinct elements of behavior (the action, the target, the time, and the context) 16Consumer Behavior 2008