1. What is Consumer Behavior? (Ch1-Ch2) Affect & Cognition (Ch3)
Buyer Behavior MKTG 407
What is Consumer Behavior? (Ch1-Ch2)
Affect & Cognition (Ch3)

2. 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.

3. 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

4. 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)

5. What is Consumer Behavior?
Consumer Activities
Purchase
Use/Consumption
Disposal
Consumer Responses
Emotional
Cognitive
Behavioral
Kardes et al. (2008)

6. Organizational Influences
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)

7. Approaches to Studying CB (1.1)

8. Why Study Consumer Behavior?
Improve Business Performance
Become a Better Consumer
Help Other Consumers to Make Better Choices

9. The Wheel of Consumer Analysis
Reciprocal
Determinism
Application: Blueberry-Pomegranate Trail Mix Crunch

10. Affective or Cognitive?

11. Blemish-free skin doesn’t have to mean dry skin.
Finally a breakthrough cleanser designed for adults.
AVEENO Clear Complexion Foaming Cleanser lets you prevent blemishes without drying out your skin. It’s the only cleanser with a blemish fighter recommended by dermatologists plus moisture-rich soy to even out skin tone. Clear, smooth, blemish-free skin. It’s a beautiful thing.
Discover nature’s secret for clearly beautiful skin.
Essence

12. My Wii Storey –Linda Perry
“Wii is totally different from any other video game because you’re not zoning out on the couch in front of the TV. You're up, you’re moving and your pulse is thumping. It’s really easy to break a sweat. Plus, you don’t have to learn any commands. To play tennis, you swing the racket. To box, you punch—you’re actually doing something. I have friends who play boxing for exercise. My girlfriends and I play a lot actually, and it can get pretty competitive. I’ve knocked a few of them out. They have yet to knock me out.”
Family Circle

13. Backpacker

14. Sheer cover is not like any liquid, cream or mineral foundation you’ve tried. Our mineral foundation combines 100% pure minerals with soothing botanicals, powerful anti-oxidants and natural SPF 15 to protect your skin from premature aging. Sheer Cover makes your skin look beautiful and helps keep it that way. Plus, the mineral foundations contains no oils, perfumes, dyes or talc so they’re gentle and non-irritating– even for sensitive skin.
…If you’re not delighted with the results simply return the product within 60 days of receipt, even if the containers are empty, we’ll refund the purchase price (less s/h)
“Finally, there's a quick, easy way to cover up your flaws beautifully and naturally and let the real you shine through!”
Family Circle

15. A strange thing happens to people who take a vacation to New Zealand
A strange thing happens to people who take a vacation to New Zealand. After exlporing a rainforest and traversing a glacier in the same day. Or maybe even jumping off a bridge or two. They discover that they can do what they never thought they could. And they come back changed. Instead of merely relaxed. The journey begins at airnewzealand.com
Backpacker

16. 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

17. Types of Affective Responses
Feelings

18. 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

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

20. Types of Knowledge General Knowledge (schemas)
Stored as Propositions Linking Two Concepts
Procedural Knowledge (scripts)
Stored as Propositions Linking a Concept/Event with Behavior
Avatar is
Great
Eating
Choc.
always
Order
Coffee

21. An Associative Network or Schema

22. 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)

23. Using Metaphors to Communicate Affective and Cognitive Meaning
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

24. Nothing says lovin’ like something from the oven
Ernest Dichter ( )
“Father of Motivational Research”
Applied Freud’s Psychoanalytic Approach to Consumer Motivations
Nothing says lovin’ like something from the oven
Put a tiger in your tank

25. Relationship Between Affective/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

26. Relationship Between Affective/Cognitive Systems

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

28. Regulatory Focus (Promotion vs. Prevention Focus)
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)

29. 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

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

33. Apply the Preceding Information-Processing Model (Including “Activation” of Knowledge) to a Recent Consumer Decision

34. 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”)

35. An Illustration of How Heuristics Affect Consumer Behavior
Focus on Research
An Illustration of How Heuristics
Affect Consumer Behavior

36. Valenzuela et al. (2009, JCP) 29% 50% 21% The “Center Stage” Effect
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

37. Think of a Recent Example of How a Simple Heuristic Affected Your Consumer Behavior

38. 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