consumer pyschology

Decision Making

the study of the processes that involves the selection of an option from two or more different choices

High Involvement vs. Low Involvement

High Involvement: Important, expensive, high risk decisions. Consumers use extensive information processing and complex rules e.g buying a car

Low Involvement: Not important, low risk, inexpensive decisions. consumers use limited information processing and simple heuristics e.g buying shampoo

Disconfirmation paradigm

this theory explains satisfaction between the gap of expectation and actual performance. If the performance exceeds expectation this leads to positive disconfirmation. If the expectation falls short, this leads to negative disconfirmation.

Lexicographic decision rule

A non-compensatory rule where the consumer ranks attributes by importance and selects the brand that performs best on the most important attribute. If there is a tie, they move to the second attribute.

Satisficing

This is a strategy where a consumer selects the first option that meets the minimum threshold of acceptability rather than searching for the absolute best option. This is often due to bounded rationality (limited time or cognitive capacity).

The 3 main stages of the Perceptual Process

Exposure, Attention and Interpretation.

Absolute Threshold vs. Differential Threshold

Absolute Threshold: The lowest level at which a consumer can experience a sensation. (where a person can tell a difference between something and nothing)

Differential Threshold: When minimal difference can be detected between two similar stimuli (Just noticeable difference).

Weber's Law

The stronger the initial stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different. It's a relative difference, not an absolute one.

Gestalt Psychology

Gestalt Psychology relates to interpretation by suggesting that consumers view stimuli as whole patterns rather than isolated bits of information. This includes the principles of closure, figure-ground and grounding.

Describe how sensory marketing influences consumer emotion and memories.

Sensory Marketing involves managing sensory stimuli (sight, smell ,sound, taste, touch) to shape consumer perceptions. For example, scent can trigger memories and emotions (e.g. baking cookies) and music tempo can influence the speed of shopping or perceived waiting times.

Define Social Norms and distinguish between Descriptive and Injunctive norms.

Social Norms are a set of informal rules or standards understood by a group of people. Descriptive norms are what people actually do and Injunctive norms are what people think/ should do.

Cialdini's 6 principles of persuasion

1. Consistency 2. Liking 3. Social Proof 4. Authority 5. Scarcity 6. Reciprocity

Explain why consumers are more likely to trust messages and purchase products from people they like

If you look at Cialdini's principle of Liking, these factors include physical attractiveness, similarity, cooperation and compliments.

What are three characteristics that make a message go viral.

Messages are more likely to go viral if they have good content. Thought provoking, Funny or Innovative.

How does a reference group influence consumer behaviour?

A reference group is a group used by a person as a basis for comparison or guidance when forming beliefs, attitudes or behaviours. They can be aspirational or dissociative, influencing consumers to want to fit in or distinguish themselves.

What is Motivation according to Schiffman et al. (2011)

According to Schiffman et al. (2011), Motivation is the driving force that leads us to take a particular action or make a certain decision to satisfy needs.

Innate needs Vs. Acquired needs

Innate needs are pyshiologically driven. E.g. if someone is hungry they will develop the need to eat food.

Acquire needs are culturally learned. E.g. if someone is in need of love they will go on a dating site to fulfil these needs

Approach Goals Vs. Avoidance Goals

Approach goals are positive motivators e.g. getting an A+ on an exam.

Avoidance goals are negative motivators e.g. wanting to avoid failing an exam.

Describe the Motivational Process

Unfulfilled needs create tension. This tension creates a drive to reduce it, which makes us act on the tension which reduces the tension when needs are met.

In Maslow's Hierarchy of Needs, what are considered primary and secondary needs.

Primary needs are Physiological needs and Safety needs.

Secondary needs are Social, Esteem and Self-Actualisation needs.

What are the three components of the hierarchy of effects?

Think: Cognitive information processing

Feel: Behavioural learning

Do: Experiential or Hedonic consumption

Explain the concept of the attitude - behaviour gap.

The Cognitive Dissonance theory suggests that people change their beliefs because they don't want to give up certain behaviours. This is where consumers will try to close the gap. E.g. knowing that alcohol is bad for you but changing your beliefs so that you can go out for a pint on a Friday night.

High Involvement Hierarchy Vs. Low Involvement Hierarchy

High Involvement: Think, Feel, Do

Low Involvement: Think, Do, Feel

Explain the Behavioural Learning Hierarchy

When consumers do, feel and think. Behaviour comes first, then feelings, then beliefs.

Define an attitude in consumer marketing

Attitudes are a learned predisposition to evaluate an object in a consistently favourable or unfavourable way.

Define Culture

Culture is the sum total of learned ideas, beliefs, values, knowledge and customs that regulate the behaviour of members of a particular society.

Enacted vs. Crescive Norms

Enacted norms are explicitly decided rules e.g. a green traffic light means go.

Crescive norms are embedded customs learned through interaction e.g. christmas traditions

The 3 Elements of the Cultural System

1. Ecology: where a culture has evolved geographically

2. Social Structure: The way social life is maintained

3. Ideology: The mental characteristics of members of a culture

Define a Subculture and explain how it relates to the dominant culture

Subcultures exist within cultures. Members of a subculture possess beliefs, knowledge, ideas or customs that set them apart from other members of the same culture. E.g. age, religion, ethnicity or consumer interests like "Bikers".

How do rituals and myths function within a culture?

Myths are stories that contain symbolic elements that express shared emotions and beliefs of a culture e.g. the difference between bad and good.

Rituals transfer meaning in cultures. They normally comprise of multiple behaviours which are repeated and occur in a fixed sequence e.g. giving gifts.

Briefly describe the theory of cognitve dissonance and how a consumer might attempt to reduce it.

The theory of cognitive dissonance is the state of pyschological tension that arises when a consumer has inconsistent attitudes, behaviours or beliefs. They can reduce this by ignoring competitor ads, rationalising decisions or looking at good reviews.

What is meant by social proof?

Social proof is when people tend to follow other people's beliefs or behaviours.

What is sensory marketing?

Sensory marketing is a strategy used by a marketer to engage consumers with the senses (sight, smell, sound, touch, taste) to evoke emotions and memories e.g. the smell of baking cookies or the tempo of music making you shop quicker or perceive wait times as shorter than they actually are.

Give a marketing example that uses operant conditioning

A brand that always has an online sale on their designer clothes increases the likelihood of the customers to return. e.g. Farfetch

Describe the difference between affective and cognitive dimension of attitude formation.

Affective attitude formation is based on feelings and emotions we associate with an attitude object.

Cognitive attitude formation is based on the thoughts, beliefs and attributes we associate with an attitude object.

What is the essence of consumer psychology?

Understand consumers needs, motivations and decision making processes and to act on that by designing campaigns or strategies to influence or affect consumer behaviour.

what are the 3 consumption stages

Before consumption, during consumption and after consumption.

what is meant by a post modern consumer?

A consumer isn't just one type. Consumers take on different roles and base their decisions on different factors depending on the context e.g. identity, age, beliefs

Define the Elaboration Likelihood Model (ELM)

A theory describing how attitudes change based on the level of involvement and information processing.

What is perceptual defence? Explain how it acts as a barrier to the consumer.

perceptual defence is when a consumer inhibits perception of potentially threatening or unpleasant stimuli.

It acts as a barrier because consumers may distort or ignore marketing messages that conflict with their beliefs.

Define showrooming and webrooming

Showrooming is when a consumer goes in store to view a product but purchases it online

Webrooming is when a consumer researches a product online but buys it in store.

What is the extended self?

The idea that external objects are viewed as a part of the self-identity. Clothes, cars and makeup are used by consumers to define and communicate themselves.

What is bounded rationality?

The idea that in decision making, rationality of consumers is limited by the information they have, the cognitive limitations of their minds and the finite amount of time they have to make decisions.

Distinguish between Classical Conditioning and Operant Conditioning.

Classical conditioning is learning through association, closely linked in time and frequently.

Operant conditioning is learning through consequences. Behaviour is strengthened if rewarded and weakened if punished.

Difference between Innate (Hedonic) and Acquired (Utilitarian) needs.

Innate needs are physiological needs such as food and water and are considered primary.

Acquired needs are psychological and are considered secondary needs, e.g. new dress

Difference between Descriptive norms and Injunctive norms

Descriptive norms are what people actually do.

Injunctive norms are what people think or should do.

Distinguish between sensation and perception

Sensation is the immediate and direct response to the sensory organs to things like light, sound or colour.

Perception is the process by which these sensations are selected, organised and interpreted to give them meaning.

Intrinsic vs. Extrinsic motivation

Intrinsic motivation is when you engage in a behaviour because it is personally rewarding or enjoyable e.g. a hobby

Extrinsic motivation is when you engage in a behaviour to earn something or avoid a punishment e.g. using a loyalty card to get points

List the 3 components of the Tri-component attitude model

1. Cognitive: Beliefs and knowledge about the object

2. Affective: Emotions and feelings toward the object

3. Conative: Intentions to act or behaviour towards the object.

Identify the types of Motivational Conflict

1. Approach-Approach: Choosing between two desirable options e.g. Burger vs. Sandwich

2. Approach-Avoidance: Desiring a goal but wishing to avoid the negative consequences linked to it e.g. wanting sweets but wanting to avoid the calories

3. Avoidance-Avoidance: Choosing between two undesirable options e.g. spending money to repair your car or driving a broken car.

List the stages of Information Processing (Perceptual Model)

1. Exposure

2. Attention

3. Interpretation

4. Retention