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Consumer Behaviour	

Part II: The Individual Perspective




            Preparation for the Consumer Behaviour exam at Edinburgh Business School
           Content extracted from the ‘Consumer Behaviour’ text book by David A. Statt
        All pictures used for educational purposes only. No copyright infringement intended.
PART II The Individual Perspective




4) Perception 5) Personality 6) Learning, Memory & Thinking 7) Motivation
Module 4: Perception
Using our 5 Senses


                             vision
         taste




                     touch            hearing


 smell
Multi-sensual Marketing




    taste &
     smell                              touch
                                                                    vision

          hearing


We are used to associating particular consumer environments with specific senses,
   like a supermarket with vision, or a perfume counter with smell, but clever
 marketing will make use of as wide a range of sensory stimulation as possible.
Thresholds of Awareness: j.n.d.

                                      just noticeable
                                  difference (j.n.d.) for a
                                   night at the Waldorf
                                         Astoria?




                                                     $500



                                                  499
Thresholds of Awareness: j.n.d.




    $3.49
                  just noticeable
              difference (j.n.d.) for a
  2.49           menu at Cindy’s?
Sensory Adaptation Can you still smell the fish?




        Just as people in fish markets get used to the smell,
           you can get used to the feel of what you wear.
Processing Sensory Information




The sense organs provide our brain with a steady flow of information about our
 environment and the brain’s task is then to take this raw material and use it to
  help us make sense of that environment through the process of perception.
Focussing and Attention




                          In or d e r to
                          perceive
                          something we
                          have to give it
                          our attention.
External factors




                                     movement
          contrast
                                    repetition
                       size


stimulus provided by a change in the environment that is most important
Internal factors




 Different people react to the same sensations in different ways. One person
 may put on a sweater because the room is too cold, while another throws
    open the windows. The most important internal factor in perception is
             what people expect to see or hear in each situation.
Organising Perceptual Cues/Distortions




                                         Figu
                                              re a
                                          Grou     nd
                                               nd
          sio ns
     I llu
Grouping into patterns




    The wearing of uniforms is a common form of grouping the similar
           and identifying the dissimilar as applied to people.
Closure and The Zeigarnik Effect




        If certain things are familiar to us our perceptual
             process will close the gaps in the picture.
Organising Perceptual Cues/Distortions




Perceptual Constancy
Depth and Distance
Movement
Subliminal Perception




   The sheer amount of exposure to a stimulus
   increases our general feeling of liking for it.
Product Images, Self-images and Consumer Behaviour

 Companies try to influence
 consumer perceptions by
 encouraging associations
 between themselves and a
 desirable and appropriate
 image.
Perceiving Risk



   performance                     financial

                  Six identified
    time          forms of risk
                                       physical

                           psychological
Coping with Risk



     Relying on brand
     loyalty is the most
     popular strategy
     for reducing
     perceived risk.
Module 5: Personality
What makes someone a unique person?




   The psychologist and the layman use the term personality
          to make sense of an individual’s behaviour.
Define ‘Personality’


     The sum total of all the
     factors that make an
     individual human being
     both individual & human.
Freudian Iceberg
                         Ego         Easy, you               Conscious
                                      both.
                                                          Unconscious

             ID               Superego

       Do it!
                                         No, no.




These three aspects of the personality are constantly interacting with
 each other as we move through life. Frequently they are in conflict.
Freud’s Developmental Stages
Owning a hot car is the psychic equivalent of having a mistress
Personality Tests




Minnesota Multiphasic Personality Inventory MMPI
★ most common encountered personality test, a questionnaire
★ 550 statements to answer with ‘true’, ‘false’, or ‘cannot say’
Personality Tests




Thematic Apperception Test TAT
★ projective test; widely used
★ 20 b/w pictures with ambiguous relationships depicted
Personality Tests




Rorschach ink blot test
★ projective test; maybe most famous psychological test
★ Testee sees people or things that are important to him or her
Neo-Freudian Psychoanalysis: Classify relationships




       Compliant, Aggressive, or Detached orientation
Self Theory
Marketing and the Concept of Self




 Actual self image:         trad. concept of how people see themselves

 Ideal self image:          how people would like to see themselves

 Social self image:         how people think others see them

 Ideal social self image:   how people would like others see them
Trait Theory: Raymond Catell
Brand Personality




      A way of characterising the image of a brand by giving it
       personal associations, as though it were an individual.
Module 6: Learning, Memory & Thinking




         All consumer behaviour is learned behaviour
Learning is...

...the relatively permanent
process by which changes
in behaviour, knowledge,
feelings or attitudes occur
as the result of prior
experience.
The Behaviourist Approach




      Psychology as the behaviorist views it is a purely
      objective branch of natural science. Its theoretical goal is
      the prediction and control of behavior.
      (Watson, 1913, p. 158)
Classical Conditioning
Classical Conditioning
Classical Conditioning: Consumer Applications
Operant Conditioning: The Skinner Box
Operant Conditioning: Consumer Applications

    Your supermarket has a new
    brand of yoghurt on offer and
   you decide to try it, your future
    purchases of the product will
      depend on whether your
       response is reinforced or
      rewarded by your liking it.
The Cognitive Approach




     See what someone does and infer from that behaviour
                  what she thinks or feels.
The Cognitive Approach




                         reaction
Information Processing & the Concept of Memory




 Whatever we learned would be of no use to us unless we had some
       way of storing it, ready to be retrieved when needed.
Making Learning Meaningful: Repetition
Making Learning Meaningful: Visuals




         one picture is worth a thousand words
Making Learning Meaningful: Self-referencing




  When people are asked to relate information to their own lives
          their memory of the material is increased.
Making Learning Meaningful: Meaningfulness




   We learn new things by linking them with things we already know.
Modelling
Observe the
behaviour of
others and use
them as models
for your own
behaviour.
Module 7: Motivation




   ‘Why’
           do people buy what they buy?
How Managers see employee motivation

               THEORY X                                       THEORY Y
   People are inherently lazy so they must be     People seek meaning and a sense of
   motivated by external incentives               accomplishment and to exercise auton- omy
                                                  and be independent in their work

   They will pursue their own goals, which run As they are basically controlled and self-
   counter to those of the organisation, so they motivated they will find external controls and
   need extra controls to keep them in line      incentives demeaning

   They are quite irrational and incapable of     If they are only given the chance to do so
   self-discipline or self-control                they will come to regard the organisation’s
                                                  goals as their own.

   The rare individuals who are rational,
   controlled and self-motivated will therefore
   have to manage others.
Motivation - the wish, need, desire - to do so.

    A general term for any part of
    the hypothetical psychological
    process which involves the
    experiencing of needs and drives
    and the behaviour that leads to
    the goal which satisfies them.
Motivation and Buying Behaviour




   Buying
  Behaviour   =   Ability   + Opportunity +   Motivation




                    BB = ƒ(A, O, M)
Components of Motivation



Motivation   =   Need             Incentive



                           Internal       External



                              Buying Behaviour
The Fulfillment of Needs: Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs Consumer Applications
Maslow’s Hierarchy of Needs Consumer Applications
The Motivational Mix: Multiple Motives




      One important implication for marketers is that where people
      do not enter a shopping mall with specific purchases in mind
     they need to consider the factors that underlie impulse buying.
The Motivational Mix: Approach & Avoidance




    Approach-Approach conflict
            -        conflict

     Approach-                               conflict
The Motivational Mix The Force of Inertia




           Unless we are actively seeking certain products
            we will follow our established buying habits.
The Motivational Mix: Antecedents of Involvement 1/3



                               Concerned with
                               consumer’s self-image
                               and the needs, drives,
                               values, interests and
                               fantasies. I.e.Intimate
                               relationship with their
                               car, buying of car
                               magazines.




                                       PERSON
The Motivational Mix: Antecedents of Involvement 2/3




  Consumer’s perception
  of the product, affects
  the level of involvement.
                                       Product
The Motivational Mix: Antecedents of Involvement 3/3

 A consumer’s level of
 involvement can also be
 influenced by the
 situation in which a
 product is being
 purchased.




                                    Situation
The Motivational Mix: Properties of Involvement

                                  Consumers who
                                  are highly involved
                                  will spend a great
                                  deal of time and
                                  effort on making
                                  purchase decisions.
The Motivational Mix: Outcomes of Involvement




 The outcomes of involvement will depend on the interaction
         between the preceding two sets of factors.
The Motivational Mix: Specific Needs




               Achievement
                  Affiliation

                     Power
The Motivational Mix: Need of Achievement (labelled n Ach)




People high on n Ach have a preference for particular situations, where the degree
     of risk involved is neither high nor low but moderate, feedback on their
        performance is provided, individual responsibility is acknowledged.
The Motivational Mix: Need of Affiliation




      This need is characterised by the particular importance to
  the individual of love and acceptance and the feeling of belonging.
The Motivational Mix: Need of Power




 Maslow’s level of Safety. That is, people who are high on this need seek
 a feeling of security by trying to control as much of their lives and their
                          environment as possible.
Unconscious Motivation




     When a woman bakes a cake and pulls it out of the oven she is
(unconsciously and symbolically) going through the process of giving birth.
also...
Unconscious Motivation


   Research showed that
   killing roaches with a
   bug     spray     and
   watching them squirm
   and die allowed women
   to    express   their
   hostility toward men,
   and it also afforded them a feeling of power and
   control over their immediate environment.
Semiotics




 Semiotics is concerned with the meanings that signs and symbols have
              for people, both consciously and unconsciously.
Relationship between Maslow’s hierarchy
and specific needs:



 MASLOW                  SPECIFIC
 Physiological           -----
 Safety                  Power
 Social                  Affiliation
 Self-esteem             Achievement
 Self-actualisation      Achievement
Congrats! You finished Consumer Behaviour part II.
www.sebinomics.com

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Consumer Behaviour Part2: The Individual Perspective

  • 1. Consumer Behaviour Part II: The Individual Perspective Preparation for the Consumer Behaviour exam at Edinburgh Business School Content extracted from the ‘Consumer Behaviour’ text book by David A. Statt All pictures used for educational purposes only. No copyright infringement intended.
  • 2. PART II The Individual Perspective 4) Perception 5) Personality 6) Learning, Memory & Thinking 7) Motivation
  • 4. Using our 5 Senses vision taste touch hearing smell
  • 5. Multi-sensual Marketing taste & smell touch vision hearing We are used to associating particular consumer environments with specific senses, like a supermarket with vision, or a perfume counter with smell, but clever marketing will make use of as wide a range of sensory stimulation as possible.
  • 6. Thresholds of Awareness: j.n.d. just noticeable difference (j.n.d.) for a night at the Waldorf Astoria? $500 499
  • 7. Thresholds of Awareness: j.n.d. $3.49 just noticeable difference (j.n.d.) for a 2.49 menu at Cindy’s?
  • 8. Sensory Adaptation Can you still smell the fish? Just as people in fish markets get used to the smell, you can get used to the feel of what you wear.
  • 9. Processing Sensory Information The sense organs provide our brain with a steady flow of information about our environment and the brain’s task is then to take this raw material and use it to help us make sense of that environment through the process of perception.
  • 10. Focussing and Attention In or d e r to perceive something we have to give it our attention.
  • 11. External factors movement contrast repetition size stimulus provided by a change in the environment that is most important
  • 12. Internal factors Different people react to the same sensations in different ways. One person may put on a sweater because the room is too cold, while another throws open the windows. The most important internal factor in perception is what people expect to see or hear in each situation.
  • 13. Organising Perceptual Cues/Distortions Figu re a Grou nd nd sio ns I llu
  • 14. Grouping into patterns The wearing of uniforms is a common form of grouping the similar and identifying the dissimilar as applied to people.
  • 15. Closure and The Zeigarnik Effect If certain things are familiar to us our perceptual process will close the gaps in the picture.
  • 16. Organising Perceptual Cues/Distortions Perceptual Constancy Depth and Distance Movement
  • 17. Subliminal Perception The sheer amount of exposure to a stimulus increases our general feeling of liking for it.
  • 18. Product Images, Self-images and Consumer Behaviour Companies try to influence consumer perceptions by encouraging associations between themselves and a desirable and appropriate image.
  • 19. Perceiving Risk performance financial Six identified time forms of risk physical psychological
  • 20. Coping with Risk Relying on brand loyalty is the most popular strategy for reducing perceived risk.
  • 22. What makes someone a unique person? The psychologist and the layman use the term personality to make sense of an individual’s behaviour.
  • 23. Define ‘Personality’ The sum total of all the factors that make an individual human being both individual & human.
  • 24. Freudian Iceberg Ego Easy, you Conscious both. Unconscious ID Superego Do it! No, no. These three aspects of the personality are constantly interacting with each other as we move through life. Frequently they are in conflict.
  • 26. Owning a hot car is the psychic equivalent of having a mistress
  • 27. Personality Tests Minnesota Multiphasic Personality Inventory MMPI ★ most common encountered personality test, a questionnaire ★ 550 statements to answer with ‘true’, ‘false’, or ‘cannot say’
  • 28. Personality Tests Thematic Apperception Test TAT ★ projective test; widely used ★ 20 b/w pictures with ambiguous relationships depicted
  • 29. Personality Tests Rorschach ink blot test ★ projective test; maybe most famous psychological test ★ Testee sees people or things that are important to him or her
  • 30. Neo-Freudian Psychoanalysis: Classify relationships Compliant, Aggressive, or Detached orientation
  • 32. Marketing and the Concept of Self Actual self image: trad. concept of how people see themselves Ideal self image: how people would like to see themselves Social self image: how people think others see them Ideal social self image: how people would like others see them
  • 34. Brand Personality A way of characterising the image of a brand by giving it personal associations, as though it were an individual.
  • 35. Module 6: Learning, Memory & Thinking All consumer behaviour is learned behaviour
  • 36. Learning is... ...the relatively permanent process by which changes in behaviour, knowledge, feelings or attitudes occur as the result of prior experience.
  • 37. The Behaviourist Approach Psychology as the behaviorist views it is a purely objective branch of natural science. Its theoretical goal is the prediction and control of behavior. (Watson, 1913, p. 158)
  • 42. Operant Conditioning: Consumer Applications Your supermarket has a new brand of yoghurt on offer and you decide to try it, your future purchases of the product will depend on whether your response is reinforced or rewarded by your liking it.
  • 43. The Cognitive Approach See what someone does and infer from that behaviour what she thinks or feels.
  • 45. Information Processing & the Concept of Memory Whatever we learned would be of no use to us unless we had some way of storing it, ready to be retrieved when needed.
  • 47. Making Learning Meaningful: Visuals one picture is worth a thousand words
  • 48. Making Learning Meaningful: Self-referencing When people are asked to relate information to their own lives their memory of the material is increased.
  • 49. Making Learning Meaningful: Meaningfulness We learn new things by linking them with things we already know.
  • 50. Modelling Observe the behaviour of others and use them as models for your own behaviour.
  • 51. Module 7: Motivation ‘Why’ do people buy what they buy?
  • 52. How Managers see employee motivation THEORY X THEORY Y People are inherently lazy so they must be People seek meaning and a sense of motivated by external incentives accomplishment and to exercise auton- omy and be independent in their work They will pursue their own goals, which run As they are basically controlled and self- counter to those of the organisation, so they motivated they will find external controls and need extra controls to keep them in line incentives demeaning They are quite irrational and incapable of If they are only given the chance to do so self-discipline or self-control they will come to regard the organisation’s goals as their own. The rare individuals who are rational, controlled and self-motivated will therefore have to manage others.
  • 53. Motivation - the wish, need, desire - to do so. A general term for any part of the hypothetical psychological process which involves the experiencing of needs and drives and the behaviour that leads to the goal which satisfies them.
  • 54. Motivation and Buying Behaviour Buying Behaviour = Ability + Opportunity + Motivation BB = ƒ(A, O, M)
  • 55. Components of Motivation Motivation = Need Incentive Internal External Buying Behaviour
  • 56. The Fulfillment of Needs: Maslow’s Hierarchy of Needs
  • 57. Maslow’s Hierarchy of Needs Consumer Applications
  • 58. Maslow’s Hierarchy of Needs Consumer Applications
  • 59. The Motivational Mix: Multiple Motives One important implication for marketers is that where people do not enter a shopping mall with specific purchases in mind they need to consider the factors that underlie impulse buying.
  • 60. The Motivational Mix: Approach & Avoidance Approach-Approach conflict - conflict Approach- conflict
  • 61. The Motivational Mix The Force of Inertia Unless we are actively seeking certain products we will follow our established buying habits.
  • 62. The Motivational Mix: Antecedents of Involvement 1/3 Concerned with consumer’s self-image and the needs, drives, values, interests and fantasies. I.e.Intimate relationship with their car, buying of car magazines. PERSON
  • 63. The Motivational Mix: Antecedents of Involvement 2/3 Consumer’s perception of the product, affects the level of involvement. Product
  • 64. The Motivational Mix: Antecedents of Involvement 3/3 A consumer’s level of involvement can also be influenced by the situation in which a product is being purchased. Situation
  • 65. The Motivational Mix: Properties of Involvement Consumers who are highly involved will spend a great deal of time and effort on making purchase decisions.
  • 66. The Motivational Mix: Outcomes of Involvement The outcomes of involvement will depend on the interaction between the preceding two sets of factors.
  • 67. The Motivational Mix: Specific Needs Achievement Affiliation Power
  • 68. The Motivational Mix: Need of Achievement (labelled n Ach) People high on n Ach have a preference for particular situations, where the degree of risk involved is neither high nor low but moderate, feedback on their performance is provided, individual responsibility is acknowledged.
  • 69. The Motivational Mix: Need of Affiliation This need is characterised by the particular importance to the individual of love and acceptance and the feeling of belonging.
  • 70. The Motivational Mix: Need of Power Maslow’s level of Safety. That is, people who are high on this need seek a feeling of security by trying to control as much of their lives and their environment as possible.
  • 71. Unconscious Motivation When a woman bakes a cake and pulls it out of the oven she is (unconsciously and symbolically) going through the process of giving birth.
  • 73. Unconscious Motivation Research showed that killing roaches with a bug spray and watching them squirm and die allowed women to express their hostility toward men, and it also afforded them a feeling of power and control over their immediate environment.
  • 74. Semiotics Semiotics is concerned with the meanings that signs and symbols have for people, both consciously and unconsciously.
  • 75. Relationship between Maslow’s hierarchy and specific needs: MASLOW SPECIFIC Physiological ----- Safety Power Social Affiliation Self-esteem Achievement Self-actualisation Achievement
  • 76. Congrats! You finished Consumer Behaviour part II.