Consumer Behavior: Decision Processes, Social Influence, and Psychological Theories

Consumer Problem

A consumer 'problem' is a misalignment/discrepancy between the desired state and the perception of the actual state.

Innate/Primary Needs

Biological, conscious needs.

Acquired/Secondary Needs

Psychological, learned, often unconscious needs.

Motivation

The level of drive determined by the size of the 'gap' and the problem's relative importance.

Positive Motivation

Motivation that drives a consumer towards an approach goal.

Negative Motivation

Motivation that drives a consumer towards an avoidance goal.

Maslow's Pyramid

A hierarchical classification of needs positing that higher-order needs emerge as lower needs are fulfilled.

Limitations of Maslow's Pyramid

The theory cannot be tested, is inadequate for understanding heroic and altruistic behaviors, and cannot predict an individual's dominant need at any one time.

Classic Consumer Decision Model

Assumes a linear, step-by-step process: Problem Recognition → Search → Evaluation → Post-Purchase.

Habitual Decision Making

A low involvement decision-making process where consumers skip search/evaluation due to post-purchase satisfaction/repeat behavior.

Emergency Problems

Unexpected problems that cannot be postponed and may force a sudden choice.

Contextual Factors

Momentary situation/environmental factors that can impact decision-making.

Decision Heuristics

Mental 'rules-of-thumb' used for effortless and speedy judgment.

Compensatory Rules

Negative evaluations on one criterion can be offset by positives (cost/benefit analysis).

Non-Compensatory Rules

Poor performance on one criterion cannot be compensated for (immediate rejection/one strike and out).

Evoked Set

The choices considered by consumers when making a decision.

Post-Purchase Dissonance

Anxiety over whether the correct decision was made.

Post-Purchase Regret

Feeling that a wrong decision was made.

Disconfirmation Paradigm

Satisfaction/Dissatisfaction is measured by performance vs. expectation.

Feedback Loop

Outcomes that impact future purchase decisions, potentially moving a brand from the accepted set to the inept set.

Attribution

Perceived cause of outcome, where favorable outcomes are attributed to self and unfavorable to others/circumstances.

Cultural Meaning Transfer

Meaning flows between the Culturally Constituted World (source), the Consumer Good, and the Individual Consumer.

Cultural Categories

Ways of dividing the world, e.g., age, gender.

Cultural Principles

Values/ideas used to interpret categories.

Instruments of Meaning Transfer

Advertising Systems and Fashion Systems that facilitate the transfer of meaning.

Consumer Rituals

Symbolic activities in fixed, repeatable sequences that transfer meaning to the consumer.

Exchange Ritual

Gift-giving, where context is infused with meaning.

Possession Ritual

Claiming advertised properties to confirm/enhance identity.

Divestment Ritual

Cleansing the product of previously held meaning before disposal.

Reference Groups

A person (real or fictitious) who influences the attitudes, behavior, standards, and values of others.

Associative Reference Group

In-group, family/friends.

Aspirational Reference Group

Groups one wants to emulate, e.g., opinion leaders.

Dissociative Reference Group

Out-groups one avoids association with.

Three Types of Influence

Informational, Utilitarian, and Value Expressive.

Social Stratification

Organizes inequality into hierarchical societal ranks.

Status Symbols

Often luxury items that enhance self-image and standing.

Patricians

The wealthy who use quiet signals to signal to each other.

Parvenus

Nouveau riche who use loud signals to associate with 'haves' and dissociate from 'have-nots'.

Bourdieu's Capital Types

Economic (money), Social (networks/relationships), and Cultural (embodied manners, knowledge of cultural goods).

Habitus

The regularities of behavior associated with social structures.

Freudian Personality

Results from the conflict between the Id (instincts/pleasure), the Superego (restrictions/morals), and the Ego (conscious self-control).

Neo-Freudian Personality

Suggests social relationships are fundamental.

Neo-Freudian

Suggests social relationships are fundamental.

Horney's CAD theory

Classifies types: Compliant, Aggressive, Detached.

Trait Theory

Defines personality by enduring, distinguishing traits.

Relevance of Personality Traits

Enable specific segmentation and targeting strategies.

Critique of Neo-Freudian

Often criticized for not accounting for consumption undertaken individually.

Application of Trait Theory

Consumers high on innovativeness are likely to be the first to try new products.

Belk (1988): The Extended Self

The close relationship between a consumer's self-concept and their possessions.

Possessions and Identity

Help consumers define, confirm, or extend their identity.

Application of Incorporation

Consumers incorporate possessions via Using it, Creating it, and Knowing it.

Implication of Loss of Possessions

Can be traumatic.

Consumer Perception Process

The process by which an individual receives, selects, and interprets stimuli to form meaningful and coherent pictures of the world.

Sub-processes of Perception

Exposure, Attention, and Interpretation.

Just-Noticeable Difference (JND)

The minimum difference that can be detected between two stimuli.

Weber's Law

Dictates that the stronger the first stimulus, the greater the change needed for consumers to notice.

Intrinsic Cues

Physical characteristics of a product.

Extrinsic Cues

External to the product, like price/brand image.

Cognitive Theories of Learning

Focus on complex mental processing and problem-solving.

Iconic Rote Learning

Memorizing associations via repetition.

Vicarious/Observational Learning

Observing others' actions/outcomes.

Behavioral Theories (Stimulus-Response)

Assumes learning results from observable responses to external stimuli.

Classical Conditioning

Involves Repetition, Generalization, and Discrimination.

Operant Conditioning

Learning through trial and error/reinforcement.

Attitudes

A learned predisposition to behave consistently favorably or unfavorably toward an object.

Cognitive Dissonance

The discomfort of holding conflicting beliefs.

Theory of Planned Behavior (TPB)

An attitudinal model built on the idea that intentions lead to behaviors.

Perceived Behavioral Control

The consumer's perception of their ability or access to resources required to perform the behavior.

Semiotics (Floch 1998)

The analysis of any system of signs aimed at decoding processes of signification.

Polysemy

Multiple meanings concurrently.

Synchronic Polysemy

Targets multiple segments at once.

Diachronic Polysemy

Promotes multiple attributes over time.