Contents

Contents..................................................................................................................... 1 Lecture 1: Intro & Organization...................................................................................3 Chapter 1 Consumer Behavior and Consumer Research...........................................4 Chapter 2 Creating Marketing Strategies for Customer-Centric Organizations..........6 Lecture 2: Consumer Decision Making and Motivation.................................................8 Chapter 3 The Consumer Decision Process.............................................................11 Chapter 4 Pre-Purchase Processes: Need Recognition, Search, and Evaluation.......12 Chapter 7 Demographics, psychographics, and personality....................................14 Chapter 8 Consumer Motivation.............................................................................16 Lecture 3: Consumer Perception & Information processing........................................17 Chapter 14 Making Contact....................................................................................17 Chapter 15 Shaping Consumers Opinions..............................................................18 Chapter 16 Helping Consumers to Remember........................................................19 The interaction of retail density and music tempo: Effects on shopper responses. .21 Lecture 4: Consumer Research & Attitudes...............................................................21 Chapter 5 Purchase................................................................................................22 Chapter 6 Post-Purchase Processes: Consumption and Post-Consumption Evaluations............................................................................................................23 Chapter 9 Consumer Knowledge............................................................................24 Chapter 10 Consumer Beliefs, Feelings, Attitudes, and Intentions..........................25 Implicit consumer preferences and their influence on product choice.....................26 Adapting to a retail environment: Modeling consumer-environment interactions. . .26 Lecture 7: Social Influences.......................................................................................27 Chapter 11 Culture, Ethnicity, and Social Class......................................................28 Chapter 12 Family and Household Influences.........................................................29

Chapter 13 Group and Personal Influence..............................................................30 Market mavens: Psychological influences...............................................................33 Lecture 8: Dissatisfaction..........................................................................................33 Service validity and service reliability of search, experience and credence services: A scenario study.....................................................................................................34 Lecture 9: New products...........................................................................................35 Diffusion of preventive innovations........................................................................35

Lecture 1: Intro & Organization

Macro-level: economics/econometrics, sociology, business administration. Analyses: trends (over time), competition analyses, SWOT, sales figures, Nielsen data, market share. Micro-level: consumer psychology, communication studies, social psychology, environmental psychology, decision making research, methodology. Individual consumer behavior. Consumer decision making toward obtaining, consuming and divesting products and services.

Consumer behavior: activities people undertake when obtaining, consuming, and disposing of products and services. Also, a field of study that focuses on consumer activities. Integrated marketing communications, IMC: a new way of looking at the whole, where once we saw only parts such as advertising, public relations, sales promotion, purchasing, employee communications, and so forth, to look at it the way the consumers sees it as a flow of information from indistinguishable sources. 4 Ps (product, price, place, promotion): advertising, sales promotion, sponsorship, pr, point-of-purchase communication, exhibitions, trade fairs, direct marketing, personal selling, viral marketing (W-O-M), 360 marketing, product design, interior design, relationship marketing. Rational perspective: maximize profit, optimal decision making; all alternatives & each piece of information are weighted and integrated into decision making (formal decision making model). Non-rational (psychological) perspective: how it actually goes (is nonrational!).

Consumer Decision Making Model (Blackwell et al., 2006)

Chapter 1 Consumer Behavior and Consumer Research

What is Consumer Behavior? Consumer behavior is defined as activities people undertake when obtaining, consuming, and disposing of products and services. Obtaining refers to the activities leading up to and including the purchase or receipt of a product. Consuming means how, where, when and under what circumstances consumers use products. Disposing refers to how consumers get rid of products and packaging.

Consumer behavior also can be defined as a field of study that focuses on consumer activities. Consumption analysis refers to why and how people use products in addition to why and how they buy. Marketing concept the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Why Study Consumer Behavior?

Marketing is the process of transforming or changing an organization to have what people will buy. Evolution of Consumer Behavior Supply chain, defined as all the organizations involved in taking a product from inception to final consumption. Marketing era: a time when productive capacity exceeded demand, causing firms to change their orientation away from manufacturing capabilities and toward the needs of consumers, thus adopting a marketing orientation. Behavioral sciences took center stage and provided a toolbox of theories and methodologies borrowed by innovative marketing organizations, including: Motivation research: the act of uncovering hidden or unrecognized motivation through guided interviewing. Positivism: the process of using rigorous empirical techniques to discover generalizable explanations and laws. Postmodernism: an approach to understanding consumer behavior that uses qualitative and other forms of nonexperimental research methods.

Marketing orientation: a focus on how an organization adapts to consumers. Consumer orientation: the process of bringing product design, logistics, manufacturing, and retailing together as a customer-centric demand chain. How Do You Study Consumers? Methods can be classified into three major methodological approaches: (1) observation, (2) interviews and surveys, and (3) experimentation. An observational approach to consumer research consists primarily of observing consumer behaviors in different situations. In-home observation places marketers inside peoples homes to examine exactly how products are consumed. Shadowing is a method in which a researcher accompanies or shadows consumers through the shopping and consumption processes, asking questions about each step of the process. Surveys are an efficient way of gathering information from a large sample of consumers by asking questions and recording responses. Interviewer bias: the potential for an interviewer to affect the responses of the interviewee, perhaps because of a desire to please the interviewer. Focus groups usually consist of eight to twelve people involved in a discussion led by a moderator skilled in persuading consumers to discuss thoroughly a topic of interest to the researcher. Longitudinal studies involve repeated measures of consumer activities over time to determine changes in their opinions, buying and consumption behaviors. Experimentation attempt to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables. A laboratory experiment is conducted in a physical environment that permits

maximum control of variables being studied. A field experiment takes place in a natural setting such as a home or a store. The Underlying Principles of Consumer Behavior Market segments: a group of consumers with similar needs, behavior, or other characteristics, which are identified through the market segmentation process. Intermarket segmentation: the identification of a group of customers that are similar in a variety of characteristics that transcend geographic boundaries.

Chapter 2 Creating Marketing Strategies for Customer-Centric Organizations

The Century of the Consumer Consumer analysis: the process of understanding consumer trends, global consumer markets, models to predict purchase and consumption patterns, and communication methods to reach target markets most effectively. Strategy is a decisive allocation of resources (capital, technology, and people) in a particular direction. Customer-centricity is a strategic commitment to focus every resource of the firm on serving and delighting profitable customers. From Market Analysis to Market Strategy: Where Does Consumer Behavior Fit? Value is the difference between what consumers give up for a product and the benefits they receive. Marketing strategy involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive products or services. The process includes market analysis, market segmentation, brand strategy and implementation, with the study of consumers at the core. Market analysis is the process of analyzing changing consumer trends, current and potential competitors, company strengths and resources, and the technological, legal and economic environments. Consumer insight can be defined as an understanding of consumers expressed and unspoken needs and realities that affect how they make life, brand, and product choices. Market segmentation is the process of identifying groups of people who behave in similar ways to each other, but somewhat differently than other groups. A market segment is a group of consumers with similar behavior and needs that differs from those of the entire or mass market. The opposite of market segmentation is market aggregation or mass marketing, which occurs when organizations choose to market and sell the same product or service to all consumers. Mass customization is customizing goods or services for individual customers in high volumes and at relatively low costs. Determining the attractiveness of a market segment involves analyzing segments based on the following four criteria.

Measurability refers to the ability to obtain information about the size, nature, and behavior of a market segment. Accessibility is the degree to which segments can be reached. Substantiality refers to the size of the market. Congruity refers to how similar members within the segment exhibit behaviors or characteristics that correlate with consumption behavior.

The first element of the marketing mix is product, which includes the total bundle of utilities (or benefits) obtained by consumers in the exchange process. The second element of the marketing mix is place. In this phase, firms decide the most effective outlets through which to sell their products and how best to get them there. The third element of the marketing mix is price, or the total bundle of disutilitys (costs) given up by consumers in exchange for a product. The final element of the marketing mix is promotion, including advertising, public relations, sales promotion, and personal sales. A brand is a product or product line, sore or service with an identifiable set of benefits, wrapped in a recognizable personality. Functional elements: characteristics of a brand (including performance, quality, price, reliability, and logistics) that solve a problem for the consumer. Emotional elements: characteristics of a brand (including image, personality, style, and evoked feelings) that create an emotional connection between customers and the brand.

A brand promise describes what consumers can expect in exchange for their money. Brand equity is the difference in value created by a brand less the cost of creating the brand. Brand personality is the reflection consumers see of themselves or think they will develop by using a brand. Brand protection, by promising a certain outcome, brands reduce the risk to consumers that a product or service may not deliver as expected. Customer Loyalty and Retention Strategies Customer lifetime value (CLV): the value to the company of a customer over the whole time the customer relates to the company. Global Marketing Strategy Cross-cultural analysis is the comparison of similarities and differences in behavioral and physical aspects of cultures. Cultural empathy refers to the ability to understand inner logic and coherence of other ways of life and refrain from judging other value systems.

Ethnography, describing and understanding consumer behavior by interviewing and observing consumers in real-world situations, can help analyze subtle ways buyers and sellers interact in the marketplace and can be useful in business negotiation processes. Intermarket segmentation is the identification of groups of consumers who transcend traditional market or geographic boundaries. A useful technique for overcoming language problems in back-translation. In this procedure, a message is translated from its original language to the translated language and then back to the original by several translators.

Lecture 2: Consumer Decision Making and Motivation

Evolution of Consumer Behaviour 1850-1950 demand > supply manufacturing orientation 50s demand = supply product orientation Product attributes: quality, performance 1955 demand < supply selling orientation Growing market, technological explosion. Consumers: decision making strategies, criteria. Producers; push-strategy in selling/advertising, (aggressive) persuasion. 70s > marketing orientation Ad hoc surveys: large scale, large sample, pre-post advertising campaign surveys (measuring brand awareness, ad awareness, market share). 80s > Customer needs consumer orientation

Habitual decision making: a decision to buy based on a past purchase; the least complex of all decision processes. Limited problem solving (LPS): problem solving of a low degree of complexity that influences consumers actions. Lexicographic strategy (noncompensatory evaluation strategy): brands are compared initially on the most important attribute. If one of the brands is perceived as superior based on that attribute, it is selected. If two or more brands are perceived as equally good, they are then compared on the second most important attribute. This continues until the tie is broken. Elimination by aspects strategy (noncompensatory evaluation strategy): resembles the lexicographic approach. As before, brands are first evaluated on the most important attribute. Now, however, the consumer imposes cutoffs (must be under 2 dollars e.g.). Conjunctive strategy (noncompensatory evaluation strategy): Cutoffs are established for each salient attribute. Each brand is compared, one at a time, against this set of cutoffs. If the brand meets the cutoffs for all the attributes it is chosen.

Extended problem solving (EPS): problem solving of a higher degree of complexity that influences consumers actions.

Simple additive (compensatory evaluation strategy): an evaluation strategy by which the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria. Weighted additive (compensatory evaluation strategy): unfamiliar, expensive products, high risk, strong cognitive or emotional involvement.

Motivational conflict: what consumers experience when they must make tradeoffs in satisfying their needs. Motivational conflict can take one of three basic forms. Approach-approach conflict occurs when the person must decide between two or more desirable alternatives. Avoidance-avoidance conflict involves deciding between two or more undesirable alternatives. Approach-avoidance exists when a chosen course of action has both positive and negative consequences.

Freud (TENTAMEN!!!) Orally passive fixation: mouth, suck, and swallow (smoking, eating, candy) Orally aggressive fixation: teeth, chew (chewing, gnawing, candy, chips) Anal retentive fixation: bowel, bladder, elimination (organizing, neatness) Anal expulsive fixation (creativity, spending, gambling) Phallic fixation: genitals, oepidus & electra complex (competition, status oriented products, sports) Latency fixation: dormant sexuality (sex industry?) Genital fixation: mature sexual interests (Viagra) Maslows Hierarchy of Needs (1970) (TENTAMEN!!!) 1. Self-actualization needs: self-fulfillment, enriching experiences 2. Esteem needs: accomplishment, self-respect, prestige 3. Social needs: companionship, friendship, love 4. Safety needs: protection, security 5. Psychological needs: food, water, sleep

Customer needs pyramid (Van Hagen, 2003)

The VALS 2 Technique Values and Lifestyle System; consumers buy products and services and seek experiences that fulfill their characteristic preferences and give shape, substance, and satisfaction to their lives. An individuals primary motivation determines what in particular about the self or the world is the meaningful core that governs his or her activities. Consumers are inspired by one of three primary motivations: ideals (knowledge and principles), achievement (look for products that demonstrate success to their peers), and self-expression (desire social or physical activity, variety and risk).

Innovator: these consumers are on the leading edge of change, have the highest incomes, and such high self-esteem and abundant resources that they can indulge in any or all self-orientations. Thinkers: these consumers are the high-resource group of those who are motivated by ideals. They are mature, responsible, well-educated professionals. Believers: these consumers are the low-resource group of those who are motivated by ideals. Achievers: these consumers are the high-resource group of those who are motivated by achievement. Strivers: these consumers are the low-resource group of those who are motivated by achievements. Experiencers: these consumers are the high-resource group of those who are motivated by self-expression. Makers: these consumers are the low-resource group of those who are motivated by self-expression. Survivors: these consumers have the lowest incomes.

Chapter 3 The Consumer Decision Process

The Consumer Decision Process Model The consumer decision process (CDP) model represents a road map of consumers minds that marketers and managers can use to help guide product mix, communication, and sales strategies. Need recognition occurs when an individual senses a difference between what he or she perceives to be ideal versus the actual state of affairs. Internal search: the scanning and retrieval of decision-relevant knowledge from memory.

External search: the act of collecting information from ones environment.

Different consumers employ different evaluative criteria the standards and specifications used to compare different products and brands. Consumers think of salient attributes such as price, reliability, and factors that probably vary little between similar types of products, as potentially the most important. Determinant attributes usually determine which brand or store consumers choose. Satisfaction occurs when consumers expectations are matched by perceived performance. When experiences and performance fall short of expectations, dissatisfaction occurs. Variables That Shape the Decision Process Information processing: the process by which information is received, processed, and stored in memory. Learning: the process by which experience leads to changes in knowledge and behavior. Types of Decision Process When the decision process is especially detailed and rigorous, extended problem solving (EPS) or problem solving of a higher degree of complexity that influences consumers actions, often occurs. The other extreme of the decision-making continuum is limited problem solving (LPS), or problem solving of a lower degree of complexity that influences customers actions. With limited problem solving, there is little information search or evaluation before purchase; in other words, need recognition leads to buying action; extensive search and evaluation are avoided because the purchase does not assume great importance. EPS and LPS are extremes on a decision process continuum, but many decisions occur along the middle of the continuum and require midrange problem solving. Impulse purchase is an unplanned, spur-of-the-moment action triggered by product display or point-of-sale promotion. Factors Influencing the Extent of Problem Solving Involvement is the level of perceived personal importance and interest evoked by a stimulus within a specific situation.

Chapter 4 Pre-Purchase Processes: Need Recognition, Search, and Evaluation

Need Recognition Spyware is software thats downloaded onto a computer without the permission of the owner and that collects personal information such as the users online activities, financial records, and passwords. Generic need recognition occurs when the need for an entire product category is stimulated. Selective need recognition occurs

when the need for a specific brand within a product category (selective demand) is stimulated. Search Search, the second stage of the decision-making process, represents the motivated activation of knowledge stored in memory or acquisition of information from the environment about potential need satisfiers. Internal search involves scanning and retrieving decision-relevant knowledge stored in memory. External search consists of collecting information from the marketplace. External search motivated by an upcoming purchase decision is known as pre-purchase search. This type of external search differs from ongoing search, in which information acquisition takes place on a relatively regular basis regardless of sporadic purchase needs. External search set: those choice alternatives that consumers gather information about during prepurchase search. Haptic information represents information acquired by touch. Opinion leaders or influentials are other consumers who are respected for their expertise in a particular product category. Funnel search strategy: when people begin their internet search with generic terms but eventually refine their search with terms focusing on specific products. According to a cost versus benefit perspective, people search for decision-relevant information when the perceived benefits of the new information are greater than the perceive costs of acquiring this information. Perceived risk represents consumers uncertainty about the potential positive and negative consequences of the purchase decision. Pre-Purchase Evaluation The manner in which choice alternatives are evaluated is the focus of our third stage of the consumer decision-making process, pre-purchase evaluation. Those alternatives considered during decision making compose what is known as the consideration set (also known as the evoked set). Retrieval set: the recall of choice alternatives from memory. According to a categorization process, evaluation of a choice alternative depends on the particular category to which it is assigned. In contrast, under a piecemeal process, an evaluation is derived from consideration of the alternatives advantages and disadvantages along important product dimensions. Brand extensions, in which a well-known and respected brand name from one product category is extended into other product categories, is one way companies employ categorization to their advantage. A cutoff is simply a restriction or requirement for acceptable performance. Signals are stimuli used to make inferences about the product. Lexicographic strategy (noncompensatory evaluation strategy): an evaluation strategy in which brands are compared initially on their most important attribute.

Elimination by aspects strategy (noncompensatory evaluation strategy): an evaluation strategy resembling the lexicographic strategy but in which the consumer imposes cutoffs. Conjunctive strategy (noncompensatory evaluation strategy): an evaluation strategy employing a comparison of each brand to cutoffs that are established for each salient attribute of the brand. Simple additive (compensatory evaluation strategy): an evaluation strategy by which the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria.

Chapter 7 Demographics, psychographics, and personality

Analyzing and Predicting Consumer Behavior Demographics: the size, structure, and distribution of a population. Macromarketing: the aggregate performance of marketing in society. Changing Structure of Consumer Markets Economic demographics: the study of the economic characteristics of a nations population. Birthrate is the number of live births per 1,000 population in a given year. Birthrates should not be confused with natural increase, which is the surplus of births over deaths in a given period. The fertility rate is the number of live births per 1,000 women of childbearing age (defined as 15 to 44 years). Total fertility rate (TFR) is the average number of children that would be born alive to a woman during her lifetime if she were to pass through all of her childbearing years conforming to the age-specific fertility rates of a given year. Population momentum, which recognizes that the future growth of any population will be influenced by its present age distribution. Changing Age Distribution in the United States A cohort is any group of individuals linked as a group in some way. Cognitive age is the age one perceives ones self to be.

Changing Geography of Demand Where people live, how they earn and spend their money and other socioeconomic factors referred to as geodemography are critical to understand consumer demand. Suburbs have grown rapidly, but today exurbs areas beyond the suburbs are experiencing the fastest growth. The metropolitan statistical area (MSA) is defined as a free-standing metropolitan area, surrounded by nonmetropolitan counties and not closely related with other metropolitan areas. A primary

metropolitan statistical area (PMSA) is a metropolitan area that is closely related to another city. A grouping of closely related PMSAs is a consolidated metropolitan statistical area (CMSA). Economic Resources Income is defined as money from wages and salaries as well as interest and welfare payments. Consumption is heavily influenced by what consumers think will happen in the future referred to as consumer confidence. Wealth is a measure of a familys net worth or assets in such things as bank accounts, stocks, and a home, minus its liabilities such as home mortgage and credit card balances. Contra cyclical advertising is the practice of increasing or at least maintaining advertising during economic slowdowns to gain market share when competitors cut promotional activity. Global Market Demographics and Attractiveness A trait is any distinguishable, relatively enduring way in which one individual differs from another. Trait theory is perhaps most useful to marketing strategies in developing brand personality - the personality consumers interpret from a specific brand. Personal Values Social values define normal behavior for a society or group. Personal values define normal behavior for an individual. Laddering refers to in-depth probing directed toward uncovering higher-level meanings at both the benefit (attribute) level and the value level. Lifestyle Concepts and Measurement Lifestyle is a summary construct defined as patterns in which people live and spend time and money. Psychographics is an operational technique to measure lifestyles; it provides quantitative measures and can be used with the large samples needed for definition of market segments. The term psychographics is often used interchangeably with AIO measures statements that describe the activities, interests and opinions of consumers. (TENTAMENVRAAG!!!) AIO Components are defined by the following categories. Activity: an action such as bowling, shopping in a store, or talking on the telephone. Interest: the degree of excitement that accompanies both special and continuing attention to an object, event, or topic. Opinion: a spoken or written answer that a person gives in response to a question.

Chapter 8 Consumer Motivation

Types of Consumer Needs Phising: online scams in which crooks pose as representatives of banks or companies sending e-mails soliciting credit card and other personal information from consumers. The term conspicuous consumption is often used to describe purchases motivated to some extent by the desire to show other people just how successful we are. Self concept: the mental images or impressions one has of oneself. Impulse buying occurs when consumers unexpectedly experience a sudden and powerful urge to buy something immediately. Self-gifts are things that we buy or do as a way of rewarding, consoling, or motivating ourselves. Motivational Conflict and Need Priorities Motivational conflict: what consumers experience when they must make tradeoffs in satisfying their needs. Motivational conflict can take one of three basic forms. Approach-approach conflict occurs when the person must decide between two or more desirable alternatives. Avoidance-avoidance conflict involves deciding between two or more undesirable alternatives. Approach-avoidance exists when a chosen course of action has both positive and negative consequences.

Maslows hierarchy of needs (tentamen!!!): 6. Self-actualization needs: self-fulfillment, enriching experiences 7. Esteem needs: accomplishment, self-respect, prestige 8. Social needs: companionship, friendship, love 9. Safety needs: protection, security 10.Psychological needs: food, water, sleep (Need for cognition hoort hier NIET in thuis!!!) Benefit segmentation involves dividing consumers into different market segments based on the benefits they seek (i.e., the needs they want fulfilled) from product purchase and consumption. Motivational Intensity Motivational intensity represents how strongly consumers are motivated to satisfy a particular need. The Challenge of Understanding Consumer Motivation Unconscious motivation: being unaware of what really motivates ones behavior. Motivating Consumers

Premiums: products that are offered as an incentive for the purchase of another product. Value-discounting hypothesis predicts that products offered as a free premium will be valued less. Loyalty programs try to motivate repeat buying by providing rewards to customers based on how much business they do with a company.

Lecture 3: Consumer Perception & Information processing

Priming: when an earlier stimulus temporarily activates a construct (scheme, attitude, stereo-type) in memory that influences response to a later stimuli.

Chapter 14 Making Contact

Exposure Exposure occurs when there is physical proximity to a stimulus that allows one or more of a persons five senses the opportunity to be activated. This activation happens when a stimulus meets or exceeds the lower threshold: the minimum amount of stimulus intensity necessary for sensation to occur. Product placement: a technique in which companies pay to have their products embedded within an entertainment vehicle. A permission-based e-mail is one which recipients have previously granted permission to a commercial sender to contact them in this fashion. In contrast, spam is unsolicited commercial e-mail. Viral marketing occurs when a company creates something (linked sometimes only tangentially to the companys product) that is so compelling than consumers spontaneously pass the something along to others they know. Buzz refers to how much attention has been generated by a marketing activity. Another new advertising medium is advergaming, which are games containing product associations. Zapping: the act of switching channels via remote control during a television programs commercial breaks. The cousin of zapping is zipping, in which a person fast-forwards through commercials when watching recorded programming. Habituation occurs when a stimulus becomes so familiar and ordinary that it loses its attention-getting ability. Advertising wearout is the term used to describe ads that lose their effectiveness because of overexposure. Attention Attention: the second stage of information processing representing the amount of thinking focused in a particular direction. Sensory memory refers to that part of mental capacity used when initially analyzing a stimulus detected by one of our five senses. Short-term memory is where thinking occurs. Long-term memory is the mental warehouse containing all of our knowledge.

The length of time short-time memory can be focused on a single stimulus or thought (i.e., the span of attention) is not very long. The term permission marketing refers to asking consumers for their permission to send them product-related materials. Isolation involves placing only a few stimuli in an otherwise barren perceptual field. The notion that people are influenced by stimuli below their conscious level of awareness is often referred to as subliminal persuasion.

Chapter 15 Shaping Consumers Opinions

Opinion Formation The first time we develop a belief, feeling, or attitude about something is called opinion formation. Comprehension involves the interpretation of a stimulus. Stimulus categorization: when a stimulus is classified using the mental concepts and categories stored in memory. Cognitive responses: the thoughts that occur during processing. Affective responses: feelings that are experienced during processing.

According to classical conditioning, simply pairing one stimulus that spontaneously evokes certain meanings and feelings with another stimulus can cause a transfer of these meanings and feelings from one to the other (TENTAMEN!!!). Unconditioned stimulus: In Pavlovs theory of classical conditioning, the stimulus that automatically evokes a particular response (e.g., food). Unconditioned response: In Pavlovs theory of classical conditioning, the response evoked by the unconditioned stimulus. Conditioned stimulus: In Pavlovs theory of classical conditioning, the new stimulus to which the unconditioned response can be transferred (e.g., ringing a bell). Conditioned response: In Pavlovs theory of classical conditioning, the response arising from conditioning that occurs to the unconditioned stimulus and response.

Central process: a process of opinion which opinions are formed from a thoughtful consideration of relevant information. Opinions that arise without thinking about relevant information follow a peripheral process. Peripheral cues are stimuli devoid of product-relevant information. Opinion Change Once an initial opinion has been formed, any subsequent modification in an existing opinion represents opinion change. The differential threshold represents the smallest change in stimulus intensity that will be noticed. According to Webers law, perceptions of change depend on more than simply the absolute amount of change.

How Businesses Shape Consumers Opinions Composite branding refers to the use of two well-known brand names on a product. Stimulus generalization occurs when, for an existing stimulus-response relationship, the more similar a new stimulus is to the existing one, the more likely it will evoke the same response. Nine-ending prices: prices in which the last digit of a products price is the number 9. Reference pricing: the act of providing information about a price other than that actually charged for the product as a way of influencing consumers perceptions of the products expensiveness. Informational advertising appeals attempt to influence consumers beliefs about the advertised product. Emotional advertising appeals try to influence consumers feelings about the advertised product. Utilitarian advertising appeals aim to influence consumers opinions about the advertised products ability to perform its intended function. Value-expressive advertising appeals attempt to influence consumers opinions about the advertised products ability to communicate something about those who use the product.

Search claims are those that can be validated before purchase by examining information readily available in the marketplace. Experience claims can also be verified but require product consumption in order to do so. Sometimes advertising claims are such that verification of their accuracy is either impossible or unlikely because they require more effort than consumers are willing to invest. These claims are called credence claims. Objective claims are claims that focus on factual information that is not subject to individual interpretations. Subjective claims, however, are claims that may evoke different interpretations across individuals (TENTAMEN!!!). Match-up hypothesis: in product endorsement, the use of endorsers is most effective when the endorsers are perceived as being the appropriate spokespeople for the product to be endorsed. Gain-framed messages emphasize what is attained by following the messages recommendations. In contrast, loss-framed messages emphasize what cost may be incurred if the messages recommendations are not followed (Tentamen!!!). Loss aversion: principle that says that losses loom larger than gains. Pennies-a-day strategy: a persuasion strategy that decomposes a products price into its cost on a daily basis in order to make the price appear less expensive. Scarcity effect: when an object is viewed as more desirable as its perceived scarcity increases.

Chapter 16 Helping Consumers to Remember

Cognitive learning Cognitive learning occurs when information processed in short-term memory is stored in long-term memory. Rehearsal involves the mental repetition of information or, more formally, the recycling of information through short-term memory. The amount of elaboration (the degree of integration between the stimulus and existing

knowledge) that occurs during processing influences the amount of learning that takes place. Intentional learning: deliberate learning with the intent of later remembering what is learned. Incidental learning: learning that occurs despite the absence of the intention to do so.

Mental representations refer to the particular manner in which information is stored in long-term memory. The concept of dual coding proposes that information can be stored in both semantic and visual forms. Associative network: a theory of memory organization that proposes that memory nodes containing bits of information are linked to other memory nodes in a series of hierarchical networks. Retrieval Retrieval involves the activation of information stored in long-term memory thats then transferred into short-term memory. A retrieval cue is a stimulus that activates information in memory relevant to the tobe-remembered information. According to the concept of spreading activation, activating one memory node causes a ripple effect that spreads throughout its linkages to other nodes. The failure to retrieve something from memory is commonly known as forgetting. According to decay theory, memories grow weaker with the passage of time. Interference theory proposes that the chances of retrieving a particular piece of information become smaller as interference from other information becomes larger. Free recall: a type of recall measure that does not use any retrieval cues. Cued recall: a type of recall measure in which certain types of retrieval cues are provided.

Day-after recall (DAR) measure: a measure that assesses consumers ability to recall the advertised brand twenty-four hours after being exposed to an advertisement. How Companies Can Help Consumers to Remember Self-referencing involves relating a stimulus to ones own self and experiences. Concrete words (such as tree or dog) are those that can be visualized rather easily. In contrast, abstract words (such as democracy or equality) are less amenable to visual representation. Brand name suggestiveness is the extent to which a brand name conveys or reinforces a particular attribute or benefit offered by the brand. Closure refers to the tendency to develop a complete picture or perception when elements in the perceptual field are missing.

The interaction of retail density and music tempo: Effects on shopper responses
Based on the schema incongruity model, it is found that shopper hedonic and utilitarian evaluations of the shopping experience are highest under conditions of slow music/high density and fast music/low density. The basic argument of the schema incongruity theory is that when faced with stimuli that are mildly incongruent with prior expectations, individuals will engage in more elaborative information processing. Hedonic value: reflects the entertainment and emotional worth of the shopping trip Utilitarian value: reflects whether the shopping tasks were accomplished

Too much density can be compensated by low arousal music (slow music). Up-tempo music may distract from a boring environment. Density induces tension and confusion because of limited space. Hedonic and utilitarian evaluations of the shopping experience are the highest under conditions of slow music/high density and fast music/low density.

Lecture 4: Consumer Research & Attitudes

Attitude: a global evaluation of an object. Three dimensions: Direction (pleasant, unpleasant) Intensity (very exciting, little exciting) Impact

Belief based attitude measure (Ajzen, 2002) Belief strength (belief that action will lead to consequence) Evaluation: importance (evaluation of consequence)

(5*1) + (3*4) + (4*2) + (4*1) = 29 (5*4) + (3*3) + (4*4) + (4*3) = 57 SubWay gets a higher score, even if you only look at the most important belief (healthy food) (lexicographic strategy).

Chapter 5 Purchase
To Buy or Not to Buy The decision to buy can lead to a fully planned purchase (both the product and brand are chosen in advance), a partially planned purchase (intent to buy the product exists but brand choice is deferred until shopping), or an unplanned purchase (both the product and brand are chosen at point of sale). Data mining: the creation of a database of names for developing continuous communications and relationships with the consumer. Retailing and the Purchase Process Store image: consumers overall perception of a store, which they rely on when choosing a store. Determinants of Retailer Success or Failure Image advertising uses visual components and words that help consumers form an expectation about their experience in the store and about what kinds of consumers will be satisfied with the stores experience. Information advertising, on the other hand, provides details about products, prices, and hours of store operation, locations, and other attributes that might influence purchase decisions. The physical properties of the retail environment designed to create an effect on consumer purchases are often referred to as store atmospherics. Colors within the store can also influence consumers perceptions and behavior. Consumers have rated retail interiors using cool colors as more positive, attractive, and relaxing than those using warmer colors, which are sometimes most suitable for a stores exterior or display window to draw customers into the store (TENTAMEN!!!). Consumer logistics is the speed and ease with which consumers move through the retail and shopping process. The Changing Retail Landscape Multichannel retailing: the act of reaching diverse consumer segments through a variety of formats based on consumers lifestyles and shopping preferences. Hypermarket: a market that incorporates breakthrough technology in handling materials from a warehouse-operating profile, providing both a warehouse feel for consumers and a strong price appeal. Direct marketing refers to the strategies used to reach consumers somewhere other than a store.

Direct selling is defined as any form of face-to-face contact between a salesperson and a customer away from a fixed retail location. Inbound telemarketing refers to the use of a toll-free number to place orders directly. Consumer Resources: What People Spend When They Purchase Discretionary time: time during which consumers are not constrained by economic, legal, moral, or physical compulsion or obligation. Nondiscretionary time: time that is constrained by physical, social, and moral obligations.

Polychronic time use involves combining activities simultaneously. This concept has also been called dual time usage and contrasts with performing only one activity at a time (monochronic time use). Cognitive resources represent the mental capacity available for undertaking various information-processing activities. Capacity refers to the cognitive resources that an individual has available at any given time for processing information. The allocation of cognitive capacity is known as attention. Communicating with Consumers: Integrated Marketing Communications Integrated marketing communications (IMC) is a systematic, cross-organizational marketing communication process that is customer-centric, data-driven, technically anchored, and branding effective.

Chapter 6 Post-Purchase Processes: Consumption and PostConsumption Evaluations

Consumption Consumption represents consumers usage of the acquired product. User and nonuser are terms often used to distinguish between those who consume the product and those who do not. Usage expansion advertising: advertising that attempts to persuade consumers to use a familiar product in new or different ways. Usage volume segmentation: a form of segmentation that divides users into heavy, moderate, and light users. A consumption experience provides positive reinforcement when the consumer receives some positive outcome from product usage. Negative reinforcement occurs when consumption enables consumers to avoid some negative outcome. Punishment occurs when consumption leads to negative outcomes. Consumption norms represent informal rules that govern our consumption behavior. Consumption rituals are defined as a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time. The term compulsive consumption is defined as a response to an uncontrollable drive or desire to obtain, use, or experience a feeling, substance, or activity that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others. Ethnography involves describing and understanding consumer

behavior by interviewing and observing consumers in real-world situations. Shop-alongs, in which shoppers are accompanied by one or more observers, can help retailers better understand which things seem to attract shoppers attention and interest as well as which areas have room for improvement. Post-Consumption Evaluations Discussing ones consumption experiences with other people is a common activity, known as word-of-mouth communication. To better represent the uniqueness of consumers communicating with each other over the Internet, a new term has entered our vernacular: word-of-mouse communication. Blogs, short for Web logs are websites that contain an online personal journal with reflections, comments, and often hyperlinks provided by the writer. Expectancy disconfirmation model: a model that proposes that satisfaction depends on the comparison of pre-purchase expectations with consumption outcomes. If the product delivers less than expected, negative disconfirmation occurs. Positive disconfirmation, on the other hand, exists when the product provides more than expected. Finally, confirmation takes place when the products performance matches expectations. Regret occurs when consumers believe that an alternative course of action than the one chosen would have produced a better outcome. A more extreme reaction to negative disconfirmation is rage, which occurs when consumers are extremely upset.

Chapter 9 Consumer Knowledge

The Importance of Consumer Knowledge Brand associations are the linkages in memory between the brand and other concepts. Types of Consumer Knowledge Product knowledge represents the information stored in consumers memory about products.

Product novices possess very simple levels of product category knowledge. Product experts possess vast amounts of product category knowledge. Top-ofthe-mind awareness refers to the particular brand that is remembered or thought of first. The concept of brand image refers to the entire array of associations that are activated from memory when consumers think about the brand. Image analysis involves examining the current set of brand associations that exist in the marketplace. Perceptual mapping is a form of image analysis that derives brand images from consumers similarity judgments. Purchase knowledge encompasses the various pieces of information consumers possess about buying products. Relative price knowledge is what consumers know about one price relative to another.

Consumption and usage knowledge encompasses the information in memory about how a product can be consumed and what is required to actually use the product. Persuasion knowledge represents what consumers know about the goals and tactics of those trying to persuade them. Self knowledge represents the persons understanding of her or his own mental processes.

The Benefits of Understanding Consumer Knowledge Desired image refers to the image that a company seeks to create in the marketplace for its product. Knowledge gaps refer to an absence of information in memory. Misperception is simply inaccurate knowledge.

Chapter 10 Consumer Beliefs, Feelings, Attitudes, and Intentions

Consumer Beliefs Expectations are beliefs about the future. Another type of consumer belief is the inferential belief, in which consumers use information about one thing to form beliefs about another thing. Some of the most common inferential beliefs are price-quality inferential beliefs, in which consumers use price information to form beliefs about a products quality. Partially comparative pricing is when a retailer features price comparisons for some but not all products it carries. Consumer Feelings Mood state refers to how people feel at a particular moment in time. Pleasure represents positive feelings, arousal reflects feelings of excitement and stimulation, and dominance indicates feelings of being in control. Consumer Attitudes Attitude valance refers to whether the attitude is positive, negative or neutral. Attitude extremity reflects the intensity of the liking or disliking.

Attitude resistance is the degree to which an attitude is immune to change. Attitude confidence represents a persons belief that her or his attitude is correct. Attitude accessibility refers to how easily the attitude can be retrieved from memory. Attitude toward the object (Ao) represents an evaluation of the attitude object. Attitude toward the ad (Aad): the global evaluation of an advertisement.

Preferences represent attitudes toward one object in relation to another. Attitude toward behavior (Ab) represents an evaluation of performing a particular behavior involving the attitude object.

Consumer Intentions Spending intentions reflect how much money consumers think theyll spend. Purchase intentions represent what consumers think theyll buy. Repurchase intentions: whether consumers anticipate buying the same product or brand again. Shopping intentions capture where consumers plan on making their product purchases. Search intentions indicate consumers intentions to engage in external search. Consumption intentions represent consumers intentions to engage in a particular consumption activity.

Behavioral expectations represent the perceived likelihood of performing a behavior. Volitional control represents the degree to which a behavior can be performed at will. Perceived behavioral control: consumers beliefs about how easy it is to perform a behavior.

Implicit consumer preferences and their influence on product choice

Implicit attitudes: evaluative responses regarding an attitude object which are not necessarily subject to introspection. Individuals may not be aware of their implicit attitudes or they may be unable to verbalize them. Implicit attitudes have an unknown origin, are activated automatically and influence uncontrollable consumer responses. Explicit attitudes: A persons conscious views toward people, objects, or concepts. That is, the person is aware of the feelings he or she holds in a certain context. IAT: The Implicit Association Test (IAT) is an experimental measure within social psychology designed to detect the strength of a person's automatic association between mental representations of objects (concepts) in memory.

Adapting to a retail environment: Modeling consumerenvironment interactions

The PAD emotional state model is a psychological model developed by Albert Mehrabian and James A. Russell to describe and measure emotional states. Pleasure: positive affective state Arousal: a feeling state of sleep frantic excitement (energy, tiredness, negative arousal, relaxation, boredom)

Dominance: extent to which one feels unrestricted or free to act in a variety of ways (perceived control & freedom of choice)

Cognitive appraisals: personal interpretation of a situation (how an individual views a situation).

Lecture 7: Social Influences

Short-term memory: where thinking occurs; the stimulus is interpreted and contemplated using concepts stored in long-term memory. Long-term memory: the mental warehouse containing all of our knowledge. Normalization: the convergence of individual judgments to a single judgment. Conformity: existing norms are consolidated. Informational social influence: when persons are in a situation where they are unsure of the correct way to behave, they will often look to others for cues/information concerning the correct behavior. Normative influence: a person conforms to be liked or accepted by others. Descriptive norms: what is commonly done in a given situation Injunctive norms: norms specifying what ought to be done what is approved or disapproved behavior in a given situation.

Normative Focus Theory (Cialdini & Goldstein, 2004) Norms will influence behavior only to the extent that they are focal (salient) for the person involved at the time of behavior. People obey injunctive norms only when they are relevant and significant. Practical implications: Focus the target audience on the type of norm that is aligned with the end objective Norm-based persuasion most effective when the descriptive and injunctive norms are presented in concert and aligned to another Norm-based persuasion most effective when the norms are associated with meaningful reference groups

Opinion leader: in W-O-M marketing, an agent who is the sender of information and opinions, and who influences the decisions of others. Market maven: individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to requests from consumers for market information.

Chapter 11 Culture, Ethnicity, and Social Class

What is Culture? Culture refers to a set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society. Abstract elements include values, attitudes, ideas, personality types, and summary constructs, such as religion or politics. Cultural artifacts include the material component of a culture. Norms are rules of behavior held by a majority or at least a consensus of a group about how individuals should behave. Macro-culture refers to values and symbols that apply to an entire society or to most of its citizens. Microculture refers to values and symbols of a restrictive group or segment of consumers, defined according to variables such as age, religion, ethnicity, or social class. The processes by which people develop their values, motivations, and habitual activity are referred to as socialization. Consumer socialization: the acquisition of consumption-related cognitions, attitudes, and behavior. How Core Values Affect Marketing Core merchandise: a basic group of products that is essential to a stores traffic, consumer loyalty, and profits. Core values: the very basic values of people that, among other things, define how products are used in society, provide positive and negative valences for brands and communications programs, define acceptable market relationships, and define ethical behavior. Changing Values Changes in a societys values can be forecast on the basis of a life-cycle explanation, meaning that as individuals grow older, their values change. Generational change suggests that there will be gradual replacement of existing values by those of young people who form the leading generation in value terms. Cohort analysis: a process that investigates the changes in patterns of behavior or attitudes in a cohort. Ethnic Microcultures and Their Influences on Consumer Behavior Acculturation measures the degree to which a consumer has learned the ways of a different culture compared to how they were raised. Transcultural marketing research is used to gather data from specific ethnic groups and compare these data to those collected from other markets, usually the mass market. Social-Class Microcultures Social class is defined as relatively permanent and homogeneous divisions in a society into which individuals or families sharing similar values, lifestyles, interests, wealth, status, education, economic position, and behavior can be categorized.

Status groups reflect a communitys expectations for style of life among each class as well as the positive or negative social estimation of honor given to each class. People have high prestige when other people have an attitude or respect or deference to them. Association is a variable concerned with everyday relationships, which people who like to do the same things they do, in the same ways, and with whom they feel comfortable. Social stratification refers to the perceived hierarchies in which consumers rate other as higher or lower in social status. Those who earn a higher status due to work or study have achieved status, whereas those who are lucky to be born wealthy or beautiful have ascribed status. Social mobility refers to the process of passing from one social class to another. Parody display describes the mockery of status symbols and behavior.

Chapter 12 Family and Household Influences

The Importance of Families and Households on Consumer Behavior Family: a group of two or more persons related by blood, marriage, or adoption who reside together. The nuclear family is the immediate group of father, mother, and child(ren) living together. The extended family is the nuclear family, plus other relatives, such as grandparents, uncles and aunts, cousins, and parents-in-law. The family into which one is born is called the family of orientation, whereas the one established by marriage is the family of procreation. The term household is used to describe all persons, both related and unrelated, who occupy a housing unit. Structural variables include the age of the head of the household or family, marital status, presence of children, and employment status. Three sociological variables that help to explain how families function include cohesion, adaptability, and communication. Cohesion is the emotional bonding between family members. Adaptability measures the ability of a family to change its power structure, role relationships, and relationship rules in response to situational and developmental stress. Communication is a facilitating dimension, critical to movement on the other two dimensions.

Who Determines What the Family Buys? Instrumental roles, also known as functional or economic roles, involve financial, performance, and other functions performed by group members. Expressive roles involve supporting other family members in the decision-making process and expressing the familys aesthetic or emotional needs, including upholding family norms. Family marketing: marketing based on the relationships between family members based on the roles they assume.

Family Life Cycles Family life cycle (FLC): the series of stages that a family passes through and that change them over time. Household life cycle (HLC): the series of stages that a household passes through and that change in over time. Consumer life cycle (CLC): the series of stages that a consumer passes through during life and that change an individuals behavior over time.

Changing Roles of Women A role specifies what the typical occupant of a given position is expected to do in that position in a particular social context. Changing Masculine Roles Androgynous consumer: a consumer who has the characteristics of both male and female consumers (or no distinguishing masculine or feminine characteristics at all).

Chapter 13 Group and Personal Influence

Group and Personal Influences on Individuals A reference group is any person or group of people who significantly influences an individuals behavior. Primary groups: groups that are sufficiently intimate to permit and facilitate unrestricted face-to-face interaction. Secondary groups: groups that have face-to-face interaction, but are more sporadic, less comprehensive, and less influential in shaping thought and behavior than are primary groups. Formal groups: social aggregations characterized by a defined structure and a known list of members and requirements for membership. Informal groups: groups that have far less structure than formal groups and are likely to be based on friendship or common interests. Membership: the act of achieving formal acceptance status within a group. Aspirational groups: groups that the individual seeks to associate with by adopting the groups norms, values and behavior. Dissociative groups: groups with which an individual tries to avoid association. Virtual membership groups: groups based on virtual communities in which individuals from different geographic areas share information without face-toface contact.

Normative influence occurs when individuals alter their behaviors or beliefs to meet the expectations of a particular group. Value-expressive influence occurs when a need for psychological association with a group causes acceptance of its norms, values, attitudes, or behaviors. Informational influence occurs when people

have difficulty assessing product or brand characteristics by their own observation or contact. How Reference Groups Influence Individuals The desire of an individual to fit in whit a reference group often leads to conformity a change in beliefs or actions based on real or perceived group pressures. Two types of conformity exist: compliance and acceptance. Compliance occurs when an individual conforms to the wishes of the group without accepting all its beliefs or behaviors. Acceptance occurs when an individual actually changes his or her beliefs and values to those of the group.

Another consideration leading to diminished normative compliance is a weakened respect for social norms, referred to by sociologists as anomie. An expert is any person who possesses unique information or skills that can help consumers make better purchase decision than other types of spokespersons. In contrast, the common-person appeal features testimonials from regular consumers with whom most individuals can relate.

Transmission of Influence through Dyadic Exchanges Similar to opinion leaders are product innovators individuals who are the first to try a new product. Market mavens gather much of their information from shopping experiences, openness to information (including direct mail and the Internet), and general market awareness, making them more aware of new product than other people. Another source of personal influence in the marketplace is the surrogate consumer (or surrogate shopper) an individual who acts as an agent to guide, direct, and conduct activities in the marketplace. Whenever there is personal communication between a consumer and a marketer, a service encounter occurs, often a key to successful marketing. Customer intimacy refers to the detailed understanding and focus on customers needs lifestyles and behaviors in an effort to create a deep cultural connection with the customers, but reverse customer intimacy how well marketers facilitate customers knowing the marketer may also be a key to customer loyalty. Trickle-down theory, the oldest theory, theorizes that lower classes often emulate the behavior of their higher-class counterparts. The twostep flow of communication model indicates that opinion leaders are the direct receivers of information from advertisements and that they interpret and transmit the information to others through word-of-mouth. Recognizing that mass media can reach anyone in a population and influence them directly, the multistep flow of communication model was developed. This model indicates that information can

flow directly to different types of consumers, including opinion leaders, gatekeepers, and opinion seekers or receivers. Diffusion of Innovations An innovation can be defined in a variety of ways, but the most commonly accepted definition is any idea or product perceived by the potential adopter to be new. It follows then that a product innovation (or new product) is any product recently introduced to the market or perceived to be new when compared to existing products. Continuous innovation: the modification of the taste, appearance, performance, or reliability of an existing product rather than the establishment of a totally new one. Dynamically continuous innovation: the act of creating either a new product or a significant alteration of an existing one, but does not generally alter established purchase or usage patterns. Discontinuous innovation: the act of introducing an entirely new product that significantly alters consumers behavior patterns and lifestyles.

The Diffusion Process According to Rogers, diffusion is defined as the process by which an innovation (new idea) is communicated through certain channels over time among the members of a social system. Vertical coordination, a high degree of dependence and interlocking relationships among channel members, also increases the rate of diffusion. Some members of the social system are adopters people who have made a decision to use a new product whereas others are nonadopters. Innovators are the first consumer group to adopt products. Consumers who are innovators for many products are said to be polymorphic, whereas those who are innovators for only one product are monomorphic. Early adopters tend to be opinion leaders and role models for others, with good social skills and respect within larger social systems. The early majority consists of consumers who deliberate extensively before buying new products, yet adopt them just before the average time it takes the target population as a whole. The late majority tends to be cautious when evaluating innovations, taking more time than average to adopt them, and often at the pressure of peers. Laggards, the last group to adopt innovations, tend to be anchored in the past, are suspicious of the new, and exhibit the lowest level of innovativeness among adopters.

Innovativeness is the degree to which an individual adopts an innovation earlier than other members of a social system. Cognitive innovators have a strong preference for new mental experiences, whereas sensory innovators have a strong preference for new sensory experiences.

Market mavens: Psychological influences

The marketing literature has identified three distinct types of influential consumers: the innovators, the opinion leaders, and the market maven. Innovators are defined as consumers who tend to adopt products comparatively early within a given social system. Opinion leaders are defined as individuals who influence the purchasing behavior of other consumers in a specific product domain. Market mavens are defined as individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to requests from consumers for market information. Market mavens are consumers who highly involved in the marketplace and represent an important source of marketplace information to other consumers. Global self-esteem: an overall estimate of general self-worth; a level of selfacceptance or respect for oneself; a trait or tendency relatively stable and enduring, composed of all subordinate traits and characteristics within the self. Tendency to conform: a global, enduring personality trait in which the individual is predisposed to acquiesce to social norms prescribed by reference groups that are relevant and important to the individual. Consumer susceptibility to interpersonal influence: the need to identify or enhance ones image with significant others through the acquisition and use of products and brands, the willingness to conform to the expectations of others regarding purchase decisions and/or the tendency to learn about products and services by observing others and/or seeking information from others. Consumer need for uniqueness: an enduring personality trait by which consumers pursue dissimilarity through products and brands in an effort to develop a distinctive self and social image. Domain-specific opinion leadership: consumer influence on individuals in specific product areas.

Lecture 8: Dissatisfaction
Satisfaction: A positive post-consumption evaluation that occurs when the consumption experience either meets or exceed expectations. The customers fulfillment response. It is a judgment that a product/service feature, or the product/service itself, provides a pleasurable level of consumption-related fulfillment.

Expectancy disconfirmation model Negative disconfirmation: the result that occurs when, after purchase, the product delivers less than what was originally expected. Positive confirmation: the result that occurs when, after consumption, the product delivers more than what was originally expected. Confirmation: when a products performance meets certain expectations.

Attribution: how individuals assign causes of events, others behavior, and their own behavior to the product/service, to the situation or to themselves. Covariation model of attribution (Kelley, 1967) Can product performance be attributed to the product, person or situation? Three main types of information: 1. Distinctiveness: different from other products/brands? 2. Consistency: Does it always perform? 3. Consensus: How do other consumers feel about the product? Reporting-bias: advertiser under-reports undesirable performances, while being much more open on desirable attributes (advertiser acts out of self-interest). Knowledge-bias: advertiser is largely unaware of the alternatives. Dissatisfaction: if a product falls short of expectations (negative disconfirmation) the consumer is likely to be dissatisfied. Social Justice Theory (Tax et al. (1998), Tax & Brown (1998); Smith et al. (1999), Smith & Bolton (2002)) Customer (dis)satisfaction: Distributive fairness compensation Procedural fairness responsibility & responsiveness Interactional fairness empathy

The service recovery paradox states that with a highly effective service recovery, a service or product failure offers a chance to achieve higher satisfaction ratings from customers than if the failure had never happened.

Service validity and service reliability of search, experience and credence services: A scenario study
Customer satisfaction: the number of customers or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. The better the match between service specifications and consumers needs, the more satisfied customers are.

Service reliability: Is the service correctly produced? The extent to which the service delivery matches the service specifications. Service validity: is the correct service produced? The extent to which the service specifications match the customers needs and demands.

SEC-Classification Search service: dominant product/service attributes can be validated before purchase and consumption. Experience service: dominant product/service attributes can be verified but require consumption. Credence service: dominant cannot be verified because consumers lack information/expertise.

Lecture 9: New products

Diffusion: the social process of diffusion of the new product, service, concept, brand, after introduction, among consumers (throughout society) Adoption (acceptance): the individual decision making process to adopt (accept and buy) a new product, service, concept, brand. Continuous innovation: the modification of the taste, appearance, performance, or reliability of an existing product rather than the establishment of a totally new one. Dynamically continuous innovation: the act of creating either a new product or a significant alteration of an existing one, but does not generally alter established purchase or usage patterns. Discontinuous innovation: the act of introducing an entirely new product that significantly alters consumers behavior patterns and lifestyles.

Innovativeness is the degree to which an individual adopts an innovation earlier than other members of a social system. Three underlying dimensions: 1. Socio-economic variables 2. Personal & attitude variables 3. Communication-variables

Diffusion of preventive innovations

Diffusion is the process through which (1) an innovation (2) is communicated through certain channels (3) over time (4) among the members of a social system. The four main elements in the diffusion of new ideas are (1) innovation, (2) communication channels, (3) time, and (4) the social system. An innovation is an idea, practice, or object that is perceived as new by an individual or other unit of adoption. The characters that determine an innovations rate of adoption are:

1. Relative advantage: the degree to which an innovation is perceived as better than the idea it supersedes. What does matter is whether an individual perceives the innovation as advantageous. 2. Compatibility: the degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters. 3. Complexity: the degree to which an innovation is perceived as difficult to understand and use. 4. Triability: the degree to which an innovation may be experimented with on a limited basis. 5. Observability: the degree to which the results of an innovation are visible to others. Innovations that are perceived by individuals as having greater relative, advantage, compatibility, triability, observability, and less complexity will be adopted more rapidly than other innovations. The innovation decision process is the mental process through which an individual (or other decision making unit) passes (1) from first knowledge of an innovation, (2) to forming an attitude toward the innovation, (3) to a decision to adopt or reject, (4) to implementation of the new idea, and to (5) confirmation of this decision. Innovativeness is the degree to which an individual or other unit of adoption is relatively earlier in adopting new ideas than other members of a social system. Five adopter categories, or classifications of the members of a social system on the basis on their innovativeness, are: (1) innovators, (2) early adopters, (3) early majority, (4) late majority, and (5) laggards. 1. Innovators are the first 2.5% of the individuals in a system to adopt an innovation. 2. Early adopters are the next 13.5% of the individuals in a system to adopt an innovation. 3. Early majority are the next 34% of the individuals in a system to adopt an innovation. 4. Late majority are the next 34% of the individuals in a system to adopt an innovation. 5. Laggards are the last 16% of the individuals in a system to adopt an innovation. Preventive innovations are new ideas that require action at one point in time in order to avoid unwanted consequences at some future time. Preventive innovations are relatively low in relative advantage, compared to nonpreventive innovations. What strategies could be used to speed up the diffusion and use of preventive innovations? 1. Change the perceived attributes of preventive innovations. 2. Utilize champions to promote preventive innovations. A champion is an individual who devotes his/her personal influence to encourage adoption of an innovation. 3. Change the norms of the system regarding preventive innovations through peer support.

4. Use entertainment-education to promote preventive innovations. Entertainment-education is the process of placing educational ideas (such as on prevention) in entertainment messages. 5. Active peer networks to diffuse preventive innovations.