1. Political audience reaction ratings
Consumer Behavior– you are what you buy…
How do we make decisions about what we buy?
What are stages of the decision process?
What can reduce “buyers remorse”?
How would you prepare a “pitch” for different audiences?
Song Airlines Commercial
Product Placement
Political audience reaction ratings

2. Perceptions & Decision Making

3. Marketing News: Downsizing products (while keeping the price the same)
Economy: Commodity costs are rising
Market Research: People are more conscious of changes in pricing than changes in quantity
Repackaging: Packaging “sleeves” to maintain freshness
Rephrasing: Old packaging was a “limited time offer”
Reframing: “Future Friendly Products…uses 15% less energy, water or packaging…”
Downsizing packages get sneakier
Mouseprint.org

4. How much?! Chicken of the Sea tuna in 5oz instead of 6 oz cans
Doritos, Tostitos & Fritos hold 20% fewer chips (more air)
Kraft Premium Saltines & Honey Maid Grahams has 15% fewer crackers (sleeves)
Tropicana orange juice from 64-oz carton to 59 oz.
Skippy peanut butter indented the container bottom for a reduction of 1.7 oz
Special K is down 2.4 oz
Dial soap from .5 oz to 4.5 oz
Quilted Northern toiler paper lost .5” from width
Ice cream down from 1.75 to 1.5
Whole Wheat Pasta from 16 ox to 13.5
Box of Baby Wipes from 80 to 72
Mrs. Stauber 16 oz can of corn down to 14.5 oz

5. Product overchoice What is your experience with overchoice?
Is it potentially a problem in your business?
What might be done to reduce it?

6. Consumer Decision-Making Process
Postpurchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social, Individual and
Psychological Factors affect all steps

7. Complete model of consumer behavior Alternative evaluation
Start
Need recognition
Stimuli (marketer dominated, other)
External search
Memory
Internal
search
Exposure
Attention
Comprehension
Acceptance
Retention
Outcomes
Dissatisfaction
Satisfaction
Individual
differences
resources
motivation &
involvement
knowledge
attitudes
personality,
values, lifestyle
Influences
culture
social class
family
situation
Search
Alternative evaluation
Purchase

8. How do you know when to shop
How do you know when to shop? What are the triggers that initiate an awareness & search?
What are the internal & external sources of these triggers?

10. Need Recognition (& reminding)
When a current product isn’t
performing properly
When the consumer is running out of an product
When another product seems
superior to the one currently used
Marketing helps consumers recognize (or create) an imbalance between present status and preferred state
Preferred State

11. Think about your past purchase– who was in which role?
Buyer Behavior: The Decision Making Unit
Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994).
Initiator: the person who first suggests or thinks of the idea of buying a particular product or service.
Influencer: a person whose views or advice carry weight in making the final buying decision
Decider: the person who ultimately makes the final buying decision or any part of it
Buyer: the person who makes the actual purchase
User: the person who consumes the product or service
Note: teens are increasingly assuming more of these roles
Think about your past purchase– who was in which role?

12. Gender & Consumer Behavior

13. Relative influence of husbands & wives
Wife
Dominant
Relative influence of husbands & wives
Child clothing
Women’s clothing
Final decision
Information
search
groceries
Pots & pans
NonRx
lamps
Toys/games
furniture
luggage
carpet
Paint wallpaper
refrigerator
vacations
Men’s leisure clothing
Joint
Men’s business clothing
stereo
TV sets
camera
Financial planning
Family car
Sport equipment
hardware
Lawn mower
Husband
Dominant
Extent of role specialization
100 75 50 25
Davis & Rigaux, 1974

14. Purchase Persuasion for Men and Women

15. quickly list 10 items you have purchased in the past month
reexamine how long it took you to make a decision on each
why did such a difference in decision occur?

16. How to make Choosing Easier

17. Factors affecting Consumer involvement
Previous experience: low level involvement
Interest: high involvement
Perceived risk of negative consequences: high involvement
Situation: low to high due to risk
Social visibility: involvement increases with product visibility
So…
Offer extensive information on high involvement products
In-store promotion & placement is important for low involvement products
Linking low-involvement product to high-involvement issue can increase sales

18. think of an important purchasing decision you have made
what are some of the thoughts you have had following your purchase? Any regrets?
what has influenced those thoughts?
how have you dealt with the discomfort?
how has the company anticipated or dealt with your discomfort?

19. Buyers Remorse/ Regret

20. Postpurchase Behavior What can you do to reduce buyer’s remorse?
Cognitive Dissonance ?
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
Can minimize through:
Effective Communication
Follow-up
Guarantees Warranties
Underpromise & overdeliver
Marketing

21. Decision Processing

22. ELM: Persuasion & Attitude Change John Cacioppo & Richard Petty
Elaboration Likelihood Model (ELM) was formulated in 1979 by R.E. Petty & J.T. Cacioppo, & describes how attitudes are formed and changed after a exposure to an important and meaningful message.

24. Retain or Regain Initial Attitude
Elaboration Likelihood Method (ELM) of persuasion
Persuasive Communication
Nature of Active Cognitive Processing: (initial attitude, argument quality, etc.)
Favorable
Thoughts
Predominate
Unfavorable
Neither or
Neutral
Cognitive Structure Change: Are new cognitions adopted and stored in memory? Are different responses made salient than previously?
personal relevance
personal importance
personal responsibility
Motivated to Process?
dissonance arousal
need for cognition
repetition
cognitive complexity
critical thinking
distraction free
low arousal
Ability to Process?
appropriate schema
message pace
issue familiarity
Enduring positive or negative attitude change (persuasion)
greater persistence
resistant to counterattacks & fading
predictive of behavior
> brand memory
> elaboration
>usage intention
> attitude accessibility
> attitude confidence
> attitude-behavior consistency
Peripheral Cues Present?
reciprocity (obligated, did a favor)
consistency (way it’s done, similar to before)
social proof (peer pressure, conformity)
liking (attractiveness, friendliness)
celebrity (identification, prestige)
authority (expertise, experience, credibility)
rapid speech, forceful presentation, charismatic style
scarcity (limited time offer)
tangible rewards
appealing visuals & music (emotional arousal)
fear appeal
weak counter-arguments
Attitude Shift:
short-lived
susceptible to influence
unpredictable
Retain or Regain Initial Attitude

25. Need for Cognition Scale
                             back to Attitudes                back to 7670 Homepage  
Write in the number that best fits your view: 
                              1                        2                      3                   4                         completely            mostly             mostly          completely                         false                      false                true              true
_____1.   I would prefer complex to simple problems.
_____2.   I like to have the responsibility of handling a situation that requires a lot of thinking.
_____3.   Thinking is not my idea of fun. *
_____4.   I would rather do something that requires little thought than something that is sure to                 challenge my thinking abilities. *
_____5.   I try to anticipate and avoid situations where there is likely chance I will have to think                 in depth about something. *
_____6.   I find satisfaction in deliberating hard and for long hours.
_____7.   I only think as hard as I have to. *
_____8.   I prefer to think about small, daily projects to long-term ones. *
_____9.   I like tasks that require little thought once I’ve learned them. *
_____10. The idea of relying on thought to make my way to the top appeals to me.
_____11. I really enjoy a task that involves coming up with new solutions to problems.
_____12. Learning new ways to think doesn’t excite me very much. *
_____13. I prefer my life to be filled with puzzles that I must solve.
_____14. The notion of thinking abstractly is appealing to me.
_____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat                 important but does not require much thought.
_____16. I feel relief rather than satisfaction after completing a task that required a lot of mental                 effort. *
_____17. It’s enough for me that something gets the job done; I don’t care how or why it works. *
_____18. I usually end up deliberating about issues even when they do not affect me personally.
Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scored
Need for Cognition Scale

26. Sleeper Effect:
when secondary source becomes more credible than primary source over time
persuasion may increase over time with a weak source
forget the source but remember the message
not if source is learned prior to the message (will ignore or bias processing)
Example: Attack ads during political campaigns