Consumer Behavior

IIPM Session 8/9/10

CONSUMER INFORMATION PROCESSING

The process through which consumers are - exposed to information - attend to it - comprehend it - place it in memory and - retrieve it for later use.

Info Processing
PERCEPTION the process through which individuals are exposed to information, attend to the information, and comprehend the information Exposure: consumers receive information through their senses Attention: consumers allocate processing capacity to a stimulus Comprehension: consumers interpret the information to obtain meaning from it

Exposure
A consumer's sensory organs are activated by a stimulus selective exposure: consumers can actively choose whether or not to expose themselves to information e.g., zipping and zapping through a video tape (fast forwarding through commercials or turning off the sound during commercials) sensation: the stimulation of a person's sensory receptors and the transmission of the sensory information to the brain Whether or not a stimulus is actually detected depends on its intensity:

Exposure
absolute threshold: the lowest level at which a stimulus can be detected 50% of the time. Why do TV commercials seem louder than the program material? subliminal perception: the idea that stimuli presented below the level of conscious awareness might influence behavior and feelings

Exposure
Just Noticeable Difference Threshold (JND) the minimum amount of difference in the intensity of a stimulus that can be detected 50% of the time Weber's Law as the intensity of the stimulus increases, the ability of a person to detect a difference between the two levels of the stimulus decreases

Exposure
Consumer Adaptation: the amount or level of the stimulus to which the consumer has become accustomed a reference point to which changes in the level of the stimulus are compared

Exposure
Butterfly Curve: at the adaptation level, consumer preference for a stimulus declines because the person has become habituated to the stimulus preference for a stimulus is greatest at points just higher or lower than the adaptation level Why are fashions constantly changing?

Attention
The allocation of cognitive capacity to an object or task

Attention
Types of Attention voluntary attention: consumers actively search out information that has personal relevance selective attention: consumers selectively focus attention on relevant information involuntary attention: consumer is exposed to something surprising, novel, threatening, or unexpected - e.g.:
surprise movement unusual sounds size of stimulus contrast effects

Comprehension
The process through which individuals organize and interpret information

Comprehension
Perceptual Organization the way people perceive shapes, forms, figures, and lines in their visual world Gestalt Psychology: attempts to understand how people perceive patterns in the world

Comprehension
Interpretation processes: people draw upon their experience, memory and expectations to attach meaning to a stimulus Expectations: prior beliefs about what should happen in a given situation can influence the interpretation of information Semiotics: how it is that people interpret meaning from signs signs: words, gestures, pictures, products, and logos used to communicate information

Stimulus Influencing Gestalt Perception Color and contrast

Size Intensity Position proximity Isolation Unity Context or setting Contrast/incongruity Frequency how often is it seen? Movement is it different? Odor Taste Symbols

Individual Factors
Individual Factors Influencing Gestalt Perception Interest Involvement Needs Values Cognitive set Ability to perceive

Acceptance/Retention
Acceptance - persuasion? Do your messages convince your customers of what you are saying? Retention Do they remember them?

Selective Perception
Selective exposure which radio stations you listen to Selective attention greater awareness of things youre interested in Selection comprehension interpreting information Selective retention what do you remember?

Memory-Learning-Perception
Getting Information Into Memory A message is encoded into signs, symbols, words It is available to be noticed in a message channel, such as TV If received, it is decoded into meaning for the receiver If learned, it may be retrieved from memory

Memory-Learning-Perception
Sensory memory - temporary, like the smell of good coffee Short-term memory - held for a limited period of time - like a phone number; chunking into bits which can be remembered Long-term memory - retrieval available for future use Where is the info from this course going???

Memory-Learning-Perception
Cognitive Learning Classical Conditioning Operant Conditioning

Memory-Learning-Perception
Classical Conditioning Meaning transfer can occur from pairing two objects together in an ad It occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. What happens when its time for class to be over???

Memory-Learning-Perception
Uses of Classical Conditioning Brand names and brand associations to create brand equity = strong positive association Product line extensions - positive carryover Repetition of a message, frequency marketing Generalization through look-alike products, family branding, line extensions, etc. Negative side: violent video games conditioned to accept shooting?

Memory-Learning-Perception
Operant Conditioning The individual learns to perform behaviors which produce positive outcomes and to avoid those that yield negative outcomes Positive Reinforcement: rebates, congratulatory letters, benefits Negative reinforcement: punishment, embarrassment, product failure Principles of reward and punishment are used

Memory-Learning-Perception
Cognitive learning occurs when information processed in short-term memory is stored in long-term memory Rehearsal involves the mental repetition of information or, the recycling of information through short-term memory Elaboration: the degree of integration between the stimulus and existing knowledge Retrieval: the activation of information stored in long-term memory that is then transferred into short-term memory

Memory-Learning-Perception
Reminders: Advertising reminds consumers to buy a product Post cards remind consumers to make an appointment Retrieval cues placed on packaging and at the point of purchase enhance ad effectiveness Repetition Companies rely on repetition (showing ads over and over again) to enhance rehearsal of the ad Learning plateaus after a certain number of repetitions, and negative responses may result from seeing an ad too often Repetition may be used within an ad

Memory-Learning-Perception
Self-referencing: involves relating a stimulus to ones own self and experiences The number and strength of potential linkages between new and stored information are enhanced Research supports the potential for encouraging self referencing through advertising copy LINKAGE TO BELIEF

Memory-Learning-Perception
Creation of desired perception Further resulting into attitude formation Finally into a habit formation.