MICHAEL ADAMS, CHEN KONG, MADIHA AHSAN, KIM FETTKETHER

MICHAEL ADAMS, CHEN KONG,

MADIHA AHSAN , KIM FETTKETHER

Agenda

PerceptionLearningPersonality and LifestyleAttitude and Changing AttitudeConsumer Decision Making

Perception Is Reality

Perception Is Reality

Lens Ours, Others, World around us

Reality is the true state of thingsWe supply the perceptions and build our

beliefs with themReality transcends both expectations and

beliefs

Perception

Using the Five Senses

Visual

Visual/sight primary way companies market

Perception

Experts suggest more thought be put into other four senses

Aradhna Krishna – University of Michigan. Considered a sensory expert

2014 BMW M5 modelSound, feel

Perception

Sound, smell, taste, sight,

feel

Perception

Evolution of Communications with customersMonologues – companies ‘talking at’

consumers. Soap boxDialogues - customers providing feedbackMulti-dimensional conversations – products

having own voice and consumers responding subconsciously

Perception

Focus on Innovation Physiologists and experts in perception on staff Applying unconscious behaviors & human cognitive &

physical processing How apply to Sharpie pens and pliers

Perception

https://www.youtube.com/watch?v=i7YwwH5RkHo

THE CENTRAL CONCEPT STATES THAT THE BEHAVIOR THAT IS POSITIVELY REINFORCED IS MORE LIKELY TO RECUR THAN THE NON-REINFORCED BEHAVIOR.

• BEHAVIORAL LEARNING• COGNITIVE LEARNING

Learning

Behavioral Learning

Classical conditioning Ivan Pavlov

Operant conditioning Skinner

Classical Conditioning

Respondent conditioningIvan PavlovWhen a neutral stimulus is paired with an

unconditional stimulus elicit a response similar to response originally obtained by the unconditional stimulus.

Operant Conditioning

Skinner (1953) also called Skinnerian conditioning

Responses are usually voluntary controlled by their consequences

Thorndike further explored and coined the term instrumental conditioning

Law of effect: Satisfying results will strengthen association between response and stimulus and vice versa

https://www.youtube.com/watch?v=RTVQHhbhYbA

Cognitive Learning

Brain is most incredible network of information

Focuses on unobservable changes in human brain

Refining of knowledge by adding more knowledge

Cognitive Learning

Social Cognitive Behavioral factors Environmental factors Personal factors

Cognitive behavioral The self The world The Future

Personality and Lifestyle

Personality- Qualities and traits that can explain character or behavior of a specific person. Its what makes you the way you are

Lifestyle- Set of shared values or tastes common to a group of consumers

Personality

Sigmund Freud Unconscious needs and drives are at the

heart of human motivation Id – primitive and impulsive drive Superego – internal expression of moral and

ethical code of conduct Ego – conscious control

Personality and Marketing

Targeting consumers with relevant personality traits

Developing promotional ads that would appeal to consumers with specific personality traits

Develop brand personality (attribution of human personality traits to brand/product in order to develop relationship with customer)

Lifestyle and values

VALS – Arnold MitchellUses two dimensions such as resources and

innovation to segment consumers into eight mutually exclusive psychographic groups

Lifestyle and values and Marketing

Find niche markets easilyLocate target groupsImprove and introduce products according to

customers valuesAccurate positioning of the product For effective and more accurate marketing

and advertising campaigns

Weber and “The Good Deal”

Linking back to the perception section, we covered Ernst Weber’s Law.

Perception of a “Good Deal” is about 20%.

Black Friday?

A term coined to describe what is generally the first day of a calendar year where a retailer will “run in the black”

In the 1960’s is when the term was used to describe the kickoff for holiday shopping.

Retailers found they had much better profits if they focused on deep discounts early in the shopping season rather than last minute deals.

Consumer Misbehavior and Black Friday

Studies found deep discounts over a small time frame will induce “Consumer Misbehavior”.

A number like Weber’s is not available but research concluded that a buyer’s sense of entitlement to a “Good Deal” will emphasize a narcissistic personality and can lead to increased aggression.

Lennon, S., Johnson, K., & Lee, J. (2011). A Perfect Storm for Consumer Misbehavior: Shopping on Black Friday. Clothing & Textiles Research Journal, 29(2), 119-134. doi:10.1177/0887302X11401907

Class Experience w/ Black Friday

Did anyone go shopping on Black Friday?People that did, see any aggressive behavior

trying to get a “Good Deal”?Any one work a retailer during Black Friday?Does the class think we have a number on

how much of a discount will cause “Black Friday” like aggression?

Did you get aggressive?

Attitudes and Attitude Change

5 Key Descriptors of Attitudes1. They are learned2. They are predispositions3. They are consistent4. They are what links perception to

behavior5. They are a hypothetical construct

Class Experience Tie Back

When looking back at the discussion, #4 explains a lot.

Since everyone’s attitudes will be different, even if everyone has the same perception of a “Good Deal”, their behavior will be different as a result of their attitudes.

Closer Look at Emotions on Black Friday

Attitude towards the product

Part of marketing’s job is to promote a positive attitude towards your company.

Ways to help lead towards a positive attitude is: Source Credibility – Expert Testimonials and Big Name

Reviews Source Physical Attractiveness – A pretty face can sell

anything Source Likeability – Tailor to fit the target audience or

build on known factors Message Factors – Word/Pictures and Repetitions (3rd

times the charm) Receiver Emotions – psychology kicks in now leverage

sex, fears, loves, humor

Receiver Emotions (aka Subliminal Advertising)

Subliminal Advertising is where the advertisement will build off of your base emotions:

1. Sadness2. Fear3. Anger4. Surprise5. Disgust

Fear?

In class we talked about the Mob and their “Protection”. That can’t be real right? Wrong…..

The rest?

SadnessAnger Surprise

Disgust

Source: Schiffman L., & Kanuk L., (2004) Consumer Behavior, International 8th Edition, New Jersey Pearson Prentice Hall

Types of Decision-Making

Example of Decision-Making Process

•CK feels his dumb phone does not match his needs and wants to buy a smartphone

Problem Recognition

•CK conducts online research and recalls his experience with various mobile phone manufacturers

Information Search

•CK compares several models in terms of design, price, and features

Evaluation of Alternatives

•CK makes the decision based on features that he was looking forPurchase

•CK makes the purchase and finds out he spends more time trying to find a power outlet than using his new phone thus feels regret of buying a smartphone

Post Purchase

Consumer Decision-Making Process

Buying decision-making The process of selection and final selection

Youtube video, https://www.youtube.com/watch?v=sCblG8OYeIM

Need recognitionPre-purchase searchEvaluation of alternatives

Need Recognition

The magnitude of discrepancy between ideal and actual states

Information Search

Evaluation of Alternatives

Decision rules: Compensatory and non-compensatory Hypothetical use of popular decision rules in making a decision

to purchase an ultralight laptop

Decision Rule Mental Statement

Compensatory rule

”I selected the computer that came out best when I balanced the good ratings against the bad ratings.”

Conjunctive rule ”I selected the computer that had no bad features.”

Disjunctive rule ”I picked the computer that excelled in at least one attribute.”

Lexicographic rule

“I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute.”

Affect referral rule

”I bought the brand with the highest overall rating.”

Purchase

Three types of behavior Trial Repeat Long-term commitment

Post Purchase Stage

Four types of results Learns perception about the product Acquires knowledge and information about the

product Satisfaction Disposition after the product is used

Cognitive Dissonance (Leon Festinger, 1919-1989)

Cognitive Dissonance

Mental discomfort Contradictory beliefs, ideas, or values Action contradictory to beliefs, ideas,

or values Confrontation with new information

conflicting with existing beliefs, ideas, or values

Happens when… High involvement (Monetary cost,

psychological cost, relevancy) Freedom in selecting among

alternatives Irreversible decision

Leon Festinger1919-1989

Cognitive Dissonance – cont’d

Implication Discontinue future purchases Complain Negative word of mouth

Help consumers Reduce Avoid

Questions?