Buyer Behavior
MKTG 407
What is Consumer Behavior? (Ch1-Ch2)
Affect & Cognition (Ch3)
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.
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
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)
What is Consumer Behavior?
Consumer
Behavior
Consumer Activities
• Purchase
• Use/Consumption
• Disposal
Consumer Responses
• Emotional
• Cognitive
• Behavioral
Kardes et al. (2008)
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)
Approaches to Studying CB (1.1)
Why Study Consumer Behavior?
• Improve Business Performance
• Become a Better Consumer
• Help Other Consumers to Make Better Choices
The Wheel of Consumer Analysis
Reciprocal
Determinism
Affective or Cognitive?
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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
Types of Affective Responses
Feelings
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
COGNITIVE
PROCESSES
Environment
Interpretation
(Attention & Comprehension)
New Knowledge
Integrate Information
(To Form Attitudes, Intentions,
and Choices Among Options)
Consumer Behavior
Memory
(Stored
Knowledge)
Types of Knowledge
• General Knowledge (schemas)
• Stored as Propositions Linking Two Concepts
Avatar
is
Great
• Procedural Knowledge (scripts)
• Stored as Propositions Linking a Concept/Event with Behavior
Eating
Choc.
always
Order
Coffee
An Associative Network or Schema
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)
Using Metaphors to Communicate
Affective and Cognitive Meaning
• Metaphors:
• 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
Ernest Dichter (1907-1991)
“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
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
Relationship Between
Affective/Cognitive Systems
Focus on Research
An Illustration of How Concepts
Stored in Memory Affect Interpretation
and Decision-Making
(e.g., priming)
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
Regulatory Focus
(Promotion vs. Prevention Focus)
Risky
Consumer
Behavior
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
COGNITIVE
PROCESSES
Environment
Interpretation
(Attention & Comprehension)
New Knowledge
Integrate Information
(To Form Attitudes, Intentions,
and Choices Among Options)
Consumer Behavior
Memory
(Stored
Knowledge)
Apply the Preceding
Information-Processing Model
(Including “Activation”
of Knowledge)
to a Recent Consumer Decision
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”)
Focus on Research
An Illustration of How Heuristics
Affect Consumer Behavior
Valenzuela et al. (2009, JCP)
The “Center Stage” Effect
29%
50%
21%
• 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
Think of a Recent Example of
How a Simple Heuristic
Affected Your Consumer Behavior
Take Home Points
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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