ADVERTISING:

Consumer Behavior Decision Making

Freud: the Subconscious

• Early 1900s:– ID, Superego, and Ego– People are driven by instincts

• not aware of these drives– They have self-protection devices:

• Rationalization, sublimation, etc• These HIDE their real desires

– Implications for Advertising ????

Physiological needsPhysiological needs

Maslow’s Hierarchy of Needs

Self-actualization needsself-development and realization

Esteem needsself-esteem, recognition, status

Social needssense of belonging, love

Safety needssecurity, protection

Physiological needshunger, thirst, sex

Safety needsSafety needs

Social needs?Social needs?

Which needs?Which needs?

Behaviorism

Behaviorism: Classical Conditioning• Unconditioned stimulus

– Sex• Unconditioned Response

– Arousal• Conditioned stimulus

– Beer• Conditioned Response

– Arousal

Alcohol and Sex

Jewellery and Jewellery and SexSex

Beer and nationalism

• Problem recognition– Motivation

• Information search– Perception

• Evaluation of alternatives– Attitude formation

• Purchase decision– Integration

• Post-purchase evaluation– Learning

• [Return or complaints]

Cognitive Decision Making

Discussion

• What was the last product you searched for information on before buying?

Segmentation

• Identify most relevant variable• Product use or motivations differ• Divide into HOMOGENOUS segments

Targeting• Targeting Criteria

– Segment size • (Substantial)

– Unique • (Differentiable)

– Cost of marketing• (Accesable)• (Actionable)

– Profitability• Competition• Growth

Quote of the Day

Buy me and you will overcome the anxieties I have just reminded you of.

• Michael Schudson (Professor)