Concepts and expectations strongly influence consumer behavior and consumption. Positive conceptual consumption includes purchasing products for their status or to portray a self-image, while negative conceptual consumption refers to avoiding certain products due to beliefs. Goals are a key driver of consumption, as experimentally induced goals can increase or decrease physical consumption depending on the goal. Consumers' expectations about a product's value also profoundly shape their experience with that product.

1. How Concepts Affect
Consumption
Presented By:
Sandeep
Sharad
Dipendra
Sailesh
Amit
Rajesh
Nikhil

2. Back in the day…

3. Nowadays…

4. Conceptual Consumption
• Negative Conceptual Consumption
• Positive Conceptual Consumption

5. Horror Movies

6. 5-Star Hotel Vs. Ice Hotel

7. Why??
• Its about “collecting and possessing
experiences”
• Self-image – Being Different

8. Positive Conceptual Conumption
• Mobile Phones with “extra features”
– Showing off
• Better Camera is enough
• SUVs
– Status Symbol

9. "When dealing with people, remember that
you are not dealing with creatures of logic,
but with creatures of emotion."

10. -
CONSUMER PSYCHOLOGY
PETER DRUCKER
“Clearly markets have little understanding of what consumers want --
perhaps because people have little clue themselves.”
BELIEFS INFLUENCE TASTE :
 Meat Is Murder..
 Pepsi challenge..
 Potato for President?
 Organic Food, Beer
PSYCHOLOGY OF CONSUMPTION

11. SMELL OF MONEY :
How Smells Affect Our Behavior..
UNDER THE INFLUENCE :
‘Good’ Wine Increases Food Consumption by 12%
1. It could be that expectations about wine 'leak across' to the food: if the wine is good,
the food should be good as well. So more chomping.
2. More drinking the 'tasty' wine decreases self-restraint leading to more chomping.
3. Greater enjoyment of the wine leads to better overall wine+food experience. And so
more chomping.
???

12. CAN’T TALK? Drink!
When the music goes
up, the beers go down.
Talkers aren't the best drinkers
Arousal..
TOO MUCH CHOICE!? - Barry Schwartz
‘The Paradox Of Choice:Why More Is Less’ '

13. Consuming Expectations
People’s expectation about the value of what
they are consuming profoundly affect their
experience.
For Instance: “Coke vs. Pepsi”
“Beer”

16. When people truly enjoy an
experience—deriving utility and
satisfaction
from it—they forgo ever repeating it.

20. Examples

22. Memories are not always easily retrievable.
Repositioning – An attempt to change
consumer perception of the brand

23. Consuming Goals
•Consuming goals are the basic
concept of consumptions in
consumer behaviour.
•Consuming goals provide the
concepts that consumer wish to
consume.
•Experimentally induced goals have a
powerful impact on consumer
behaviour.

24. • Powerful trigger for consumption.
• Cognitive representations of what consumers
wish to HAVE, DO, and BE
• Consuming goals leads to increase in physical
consumption, as well as leads to decrease in
physical consumption.

25. Consuming Goal in Practice
• At a convenience store where the average purchase was $4,
researchers gave some customers coupons that offered $1 off any
purchase of $6, and others coupons that offered $1 off any
purchase of at least $2. Customers who received the coupon that
required a $6 purchase increased their spending in an effort to
receive their dollar off; more interestingly, those customers who
received the coupon that required only a $2 purchase to receive
the dollar off actually decreased their spending from their typical
$4, though of course they would have received their dollar off had
they spent $4. Consuming the specific goal implied by the coupon –
receiving a savings on a purchase of a designated amount —
trumped people’s initial inclinations. Customers who received the
$2 coupon left the store with fewer items than they had intended
to buy.

26. Goal consumption leading to increase in physical
consumption

27. Nunes And Dreze Field study
(2006)
300 loyalty cards given to customers of car wash
Half the customers 10 additional purchases resulted in
a free car wash, 2 given as a headstart
Other customers, 8 purchases for free car wash, no
free stickers attached.

28. Counting of cards redeemed.
Twice the number of cards redeemed that had the
additional 2 stickers.
Price of the car wash is same
Consuming the goal offered additional utility over and
above consuming the product.

29. Dhar Et Al (2007)
Consumers given opportunity to buy a 7 rupee key
chain
Before considering purchase.. Some were given
opportunity to buy CD while others given opportunity
to buy less exciting electric bulb
More people bought CD
Whether electric bulb or CD consumers purchase the
key chain
Completing goal and consuming concept – driver of
behavior.

30. “When a person with money meets a person with experience,
the person with the experience winds up with the money and
the person with the money winds up with the experience ..”

31. PSYCHOLOGY OF MONEY

32. FREE! But at What Price?
We like 'free' because it makes us feel good and
there's no downside. But sometimes 'free' tricks
us into poor decisions.
Which of these two offers you would go for ?
A $10 gift certificate for FREE!
A $20 gift certificate costing $7.
seductive POWER of ‘FREE’ !

33. THE RELATIVITY TRAP
"I would love to understand why I find some things expensive and won't
buy them, and other things not so expensive and will buy them, when
they are the same price/cost. For example, I'll spend $50 going out for
dinner with my kids when we don't have to (a treat) but I won't buy a
$50 appliance for my kitchen (new toaster). I imagine that if I
understood why I do this, I'd be able to spend my $ more wisely."
The solution?
Think globally not locally
Cross – Category Comparisons
Avoid Comparing Dissimilar Things

34.  www.spring.org.uk
 www.predictablyirrational.com
 The Annual Review of Psychology by Harvard University
(arjounals.annualreviews.org)
 www.tripdatabase.com
 www.psychologyofmoney.com
THANK YOU