Cb unit-vi (psychological influences on consumer decision making)

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By :

Prof. Amit Kumar

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Course: Consumer Behavior

Unit-1 Consumer in the Marketplace

Unit-2 Models of Consumer Behavior

Unit-3 Cultural Influences on Consumer Decision making

Unit-4 Sociological Influences on Consumer Decision making

Unit-5 Personal / Individual Influences on Decision making

Unit-6 Psychological Influences on Decision making

Unit-7 Consumer Decision Making Process

Unit-8 Consumer Influence & Diffusion of Innovation

Consumer Behavior

IILM-Graduate School of Management

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Consumer Behavior Psychological Influence


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Contents

1. Motivation

2. Perception

3. Learning

4. Memory

Four key psychological processes- motivation, perception,learning and memory-fundamentally Influence consumer responses to various marketing stimuli.



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1. Motivation

• A person has many needs at any given time. Some needs are biogenic; they arise from physiological states of tension such as hunger, thirst, or discomfort. Other needs are psychogenic; they arise from psychological states of tension such as need for recognition, esteem or belonging.

• A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act.

• Three of the best known theories of human motivation are Sigmund Freud, Abraham Maslow and Frederich Herzberg.



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– Maslow’s Theory of Motivation• Sought to explain why people are driven by

particular needs at particular times

– Herzberg’s Theory • A two factor theory that distinguishes

dissatisfiers (factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction)

1. Motivation



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Maslow’s Hierarchy



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Model of Motivation Process

Unfulfilled needsWants & Desires

Tension Drive BehaviorGoal orNeeds

fulfillment

TensionReduction

Learning



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2. Perception

• Perception is the process in which an individual picks up information through their senses, organizes it, and assigns it meaning.

• Perception is the process of selecting, organizing and interpreting or attaching meaning to events happening in environment.

• Key point is that perceptions can vary widely among individuals exposed to the same reality. One person might perceive a fast-talking salesperson as aggressive and insincere; another , as intelligent and helpful.

• In marketing, perception is more important than the reality, as it is perceptions that will affect consumers’ actual behavior.

hearing, sight, smell, touch, taste



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• People can emerge with different perceptions of the same object because of three perceptual processes:1. Selective Attention

• Consumers are constantly bombarded with information and will screen out stimuli. Marketers have to work hard to attract consumers’ notice.

• Real challenge is to explain which stimuli people will notice. Here are some findings:– People are more likely to notice stimuli that relate to a

current need– People are more likely to notice stimuli that they anticipate– People are more likely to notice stimuli whose deviations

are large in relation to the normal size of stimuli.

2. Perception



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2. Selective Distortion• Messages do not always come across in the same way

the sender indented.• Selective distortion is the tendency to interpret information

in a way that will fit our preconceptions.

“A stark demonstration of the power of consumer brand beliefs

is the typical result of product sampling tests. In “blind” taste

tests, one group of consumers samples a product without

knowing which brand it is, whereas another group of

consumers samples the product knowing which brand it

is. Invariably, differences arise in the opinions of the two

groups despite the fact that the two groups are literally

consuming exactly same product”.

2. Perception

Complete, Extreme



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2. Selective Distortion• When consumers report different opinions between branded or

unbranded versions of identical products, it must be the case that the brand and product beliefs, created by whatever means (e.g. past experiences, marketing activity for the brand etc.) have somehow changed their product perceptions.

• For example, one study found that consumers were equally split in their preference for Diet Coke versus Diet Pepsi when tasting both on blind basis. When tasting the branded versions, however, consumer preferred Diet Coke by 65% and Diet Pepsi by only 23% ( with the reminder seeing no differences).

• Selective distortion can work to the advantage of marketers with strong brands .In other words, beer may seem to taste better, a car may seem to drive more smoothly, the wait in a bank line may seem shorter, and so on, depending on the particular brands involved.

2. Perception



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3. Selective Retention• People will forget much that they learn but will tend to

retain information that supports their attitudes and beliefs.

• Because of selective retention, we are likely to remember good points about a product we like and forget good points about competing products.

• Selective retention again works to the advantage of strong brands.

2. Perception



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3. Learning

• When people act, they learn. Learning describes changes in an individual’s behavior arising from experience.

• Learning theories believe that learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement.– A drive is a strong internal stimulus impelling action.

– Cues are minor stimuli that determine when, where and how a person responds.

• Suppose you buy a Dell computer. If your experience is rewarding, your response to computers and Dell will be positively reinforced. Later on, when you want to buy a printer, you may assume that because Dell makes good computers, Dell also makes good printers. In other words, you generalize your response to similar stimuli.

Clue- Something that serves to guide or direct in the solution of a problem or mysteryCue- A reminder or prompting, A hint or suggestion, A stimulus that signals a type of behavior



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3. Learning

• Learning theory teaches marketers that they can build demand for a product by associating it with strong drives, using motivation cues and providing positive reinforcement.

• The process of learning can be explained by two groups of concepts:

1. Classical Conditioning

2. Operant Conditioning



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3. LearningClassical Conditioning:• It is also referred to as the stimulus response (S-R) theory.

• This is related to the experiments performed by a famous Russian physiologist, Ivan Pavlov.

• In the experiment, when Pavlov presented a piece of meat to the dog, he noticed a great deal of salivation (unconditional stimulus-response). On the other hand, when he merely rang a bell, the dog had no salivation (neutral stimulus-no response).

• In next step, Pavlov accompanied meat with the ringing of the bell. This experiment was performed many times. Each time dog salivated. Then Pavlov rang the bell without presenting the meat. On this the dog salivated to the bell alone.

• It may be noted that this was originally a neutral stimulus having no response on the behavior of the dog. However, in the new situation the dog had become conditioned to salivate on the ringing of bell (conditioned stimulus-response).



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3. LearningClassical Conditioning:

• After this Pavlov went for second order conditioning i.e. he paired a black square with the bell.

• Here again, after a number of trails with this new pairing he got the dog to salivate to the black square alone. The original classical conditioned stimulus (bell) becomes a re- inforcing unconditional stimulus for the new conditioned stimulus (black square).

• In this way Pavlov went for third order conditioning also.



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3. Learning

Operant Conditioning

• Operant is defined as behavior that produces effects. Operant conditioning implies that behavior in human beings is voluntary and it is based on the response they receive from the environment.

• The basis of this theory is that human beings will learn and adopt those behavior which will be rewarding in nature.

• Operant conditioning (R-S) theory has more impact on learning behavior than classical conditioning theory (S-R).



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3. Learning

• Learning describes changes in an individual’s behavior arising from experience

• A belief is a descriptive thought that a person holds about something

• An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or an idea



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4. Memory

• All the information and experiences individuals encounter as they go through life can end up in their long-term memory.

• Cognitive psychologists distinguish between short-term memory (STM)-a temporary repository of information-and long-term memory (LTM)- a more permanent memory.

• Most widely accepted views of LTM structure is Associative network memory model.



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4. Memory

Associative network memory model:

• This model views LTM as consisting of a set of nodes and links. Nodes are stored information connected by links that vary in strength. Any type of information can be stored in the memory network, including information that is verbal, visual, abstract or contextual.

• When a node becomes activated because external information is being encoded (e.g. when a person reads or hear a word or phrase) or internal information is retrieved from LTM (e.g. when a person thinks about some concept), other nodes are also activated if they are sufficiently strongly associated with that node.



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4. Memory

Brand Association:• Consistent with the associative network memory

model, consumer brand knowledge in memory can be conceptualized as consisting of a brand node in memory with a variety of link associations.

• Brand associations consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand node.

• Marketing can be seen as making sure that consumers have right types of product and services experiences such that the right brand knowledge structures are created and maintained in memory.



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4. Memory

Hypothetical Dole Mental Map:• Companies such as

Procter & Gamble like to create mental maps of consumers that depict their knowledge of a particular brand in terms of the key associations that are likely to be triggered in a marketing setting.

• Figure displays a very simple mental map highlighting brand beliefs for a hypothetical consumer for the Dole brand in the USA.

Colorful

Healthy

HawaiiVacation

Refreshing

Innovative

Organic Fruits

Fun

DOLE



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4. MemoryHypothetical Dole Mental Map:

“The world's largest producer and marketer of fresh fruit and vegetables”.



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4. Memory

Hypothetical Dole Mental Map:

Founded in Hawaii in 1851, the Company built its reputation on its commitment to "quality, and quality, and quality." These were the words of James Drummond Dole's "Statement of Principles," upon which he founded and operated the Company. James Dole came to Hawaii with an initial investment of $1,000, degrees in business and horticulture and a love of farming. With these, he began the first successful pineapple growing and canning operation, then called the Hawaiian Pineapple Company. Dole developed and grew the pineapple business into Hawaii's second largest industry. In achieving his goal of making pineapple available in every grocery store in the country, James Dole made the name "Hawaiian" almost synonymous with "pineapple." Considered an exotic fruit, the pineapple is the symbol of hospitality, and is often depicted on fine furniture. After Dole began an innovative campaign of advertising with recipes in ladies magazines, the popularity of the fruit increased and was sought by households throughout the U.S.



Leadership & Management

Cb unit-vi (psychological influences on consumer decision making)